While the field of marketing science has long been interested in the effects of promotional effor... more While the field of marketing science has long been interested in the effects of promotional efforts, public policy issues involving illegal marketer fraud and deception have generally not been addressed in this body of work. One key exception to this generalization is a Marketing Science article suggesting that the practice of “bait and switch” may be beneficial to consumers and, furthermore, that the Federal Trade Commission should investigate revising its standards to legitimize this practice (Gerstner and Hess 1990). This finding and recommendation seemed so significant that it is surprising that the recommendation has not, to date, been explored in greater detail. In this paper we further explore the impact of the two components of bait and switch: out of stock and upselling. We do this by using Moorthy's (1993) theoretical modeling framework to systematically extend and assess the Gerstner and Hess model. We find that the previously reported increase in consumer welfare tha...
notice may be reproduced or utilized in any form or by any means, including photocopying and reco... more notice may be reproduced or utilized in any form or by any means, including photocopying and recording, or by any information storage or retrieval system without the written permission of the American Marketing Association. iii
We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a v... more We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a very exciting program around the theme "Technology, Marketing, Consumers, and Society," designed to encourage thinking, research, and managerial insights into the effects of technology on business, consumers, and society. In addition to the usual sessions on cutting-edge research, two Mplanet sessions (one on ethics), and three preconference programs, this year's conference features five sessions under the new Career and Professional Development Track that address how to deal with the diverse demands of an academic career. Organizing a conference with 80 sessions, featuring participants from all over the world, is a challenging task, and many people assisted with this process. We thank the people who submitted papers and who developed special sessions. This year, we received a record number of competitive paper submissions. We also acknowledge the hundreds of individuals who reviewed the papers and helped shape the program. In addition, the presenters, discussants, and session chairs involved in the competitive and special sessions were essential to the conference's smooth execution. The SIGs assumed an active role in developing sessions. Finally, we recognize the efforts of Jack Nevin and his "Blue Ribbon Panel" from the University of Wisconsin, which selected the Best Paper Awards for the conference. Anyone who has worked closely with an AMA Educators' Conference knows that the behind-the-scenes efforts of the track chairs make a conference successful. The track chairs did a wonderful job encouraging submissions, coordinating the review process, and developing the sessions. We thank them for their tireless efforts. By track, these people are as follows:
“Digital business ecosystems” (DBEs) reflect the culmination of progressive changes in business m... more “Digital business ecosystems” (DBEs) reflect the culmination of progressive changes in business models and organizational structure over the last 40 years. The ubiquity of many large DBEs in our economy, society, and political system is troubling, as is their significant market power, which is the subject of competition investigations in the U.S. and abroad. But the DBE business model, which far surpasses other models and structures in its scope, scale, and complexity, remains largely under-analyzed. DBEs feature unique economic, technological, and business characteristics that increase their opacity to consumers, competition enforcers, and lawmakers. These include information as the currency of exchange and a range of market failures such as positive network effects, information asymmetries around user data and privacy, and data externalities. As the “engine” of commerce and growth in DBEs, cloud computing technology adds further complexity to the analysis of market power. This is particularly true of data analytics, supported by artificial intelligence (AI) and machine learning, which powers the DBE “value proposition” of maximizing user engagement and monetizing user data. <br><br>This report examines the unique characteristics of DBEs and assesses their implications for competition enforcement and policy. This analysis raises numerous questions around the adequacy of conventional competition analysis in evaluating market power concerns. The widening gap between the complexity and growth of DBEs—and the likely inadequacy of policy responses to the market power problems they raise—elevates the importance of such questions. However, they cannot be answered by relying solely on a legal-economic framework. We therefore adopt a multidisciplinary approach, incorporating economics, law, and business theory and research in our analysis. Not surprisingly, it reveals important caveats and cautions regarding the application of conventional competition analysis to DBEs, with implications for how competition enforcers and legislators assess market power and design remedies, particularly in the merger and monopolization contexts.<br><br>The report begins with the evolution of the DBE business model and its rapid and expansive growth. We then turn to an analysis of the major structural and behavioral features of DBEs. Next are implications for competition analysis, such as how markets are defined, how market power is exercised, and remedies. The final section concludes with recommendations. As public and private antitrust cases against large DBEs mount, the U.S. Department of Justice (DOJ), Federal Trade Commission (FTC), state Attorneys General, and courts will continue to grapple with their unique features. This report provides important analysis, insights, and recommendations for enforcers and policymakers as they explore the full complement of tools available to rein in the market power of DBEs.
