LINKING BUSINESS MODEL AND MARKETING RESEARCH FOR SUCCESSFUL BUSINESS MODEL INNOVATION

Denis Klimanov,Olga Tretyak 글로벌지식마케팅경영학회 2018 Global Marketing Conference Vol.2018 No.07

Introduction Business model (BM) research currently represents rapidly developing area of knowledge that helps businesses in finding new sources of competitive advantage and growth drivers. Multiple studies demonstrate that BM studies are multidisciplinary by their nature as this helps better understanding complex processes happening in real life that are described by BM research (Zott, Amit, Massa, 2011; Tikkanen et al, 2005). This means that BM research is built on a basis of strategic management, marketing, sociology, psychology, logistics, institutional economics and other disciplines. Regardless the growing amount of publications in this area (more than 6 times growth for the last 15 years reaching 2100 publications per year according to Scopus) the amount of successful BM in practice remains low. BM studies are primarily linked to the notion of value that is jointly created for the final consumer by multiple participants of the value chain (suppliers, manufacturers, distribution channels). Within the interaction of BM participants the key role is played by their orientation towards the interests of the final consumer who makes the decision on whether to acknowledge or not the created value. As value chain generally consists of multiple commercial organizations, their major interest is in making profits as a result of joint value creation activities. Therefore the key role in BM analysis is played by marketing that helps searching and offering such values for the customer that enable satisfying his needs. Multiple research in marketing confirms that long term customer orientation, cooperation of value chain actors offer companies better development opportunities and lead to better financial results as well as help increasing value generated for the final consumer. However, the current level of marketing involvement into the BM research remains low. This, in turn, significantly limits the opportunities of creating successful and sustainable BM that bring profits to the commercial units of the value chain and satisfy the needs of the final consumer. To address the existing gap the current paper explores the links between BM research and marketing which are then used to develop a new approach to BM innovation. The approach is based on value chains and interfirm relationships. Literature review Regardless large and steadily growing amount of BM publications the questions related to building a unified theoretical basis for BM research are still under discussion (Teece, 2010; Zott, Amit, Massa, 2011; DaSilva, Trkman, 2014; Baden- Fuller, Mangematin, 2015). There is a lack of alignment between the researchers on a broad spectrum of questions (such as BM definition, BM components, the relation between BM and company strategy, BM boundaries, the impact of various BM types on company performance etc). At the same time some consolidation of researchers’ positions can be observed in relation to the domination of a value component within BM definition. The questions related to BM analysis that enable to evaluate the current state of a BM, understand its key components (Hamel, 2000; Johnson, Christensen, Kagermann, 2008; Teece, 2010) and find better opportunities for BM improvement (Osterwalder, Pigneur, 2010; Girotra, Netessine, 2014) are actively researched. Many authors come to a conclusion that a BM spans the boundaries of a single firm and includes a whole complex of interaction participants – suppliers, distribution channels, final consumers. This is because cooperation of various market participants enables to significantly increase jointly created value for the customer (Nenonen, Storbacka, 2010; Zott, Amit, Massa, 2011). This understanding of a BM also leads to the need of thorough analysis of mismatches and inconsistencies between value chain participants that regularly appear in the business (Gassmann, Frankenberger, Csik, 2013; Girotra, Netessine, 2014). Regardless the existing variety of BM studies, most of the papers draw the attention to the process of value creation for the final consumer, which is a zone of marketing interests, as marketing studies the directions of identifying and satisfying customer’s needs. Therefore it is hard to imagine building successful BM oriented on the final consumer and bringing stable income to the companies participating in the BM without organic inclusion of the customer into the value chain by using methods and tools from marketing. These questions are studied within multiple relationship marketing papers (Parvatyar, Sheth, 1995; Gumesson, 1999; Juttner, Christopher, Baker, 2007; Tretyak, 2013). However, nowadays the involvement of marketing researchers in BM studies is low (only 5% of BM studies are published in marketing journals (Coombes, Nicholson, 2013)) which is also confirmed by the current study. Despite the very broad spectrum of studied questions, the importance of value acknowledgement by the customer is neglected by BM researchers. At the same time in case the value is not acknowledged, the BM loses its commercial value for the other participants as it stops bringing them profits. Therefore there is a growing need to incorporating the final consumer into the value chain, understanding its interests. This is possible in case of using the results of marketing research which is demonstrated in the current study. Research design To explore the link between marketing and BM research we review the literature on relationship marketing that is specialized on the value creation process for the customer, inclusion of the customer into the value chain, cooperation and coordination of value chain participants (Parvatyar, Sheth, 1995; Gumesson, 1999; Juttner, Christopher, Baker, 2007; Tretyak, 2013). The similarities between BM research and marketing were examined from two sides. The first examination analyzes the publications statistics of BM papers. We particularly look at the amount of BM publications in marketing journals. The classification of journals by different categories is conducted according to Scientific Journal Rankings (SJR) list. For the purpose of this analysis we use Scopus publications database and all the available articles with “business model” in title published before 2018. The relative “typicality” of these papers and journals is evaluated using citation index (number of citations per article/journal divided by total number of citations). Along with this we analyze not only journals which publish BM articles, but also the journals referring to them. The second examination looks into the actual similar attributes of marketing and BM research. The BM literature is studied through the prism of seven schools of thought that are recently proposed by (Gassmann, Frankenberger, Sauer, 2016): Activity