Pablo Farías

Comparative advertising effectiveness in Latin America: evidence from Chile

Purpose – The purpose of this study is to test the viability of comparative advertising in Chile.Design/methodology/approach – Data were collected via controlled experimentation. The study employed a 3 (comparative advertising intensity: noncomparative, indirect comparative, and direct comparative)×2 (product category involvement: low, high)×2 (sponsor brands relative market share: market leader, other brand) between‐subjects factorial design.Findings – The results suggest that direct and indirect comparative advertisements are not more effective than noncomparative advertisements in Chile. Additionally, data do not support the idea that the effect of comparative advertising intensity is moderated by the product category involvement and/or by the sponsor brands relative market share. Since comparative advertising was not shown to be more effective than noncomparative advertising, the authors hypothesize that it is due to cultural biases and the novelty of comparative advertising in Latin America, as exp...

Business group characteristics and firm operating performance: evidence from Chile

Purpose The purpose of this paper is to examine the impact of business group characteristics on firm‐operating performance in Chile. Design/methodology/approach Using a multiple regression model, this study examines the effect of business group characteristics (interlocking of directors, management concentration, and business group specialization) on operating performance (ROA growth) in a sample of 104 publicly traded Chilean firms. Findings It is documented that, except for interlocking of directors, the two other business group characteristics (management concentration and business group specialization) are significantly related to the operating performance of firms belonging to Chilean business groups. These findings suggest that Chilean business groups would improve or deteriorate the performance of their affiliated firms modifying its characteristics. Originality/value Too little is known about the effect of business group characteristics on firm‐operating performance in Latin American countries suc...

DETERMINANTS OF THE SUCCESS OF GLOBAL AND LOCAL BRANDS IN LATIN AMERICA

El proposito de este trabajo es abordar la cuestion de la aplicacion de marcas globales y locales en America Latina mediante la elaboracion de teoria de contingencia para desarrollar y poner a prueba las hipotesis relativas a como las caracteristicas de la categoria de producto influyen en el exito de las marcas globales y locales en la region. Las hipotesis se ponen a prueba utilizando datos obtenidos de rankings de marcas top publicados en cinco mercados de America Latina (Argentina, Brasil, el Caribe y America Central, Chile y Mexico). El diseno del estudio considera la estimacion de una regresion logistica sobre una variable dependiente binomial midiendo si las 475 marcas top son marcas globales o locales con las caracteristicas de la categoria de producto como variables independientes. Los resultados revelan que las categorias de producto relacionadas con las suscripciones, los gustos locales, la alta tecnologia y ciudadania mundial tienen un impacto en el exito de las marcas globales y locales en America Latina.The purpose of this paper is to address the issue of the implementation of global and local brands in Latin America by drawing on contingency theory to develop and test hypotheses relating to how product category characteristics affect the success of global and local brands in the region. Hypotheses are tested using data obtained from top brands rankings reported in five Latin American markets (Argentina, Brazil, the Caribbean and Central America, Chile and Mexico). The study design considers estimating a logistic regression on a binomial dependent variable measuring whether 475 top brands are global or local brands, with product category characteristics as independent variables. Results reveal that product categories related to subscriptions, local tastes, high-tech, and global citizenship do have an impact on the success of global and local brands in Latin America.The purpose of this paper is to address the issue of the implementation of global and local brands in Latin America by drawing on contingency theory to develop and test hypotheses relating to how product category characteristics affect the success of global and local brands in the region. Hypotheses are tested using data obtained from top brands rankings reported in five Latin American markets (Argentina, Brazil, the Caribbean and Central America, Chile and Mexico). The study design considers estimating a logistic regression on a binomial dependent variable measuring whether 475 top brands are global or local brands, with product category characteristics as independent variables. Results reveal that product categories related to subscriptions, local tastes, high-tech, and global citizenship do have an impact on the success of global and local brands in Latin America.

A new model for measuring salesperson lifetime value

The purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a salesperson and the sales force equity.,This is a conceptual paper supported by a case study.,The authors contribute to the literature by operationalizing the salesperson lifetime value concept and introducing new important aspects in comparison with previous discussions, including peer effect, recruitment/hiring cost and termination costs.,This manuscript theoretically and practically contributes to personnel value management in the organization and sales force financial control. The authors introduce peer effects, hiring/recruitment costs and termination costs, which are missing as a set in previous research. In addition, this paper offers a simple but robust model to practitioners’ use.