Journal of the Academy of Marketing Science, Jun 12, 2009
Supply chains and supply chain management are important areas of business practice and scholarshi... more Supply chains and supply chain management are important areas of business practice and scholarship that overlap with the discipline and practice of marketing and marketing management. The co-editors of the Journal's Special Issue "Exploring the Relationship Between Marketing and Supply Chain Management" provide an introduction to the special issue, overview its contents and extend their appreciation to the authors, reviewers, editor and staff whose contributions and efforts made it possible.
Building on research in supply chain management (SCM) that aids in the workings of society, the a... more Building on research in supply chain management (SCM) that aids in the workings of society, the authors illustrate how SCM research can advance public policy and law. Using competition policy and antitrust law as an example, they consider how developments in SCM thought and practice augment economic understanding of vertical restraints involving minimum resale price maintenance (RPM). Developments affecting the organization of supply chains; firm-level strategies for the management of retail distribution; and the interactions of supply chain participants are investigated. The findings advance knowledge of the primary procompetitive and anticompetitive theories of RPM found in competition policy and antitrust law. They also illustrate the potential of SCM to expand its reach and impact through studies that address the interplay of SCM and public policy and law.
Category management is a retail practice wherein the products of a retail establishment are divid... more Category management is a retail practice wherein the products of a retail establishment are divided up into different categories and then managed as if each were a free-standing business. The most popular approach to category management involves outsourcing decisions to a single manufacturer in the category (a.k.a., the “category captain”). Category management and category captain arrangements can benefit competition and consumers where they help to enhance the efficiency and effectiveness of retail decision making. However, given their potential to adversely affect competition and consumers, category captain arrangements have attracted the attention of public policy makers, antitrust enforcement authorities, and marketing and legal scholars. At least two types of competition-related concerns are identified for category captain arrangements. One concern is that a category captain will use its role to coordinate competitor behavior resulting in anticompetitive collusion. A second con...
There has been widespread acknowledgement in the marketing literature of the relevance of exchang... more There has been widespread acknowledgement in the marketing literature of the relevance of exchange governance structures for understanding channel functions and performance. In this context, Williamson's Transaction Cost Analysis of vertical integration has proven a useful framework from which to examine channel governance structures. However, the polar extremes represented in this framework -- e.g. true markets and hierarchies -- appear infrequently across channel relationships. As a result, increasing emphasis has been directed toward understanding the many intermediate "hybrid forms" of governance structures possible in channel relationships.
In response to maturing markets and varying levels of government involvement, marketers have deve... more In response to maturing markets and varying levels of government involvement, marketers have developed political management programs that monitor, counter and/or attempt to change the context in which the firm operates. This article focuses on corporate political action and explores the legal and managerial issues arising from the political power many corporations now possess. Emphasis is given to the Supreme Court's political speech doctrine, which constitutionally restrains legislative initiatives limiting political action. Recent court decisions are summarily analyzed and their implications for marketers and public policy explored.
We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a v... more We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a very exciting program around the theme "Technology, Marketing, Consumers, and Society," designed to encourage thinking, research, and managerial insights into the effects of technology on business, consumers, and society. In addition to the usual sessions on cutting-edge research, two Mplanet sessions (one on ethics), and three preconference programs, this year's conference features five sessions under the new Career and Professional Development Track that address how to deal with the diverse demands of an academic career. Organizing a conference with 80 sessions, featuring participants from all over the world, is a challenging task, and many people assisted with this process. We thank the people who submitted papers and who developed special sessions. This year, we received a record number of competitive paper submissions. We also acknowledge the hundreds of individuals who reviewed the papers and helped shape the program. In addition, the presenters, discussants, and session chairs involved in the competitive and special sessions were essential to the conference's smooth execution. The SIGs assumed an active role in developing sessions. Finally, we recognize the efforts of Jack Nevin and his "Blue Ribbon Panel" from the University of Wisconsin, which selected the Best Paper Awards for the conference. Anyone who has worked closely with an AMA Educators' Conference knows that the behind-the-scenes efforts of the track chairs make a conference successful. The track chairs did a wonderful job encouraging submissions, coordinating the review process, and developing the sessions. We thank them for their tireless efforts. By track, these people are as follows:
While the field of marketing science has long been interested in the effects of promotional effor... more While the field of marketing science has long been interested in the effects of promotional efforts, public policy issues involving illegal marketer fraud and deception have generally not been addressed in this body of work. One key exception to this generalization is a Marketing Science article suggesting that the practice of “bait and switch” may be beneficial to consumers and, furthermore, that the Federal Trade Commission should investigate revising its standards to legitimize this practice (Gerstner and Hess 1990). This finding and recommendation seemed so significant that it is surprising that the recommendation has not, to date, been explored in greater detail. In this paper we further explore the impact of the two components of bait and switch: out of stock and upselling. We do this by using Moorthy's (1993) theoretical modeling framework to systematically extend and assess the Gerstner and Hess model. We find that the previously reported increase in consumer welfare tha...
