Firms participating in online reverse auctions are beginning to understand what thrifty consumers have known all along: you get what you pay for. In continuing research from Sandy Jap, a professor of marketing at Emory University's Goizueta Business School, the behavior of bidders is further examined to explain why some companies aren't always eager to snap up the lowest bid from a supplier. “Standard auction theory assumes that all bidders are equal,” Jap says. “The problem is, in a lot of these industrial sourcing auctions, buyers don’t just care about the price—they also care about other things such as the quality of the product and the responsiveness of the supplier.” Reverse Auctions: When the Lowest Price Is Too Low
Reverse auction strategy has primarily consisted of suppliers competing for contracts by placing lower and lower bids. But research by Sandy Jap, a professor of marketing at Emory University’s Goizueta Business School, shows a radical shift in the bidding process as "incumbent suppliers"—those with a history of doing business with the auction sponsor—often aren’t as aggressive in making low-price bids. According to Jap, the repeat nature of auctions means relationships are built and can provide an intangible value that is translated in a higher price. Says Jap: “The implication is that suppliers that bid high in an auction might be better qualified bidders than those who bid lower.” Navigating the Marketing Path in a Social Media World
Marketing professionals have new tools to reach customers in today’s expansive—and expanding—world of social media. But can campaigns on Facebook, Twitter, and other social media really make money? Yes, if they’re part of a larger marketing and branding plan, says Reshma Shah, assistant professor in the practice of marketing at Emory University's Goizueta Business School, and Jamie Turner of the 60-Second Marketer. In their newly released book, How to Make Money with Social Media: An Insider’s Guide on Using New and Emerging Media Work to Grow Your Business, Shah and Turner examine social media tools and offer strategic options to elevate any campaign. Surviving Silly Bandz: Prolonging the Shelf Life of Fads
Fads are hard to miss. Whether it's this summer's craze -- Silly Bandz, the rubber-band bracelets that have become a must-have accessory for children -- Beanie Babies or the Rubik's Cube, they take off like a rocket in popularity and then seem to fizzle out just as quickly. You might think fads are kids' stuff. But adults aren't immune to the fad machine -- remember all those grownups sporting Crocs a few years ago? And while fads present challenges to businesses riding that wave, they can also spell opportunity if managers take the cash generated by these crazes and use it to build a sustainable business. Be There or Be Square: The Rise of Location-based Social Networking
To find the hottest restaurant, bar or concert venue in town, many young adults are no longer checking in with their friends. They're "checking in" virtually via Foursquare, a location-based social networking site. While Foursquare is being touted as the Next Big Thing, experts say the true potential lies in companies knowing exactly where customers are and pitching offers or services based on the spots these customers frequent. The challenge for Foursquare and others, observers suggest, is transitioning beyond buzz and finding uses for geo-targeting that are both profitable and practical. Why The 'Rule of Three' Will Prevail in the Global Auto Industry
In 2002, Jagdish Sheth, corporate strategist and chaired professor of marketing at Emory University's Goizueta Business School, co-authored The Rule of Three: Surviving and Thriving in Competitive Markets, a groundbreaking work which observes that in any mature industry three big companies will dominate, with others serving as niche players or effectively sidelined. Nowhere has this been more evident than in the auto industry. In this podcast installment, Sheth discusses with Knowledge@Emory the long-term viability of the Detroit Three, the shift in operations to Asia, the next generation of hybrid vehicles, and why one day soon, buying a car may be as quick and painless as ordering an iPod. Marketing’s New World Order: Consumers Talk Back—and Everyone Hears
Who ever imagined that the days of big brands wielding bigger budgets on the biggest stages—the Super Bowl or Olympics—might disappear? Yet recent signals suggest just that. As companies reassess their finances, they are recognizing there may be a better (and dare one say, cheaper) way to reach the masses. Faculty at Emory University's Goizueta Business School explore how the Web and social media are transforming the game of marketing. Managing Change and Taking Risks: One Woman’s View from the C-Suite
When Barbara Freeman graduated from college, her first job was designing rocket motors for Mobil Oil. Now the chief marketing officer for Turner Broadcasting Inc.’s Animation, Young Adults and Kids Media division, Freeman’s career trajectory has taught her much about initiating and managing change, as well as about taking calculated risks. In a fireside chat with Jacqueline Welch, SVP, HR, Turner Broadcasting, Inc., at a recent Executive Women of Goizueta conference, Freeman discusses some of the insights she has gained about career changes, collaborative work practices, skill set acquisition, and the notion of “having it all.” Reel Time: The Incredible Shrinking Window for Movie Releases
