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Africa
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The Main Models of Value-Based Management and Their Application to Empirical Studies
Published in Walter Amedzro St-Hilaire, Value-Based Management in an Open Economy, 2023
Benham (1972) notes that the cost of eyewear in US states where advertising is prohibited is significantly higher. The opposite view is that advertising is designed to deceive the consumer by creating a false differentiation (Galbraith, 1967). It thus reduces competition and increases barriers to entry. Bain (1956) points out that informational differentiation (ID) can be a barrier to entry because consumers will tend to remain loyal to pioneer brands. Bagwell (1985) shows that even a firm with low product quality can deter the entry of a firm with higher quality by using ID. In a Cournot or Bertrand oligopoly, product differentiation has the advantage of increasing the degree of stability of collusion because it reduces the additional profit that would be gained from a defection (Martin, 2001). Indeed, product differentiation isolates markets and reduces the extent to which a firm can capture the customers of its rivals. When products are differentiated, market power is fundamentally firm-specific and depends on the degree of differentiation, the assumptions of rivals, the price elasticity of demand and market share (Martin, 2001). However, there are several limits to differentiation which are fixed costs and location (Tirole, 1988). Another limitation of the model is simultaneous entry and brand uniqueness. However, serial entry and brand proliferation is a reality that is not taken into account in the linear and circular competition model (Tirole, 1988).
Need for Scientific Marketing Analysis
Published in Adarsh Anand, Deepti Aggrawal, Mohini Agarwal, Market Assessment with OR Applications, 2019
Adarsh Anand, Deepti Aggrawal, Mohini Agarwal
In the imperfect competition scenario, there are a large number of companies that produce different goods/services which are near substitutes for each other. There are large number of sellers offering similar but differentiated products and can compete with each other [12]. With product differentiation, each firm provides goods which are slightly different or which the customer believes to be different from the competitor’s offering. The product variations may in fact involve not only the characteristics of the products themselves, but may also include more attractive wrapping, after purchase services, or free gifts along with the product which may form the basis for the customer’s preference. Examples include many consumable goods like tooth paste, soaps, etc. This market composition is very similar to free competition except for the feature of product differentiation [12].
Mission statements of international airlines: a content analysis
Published in Thomas C. Lawton, Strategic Management in Aviation, 2017
As the needs of customers change over time, firms need to introduce new product lines and airlines are not insulated from this. Moreover, advances in technology can make it possible to produce new and/or better products at lower cost. Product innovation can broaden an industry’s customer base, rejuvenate industry growth and widen the degree of product differentiation among rival sellers. In the long term however, product development is unlikely to be sustainable without the development or acquisition of new competencies.
The way you listen to music: effect of swiping direction and album arts on adoption of music streaming application
Published in Behaviour & Information Technology, 2021
Product design builds the differentiation for the business firms and helps to position distinctively in the mind of the customers. Marketing literature highlights product design as a source of competitive advantage (Landwehr, Wentzel, and Herrmann 2013; Homburg, Schwemmle, and Kuehnl 2015) and product design is considered as a crucial marketing variable (Creusen, Veryzer, and Schoormans 2010). Particularly, product design plays a pivotal role respective to new product development (NPD). Perceived newness in a product design acts as a selling point for product differentiation (Talke, Müller, and Wieringa 2017). The success of new products in a greater extent determined by the quality of the product design (Mowen, Fang, and Scott 2010) and newness of the product design drives sales growth (Talke, Müller, and Wieringa 2017) over the whole product lifecycle (Rubera 2014). In the stream of product design research, aesthetic design, design crowdsourcing and product innovation are relevant for our research study.