Knowledge@Wharton -- Marketing

Customer Analytics: A New Lifeline for the Red Cross and Other Nonprofits?

Wed, 01 Feb 2012 15:41:52 EST

When a major disaster occurs, the result is an outpouring of aid, often in the form of donations to nonprofits like the American Red Cross. But once the dramatic images and news headlines begin to fade, donors often disappear as well. The question for groups like the Red Cross is how to identify and reach out to those one-time givers who are most likely to become regular donors. The answer may lie in the world of customer analytics -- the collection and mining of data on individual consumer behavior that is already revolutionizing how for-profit businesses operate.

Are Colombian Flowers Experiencing a U.S. Drought?

Tue, 03 Jan 2012 12:52:11 EST

Most Americans purchase roses only once or twice a year. But do they ever think about where these roses come from and what it takes to get them to their local market just in time for their purchase? Chances are that the roses bought for Valentine's Day or Mother's Day came from Colombia. Yet with the U.S. in a recession, the peso gaining value and an increasingly competitive environment, the floriculture industry in Colombia is looking for new ways to maintain and ideally increase its global market share.

Louis Vuitton and the Traveling Chinese Consumer

Tue, 03 Jan 2012 12:49:24 EST

When it comes to the market for luxury goods, China is seen by some as "the rising star." Luxury sales in China currently represent 10% of the global market, and one Asian investment bank estimates that by 2020, China will be the largest domestic market for luxury goods in the world, accounting for 44% of global demand. Consumption by Chinese consumers abroad has helped fuel this growth in more mature markets in Europe. One of the most popular luxury brands -- both in China and abroad -- is Louis Vuitton.

'The Ultimate Question': Would Your Customers Recommend You?

Tue, 22 Nov 2011 10:54:06 EST

Fred Reichheld and Rob Markey's The Ultimate Question 2.0 is a follow-up to the bestselling book that first helped businesses understand their Net Promoter Score. One question -- would you recommend us to a friend? -- offered businesses a vital metric that has since been adopted widely by organizations, including GE. Wharton marketing professor Peter Fader spoke with Markey about what NPS is, how companies can increase the number of people who promote them and why it is now a system and not just a score.

Peter Fader on Customer Centricity and Why It Matters

Fri, 18 Nov 2011 14:35:03 EST

Starbucks and Apple stocks have been trading at record highs, but are these and other businesses doing everything they can to ensure growth over the long term? Peter Fader, Wharton marketing professor and co-director of The Wharton Customer Analytics Initiative, argues that too many companies are customer friendly, but not customer centric. In other words, they treat each customer the same, missing an opportunity to discover who their most valuable customers are. In his new book, Customer Centricity, part of the Wharton Executive Education Essentials Series, Fader describes what customer centricity is, what it isn't and why it matters.

Today's Marketing Challenge: Turning the Data Deluge into Competitive Advantage

Wed, 09 Nov 2011 15:16:32 EST

In a new paper titled, "Closing the Marketing Capabilities Gap," Wharton professor George Day addresses the disconnect between the demands of markets and the ability of firms to meet those demands. Such a gap, he points out, is "costing firms profitability now and competitiveness in the future." Day and colleague David Reibstein talked with Knowledge@Wharton about the growing flood of data, new knowledge sharing technology, the socially networked and ever demanding consumer, and how some companies are successfully building their customer base, among other topics.

Research Roundup: Online Product Reviews, Happiness and Choice, CEO Stock Options and the Hunger for Distinctiveness

Wed, 26 Oct 2011 14:21:51 EST

Online product reviews have become ubiquitous -- but does the text of these critiques tell a story that a star system can't? How does a consumer's definition of happiness affect buying habits? Are stock options always the best way to encourage risk-averse CEOs to invest in unpredictable but potentially value-creating projects? Can the desire for one reward be fulfilled with another? Professors Anindya Ghose, Cassie Mogilner, Christopher Armstrong and Jonah Berger, respectively, examined these issues -- and what they mean for business -- in recent research papers.

Brand Disloyalty: Recession-weary Consumers Take Discounts to the Extreme

Wed, 26 Oct 2011 14:21:51 EST

As food prices rise and the economy continues to sag, grocery shoppers are turning their backs on brand or chain loyalty in favor of finding the best bargains around. The shift has been a boon for warehouse chains, which sell items in bulk. It has also created an entire culture built around "extreme couponing" -- combining multiple discounts to amass stockpiles of products for pennies on the dollar. How should grocery chains and consumer goods companies deal with shoppers' changing habits?

No Longer Simply 'Chic,' Cheap Is Now a Badge of Honor

Wed, 28 Sep 2011 13:16:47 EST

After more than three years of belt-tightening, the word "cheap" is losing its stigma. Experts at Wharton and elsewhere say the recession has shifted priorities for consumers, who are now more willing to trade quality for a lower price. While some argue that consumers will pick up their spending as the good times return, others say Americans have permanently embraced a cheapskate philosophy, and are unlikely to go back to their spendthrift ways anytime soon.

New Retail Strategies: Offering a Better Fit for Today's Careful Consumers

Wed, 31 Aug 2011 15:20:29 EST

Retailers looking for growth in today's economy might pick up a lesson or two from Coca-Cola's futuristic Freestyle vending machines, which offer customers 125 customizable beverage choices. According to Wharton faculty and retail experts, creating excitement, tapping into social networks, giving people a chance to customize their own product and empowering customers are important retail strategies in today's economy, where one out of five people in the United States is either unemployed or underemployed and consumers remain reluctant to spend.