system school (Zott, Amit), Process school (Demil, Lecocq), Cognitive school (Baden Fuller, Morgan), Technology-driven school (Chesbrough, Teece), Strategic choice school (Casadeus-Masanell, Ricart), Recombination school (Gassmann, Frankenberger, Csik), Duality school (Markides, Charitou). These seven schools provide a comprehensive outlook on major BM research tendencies that help in understanding of BM essence, structure, components, goals and objectives, BM performance evaluation, and the directions of future BM studies. Additionally to better understand BM key research trends we analyzed top 25 most cited publications according to Scopus and Ebsco publication databases (the publications with “business model” notion in title were selected). For the purpose of theoretical analysis we applied the methods of comparison, generalization, methods of grouping and classification. The basis of the current research is formed by value chains studying methods that are used in both BM and marketing studies. Results and conclusions The analysis of BM research demonstrated that BM spans the boundaries of a single firm and includes the whole complex of interaction participants that jointly create and deliver value to the final consumer - suppliers, manufacturers, distribution channels. Because of that multiple BM research papers focus on the analysis of the value chains and intercompany networks. Understanding of these specifics formed the basis of a new approach to BM innovation. It is demonstrated that the existing approaches to BM analysis and improvement don’t include the final consumer as a specific BM component, and don’t focus the attention on fulfilling his needs as well as building the mechanism of BM actors’ interaction in accordance with customer’s needs. At the same time the acknowledgement of the value by the customer defines the financial wellbeing of BM actors. Addressing these questions can significantly improve BM performance and can be done through building a link between BM research and marketing. The analysis demonstrated that only 6% of BM papers are published in marketing journals, and only 8% of studies that are citing BM research are published in marketing journals which confirms limited involvement of marketing scholars in BM research. The following similarities between BM and marketing studies were identified and explored: value chains and interfirm networks (examples of marketing studies: Tretyak, 2013; example of BM studies: Nenonen, Storbacka, 2010; Zott, Amit, Massa, 2011), cooperation and partnerships between value chain participants (examples of marketing studies: Parvatyar, Sheth, 1995; example of BM studies: Zott, Amit, 2008), coordination of value chain participants (examples of marketing studies: Juttner, Christopher, Baker, 2007; example of BM studies: Girotra, Netessine, 2014), customer orientation and customer involvement (examples of marketing studies: Gumesson, 1999; example of BM studies: Johnson, Christensen, Kagermann, 2008; Teece, 2010), long term orientation of relationship marketing and sustainable BM (examples of marketing studies: Parvatyar, Sheth, 1995; example of BM studies: Girotra, Netessine, 2014). To close the existing gap a three-level conceptual model (1st level – structure of the BM, 2nd level – mechanism of BM participants’ interactions, 3rd level – results of their interactions) and new approach to BM innovation are offered within the current study. The approach demonstrates a step-by-step sequence of actions within three previously highlighted levels and is targeted on increasing the jointly created value for the customer by the BM by eliminating mismatches and inconsistencies between BM participants. Comparing to other approaches, the new approach allows orienting BM participants towards the interests of the final consumer, acknowledges different abilities of BM actors to influence the value creation process and proposes analyzing the ways of coordination of other BM actors by the dominating actor in order to improve the results of the BM. The practical implementation of the approach demonstrated that it’s key provisions could be successfully applied within different market conditions and lead to improved BM performance (Klimanov, Tretyak, 2016; Lyashchuk, Sterligova, 2016). The following sequence of actions is proposed within the approach: 1st level - structure of the BM (a. Visualization of intercompany network with its key actors and description of their roles; b. Defining and highlighting the dominating actor (hypothesis); c. Analysis of BM variety, their classification), 2nd level - interaction mechanism (a. Defining the mechanism (concrete forms) and coordination directions that are applied by the dominating actor and other BM actors; b. Definition and analysis of mismatches and inconsistencies that appear between various BM actors, and also the ways to overcome them; c. Identifying the most critical inconsistencies, their ranking (where there is the biggest gap between the value created for the customer and the value captured by other BM actors)), 3rd level - results of BM actors’ interaction (a. Analysis of the indicators that characterize BM on various levels; b. Analysis of the impact of mismatches and inconsistencies between the BM actors on the flows’ characteristics: material, financial, customer flow). The new approach to BM innovation has multiple similarities with Activity system school that is based on the approach offered in (Zott, Amit, 2010), which views BM as a system of interdependent activities conducted by the focal firm and other value chain participants in order to create value for the customer and generate profits. The approach assumes that it is possible to analyze or develop a BM by considering the components, structure and control mechanism of the activity system. However, the approach offered in the current study is different from the Activity system perspective at the level at which the activity system is analyzed - these are components of a whole value creation system, rather than a single focal firm. Thus, the proposed approach develops the Activity system perspective by proposing the use of a marketing scheme that integrates certain aspects of BM analysis into an organic whole and offers a threelevel analysis of a BM. Considerable attention in the Activity system perspective focuses on the activities of BM participants and their interaction. The activity system design element related to transaction management also reflects one of the key elements of the new approach proposed in the current study - BM participants occupy different positions in the value chain and have different opportunities to influence the value creation process for the consumer. The highlighted similarities demonstrate that the new approach to BM innovation developed in the study is organically linked to the Activity system perspective proposed by Zott and Amit and elaborates on it.