A decade ago, movie fans who wanted to forgo paying theater admission waited an average of five months before they could watch a film in their own living rooms. Today, the window between theatrical releases and distribution via other channels like DVDs and cable television has shrunk to four months or less -- and in some cases has even disappeared, with films making their debuts simultaneously in multiple channels. According to Wharton faculty, declining DVD sales and other pressures mean that studios are likely to continue experimenting aggressively with movie release timing. Still, the pleasure of watching a movie in a darkened theater is not likely to go away any time soon, they say. The Challenges of Managing a Presidential Brand
Like a product that starts out strong only to see its sales sputter, U.S. President Barack Obama entered the White House a year ago January 20 on a tide of high hopes, even garnering a Nobel Peace Prize along the way. Today, his overall job performance rating has slipped to 50% and some fellow Democrats are rebelling against him. If Obama the president is experiencing trouble, what does it say about Obama the brand? While some observers say his brand is definitely in trouble, faculty at Emory University and its Goizueta Business School are not so quick to count him out. Managing a personality brand that assumes a cult-like status can be difficult, faculty say, though a focus on policy and maintaining a consistent message that's easily understood—even if solutions to complex problems are not—can help boost Obama’s brand. Men Buy, Women Shop: The Sexes Have Different Priorities When Walking Down the Aisles
When it comes to shopping, women are from Nordstrom's and men are from Sears. Women are happy to meander through sprawling clothing and accessory collections or detour through the shoe department. For men, shopping is a mission. They are out to buy a targeted item and flee the store as quickly as possible, according to a 2007 study by Wharton's Jay H. Baker Retail Initiative and the Verde Group, a Toronto consulting firm. The study's findings have implications for retailers looking for ways to tailor their goods and services to specific segments of the shopping population. Emotions Influence Shoppers’ Choices
Marketers, hoping that Santa leaves something good in their stocking, spend untold amounts of money to define who their customers are, what they need, and how to ensure they have a positive experience that will translate into sales. But how often is the role of emotions factored in when discussing customer buying habits? Not nearly enough, contends Liam Fahey, chief architect at the Emotion Mining Company. During a recent lecture hosted by Emory University’s Emory Marketing Institute, Fahey outlined the importance of emotions and how tapping into the subconscious feelings of customers can translate into increased sales and satisfaction, not only for the customer, but for the company, too. Can Social Media Marketing Save Retailers from a Grumpy Season?
There is good news and bad news for retailers this holiday shopping season. The good news is that online sales have surged with consumers spending on average 35% more per order compared to 2008, according Coremetrics, which provides consulting and analytics for online merchants. The bad news? According to faculty at Emory University’s Goizueta Business School and other experts, companies can lose gains with savvy online shoppers if they aren’t prepared to build a cohesive community. “Done correctly, it can drive a deep loyalty to the brand by opening up a wide range of communication between disparate parties without regard to geography,” explains Dominic Thomas, a visiting professor of information systems and operations management at Goizueta. “The social network lets people know about products, and can also influence their buying decision and keep them satisfied while expanding the purchasing relationship.” TBS, Inc. CEO Phil Kent on Branding, Technology and Evolving in One's Career
According to Phil Kent, Chairman & CEO, Turner Broadcasting System, Inc., TBS, Inc. puts "enormous focus" on building brands and then uses the power of its brands to provide advertisers with great value. Speaking to a group of MBA students at Emory University's Goizueta Business School as part of the MBA Career Management Center’s Career Connection Day, Kent discussed how Turner creates branded media environments and advised students to consider their personal brand and give their careers the same attention. He also emphasized the importance of evolving in business and in one’s career. For Kent, this means taking risks and being open to opportunity. PR Maven Mary Reynolds on Setting Big Goals and Being Fearless
In times when many companies are shedding employees, Atlanta PR practitioner Mary Reynolds is hiring. Her business model for The Reynolds Group, Inc., an award-winning, boutique public relations firm, includes keeping the firm debt-free. That decision made in 1999 when she launched TRG, means she can focus on the business' future trajectory and not how to survive in the now. Recently, Reynolds discussed tough career choices, entrepreneurship, and rewards with Executive MBA students and alumni at a breakfast event hosted by Executive Women of Goizueta, an alumni group of Emory University's Goizueta Business School.