Steven M. Shugan

Managing Channel Profits

Маркетинговый канал дистрибуции состоит из нескольких участников, каждый из которых имеет свои собственные критерии принятия решений. Однако решения каждого участника канала влияют на прибыли и, соответственно, на деятельность всех остальных участников маркетингового канала. Недостаток координации в деятельности участников канала ведет к нежелательным последствиям для всех.

The Cost Of Thinking

A theory and methodology are developed for explicitly considering the cost of comparing diverse choice alternatives. The theory allows (1) explicit analytical measures of the cost of using various simplified decision strategies, and (2) predictions regarding the distribution of mistakes a consumer is likely to make when reducing decision-making effort.

Defensive Marketing Strategies

Анализируется ситуация появления на рынке нового конкурентного продукта. Рассматриваются необходимые действия фирмы по защите своих интересов: изменение маркетинговых (рекламных) расходов и цен на свои продукты. Цель статьи – дать менеджерам практически выполнимые рекоммендации относительно оборонительной стратегии фирмы.

Advance Pricing of Services and Other Implications of Separating Purchase and Consumption

It is important to differentiate between the act of purchasing and the act of consuming. Understanding this separation provides many implications and areas for future research. For example, the separation creates buyer uncertainty about the utility from consumption. Consider buying a ticket for a concert in advance. Here, buyers may be uncertain about their future state (e.g., health, expected conflicts, mood) at the time of the concert. This article explores the desirability and implications of this separation and the creation of it (which is often a consequence of the service provider’s selling strategy). The authors show that service providers can improve profits by advance ticketing, perhaps, to the level of first-degree price discrimination (although usually there is no loss in aggregate consumer surplus). These profits are possible despite a service provider’s inability to price discriminate.

Branded Variants: A Retail Perspective

Manufacturers frequently offer myriad variations of a branded product. In many cases, manufacturers have tens to hundreds of models. Seiko wrist watches, for example, may come with different bands,...

Intensity Measures of Consumer Preference

What is provided is an apparatus designated as a thermo-roto mixer which would provide a blood specimen mixer portion, comprising a plurality of test tube cradles for housing the test tubes containing blood, so that in the closed position, the test tubes are housed within the cradles within the mixing portion at a desired temperature. The mixing portion is fastened to a shaft supporting the test tube holder assembly, the shafts maintaining the assembly in an overall main frame. The assembly is rotated by the use of a motor pulley assembly, to impart general rotation on the test tube holder assembly.

Repositioning for Changing Preferences: The Case of Beef versus Poultry

The authors demonstrate that a superior, high-share product (beef) could lose its relative position and sales as a result of a change in consumer preference for an attribute (convenience) on which the competition (poultry) was actually weaker. They use multiple data sources to show this has happened for beef and poultry, rather than the alternative explanation of increased health awareness. These sources include United States Department of Agriculture (USDA) consumption data, a time series of new product introductions, and a sample of convenience beef and poultry products. The data support the hypothesis that increased demand for convenience contributed to poultrys success rather than the explanation that increased health awareness is solely responsible. Copyright 1991 by the University of Chicago.

Advance Selling for Services

Advance selling can be profitable when consumers are uncertain about their future consumption state. At the time of consumption, that uncertainty is resolved, but buyer states still remain unobservable to sellers. Consequently, buyer and seller information is symmetric in advance but asymmetric at consumption (i.e., sellers have an informational disadvantage in the consumption period relative to the advance period). Therefore, sellers can profit from transacting in the advance period when they are at less of a disadvantage. New technologies (e.g., biometrics, electronic tickets, smart cards, online prepayments, and new e-commerce technologies) also enhance the profitability of advance selling by lowering advance-selling costs and restraining arbitrage.

Retail product-line pricing strategy when costs and products change

Abstract Rapid changes in technology can have a sudden and differential impact on cost components of variants within product lines such as computers, printers, digital cameras and cellular phones. How should retailers react to such changes? We address this issue by answering three questions. First, when the costs of specific product components change (perhaps, precipitously), how should retailers adapt their prices in the affected product lines? Second, what will be the impact on profit margins, the range of prices and average price of the line? Finally, if a product variant is either added or removed from the line, how should the retailer adjust the other prices in the line? Our analysis reveals that the nature of interaction between the variants of the product line plays a central role in determining the appropriate retailer response to cost shocks. We also provide empirical support for our analysis.

Managing Service Demand Shifting and Bundling

This article shows that although not-for-profit services may find that demand-shifting strategies are effective, these strategies usually offer no improvement in profits. These strategies are, therefore, ineffective for private service providers who seek to improve profits. It is better for these private service providers to eliminate excess demand during peak periods than to attempt to shift some of this demand to the off-peak period. For-profit service providers should, instead, focus on demand-stimulating strategies. The authors show that bundling strategies that manage demand by combining peak with off-peak service delivery can be very profitable. Increases in price during the peak period have a greater impact on profits than increases in demand during the off-peak period because, when operating at maximum capacity, the greatest profits are achieved.