Sergio Olavarrieta

Resource‐based theory and strategic logistics research

Despite calls for more theoretical and strategically oriented work in logistics, the resource‐based theory of the firm (RBT), and the related capabilities approach ‐ which represent a dominant stream of research in strategic management over the last decade ‐ have not been prominent in the logistics literature. Provides a critical review of the large literature on the RBT and suggests areas where it can be applied to strategically‐oriented logistics research. Describes the resource‐based theory of the firm, its major assumptions, and its implications for strategic actions. Also discusses other areas of research where the RBT have been applied. Illustrates how the RBT represents the underlying theoretical support for one of the central propositions of strategic logistics: that a distinctive logistics capability is a source of sustainable competitive advantage and superior performance. Suggests that strategic logistics research may benefit from combining the RBT with organizational learning theory and evolutionary approaches to competition.

An Integrated Framework for the Conceptualization of Consumers' Perceived-Risk Processing

Research on risk is built on a complex array of diverse and sometimes inconsistent definitions, constructs, models, and outcomes. This study examines various literatures to formulate an integrated framework for the conceptualization of perceived-risk processing. The framework specifies three phases (framing, assessment, and evaluation) and their accompanying outcomes of risk attention, perceived risk, and risk-taking propensity. Explicit linkages are specified between situational and individual characteristics. Perceived-risk evaluation is identified as concepturally distinct from assessment of perceived risk, and the construct of risk-taking propensity is separated from those of risk affinity and perceived risk. The framework further presents points of intersection between the literatures on perceived risk and the literatures on consumer decision-making, information search, and satisfaction. Finally, it serves as an anchor for framing future research to promote conceptual and methodological consistency, and to guide progress in directions that are consistent with some leading edge paradigms outside of marketing.

Market-oriented culture, knowledge-related resources, reputational assets and superior performance: a conceptual framework

In the last 10 years new theories of superior business performance have emerged from the work of marketing, strategy, organizational theory and economics scholars. These new perspectives, known under the labels of resource-based view of the firm, competence-based competition and evolutionary theory, share a special focus on a firms rare, valuable and difficult-to-imitate resources (e.g. intangible assets and organizational capabilities) as the key determinants of superior business performance. Based upon this work and developments in the marketing strategy literature, in this study we develop a conceptual model which links these different explanations of superior performance and renews original ideas in terms of the drivers of success and superior performance. Competition is approached as a dynamic phenomenon and, therefore, firm success is not permanent. Innovations are a common way in which the competitive advantages of other firms are offset or eliminated. In fact, the role of knowledge-related resour...

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...

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...

Brand Familiarity in Latin America: A New Three-Dimensional Conceptualization and Measure

Brand familiarity is a construct often used in marketing and consumer behavior for explaining buyer behavior and marketing effects. Advertising agencies and marketing managers use brand familiarity as a measure of marketing and advertising effectiveness. The literature suggests alternative definitions of familiarity focusing on recognition, brand knowledge and experience. In this paper we propose a three-dimensional conceptualization of brand familiarity including: recognition, general knowledge and closeness, which fully captures the concept domain. Through six empirical studies we develop and validate a new measure of brand familiarity, and we propose ways to use it for further theoretical development and managerial purposes.

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.

Analysis of the AFP Industry Using Customer Lifetime Value

Understanding the long-term price matching effects on consumers is important to evaluate the effectiveness of these policies in stimulating customer retention. In industries with low product differentiation and low consumer involvement (e.g., AFP Industry), it can be seen that choosing a product is based on habitual purchasing behavior (inertia). The objective of this article is to analyze the competitor convenience of improving customer retention by matching the lowest price in the AFP Industry. Results suggest that matching the industry’s price leader reduces the company’s CLV, diminishing competitor incentives to make this marketing effort.

Money, Meaning and Motivation: Experimental Evidence in Latin America

Research in decision sciences, psychology, behavioral economics, and management suggest that rationality-based models are not always valid to explain human behavior (THALER, 2000; ARIELY, 2009). However business schools and management executives continue teaching and using Western-developed and rationality-based models of human behavior not considering cultural, personal differences, and intrinsic human characteristics inconsistent with rational choice models (CHEN and MILLER, 2011; THALER, 2000). Following recent work by Ariely, Kamenica and Prelec (2008) this paper tests the role of perceived meaning as a significant motivation driver in a Latin-American setting using two experimental studies. Previous research on the violations of rationality assumptions is based mainly in Western and developed countries, and this study’s results provide support towards the generalizability of quasi-rational models of human behavior in Latin America, expanding existing evidence. Implications for management, business, and public policy practice and future research are discussed.

Endowment Effect in Latin America: An Experiment

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 is a key finding of this 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. Findings are consistent with previous international evidence suggesting the ownership itself produces value to consumers (and decision makers). Implications for marketing, management, business education and policy making practices are briefly presented.