Volume 17, Issue 1 -

This paper addresses an important issue to find relationship between the brand image and its determinants. Based on a data set of 136 brand characteristics measured for 700 top American national brands obtained from a survey of 4769 respondents as well as secondary sources (Lovett, Peres, and Shachar. 2014. “A Data Set of Brands and Their Characteristics.” Marketing Science 33 (4): 609–17), this study adopted an established econometrics approach (Stochastic frontier analysis) that has not been extensively applied in the marketing literature. The approach discussed in this paper can be used as an analysis framework where the concept of efficiency is brought into the picture in analyzing the relationship between the brand image with its associates. It is found that competency and familiarity are two main features that increase brand equity, whereas perceived risk and excitement decreases it.

This paper introduces a model for the diffusion of add-ons that consist of new industrial technologies embedded in mature products. These new technologies are targeted to improve attributes such as the performance, convenience, safety, etc., of the carrier product that incorporates them. Although the rationale for the purchase of the carrier product is driven primarily by mature market factors such as physical wear-out or changing personal needs, the innovative technologies embedded in the design of these products and the advantages they offer provide a competitive edge to the brands that incorporate them. We examine the potential growth of the market share of products that incorporate new technologies within this overall carrier market. We apply our model to the diffusion of green buildings that incorporate better thermal insulation through the use of new materials. For this purpose, we draw on surveys and industry data to estimate the parameters of the model.

Business relationships provide the means to create and appropriate superior value in business markets. However, despite the proliferation of research on the phenomenon, many questions remain unaddressed. Previous work focused almost exclusively on value after its creation and its sharing between the two exchange partners. Consequently, the appropriation of value as well as its interaction with value creation remains relatively unknown. Similarly, a few studies have examined the role of relational variables and power asymmetry in customer–supplier exchange relationships. To fill this gap, this study aims to examine the influence of relationship quality and power on value creation and appropriation and ultimately, on satisfaction and relationship continuity. Based on the theory of social exchange, this study proposes a conceptual model, which positions value creation and appropriation as central variables in the nomological network of business relationships. A quantitative study of 174 suppliers was carried out in order to compare the theoretical model with the empirical reality. The results obtained show that the relationship quality promotes greater value creation and appropriation in ongoing business relationships. As for power, its influence differs depending on how it is exercised within the relationship. Moreover, the appropriation of value remains the main driver of partner satisfaction, a sine qua non condition for the continuity of the relationship. This present research contributes to a better understanding of value creation-appropriation in ongoing business relationships. By strategically managing their customer–supplier relationships, managers can create and capture greater value and gain a competitive advantage.

For many years, the movie industry has been characterized by a unique (compared to other industries) type of vertical contracting practice, called sliding-scale contracting whereby the distributor (studio) takes a much larger (usually around 70%) share of box-office revenues than the exhibitor (theater) in the week of a movie’s release, with the exhibitor’s share increasing, in gradual steps, over subsequent weeks. In this paper, we propose a game-theoretic model that provides a new rationale for these contracting choices. Specifically, we show that these contracts effectively resolve conflicts of interest between studios and theaters over movie release timing and display length, in a way that is beneficial for both parties. Our model also stipulates conditions under which sliding scale become dominated by aggregate deals , i.e. deals based on total rather than weekly box office revenue. The testable predictions based on these conditions can be used by future empirical research once the available evidence on the use of aggregate deals in practice goes beyond anecdotal.