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PAUWELS, Koen Hendrik

First Name

Koen Hendrik

Last Name

PAUWELS

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Business Administration

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Publication Search Results

Now showing 1 - 10 of 27

Open Access
Assessing consequences of component sharing across brands in the vertical product line in the automotive market
(Wiley, 2012-07) Verhoef, P. C.; Pauwels, Koen Hendrik; Tuk, M. A.; Business Administration; PAUWELS, Koen Hendrik
Component sharing may look great in the boardroom, but not in the showroom. Indeed, savings on R&D and production costs could be offset by a plunge in customer brand attractiveness. Combining experimental with econometric studies, this paper investigates the impact of component sharing on customer evaluation of luxury, volume and economy brands offered in a car manufacturer’s vertical product line. An experimental study shows that the evaluation of luxury brands sharing with a volume brand suffers more than when a volume brand shares components with an economy brand. The evaluation of an economy brand benefits more from sharing with a volume brand than a volume brand suffers from sharing with an economy brand. The magnitude of these effects depends on several factors, such as component type, the source of the component sharing and the salience of component sharing to the consumers. The explorative examination of market share effects confirms that luxury brands may suffer, while economy brands may benefit from component sharing. The first to look at the consumer impact of component sharing, this paper sets up a rich agenda for future research.
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The formation, evolution and replacement of price-quality relationships
(Springer Science+Business Media, 2016-01) Pauwels, Koen Hendrik; D’Aveni, R.; Business Administration; PAUWELS, Koen Hendrik
This paper develops a theoretical framework to address how dynamic competitive interactions and customer preferences change the observed relationship between market price and quality, and it offers an empirical framework to study these phenomena. Our framework proposes that price–quality relationships in a market (the fair value line) evolve according to several processes. We define and discuss these processes, including: (1) line formation, (2) line evolution (comprised of line elevation, erosion, steepening, flattening, blurring, tightening, extension and contraction), and (3) line replacement, which involves redefining price or quality in the marketplace. Instead of assuming that prices are a stable function of observable product attributes only (the static equilibrium view), our framework generalizes to dynamic disequilibrium patterns observed in many industries. These patterns are empirically assessed and explained by customer, competitive, and technology forces analyzed in marketing and strategy literatures. For managers, we discuss how they should react to these processes or, even better, set them in motion. For marketing researchers, we specify several hypotheses on the processes’ antecedents and consequences, testable with readily available datasets.
Open Access
Private-label use and store loyalty
(American Marketing Association, 2008-11) Ailawadi, K. L.; Pauwels, Koen Hendrik; Steenkamp, J.-B. E. M.; Business Administration; PAUWELS, Koen Hendrik
The authors develop an econometric model of the relationship between a household’s private-label (PL) share and its behavioral store loyalty. The model includes major drivers of these two behaviors and controls for simultaneity and nonlinearity in the relationship between them. The model is estimated with a unique data set that combinescomplete purchase records of a panel of Dutch households with demographic and psychographic data. The authorsestimate the model for two retail chains in the Netherlands the leading service chain with a well-differentiatedhigh-share PL and the leading value chain with a lower-share PL. They find that PL share significantly affects all three measures of behavioral loyalty in the study: share of wallet, share of items purchased, andshare of shopping trips. In addition, behavioral loyalty has a significant effect on PL share. For the service chain, the authors find that both effects are in the form of an inverted U. For the value chain, the effects are positive and nonlinear, but they do not exhibit nonmonotonicity, because PL share has not yet reached high enough levels. The managerial implications of this research are important. Retailers can reap the benefits of a virtuous cycle; greater PL share increases share of wallet, and greater share of wallet increases PL share. However, this virtuous cycle operates only to a point because heavy PL buyers tend to be loyal to price savings and PLs in general, not to the PL of any particular chain.
Open Access
No comment?! The drivers of reactions to online posts in professional groups
(Elsevier, 2016-08) Rooderkerk, R. P.; Pauwels, Koen Hendrik; Business Administration; PAUWELS, Koen Hendrik
