RT info:eu-repo/semantics/article
T1 Demand-enhancing services for tangible products in a distribution system with online and off-line channels
A1 Martín Herrán, Guiomar
A1 Sigué, Simon-Pierre
K1 Patial competition
K1 Defensive marketing
K1 Offensive marketing
K1 Resource allocation
K1 Travel costs
AB While it is well established that travel costs impact on customer preference toward local service providers, research about howthis situation affects competitive marketing strategies remains sparse. This article investigates, in a local market with twocompeting service providers, whether service providers should undertake defensive marketing (DM), targeted at the nearestcustomers who typically prefer their offering for convenience and/or offensive marketing, directed to relatively remote customerswho favor the rival as the closest alternative. We find that the service providers can exclusively undertake either DM or offensivemarketing or combine the two in a full differentiated strategy at the equilibrium. We compare the outcomes of these threestrategic options to identify the conditions under which they are worth implementing. Main findings suggest that service providersare better off undertaking offensive marketing alone when their rival’s retaliatory offensive capacity is weak and customers incursmall travel costs. Otherwise, service providers may exclusively undertake DM or combine it with offensive marketing whentravel costs become significant. Also, service providers should not invest in any marketing activity when they have no marketpower, like in the case of two adjacent outlets in a mall. Finally, the implications of these findings are discussed.
YR 2021
FD 2021
LK https://uvadoc.uva.es/handle/10324/51710
UL https://uvadoc.uva.es/handle/10324/51710
LA eng
NO Journal of Service Research, 2021
DS UVaDOC
RD 16-jul-2024