ISBM Pulse: academic research

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Business Cycles Research in Marketing (Dekimpe and Deleersnyder) (open access)

Facing the economic consequences of the current COVID-19 pandemic, a recession seems inevitable. In the light of a likely downturn in the economy, academic research on business cycles is more relevant than ever before. For this purpose, we selected a review article by Marnik Dekimpe and Barbara Deleersnyder (Tilburg University), published in 2018, that synergizes the evidence presented in 31 post-2000 marketing studies focusing on the impact of business cycles.

dark clouds

Partnering with Nonprofits to Confront a Crisis (Ballesteros and Gatignon)

The private sector cannot wait and see until the COVID-19 storm is over. They need to act, and be part of the solution. Helping out now may regain the trust that the private sector has lost recently, by demonstrating its ability of mobilizing resources, generating innovations, and scaling them up fast. However, in doing so, firms should consider the unique abilities of the nonprofit sector in times of disaster and crises.

warehouse

Understanding the Long-Term Implications of Retailer Returns in B2B relationships (Beitelspacher et al.)

Beitelspacher et al. (2018), used longitudinal survey data and supplier CRM data of a global sporting goods supplier to analyze the effects of returns on salespeople behavior and future retailers returns. The authors found that conceptualization of exchanges between suppliers and retailers as reciprocal rather than negotiated enhances relationship building efforts. This article also highlights the importance of salespeople’s ability to recognize that negative occurrences (i.e. returns that might lower their sales achievements and commissions) could be turned into positive opportunities.

Disentangling the effect of services on B2B firm value: Trade-offs of sales, profits, and earnings volatility (Nezami, Worm, and Palmatier)

Many B2B manufacturers have moved from their previously successful product-centric strategies to more service-oriented business models. Yet despite their substantial investments in services, firms fail to understand the performance ramifications of these offerings. With a longitudinal data set of 227 B2B manufacturers listed in the S&P 1500 index, this study disentangles the simultaneous effects of financial-based mechanisms that link the service ratio (i.e., share of a firm’s revenue generated from selling services) to firm value.

Ferris wheel

Marketing Channel Management by Multinational Corporations in Foreign Markets (Grewal et al.)

Multinational corporations require ongoing management of marketing channels, leading to challenges rooted in complex relationships between HQ-subsidiaries, subsidiaries-local channel partners, and third-party mediators at each host country level. For effective channel management, HQ should align subsidiary goals with HQ’s strategic motives and leverage subsidiary networks. This could be achieved by informal decision-making processes with subsidiaries to boost performance, or by moving employees across subsidiary networks.

The Relative Influence of Economic and Relational Direct Marketing Communications on Buying Behavior in B2B Markets (Kim and Kumar)

B2B firms spend significant resources in direct marketing to manage their customer relationships. Firms should understand how customers evaluate these organizational marketing communications, which ultimately affect their buying behaviors. Based on four years of customer relationship management data of a Fortune 500 B2B service firm, Kim and Kumar (2018) built a model that aids B2B firms to strategically allocate marketing resources across economic and relational value messaging.

Book: Unlocking the Customer Value Chain: How Decoupling Drives Consumer Disruption

In his book ‘Unlocking the Customer Value Chain, Harvard Business School professor Thales Texeira describes how the disruption of an industry is driven by customer behavior rather than technologies. Innovative new business models allow startups to ‘decouple the value chain’ – picking one aspect of an incumbent’s business model and doing it better.  

locks

Corporate Board Interlocks and New Product Introductions (Srinivasan, Wuyts, and Mallapragada)

Firm’s board interlocks represent bridges to valuable market intelligence that could be used in developing incremental innovations and thus, could lead to new product developments and introductions. By analyzing new product introductions of 30 firms over the period of 1997 to 2012, Srinivasan et al. (2018) have found that the strength of the positive relationship between board interlocks and new product introductions depends on the board composition.

Fence

Strategies to Connect with Barricaded Buyers (Chase and Murtha)

When responding to a Request for Proposal (RFP) in both the public and the private sector, suppliers’ access to buyers is often restricted due to law and informal rules of engagement. The authors term these buyers ‘barricaded buyers’. Despite having limited access to these individuals, suppliers can still increase their competitiveness and selection likelihood when selling to barricaded buyers. 

chess pieces

B2B2C Market Segmentation (Robert Thomas)

A common complaint among firms is that B2B market segmentation does not really work that well. A possible reason may be that true market segmentation does not stop with one’s direct customer but should also include the customer’s customer and so on in a multi-level B2B2C market segmentation structure. A B2B2C market segmentation alignment may lead to innovative positioning, as well as, creative message levers for the sales force to use as an argument to gain advantage according to strategically aligned segment needs. Case studies will illustrate this approach.