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How social media increases shareholder value through consumer mindset metrics

Koen Pauwels

Koen Pauwels

In the following post, D’Amore-McKim School of Business Professor of Marketing Koen Pauwels examines the impact of social media on stock market performance in three consumer mindset metrics: purchase intent, brand awareness, and consumer satisfaction.

American companies now spend on average 10% of their marketing budgets on social media, but 4 out of 5 marketers cannot measure the impact of social media on business performance (The CMO Survey 2016). Among Fortune 500 companies, 73% have Twitter accounts, 66% have Facebook fan pages and 62% have YouTube channels. But how effective are these new marketing tools in gaining customer hearts and minds, and in improving shareholder value?

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Data Driven Understanding Through Survey Design

Keith Smith

Keith Smith

In the following post, D’Amore-McKim School of Business Assistant Professor Keith Smith highlights the importance of strategic survey design and the impact it can have on data-informed decision making.

Quality marketing and management decisions are increasingly driven by the data available to managers. Data is everywhere though, and the volume of data managers have access to has grown to colossal proportions. Furthermore, the quality of that data is often in question. Quality decisions require quality data, and how managers can obtain high quality data from their customers should be forefront in their minds.

Often, customer insights are obtained from customer surveys. Survey research methodology is widely used in marketing, and it is important for both marketing managers and marketing academics to follow stringent guidelines to ensure that meaningful and valid insights are attained.

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Amazon Buys Growth (and a Pipeline) with Whole Foods

Bruce Clark

Bruce Clark

In the following post, D’Amore-McKim School of Business Associate Professor Bruce Clark discusses the future of Amazon after its monumental move to purchase Whole Foods.

It was a good week to be a Whole Foods shareholder. The pioneering organic grocer may have escaped the limits of its business model by selling itself to Amazon at a 25% premium to current share prices. Activist shareholders who had been pressuring Whole Foods CEO John Mackey to sell the company have gotten their wish.

What has Amazon bought? First, growth. The company has been interested in the grocery category for some time. It sells many non-perishable items on its website, and the AmazonFresh delivery service has expanded into a range of perishables. Bloomberg estimates U.S. food and beverages was a $795B category in 2016. It also estimates that Amazon captured only 0.8% of this number. Compare this to the estimated 17% share of consumer electronics sales that Amazon obtained in 2015.

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Customer Engagement in a Big Data World


Yakov Bart

In the following post, D’Amore-McKim School of Business Assistant Professor Yakov Bart explains the advantages that companies can receive if they invest in improving customer engagement.

Marketing managers have long recognized customer engagement as an important driver of a firm’s financial success. By creating a highly engaged customer base, firms can increase their market power through enhanced loyalty of their customers, and get access to market insights based on customer behaviors, which is critical for any company looking to sustain value creation over time.

In parallel, major improvements in communication and information technologies have provided firms with new data-driven capabilities to capture, analyze, and exchange customer intelligence data at increasingly high volumes, varieties, and speeds. Traditionally, companies could gather such data only from observed transactions and market research surveys. Now, however, customers are constantly sharing information through social media platforms, by interacting with smart products, and by letting firms obtain other information about their locations and usage of online and mobile media through digital intermediaries. Advanced analytic capabilities also allow firms to apply obtained insights instantaneously to decisions on product design and communication strategies.

Nevertheless, despite both the recognized importance of and enhanced access to opportunities related to customer engagement data, firms often find it challenging to leverage these opportunities in a sustainable and long-lasting fashion. Read more…