Janet Hoek

Market segmentation: A search for the Holy Grail?

Acceptance of the benefits of market segmentation is so pervasive that it seems almost sacrilegious to question the validity of this faith in the power of segmentation as a marketing tool. But, at the risk of being labelled heretics, argues that segmentation is not the marketers’ nirvana it is sometimes made out to be. Discusses a number of assumptions and arbitrary decisions involved in the segmentation process, including beliefs about the selection of base variables, the analysis method chosen, the number and composition of segments, the validity of the solution and its stability over time. Reviews techniques for assessing the reliability of the outcome, and concludes that managers should be more aware of the limitations of segmentation studies.

Advertising and Obesity: A Behavioral Perspective

Concern over the levels of obesity observed in Western countries has grown as researchers forecast a rapid growth in the medical care that a progressively more obese population will require. As health workers deal with increased incidences of diabetes and other obesity-related disorders, policymakers have examined the factors contributing to this problem. In particular, advertising that promotes high fat and high sugar products to children has come under increasing scrutiny. Advertisers have rejected claims that advertising contributes to obesity by arguing that it cannot coerce people into purchasing a product, and does not affect primary demand. This reasoning overlooks the role advertising plays in reinforcing and normalising behavior, however, and it assumes that only direct causal links merit regulatory attention. Ehrenbergs “weak” theory suggests advertising will support unhealthy eating behaviors, while the wide range of sales promotions employed will prompt trial and reward continued consumption. This article presents an alternative analysis of how marketing contributes to obesity and uses behavior modification theory to analyse the “fast-food” industrys promotions. We also review the New Zealand governments response to obesity and suggest policy interventions that would foster healthier eating behaviors.

THE BEHAVIOR OF RESPONDENTS, NONRESPONDENTS, AND REFUSERS ACROSS MAIL SURVEYS

Although numerous studies have attempted to measure nonresponse bias by comparing the characteristics of respondents and nonrespondents, most studies have restricted their comparisons to the outcome of a single survey and typically treat nonrespondents as a homogeneous group. However, with regard to mail surveys at least, several studies have noted the importance of distinguishing between nonresponse due to noncompliance and nonresponse due to inaccessibility (Mayer and Pratt 1966; Stinchcombe, Jones, and Sheatsley 1981), raising the possibility that different groups of nonrespondents may have different predispositions toward survey participation. In order to measure a persons predisposition toward survey participation, it is necessary to examine their behavior across surveys. To date, only one published study appears to have done this. Stinchcombe, Jones, and Sheatsley (1981) compared the characteristics and attitudes of early responders, late responders, nonresponders, and refusers to a telephone survey of farmers by examining the responses and participation history of these same farmers to previous mail surveys. They found that the tendency to refuse to participate in surveys was not related to accessibility, or vice versa, and provided evidence that hard-core refusers demonstrated quite different attitudes and behavior from both those easily interviewed and those difficult to contact. Generalizations from Stinchcombe, Jones, and Sheatsleys findings are limited because of the highly specialized sampling frame and topic. But the possibility that respondents, refusers, and other nonrespondents may have different predispositions toward survey participation has important implications for how surveys are conducted and how the effectiveness of survey methods is assessed. The purpose of the

Descriptive and evaluative attributes: what relevance to marketers?

A growing number of studies have suggested that consumers hold very similar beliefs about the brands they use within a product category. This implies that experience, rather than marketing activity, leads consumers to associate attributes with brands. Replicates and extends earlier studies and addresses methodological criticisms directed at that work. Our findings reveal that descriptive attributes can be successfully predicted and they confirm that the usage level of a brand typically determines the proportion of consumers who hold favourable attitudes about that brand. The results question the popular emphasis on positioning and brand differentiation and we conclude by suggesting more behaviourally oriented strategies.

