Choosing a Digital Content Strategy: How Much Should be Free?


International Journal of Research in Marketing

juin 2014, vol. 31, n°2, pp.192-206

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Information Goods, Sampling, Content Pricing, Advertising, Dorfman-Steiner Condition

This paper studies content strategies for online publishers of digital informationgoods. It examines sampling strategies and compares their performance to paidcontent and free content strategies. A sampling strategy, where some of the contentis offered for free and consumers are charged for access to the rest, is knownas a “metered model” in the newspaper industry. We analyze optimal decisionsconcerning the size of the sample and the price of the paid content when samplingserves the dual purpose of disclosing content quality and generating advertisingrevenue. We show in a reduced-form model how the publisher’s optimal ratio ofadvertising revenue to sales revenue is linked to characteristics of both the contentmarket and the advertising market. We assume that consumers learn about contentquality from the free samples in a Bayesian fashion. Surprisingly, we find that itcan be optimal for the publisher to generate advertising revenue by offering freesamples even when sampling reduces both prior quality expectations and contentdemand. In addition, we show that it can be optimal for the publisher to refrainfrom revealing quality through free samples when advertising effectiveness is lowand content quality is high

Claiming the credit


Business Strategy Review

2014, vol. 25, n°8

Départements : Marketing

Mots clés : *BUSINESS -- Decision making *RESEARCH *EXECUTIVES *CORPORATE profits

Impartial decisions in the best interests of the organisation are more elusive than you might think

Consumer Attitude Metrics For Guiding Marketing Mix Decisions


Marketing Science

juillet-août 2014, vol. 33, n°4, pp.534-550

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Consumer attitude metrics, Responsiveness, Potential, Stickiness, Sales conversion, Hierarchical linear model, Cross-effects model, Empirical generalizations, Dynamic programming model, Optimal marketing resource allocation

Marketing managers often use consumer attitude metrics such as awareness, consideration, and preference as performance indicators because they represent their brand's health and are readily connected to marketing activity. However, this does not mean that financially focused executives know how such metrics translate into sales performance, which would allow them to make beneficial marketing mix decisions. We propose four criteria—potential, responsiveness, stickiness, and sales conversion—that determine the connection between marketing actions, attitudinal metrics, and sales outcomes.We test our approach with a rich data set of four-weekly marketing actions, attitude metrics, and sales for several consumer brands in four categories over a seven-year period. The results quantify how marketing actions affect sales performance through their differential impact on attitudinal metrics, as captured by our proposed criteria. We find that marketing–attitude and attitude–sales relationships are predominantly stable over time but differ substantially across brands and product categories. We also establish that combining marketing and attitudinal metrics criteria improves the prediction of brand sales performance, often substantially so. Based on these insights, we provide specific recommendations on improving the marketing mix for different brands, and we validate them in a holdout sample. For managers and researchers alike, our criteria offer a verifiable explanation for differences in marketing elasticities and an actionable connection between marketing and financial performance metrics

Does luxury have a minimum price? An exploratory study into consumers' psychology of luxury prices


Journal of Revenue & Pricing Management

février 2014, vol. 13, n°1, pp.2-11

Départements : Marketing

Consumer studies show that luxury evokes high prices. However, the remarkable growth of this sector is based on its extension to the middle class, with affordable prices. This is a paradox: luxury needs to be expensive, yet grew being accessible. Hence the question: If consumers want to access to luxury, below what price would they consider that it is no more luxury? Is there a minimum price? This research explores how consumers decode luxury prices, how are lower prices compatible with luxury. Strong brands have indeed a larger latitude for accessible pricing than new luxury brands

Does Marketing and Sales Integration Always Pay Off? Evidence from a Social Perspective


Journal of the Academy of Marketing Science

septembre 2014, vol. 42, n°5, pp.511-527

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Marketing organization, Sales organization, Marketing and sales interface, Social capital

Building on social capital theory, we view the marketing and sales interface as set of inter-group ties and investigate how cross-functional relationships may facilitate the development of social capital associated with value creation. Our findings suggest that capital embedded in marketing and sales relationships can inhibit a firm's performance depending on the characteristics of its customers. Our results also demonstrate that managing the marketing and sales interface at different levels of customer concentration is critical to the success of a firm's performance

Examining children's preference for phonetically manipulated brand names across two English accent groups


International Journal of Research in Marketing

mars 2014, vol. 31, n°1, pp.122-124

Départements : Marketing, GREGHEC (CNRS)