notice may be reproduced or utilized in any form or by any means, including photocopying and reco... more notice may be reproduced or utilized in any form or by any means, including photocopying and recording, or by any information storage or retrieval system without the written permission of the American Marketing Association. iii
We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a v... more We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a very exciting program around the theme "Technology, Marketing, Consumers, and Society," designed to encourage thinking, research, and managerial insights into the effects of technology on business, consumers, and society. In addition to the usual sessions on cutting-edge research, two Mplanet sessions (one on ethics), and three preconference programs, this year's conference features five sessions under the new Career and Professional Development Track that address how to deal with the diverse demands of an academic career. Organizing a conference with 80 sessions, featuring participants from all over the world, is a challenging task, and many people assisted with this process. We thank the people who submitted papers and who developed special sessions. This year, we received a record number of competitive paper submissions. We also acknowledge the hundreds of individuals who reviewed the papers and helped shape the program. In addition, the presenters, discussants, and session chairs involved in the competitive and special sessions were essential to the conference's smooth execution. The SIGs assumed an active role in developing sessions. Finally, we recognize the efforts of Jack Nevin and his "Blue Ribbon Panel" from the University of Wisconsin, which selected the Best Paper Awards for the conference. Anyone who has worked closely with an AMA Educators' Conference knows that the behind-the-scenes efforts of the track chairs make a conference successful. The track chairs did a wonderful job encouraging submissions, coordinating the review process, and developing the sessions. We thank them for their tireless efforts. By track, these people are as follows:
“Digital business ecosystems” (DBEs) reflect the culmination of progressive changes in business m... more “Digital business ecosystems” (DBEs) reflect the culmination of progressive changes in business models and organizational structure over the last 40 years. The ubiquity of many large DBEs in our economy, society, and political system is troubling, as is their significant market power, which is the subject of competition investigations in the U.S. and abroad. But the DBE business model, which far surpasses other models and structures in its scope, scale, and complexity, remains largely under-analyzed. DBEs feature unique economic, technological, and business characteristics that increase their opacity to consumers, competition enforcers, and lawmakers. These include information as the currency of exchange and a range of market failures such as positive network effects, information asymmetries around user data and privacy, and data externalities. As the “engine” of commerce and growth in DBEs, cloud computing technology adds further complexity to the analysis of market power. This is particularly true of data analytics, supported by artificial intelligence (AI) and machine learning, which powers the DBE “value proposition” of maximizing user engagement and monetizing user data. <br><br>This report examines the unique characteristics of DBEs and assesses their implications for competition enforcement and policy. This analysis raises numerous questions around the adequacy of conventional competition analysis in evaluating market power concerns. The widening gap between the complexity and growth of DBEs—and the likely inadequacy of policy responses to the market power problems they raise—elevates the importance of such questions. However, they cannot be answered by relying solely on a legal-economic framework. We therefore adopt a multidisciplinary approach, incorporating economics, law, and business theory and research in our analysis. Not surprisingly, it reveals important caveats and cautions regarding the application of conventional competition analysis to DBEs, with implications for how competition enforcers and legislators assess market power and design remedies, particularly in the merger and monopolization contexts.<br><br>The report begins with the evolution of the DBE business model and its rapid and expansive growth. We then turn to an analysis of the major structural and behavioral features of DBEs. Next are implications for competition analysis, such as how markets are defined, how market power is exercised, and remedies. The final section concludes with recommendations. As public and private antitrust cases against large DBEs mount, the U.S. Department of Justice (DOJ), Federal Trade Commission (FTC), state Attorneys General, and courts will continue to grapple with their unique features. This report provides important analysis, insights, and recommendations for enforcers and policymakers as they explore the full complement of tools available to rein in the market power of DBEs.