Message framing effects on price discounting

Purpose – The purpose of this paper is to report the results of two experiments designed to examine the effect on consumers of the way in which price discount messages are expressed, or “framed”.Design/methodology/approach – Both studies involved stated‐preference choice modelling experiments. The aim of the first experiment was to test the hypothesis that a price reduction framed in dollar terms is more effective for high‐priced items, whereas a price reduction framed as a percent discount is more effective for lower‐priced items. The aim of the second experiment was to determine which of four alternative ways of expressing the same 33 per cent price discount – cents off, percent discount, or one of two volume discounts – is most effective.Findings – For two “low‐priced” items, potato chips and cola drinks, the framing of a price discount had little or no effect. However, for two ”high‐priced” items, stereos and computers, framing a discount in dollar terms was significantly more effective than expressin...

Direct-to-consumer advertising of prescription medicines in the United States and New Zealand: an analysis of regulatory approaches and consumer responses

New Zealand and the United States are the only two advanced nations to permit direct-to-consumer advertising (DTCA) of prescription medicines, but they use very different regulatory regimes. This paper examines the evolution of DTCA in both countries, compares the New Zealand self-regulatory model with regulation by the US Food and Drug Administration, and examines consumer survey results from both nations. Surveys reveal striking consistencies in overall attitudes towards DTCA, albeit with strong differences on a few topics directly affected by differences in regulations, such as the balance of risk and benefit information. Consumers think DTCA helps them learn about new drugs and talk to their doctors about possible treatments, with little apparent negative impact on patient.doctor communications. Regulation in New Zealand is more efficient than American regulation, although more effective disclosure of risk information could address concerns raised by New Zealand consumer groups.

Tobacco promotion restrictions: ironies and unintended consequences

Abstract As the health consequences of tobacco smoking have become more apparent, governments have regulated the types of promotion available to cigarette manufacturers. Yet despite these efforts, the tobacco industry has continued to develop highly visible promotions that make greater use of youth role models and of new media known to have high penetration among youth. Attempts to reduce the impact of the tobacco industrys promotions seem unintentionally to have stimulated the development of more subtle initiatives that are harder to regulate and that reach and influence young people even more effectively. Alternative means of controlling the health-related consequences of smoking include further promotion restrictions and tighter controls on the sale and distribution of tobacco. Social marketing programmes based on techniques developed by the tobacco industry may yet provide the richest irony: use of the industrys own tactics to counter its messages.

Ambush Marketing: More than Just a Commercial Irritant?

Although marketers have described ‘ambush’ marketing as a parasitic activity that encroaches on legitimate sponsorship, their claims often provide no basis for legal action. This article examines instances of alleged ambushes and how these fit within a wider legal framework. Ambushing appears to encompass legitimate competitive behaviour through to passing off and misuse of trademarks. Marketers concerned about ambushing should remove loopholes from contracts to minimise the opportunities open to competitors. They would also do well to learn more about the legal status of their claims and to separate these from any feelings of irritation evoked by their competitors’ behaviour.

‘Ring Ring’: Visual Pun or Passing Off?: An Examination of Theoretical and Research Issues Arising from Ambush Marketing

Competitive reactions to sponsorship have become more aggressive and more sophisticated in recent years. While few companies risk overt transgression of statutes governing commercial behaviour, many are testing the extent to which they can undermine competitors’ activities while remaining within the law. Ambush marketing refers to one such test, and cases alleging ambush marketing have grown and look likely to continue increasing as sponsorship investment increases. This practice raises several questions which have been difficult for the courts to address. In this paper, NZO&CGA v. Telecom, a recent case alleging ambush marketing, is used as the basis of a discussion which examines managers’ use of sponsorship and relates this back to a theoretical framework, the ATR model. Ambush marketing is discussed in the context of the ATR model and a research methodology for exploring the issues raised by NZO&CGA v. Telecom is proposed.

Food advertising and self‐regulation: A view from the trenches

Objective: This study assessed the logic of arguments advanced when the New Zealand advertising self‐regulation complaints board adjudicated a complaint about a food product; in addition, it compared these arguments and the complainants experience of the process to international best practice criteria relating to independence.