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.