Article Abstract:
The experience of many big firms show that lower product prices alone do not make for competitive advantage. Another factor is the product or service benefits, that is, the actual and perceived qualities valued by customers. Thus, competitive analysis must be both competitor- and customer-oriented, entailing a comparative survey of product prices and benefits in the entire market. A firm measures its competitive advantage as the difference between its benefit and price spreads. Multiplying or improving the quality of benefits improves a firm's competitive advantage.
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Article Abstract:
Management behavior plays a critical role in the success of service-oriented companies, as they determine the success of market orientation. Results derived from a survey conducted on UK-based food services firms revealed that positive management behaviors tend to elicit improved market orientation. On the other hand, negative behaviors, including political maneuvering and conflicts, tend to undermine the marketing potential of firms. Results further suggest the increased market orientation is likely to result in better vertical organizational communication.
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Article Abstract:
When a company having higher brand equity extends into a new product category, it can generate a price premium in comparison to the other products of low brand equity. The positive correlation between brand-extension price premiums and the perceived fit between the brand and the extension strategy is described.
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