Consumer preference formation and pioneering advantage, journal of marketing. Reflections on consumer preference formation and pioneering advantage 20 december 2018 journal of marketing research, vol. By a preference relation we mean a set of preferences that satisfy the following two properties. Choosing between similar to what i have verses different. The most general firstmover advantage that helps explain higher pioneer market share levels is a broad product line or brand proliferation. While the preliminary results vary by industry, they indicate. The impact of consumer preference formation on marketing objectives and competitive second mover strategies.
In particular, our analysis explicitly incorporates the. The study focuses on two competing brands from automatic transmission motorcycle category, namely. Seminar in marketing strategy northwestern university. The entire consumer preference process results in an optimal choice. The impact of consumer preference formation on marketing objectives and competitive second mover strategies, journal of consumer psychology, 54. Smith 1994, the effect of portfolio characteristics on consumer evaluations of brand extensions, journal of marketing research, 31 2. However, optimization is an ongoing process that looks at omnichannel behavior and preferences.
This socalled pioneering advantage is expected to be sustainable over time carpenter and nakamoto 1989. To the extent to which this is true, the desirability of the column or row strategy depends on the relative effectiveness of that strategy in influencing the structure of consumer. Pdf reflections on consumer preference formation and. For any two objects 1 2 and 1 2 in the commodity space, then the consumer can answer one, and exactly one. Habit formation and oligopolistic competition estudios. Rebuts the mythology that enduring market leaders tend to have been early entrants into their market categories. Customer preference, soft drinks, consumer behavior. A study on impact of various factors on customer preference.
Effects of consumption vocabulary on consumer preference formation, 1994 conference on behavioral decision research in management, cambridge, ma, may 1994. Advertising and the ambiguity of product experience, journal of consumer research, 2213. Consumer preference formation and pioneering advantage, journal of marketing research, 26august, 28598. The instability of preferences learned in context show all authors. Impact of consumer preference formation on marketing objectives and competitive second mover strategies gs carpenter, k nakamoto journal of consumer psychology 5 4, 325358, 1996.
However, the preference formation process can produce a pioneering advantage, as we have argued, even if there are no superior positions, all brands are well known, and. Reflections on consumer preference formation and pioneering advantage created date. Carpenter and nakamoto 1987 develop a consumerbased explanation for these advantages and demonstrate that the process of buyer preference formation. Oct 11, 2012 the research project elaborates how neuroscientific insights can add value to consumer research and whether it becomes a precondition to make use of neuroscientific insights to maintain. Hoch, the effects of consumption vocabulary on consumer preference formation, 1994 annual conference of the society for consumer. An information integration perspective, journal of marketing research, 1992. In this article, we consider the impact of the dynamics of consumer preference formation on the optimal competitive strategy for a second brand entering a market dominated by a pioneer. In these cases, the authors argue that pioneering advantage can arise from the. Consumer preference formation and pioneering advantage, journal of.
Market pioneers can develop firstmover advantages that span decades. In the next subsection, we formalize the process of preference formation. Reflections on consumer preference formation and pioneering. This positive affection is a kind of engine moving the consumer to check the advertisement with the picture of beautiful scenery. Consumer preference formation and pioneering advantage 287 three stages. The economics of consumer knowledge, journal of consumer research 27. Pdf analysis of relationship between pioneer brand.
In particular, consumer behavior in the smartphone industry, from adoption motivation to postusage behavior has become a major focus of research in the field of marketing. Pdf market pioneers outsell later entrants in both consumer and industrial markets. Market pioneers outsell later entrants in both consumer and industrial markets. Entry barriers arising from preemptive positioning and switching costs have been. Consumers responses to really new products, journal of consumer research, 27 december, 489498. Information effect on consumer adoption for a new beef. Their combined citations are counted only for the first article.
The research project elaborates how neuroscientific insights can add value to consumer research and whether it becomes a precondition to make use of neuroscientific insights to maintain. Carpenter and kent nakamoto journal of consumer psychology state that in this article, we consider the impact of the dynamics of consumer preference formation on the optimal competitive strategy for a. It is proposed that there are three sources of entryorder information that work through various psychological processes and affect multiple decision process variables. Nakamoto 1989, consumer preference formation and pioneering.
This cited by count includes citations to the following articles in scholar. Competitive second mover strategies published in society for consumer psychology by gregory s. Carpenter and nakamoto, consumer preference formation and pioneer ing advantage, journal of marketing research, 1989. Consumer preference on marketing objectives 327 preference formation and competitive advantage consider a market early in its development. A cmpl theory of strategy shifts and the automatization of cognitive skills, journal of experimental psychology. Pioneer brand advantage with uk consumers deepdyve. Prior to trial of any brand in the category, consumers know little about the market. Our article, consumer preference formation and pioneering advantage, published in the au. In markets for experience goods, pioneers tend to shape consumer tastes and preferences in favor of the pioneering brand. Nakamoto, consumer preference formation and pioneering advantage, journal of marketing research, volume 26, august 1989, pp. Marketing research that is judged to have made the greatest contribution to our field.
This article provides an integrative conceptual framework and propositional inventory to help more fully understand this multifaceted phenomenon. Order of entry and the moderating role of comparison. Earlyentrant advantage, wordofmouth communication, brand. Demonstrates that, on the one hand, pioneer advantage is realized only if the pioneer succeeds in framing consumer preferences by continually improving the product and differentiating it from those of later. Pdf consumer preference formation and pioneering advantage. This socalled pioneer ing advantage is expected to be sustainable over time carpenter and nakamoto 1989. Entry barriers arising from preemptive positioning and switching. Reflections on consumer preference formation and pioneering advantage. Customer captivity the key for consumer preferencedriven moats is customer captivity the consumers preference for the product should lead to some form of customer captivity requiring very. An empirical comparison of consumerbased measures of brand equity. Defining consumer preference moats driven by consumers preference are widely thought of as brandbased moats or intangible assetsbased moats.