Social media has moved beyond personal friendships to professional interactions in high-knowledge industries. In particular, online discussion forums are sponsored by firms aiming to position themselves as thought-leaders, to gain more insight in their customer base and to generate sales leads. However, while firms can seed discussion by posts, they depend on the forum members to continue the discussion in the form of reactions to these posts. The goal of the current study is to investigate what features and characteristics drive the number of comments that a post receives on an online discussion forum. The empirical setting involves a global manufacturer connecting with health care professionals through a LinkedIn discussion forum. We project that (i) content characteristics, (ii) post characteristics, (iii) author characteristics, and (iv) timing characteristics jointly determine the number of comments a post receives. We show that the readability of the post, the controversiality of the content and the status of the post author have the highest elasticity on the number of comments. These results provide valuable insights for firms on how to build and maintain an attractive online forum through ongoing discussions.
Open Access
Building with bricks and mortar: the revenue impact of opening physical stores in a multichannel environment
(Elsevier, 2015-06) Pauwels, Koen Hendrik; Neslin, S. A; Business Administration; PAUWELS, Koen Hendrik
A crucial decision firms face today is which channels they should make available to customers for transactions. We assess the revenue impact of adding bricks-and-mortar stores to a firm's already existing repertoire of catalog and Internet channels. We decompose the revenue impact into customer acquisition, frequency of orders, returns, and exchanges, and size of orders, returns, and exchanges. We use a multivariate baseline method to assess the impact of adding the physical store channel on these revenue components. As hypothesized, store introduction cannibalizes catalog sales and has much less impact on Internet sales. Also as hypothesized, returns and exchanges increase. Interestingly, transaction sizes of purchases, returns, and exchanges do not change. The “availability effect” produces a net increase in purchase frequency across channels. This more than compensates for increased returns, producing a net increase in revenues of 20% by adding the store channel. Our findings yield a deeper understanding of the revenue relation between channels, and of the dynamic cross-channel effects of marketing actions.
Open Access
What is special about marketing organic products? How organic assortment, price, and promotions drive retailer performance
(American Marketing Association, 2013-01) Bezawada, R.; Pauwels, Koen Hendrik; Business Administration; PAUWELS, Koen Hendrik
Higher sales and margins are key goals for retailers promoting emerging products, such as organics, but little is known about their marketing effectiveness and their cross-effects on conventional product sales. Extant research reports conflicting results about price and promotional sensitivity for organic products and does not address the impact of organic assortment. This article calculates long-term own- and cross-elasticities of organic and conventional product sales in response to changes in assortment, price, and promotions. Using a rich data set of 56 categories, the authors test hypotheses on how different costs and benefits of organic products affect these elasticities. They find that enduring actions, such as assortment and regular price changes, have a higher elasticity for organics than for conventional products. In contrast with common wisdom, even “core” organic consumers are sensitive to these actions. Increasing organic assortment and promotion breadth yields higher profits for the total category, as do more frequent promotions on conventional products. Our category comparison yields specific advice as to where larger assortment, lower prices versus more and deeper promotions are most effective.
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Pricing of national brands versus store brands: market power components, findings and research opportunities
(Edward Elgar Publishing, 2009) Pauwels, Koen Hendrik; Srinivasan, S.; Business Administration; Rao, V. R.; PAUWELS, Koen Hendrik
Among the most important activities for supermarket retailers is the creation and marketing of store brands, also known as private label brands. Given the increasing quality-equivalence between national brands and store brands, they have become direct competitors, and pricing decisions should take this into account. In most cases, national brands still possess some degree of pricing and market power over store brands. In this chapter, we define three components of market power for national brands versus store brands: (1) price premium; (2) volume premium; and (3) margin premium. Our chapter proceeds along the following lines. First, we delineate the factors that are the most important drivers of the three components of premium. Second, we discuss managerial implications about key success factors in the pricing of national brands and store brands. A key contribution of this chapter is that we incorporate emerging insights from the marketing literature on the pricing and market power of national brands versus store brands. Finally, we conclude by offering important future research directions.