Identifying the factors that influence eWOM in SNSs: the case of Chile

ABSTRACT The factors that influence electronic word-of-mouth (eWOM) in social networking sites (SNSs) in Latin American countries still need to be understood. This paper looks at factors included by prior research, as well as two new factors that have the power to influence eWOM in SNSs in the region. The study is conducted in Chile, a country which already has high Internet and SNSs penetration rates and Hofstedes scores close to the average for Latin America. The results show that tie strength, normative influence, informational influence, self-presentation, and voluntary self-disclosure are all positively directly associated with eWOM in SNSs. The results also show that homophily exerts a positive indirect influence on eWOM through the mediators of tie strength, normative influence, informational influence, and self-presentation. Additionally, the results show that trust exerts a positive indirect influence on eWOM through the mediators of tie strength, normative influence, and voluntary self-disclosure.

Use of Facebook and the Formation and Maintenance of Social Capital: Evidence from Latin America

Social capital plays an important role in generating word of mouth, in C2C interactions within brand communities, as well as within brand service channels that provide after-sales support via peer-to-peer problem solving communities. Ellison et al. (2007) suggest that intense Facebook use is closely related to the formation and maintenance of social capital. Ellison et al. (2007) only examined Facebook users at one university in the U.S., and there may be differences across cultures that they were not able to capture. This article seeks to examine the effectiveness of Facebook use on the formation and maintenance of social capital in Latin America. The results suggest that Facebook intensity is less effective in the formation and maintenance of social capital for Latin American students than U.S. students.

Store price promotion strategies: an empirical study from Chile

Purpose The purpose of this paper is to examine two popular price promotion strategies – price matching guarantees (PMGs) and everyday low prices (EDLP) – and their effects on Chilean consumer behavior in terms of consumer perceptions of low prices, search behavior and purchase intention. Design/methodology/approach A quasi experiment with three scenarios was conducted to test price promotion effects. Subjects were instructed to respond a questionnaire that included the dependent variables. Findings Results show that EDLP and PMG strategies increase perceptions of low prices and affect purchase intentions. These effects are significantly higher for stores offering EDLP than PMG. However, when consumers are exposed to two or more price promotion strategies (rather than one) they reduce their purchase intentions for a specific store and increase their search intentions. Research limitations/implications This is an initial study exploring the effects of price promotion strategies on consumers. Future researc...

Determinants of perceived and actual knowledge of commission paid by contributors in the pension funds industry

This paper examines the determinants of perceived and actual knowledge of commission paid by contributors in the Chilean pension funds industry. Results show that price consciousness and brand credibility are positively associated with perceived and actual knowledge of commission paid by pension fund contributors. Results also show that financial literacy is only positively associated with actual knowledge of commission paid by contributors. Additionally, results show that price based advertising exposure is only positively associated with perceived knowledge of commission paid by contributors. This association is stronger for contributors with a high use of the price-quality cue. Based on the findings presented, implications for managers, regulators and researchers are drawn.

LAS PREFERENCIAS DEL CONSUMIDOR USANDO EL MÉTODO DE MÁXIMAS DIFERENCIAS

Este estudio tiene como objetivo identificar los atributos mas importantes que el consumidor limeno utiliza en el proceso de eleccion del vino. Adicionalmente, se busca identificar diferencias entre segmentos en estas preferencias. La metodologia consiste en una encuesta a consumidores de vino usando el metodo de maximas diferencias. El estudio es unico en America Latina, donde existe una brecha importante en el mercado del vino y donde el metodo de maximas diferencias es inexplorado por administradores e investigadores. Los resultados muestran que los atributos mas importantes se relacionan con la experiencia previa del consumidor con el vino, el maridaje y las recomendaciones. Este articulo presenta las implicancias para los administradores sobre sus estrategias de marketing a nivel de Lima, generaciones etarias, estratos socioeconomicos y genero.

Endowment effect in Latin America: empirical evidence and implications

Authors from several disciplines—decision sciences, management, marketing, behavioral economics—have documented the existence of anomalies to the standard rational model of human behavior. Among several anomalies, the endowment effect has found substantive support in previous research. Few studies have explored the endowment effect in developing countries. This study reports the results of an experiment conducted in Chile to empirically analyze the endowment effect in an experimental setting. The results support the hypothesis that endowment effects are also applicable to Chilean and Latin American consumers, adding to the growing evidence in favor of quasi-rational models of consumer behavior. Implications for marketing, management and policy-making practices are briefly presented.