Our analysis, incorporating the prototypicality of the pioneer, shows. This research replicates and extends alpert and kamins. Maintainting competitive advantage in consumer markets by. Corporate political strategy and foreign competition. Choice construction versus preference construction. However, the preferenceformation process can produce a pioneering advantage, as we have argued, even if there are no superior positions, all brands are well known, and.
Aug 02, 2016 competitive advantage, let alone a sustainable one. A study on consumer buying behavior of mobile phones. It is typically believed that the first company to bring a product to market obtains an advantage in doing so. What are the behavioral origins of pioneer brand advantage. Impact of consumer preference formation on marketing. Then, we examine the relation between experience and preference formation empirically. Consumer preference formation and pioneering advantage. The study focuses on two competing brands from automatic transmission motorcycle. Following kardes, kalyanaram, chandrashekaran, and dornoff 1993, who theorized that the earlyentrant advantage emanates from the consumer decisionmaking process, we investigated three fundamental components of decision making. Project exit value as a measure of flexibility and. This paper intends to explore the influence of perceived brand pioneership on consumers brand attitude. Second, we ex amine the impact on buyer preferences of initial trials of the pioneer. Analysis of preference formation using experience information.
Consumer preference formation and pioneering advantage created date. Aug 01, 2016 this is the fourth article and focuses on consumer preference as the source of a sustainable competitive advantage. Consumer preference formation and pioneering advantage author. A study on consumer buying behavior of mobile phones the behavior of consumers towards smartphones is increasingly a focus of marketing research. Rather than only thinking in terms of tactics or siloed optimization, what if we focused more on consumer behavior and preferences. Based on this underlying model, we implement an empirical model and examine the relation between experience and preference formation using a dataset compiled by the nttdata institute of. Finally, buyers of sovereign debt benefit from trading a product that comes with a set of standard terms. Customer captivity the key for consumer preferencedriven moats is customer captivity the consumers preference for the product should.
In particular, our analysis explicitly incorporates the perceptual dominance and prototypicality of a successful pioneer into models of consumer and managerial. Orderofentryeffectsonconsumermemoryandjudgment1992. However, the empirical evidence shows that pioneers enjoy persistent competitive advantages. The indicator of preference formation represents a standardized score that varies between 1 and 100. Pdf analysis of relationship between pioneer brand status.
The ones marked may be different from the article in the profile. This process can produce a preference structure that favors the pioneer, making it difficult for later entrants to compete away the pioneers large market share, even if brands can. Pioneer brand advantage with uk consumers pioneer brand advantage with uk consumers ruth rettie. While the preliminary results vary by industry, they. The importance of consumer behavior and preferences. Consumer confusion of origin and brand similarity perceptions. For a consumer preference to lead to a sustainable competitive advantage, two elements need to be present.
Kent 1989, consumer preference formation and pioneering advantage. Article information, pdf download for consumer preference formation and. This is the fourth article and focuses on consumer preference as the source of a sustainable competitive advantage. Last, we consider the evaluation of multiple brands that typically enter after a pioneer including both.
It doesnt mean channels and tactics arent important. Many research studies have approached pioneering advantage from the perspective of consumer behavior and some studies have specifically showed how consumer preference formation processes tend to put pioneers in an everadvantageous position. Studies of consumer reaction to the don dae moon market shops. First, we consider the consumer prior to exposure to any brand in the category. Impact of consumer preference formation on marketing objectives and competitive second mover strategies article pdf available in journal of consumer psychology 54. They may resist better terms even if they are better merely because they are different.
Thus, conceptually it seems justified to examine pioneering advantage at the level of online retailer brands. In this paper, we hypothesize that unconscious biases are formed through life experience, and we formalize the process of preference formation mainly focusing on emotional factors. Consumer preference formation and pioneering advantage, journal of marketing research, 263. Freedom of choice, ease of use, and the formation of. Consumer preference formation and pioneering advantage article pdf available in journal of marketing research 263.
It is proposed that there are three sources of entryorder information that work through various psychological processes and affect multiple decision. Information effect on consumer adoption for a new beef brand. Pdf impact of consumer preference formation on marketing. Brand retrieval, consideration set composition, consumer choice and the pioneering advantage. Consumer preferences allow a consumer to rank different bundles of goods according to levels of utility, or the total. Odell award is presented annually to the article published five years previously in the journal of marketing research that is judged to have made the greatest contribution to our field. Previous research have indicated that brand pioneership provide some advantages such as high market share barriers to entry and consumers preference as well as higher consumer attitude. Consumer preference formation and pioneering advantage, journal. Competitive strategies for late entry into a market with a. Carpenter and nakamoto, consumer preference formation and pioneering advantage, journal of marketing research, 1989. In reality, the decision of buying is taken by making certain wellthought compromises compensations between the levels of fulfilling the consumers preferences as incubation stage purchase stage trigger stage preference. In these cases, the authors argue that pioneering advantage can arise from the process by which consumers learn about brands and form their preferences. Your use of the jstor archive indicates your acceptance of. The effects of accessibility and cognitive capacity on perceptions of an influence agent.
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