Google's Jim Lecinski on What the 'Zero Moment of Truth' Means for Marketers

Fri, 05 Aug 2011 13:18:24 EST

By the time we make a purchase, we have read reviews, compared prices and fully evaluated our options, whether we are buying a pillow or a Porsche. In the face of newly empowered consumers, marketers have had to rethink how they can win at the point of purchase. Jim Lecinski, Google's managing director of U.S. sales and service, has written an e-book, Winning the Zero Moment of Truth, about a "new mental model for modern marketing," which he calls ZMOT, or the Zero Moment of Truth. To learn more, Knowledge@Wharton and Wharton marketing professor Jerry (Yoram) Wind spoke with Lecinski about the explosion of choice, today's highly informed consumer and what this new decision-making moment means to marketers.

More Than Virtual: Marketing the Total Brand 'Experience'

Tue, 07 Jun 2011 14:37:10 EST

Forget volatile weather wreaking havoc on shopping patterns, a shaky economic recovery and ultra-cutthroat promotions. According to speakers at a recent conference co-sponsored by Wharton's Jay H. Baker Retailing Center, what is causing retail executives the most sleepless nights is the onslaught of new communication and social media platforms. But while companies' advertising campaigns are becoming increasingly complex, marketers would do well to remain focused on all the touch points between their companies and consumers.

How Sustainable Is Groupon's Business Model?

Wed, 25 May 2011 16:03:17 EST

Online group buying sites are experiencing rapid growth in all areas, from partner businesses to subscribers to revenues. Venture capitalists are actively investing in the sites, which is driving up business valuations. But that "wild exuberance" is miscalculated, warns Wharton marketing professor David Reibstein in an interview with Knowledge@Wharton. Taking Chicago-based Groupon as a case in point, he says the industry's current growth rates are unsustainable, and its business model is flawed.

Many-stop Shopping? How Niche Retailers Are Thriving on Internet 2.0

Wed, 11 May 2011 16:38:59 EST

A decade after pets.com and a string of other early Internet specialty retailers collapsed, a new wave of start-ups -- enabled by the power of cloud computing, advanced delivery systems and deep social relationships with customers -- is shaping e-commerce. From diapers and eyeglasses to pool tables and, yes, pet products, entrepreneurs are developing specialty businesses to compete alongside one-stop shopping giants like Amazon.com and Walmart.com.

A Teakettle with Star Power? The Upsides and Pitfalls of Celebrity Brands

Wed, 27 Apr 2011 14:51:52 EST

In an otherwise price-driven economy, retailers are increasingly relying on a stable of private labels and exclusive brands. These lines differentiate stores, give them more say about the marketing of their merchandise and offer retailers control over pricing. But there are pitfalls to these partnerships, experts warn, including higher production costs and the risk that a line will burn out when the celebrity designer's star power begins to dim.

Nickeled and Dimed: Is It Possible to 'Over-fee' Consumers?

Wed, 13 Apr 2011 15:12:20 EST

When a business faces extra costs or other hits to the bottom line, these costs are often passed on to the consumer. Increasingly, in industries such as financial services and the airlines, the hits take the form of ancillary fees. And in some cases, the charges are for services that were once free, such as checking baggage on a flight or opening a checking account. Yet businesses that impose fees need to tread carefully, experts say, because customers will quickly revolt if the extra costs are perceived to be unreasonable.

Acxiom's Tim Suther on Winning in the New �Marketing Democracy�

Fri, 18 Mar 2011 15:10:40 EST

Imagine for a moment that you moved to a new home located right next door to a train station. It's noisy at first. But after a while, you get used to the noise and barely notice it. That notion “is exactly how consumers feel about marketing and advertising -- as if it's not even there," said Tim Suther, chief marketing officer of Acxiom, the world's largest processor of consumer data. Such consumer numbness has profound consequences, according to Suther, who outlined strategies for "smart marketing" during a speech at a recent Wharton Marketing Conference.

Research Roundup: The Upside of Bad Publicity, Skill vs. Luck for Hedge Fund Managers and Aligning Pricing with Value

Wed, 16 Mar 2011 15:44:15 EST

Is the famous truism "any press is good press" actually true? Is it more important for hedge fund managers to be lucky or skilled when it comes to offering new products? What is the best pricing structure to align optimal profits with consumers' perception of value? Wharton professors Jonah Berger, Evan Rawley and Raghuram Iyengar, respectively, offer answers to these questions, and identify the implications for the business world, in recent research papers.

Executives Speak Up, in Real-time, on Innovation, Financial Risk, Hiring and Other Concerns

Wed, 16 Mar 2011 15:44:15 EST

Many insights about business behavior come in one of two forms: minute-by-minute anecdotes from news outlets or long-term studies from industry groups and academia that take years to complete. New research from Wharton attempts to uncover insights that are both timely and deep. Through brief online surveys of a wide spectrum of industry executives, researchers have compiled real-time commentary from executives on such topics as innovation, global financial risk and corporate social responsibility, among others.

McCormick's Alan D. Wilson on Pricing, Innovation and the 'Romance of Spice'

Wed, 02 Mar 2011 15:47:44 EST

In three years as CEO of spice maker McCormick, Alan D. Wilson has been charged with steering the company through difficult economic times and periods of extreme volatility in commodities prices. In a recent conversation with Knowledge@Wharton, Wilson discussed McCormick's efforts to expand internationally, why the increased popularity of Food Network and celebrity chefs has been a boon, and the company's aim to create a relationship with customers by playing up "the romance of spice."