Journal of the Academy of Marketing Science, Jun 12, 2009
Supply chains and supply chain management are important areas of business practice and scholarshi... more Supply chains and supply chain management are important areas of business practice and scholarship that overlap with the discipline and practice of marketing and marketing management. The co-editors of the Journal's Special Issue "Exploring the Relationship Between Marketing and Supply Chain Management" provide an introduction to the special issue, overview its contents and extend their appreciation to the authors, reviewers, editor and staff whose contributions and efforts made it possible.
Building on research in supply chain management (SCM) that aids in the workings of society, the a... more Building on research in supply chain management (SCM) that aids in the workings of society, the authors illustrate how SCM research can advance public policy and law. Using competition policy and antitrust law as an example, they consider how developments in SCM thought and practice augment economic understanding of vertical restraints involving minimum resale price maintenance (RPM). Developments affecting the organization of supply chains; firm-level strategies for the management of retail distribution; and the interactions of supply chain participants are investigated. The findings advance knowledge of the primary procompetitive and anticompetitive theories of RPM found in competition policy and antitrust law. They also illustrate the potential of SCM to expand its reach and impact through studies that address the interplay of SCM and public policy and law.
Category management is a retail practice wherein the products of a retail establishment are divid... more Category management is a retail practice wherein the products of a retail establishment are divided up into different categories and then managed as if each were a free-standing business. The most popular approach to category management involves outsourcing decisions to a single manufacturer in the category (a.k.a., the “category captain”). Category management and category captain arrangements can benefit competition and consumers where they help to enhance the efficiency and effectiveness of retail decision making. However, given their potential to adversely affect competition and consumers, category captain arrangements have attracted the attention of public policy makers, antitrust enforcement authorities, and marketing and legal scholars. At least two types of competition-related concerns are identified for category captain arrangements. One concern is that a category captain will use its role to coordinate competitor behavior resulting in anticompetitive collusion. A second con...
There has been widespread acknowledgement in the marketing literature of the relevance of exchang... more There has been widespread acknowledgement in the marketing literature of the relevance of exchange governance structures for understanding channel functions and performance. In this context, Williamson's Transaction Cost Analysis of vertical integration has proven a useful framework from which to examine channel governance structures. However, the polar extremes represented in this framework -- e.g. true markets and hierarchies -- appear infrequently across channel relationships. As a result, increasing emphasis has been directed toward understanding the many intermediate "hybrid forms" of governance structures possible in channel relationships.
In response to maturing markets and varying levels of government involvement, marketers have deve... more In response to maturing markets and varying levels of government involvement, marketers have developed political management programs that monitor, counter and/or attempt to change the context in which the firm operates. This article focuses on corporate political action and explores the legal and managerial issues arising from the political power many corporations now possess. Emphasis is given to the Supreme Court's political speech doctrine, which constitutionally restrains legislative initiatives limiting political action. Recent court decisions are summarily analyzed and their implications for marketers and public policy explored.
We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a v... more We are pleased to welcome you to the 2007 AMA Summer Marketing Educators' Conference! We have a very exciting program around the theme "Technology, Marketing, Consumers, and Society," designed to encourage thinking, research, and managerial insights into the effects of technology on business, consumers, and society. In addition to the usual sessions on cutting-edge research, two Mplanet sessions (one on ethics), and three preconference programs, this year's conference features five sessions under the new Career and Professional Development Track that address how to deal with the diverse demands of an academic career. Organizing a conference with 80 sessions, featuring participants from all over the world, is a challenging task, and many people assisted with this process. We thank the people who submitted papers and who developed special sessions. This year, we received a record number of competitive paper submissions. We also acknowledge the hundreds of individuals who reviewed the papers and helped shape the program. In addition, the presenters, discussants, and session chairs involved in the competitive and special sessions were essential to the conference's smooth execution. The SIGs assumed an active role in developing sessions. Finally, we recognize the efforts of Jack Nevin and his "Blue Ribbon Panel" from the University of Wisconsin, which selected the Best Paper Awards for the conference. Anyone who has worked closely with an AMA Educators' Conference knows that the behind-the-scenes efforts of the track chairs make a conference successful. The track chairs did a wonderful job encouraging submissions, coordinating the review process, and developing the sessions. We thank them for their tireless efforts. By track, these people are as follows:
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