Replicating Shrum et al. (2012), we demonstrate that individuals display a preference for brand names that contain vowel sounds that connote product attributes. We also illustrate the impact of accent and phonological development on the nature and presence of phonetic symbolism respectively. With no known studies examining the role of accent, it is suggested that this research makes a unique contribution, offering an alternative perspective on current global phonetic symbolism research

Global Business Travel Builds Sales and Stress - The Seven Stages of Business Travel Stress


HBR Research on


Départements : Management et Ressources Humaines, GREGHEC (CNRS), Marketing

How stressful is business travel? Very. Especially if you’re a female vice president. We know this because Michael Segalla and Dominique Rouziès of HEC Paris teamed up with Catalin Ciobanu and Vincent Lebunetel of Carlson Wagonlit Travel to survey thousands of business travelers about the stress they felt at every stage of a trip.When mapped on the timeline of a standard business trip, the data offer a view into who’s stressed out by what. VPs hate expense reports. Senior executives have a surprisingly high fear of flying. And, yes, women are far more stressed by business travel than men.Click here or on the image below to interact with their timeline and learn more about their travel stress findings.

How consumers value transactions that entail using windfall money to offset missed price discounts


European Journal of Marketing

2014, vol. 48, n°5/6, pp.1113-1132

Départements : Marketing

Mots clés : Judgment anomalies, Opportunity loss, Transaction utility, Windfall gains

Purpose– The purpose of this study is to examine if consumers, after missing a price discount on a desired product, prefer to buy the latter at a smaller discount or prefer to pay full price but offset some of it with windfall money.Design/methodology/approach– In four experiments, participants imagine that they have missed an opportunity to buy a box of chocolates at $50 off and are offered a second chance to buy them at a less attractive discount ($25) or pay full price, but partially offset the full price with various windfall lotteries ($25, $50, $75) and gift cards ($50).Findings– Participants are more likely to buy the chocolates at the less attractive (second) discount rather than pay full price using windfall money. In doing so, they show that they are willing to be more, rather than less, poor from an overall wealth perspective to acquire the chocolates. This anomaly surfaces irrespective of the windfall amounts or preference elicitation methods (joint versus separate evaluation). The negative transaction utility of paying full price mediates the purchase method effect (discount versus windfall) on purchase likelihood, but gift cards are able to reduce the negative transaction utility of paying full price.Originality/value– The research reveals a judgmental anomaly in how consumers assess product acquisition value following a lost opportunity and suggests that marketing managers may be able to reduce consumer inertia by strategically matching rewards with the source of the lost chance.

Impact of Component Supplier Branding on Profitability


International Journal of Research in Marketing

décembre 2014, vol. 31, n°4, pp.409-424

Départements : Marketing

Mots clés : Business-to-business brands, Ingredient branding, Component supplier branding, Brand performance, Financial performance

In recent years, many business-to-business (B2B) component supplier (CS) firms have added branding to their marketing toolbox. By extending the logic of ingredient branding to B2B components, they aim to create “pull” from B2B end customers by building a strong CS brand image among their customers' customers. In contrast with the established “push” approach of building strong relationships with original equipment manufacturers (OEMs), it is unclear whether and under which conditions CS branding is a worthy strategy. On the one hand, anecdotal evidence suggests that suppliers can leverage strong CS brand image in negotiations with increasingly powerful OEMs to enhance their financial performance. On the other hand, many B2B managers believe that branding does not work in their industry context and erodes profitability. We build a data set consisting of survey measures and archival data across a broad set of industries. Our results indicate that the financial outcomes of CS branding largely depend on the characteristics of the CS and OEM industries. Unlike dyadic OEM–CS relationships, which enhance profitability invariably across industry contexts, CS branding is effective only in well-defined situations. CS branding initiatives can enhance return in CS industries with substantial levels of product differentiation and technology intensity. However, unfavorable results may arise in industry contexts in which OEM–end customer relationships or OEM brands are importantWe examine how B2B component supplier (CS) brands affect CS profitability.•Our study combines survey measures with archival, multi-industry data.•Financial outcomes of CS brands are contingent on industry characteristics.•Product differentiation and technology intensity in the CS industry enhance CS brand outcomes.•OEM brands and OEM–end customer relationships reduce positive CS brand impact

Is extra legroom worth fighting for ?


Harvard Business Review

novembre 2014, vol. 92, n°11, pp.30

Départements : Management et Ressources Humaines, Marketing, GREGHEC (CNRS)

The article discusses research on determining a correlation between consumer comfort on passenger airline flights and willingness to pay for airline seats. It gives graphs that show statistics on airline airfare costs in relation to seat pitch and comfort ratings in relation to average airline ticket price