We examine the conditions that enhance the economic viability of frequency reward programs in a strategic competitive environment. We focus particularly on conditions related to consumer behavior namely the extent to which consumers value the future benefits offered by the reward, the...

Companies and capitals may face different variants of European markets, being necessary to classify these markets by establishing their importance within the whole strategy of the company. Another goal is the wish to cover as many of these markets as possible under maximum efficiency conditions...

ResumenEn este trabajo se busca identificar la dependencia que existe entre la publicidad que tiene que hacer una empresa y sus ventas. Sabiendo esta medida de cantidad demandada depende tanto de su precio como en sus gastos publicitarios. Muchas de las empresas pueden crear barreras a la...

Over the years since airline deregulation five of the remaining U.S. legacy carriers lost money on mergers that cost them a total of $29.6 billion. The combined market cap of these carriers at the end of 2007 was $15.5 billion. In other words, their return on merger investments was -48%. Why?...

Prescription drug expenditures are the fastest growing component of health care spending, rising threefold over the 1995–2007 period. Coinciding with this growth has been a surge in direct-to-consumer advertising (DTCA), made feasible by the Food and Drug Administrations's (FDA's)...

The question of compliance with environmental conditions and opportunities for the company's organizational structure and strategy of the present article. The submissions are some data about the dynamics of the mobile phone market in Russia. The main trends of its development and basic consumer...

Pay What You Want (PWYW) pricing has received considerable attention recently. Empirical studies show that when PWYW pricing is implemented buyers do not behave selfishly in a number of cases and that some sellers are able to use PWYW to increase turnover as well as profits. In this paper we...

Price advertisement by retail stores is pervasive. If there exist non-negligible costs of consumer search, a retailer can increase the number of consumers visiting its location by advertising a low price, thus increasing consumers' expected utilities from search. If the increase in the number of...

The marketing literature refers to the concept of brand capital and provides empirical evidence that firms with a large stock of well-established brands have an advantage in introducing new products. This paper develops a theory of brand extension as a mechanism for informational leverage in...