Corporations may strut their synergies and crow about cost savings in acquisition announcements, but does buying a company really create shareholder value? Generally not — but what happens when company A buys brand X from company B? As it turns out, that transaction could be a winner for all, according to research recently conducted by Michael Wiles, an assistant professor of marketing at the W. P. Carey School of Business.
Even those who love a certain food — such as yogurt or frankfurters — often turn on their favorites and do not purchase the products for periods of time. Assistant Marketing Professor Sungho Park and his research partner studied these purchasing cycles, and they uncovered a valuable fact: timing promotions based on buying cycles makes a huge difference. The researchers write that “a firm can implement targeted promotions with customized timing using easily available descriptive statistics of households’ purchasing histories.”
Douglas Olsen, associate professor of marketing, is teaching the marketing module of the 2012 Small Business Leadership Academy, presented by the W. P. Carey School’s Center for Executive and Professional Development. In these short podcasts, Olsen discusses some of the basic concepts of marketing. Business To Go delivers insights and information from W. P. Carey faculty that you can put to work in your business or career today.
Product companies are looking to services as a way of increasing profitability and leveling out the revenue cycle. But marketing Professor Stephen Brown with the W. P. Carey Scho0ol’s Center for Services Leadership, says that companies who attempt the shift must navigate through a continuum. Developing the service solution that generates major revenue is a complex process. Brown and colleagues have examined the challenges.
American consumers are mad. About 50 million of us experienced at least one problem with a product or service in the last year, and it really got our blood boiling. The recently-released 2011 National Customer Rage Study showed that consumers have more problems with products or services than ever before, but surprisingly, the fix may not be all that complicated. “The good news is, if you satisfy complainants in a timely manner it will lead to higher brand loyalty and lower costs — higher overall ROI.”
Part D, the federal government’s prescription drug insurance program for Medicare enrollees, relies on competition between private insurers to create savings for consumers. This “managed competition” model offers consumers dozens of coverage options with the goal of enabling them to reduce unnecessary out of pocket expenses. Critics of the plan have argued that Part D is too complicated and confusing for its target audience of senior citizens, especially those with dementia. The issue created an opportunity for researcher Jonathan Ketcham, an associate professor in the marketing department of the W. P. Carey School of Business, to look at one of the deep questions in marketing, economics, psychology and public policy: can consumers make sound decisions, or would greater government restrictions make people better off?