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Paths to and off purchase: quantifying the impact of traditional marketing and online consumer activity
(Springer International Publishing, 2016-07) Srinivasan, S.; Rutz, O. J.; Pauwels, Koen Hendrik; Business Administration; PAUWELS, Koen Hendrik
This study investigates the effects of consumer activity in online media (paid, owned, and earned) on sales and their interdependencies with the traditional marketing mix elements of price, advertising and distribution. We develop an integrative conceptual framework that links marketing actions to online consumer activity metrics along the consumer’s path to purchase (P2P). Our framework proposes that the path to purchase has three basic stages–learning (cognitive), feeling (affective), behavior (conative)—and that these can be measured with novel online consumer activity metrics such as clicking on a paid search ads (cognitive) or Facebook likes and unlikes of the brand (affective). Our empirical analysis of a fast moving consumer good supports a know–feel–do pathway for the low–involvement product studied. We find, for example, that earned media can drive sales. However, we find that the news is not all good as it relates to online consumer activity: higher consumer activity on earned and owned media can lead to consumer disengagement in the form of unlikes. While traditional marketing such as distribution (60%) and price (20%) are the main drivers of sales variation for the studied brand, online owned (10%), (un)earned (3%), and paid (2%) media explain a substantial part of the path to purchase. It is noteworthy that TV advertising (5%) explains significantly less than online media in our case. Overall, our study should help strengthen marketers’ case for building share in consumers’ hearts and minds, as measured through consumer online activity and engagement.
Open Access
Winning hearts, minds and sales: How marketing communication enters the purchase process in emerging and mature markets
(Elsevier, 2013-03) Pauwels, Koen Hendrik; Erguncu, S.; Yildirim, G.; Business Administration; PAUWELS, Koen Hendrik
Consumers differ in the way their minds and hearts respond to marketing communication. Recent research has quantified effectiveness criteria of mindset metrics, such as brand consideration and liking, in the purchase process for a mature market. This paper develops and illustrates our conceptual framework of how mindset effectiveness differs in an emerging and a mature market. We propose that the responsiveness, stickiness and sales conversion of mindset metrics depend on the regulative, cultural and economic systems that provide structure to society. In particular, we focus on regulative protection, collectivism and income. First, we propose that a lack of regulative protection leads consumers to be more attentive to, and thus more aware of marketing communication. Second, we propose that consumers living in a collectivist culture are less responsive to advertising in their consideration and liking of the advertised brand. Finally, we propose that lower income reduces the sales conversion of brand liking. We examine our predictions empirically with data for the same brands in the same time period in Brazil and the United Kingdom. First, we find that brand liking has a higher responsiveness to advertising, a higher stickiness and a higher sales conversion in the U.K. versus Brazil. Thus, the advice to focus on the emotional brand connection is more appropriate in the analyzed mature versus the emerging market. In contrast, knowing the brand is more important to purchase in Brazil, and is more responsive to advertising. These first findings set up an intriguing research agenda on winning hearts and sales in emerging and mature markets.
Open Access
Social media metrics - A framework and guidelines for managing social media
(Elsevier, 2013-11) Peters, K.; Chen, Y.; Kaplan, A. M.; Ognibeni, B.; Pauwels, Koen Hendrik; Business Administration; PAUWELS, Koen Hendrik
Social media are becoming ubiquitous and need to be managed like all other forms of media that organizations employ to meet their goals. However, social media are fundamentally different from any traditional or other online media because of their social network structure and egalitarian nature. These differences require a distinct measurement approach as a prerequisite for proper analysis and subsequent management. To develop the right social media metrics and subsequently construct appropriate dashboards, we provide a tool kit consisting of three novel components. First, we theoretically derive and propose a holistic framework that covers the major elements of social media, drawing on theories from marketing, psychology, and sociology. We continue to support and detail these elements — namely ‘motives,’ ‘content,’ ‘network structure,’ and ‘social roles & interactions’ — with recent research studies. Second, based on our theoretical framework, the literature review, and practical experience, we suggest nine guidelines that may prove valuable for designing appropriate social media metrics and constructing a sensible social media dashboard. Third, based on the framework and the guidelines we derive managerial implications and suggest an agenda for future research.