Knowledge that Transforms

On the basis of an extensive review of the literature, the authors have developed a framework of entry deterrence strategy. The major aspects of this framework are the interconnected elements of the competitive environment, the choice of entry deterrence strategy, ranging from strategies involving a single element of the marketing mix to corporate-level strategies; and the consequences that both the strategy choice and subsequent entry decision have for the incumbent. The authors’ framework explicitly acknowledges the role of perceptions in signal detection, interpretation, and decision making in the development of entry deterrence strategy. With their framework as a focal point, they review the extant literature to make it accessible to a wider audience and provide guidance for further research.

The authors report on the effects of a trade show on incremental sales and profits for a manufacturer of gas chromatographic equipment. Their analysis indicates that the show provided positive economic returns to the firm. They also provide evidence that the show had positive effects on generating product awareness and interest. Although their research studies a single firm and the effect of a single show, the authors’ results indicate that, under carefully controlled conditions, the returns from trade show investments can indeed be measured and quantified and that extensions of their approach may have broad applicability.

The author reviews and tests the effect of cartoon trade characters on product recognition and attitude on a sample of children three to six years of age. High levels of product and trade character recognition were found, including that of Joe Camel and the Marlboro Man with cigarettes. The recognition of select trade characters tended to increase with the age of the child. The level of recognition and favorable attitude toward the product were positively associated with age except for cigarettes. The attitude for cigarettes and matches were negatively associated with age. Because the possibility of demand artifacts cannot be ruled out, these findings must be interpreted with caution.

Retailers offer temporary price promotions to attract shoppers to stores and encourage them to purchase regular price merchandise. Existing research has found little evidence that price promotions affect regular price sales, possibly because published studies have not directly examined individual purchase baskets to determine if shoppers buying promoted items also purchase regular price items. The authors match actual purchases of individual shoppers with an in-store survey to determine the relationship between regular price and promotion purchasing. The results show a significant, positive relationship between regular price and promotion purchases. Among shoppers who identify the promotion as one of their reasons for visiting the store, three-fourths make regular price purchases. On average, these shoppers spend more money on regular price merchandise than on promotion merchandise. Also, the results show that shoppers visiting the store for the promotion are no less profitable to the store than other shoppers.

The authors’ study provides the first survey-based approach for examining consumer cognitions, affect, and reported behavior toward pioneer brands. Prior consumer research on pioneers has largely focused on automatic learning effects that are based on order of exposure. An entirely different issue is whether it matters to consumers to know, years after the product's introduction when follower brands are also available, that a particular brand was the product pioneer. The authors test six hypotheses, focusing on this issue as well as on new consumer behavior explanations for pioneer brand advantage. They find consumers to have a positive attitude toward pioneer brands in general, which is partially explained by their favorable perceptions of pioneer brands. In addition, a similarity is found between pioneer brand image and individual ideal self-image, which suggests that an association or desire for consistency between the two may be another explanation for favorable attitude and positive purchase intentions toward pioneer brands. The authors’ findings support the idea that a potentially enduring, relatively inimitable competitive advantage may be created by the act of “pioneership.”

A product entry strategy—the timing of entry, the magnitude of investment at entry, and the area of competitive emphasis at entry—affects long-term performance in the marketplace. The authors develop the Entry Strategy Performance Model (ESPM) and propose an encompassing framework for product entry strategy research. They empirically test a research model derived from the ESPM through an examination and replication in the microcomputer software market. The authors’ significant findings are that initial competitive positioning and media coverage (an atypical market characteristic) drive long-term performance.

Research on influence strategies has typically been conducted in interorganizational settings. In a departure from this tradition, the authors focus on influence strategies used by managers in buying centers. They develop a three-dimensional framework for classifying six prominent influence strategies—threats, promises, recommendations, requests, legalistic pleas, and information exchange. Drawing on this framework, the authors argue that the use of a particular influence strategy by a manager is likely to be related to two classes of antecedents: source and target characteristics. Additionally, they draw on the framework to argue that the effectiveness of alternative influence strategies is likely to vary in predictable ways. The authors investigate the pervasiveness of each of the six influence strategies in a study of 187 purchasing decisions and compare the findings to those previously obtained in interorganizational settings. Findings pertaining to the study's hypotheses provide insights into the relative effectiveness of the six influence strategies and the conditions under which certain influence strategies are more likely to be used.

One stream of research for order of entry effects focuses on the possibility that the order of entry exerts a direct impact on business performance. A second stream of research, the contingency perspective, debates the merits of whether the order of entry, in combination with other market strategy and marketplace variables, is what actually drives business performance. The findings from studies focusing on possible direct effects offer only mixed evidence in favor of a pioneering advantage. The contingency perspective, however, has not been subjected to systematic, empirical scrutiny. Against this backdrop, the authors conduct a meta-analysis of the pioneering-market share findings and an examination of the contingency perspective of order of entry effects. The findings from the meta-analysis reveal that, on average, earlier entry is associated with greater market share. The findings from the contingency analysis, however, offer evidence suggesting that the contingency perspective is the more valid perspective for capturing the association between order of entry and market share. The authors discuss the theoretical and managerial implications of their findings and several directions for further research.

The authors focus on NPA signals, which they define as new product announcements in advance of market introduction. They develop a set of hypotheses regarding incumbent reactions to NPA signals and test them in a field study among managers in the United States and the United Kingdom. The authors’ findings provide a characterization of the factors affecting the likelihood of competitive response to NPA signals and suggest a set of managerial implications.

How can multiline providers induce their salespeople to sell house brands? Using both unobtrusive measures (archival data) and direct questions, the authors model the extent to which salespeople adopt house brands, as well as the salesperson's perception that selling house brands can pose contractual hazards and his or her dependence upon the employer. Results indicate that adoption of house brands is most pronounced for salespeople who are habitually successful, are more dependent on the firm, or receive high levels of company training. In contrast, salespeople who resist house brands perceive that selling these products threatens their customer bond, have greater experience as a salesperson, and are more oriented to external than to internal sources of information. The authors discuss implications of the findings in terms of developing ways for multiline providers to manage independent-minded salespeople.