IMPACT OF E-COMMUNICATION ON VALUE CREATION IN BUSINESS MODEL OF DIRECT SELLING

Nadezhda Kolesnik,Olga Tretyak 글로벌지식마케팅경영학회 2016 Global Marketing Conference Vol.2016 No.7

Business model of direct selling is the dynamic and complex multi-level structure. Interpersonal face-to-face communication is the key value creation aspect of direct selling business model. Nowadays more and more sellers employ virtual communication channels instead of face-to-face, thus hindering a traditional relational element. The study explores whether usage of Internet technologies for communication with customers brings benefits or extinguish the direct selling industry. The research is based on the quantitative analysis of all-country paper based survey from 5694 respondents. The statistical analysis of total sample revealed that usage of Internet in general does not give advantages for distributors. However, usage of person-to-person internet communication tool, such as e-mail, allows achieving better performance as measured by earnings per hour worked. Surprising is the fact that the most successful young distributors (at the age under 35 years) do not use internet for communication with customers at all. For distributors over 35 years old neither internet nor e-mail usages have got impact on performance. In rural areas users of internet communication tools show lower performance results. In big cities usage of e-mail provides significantly higher performance, but general usage of internet does not. Consequently, the effects from usage of internet technologies for communication with customers are achieved in case of person-to-person communication. Moreover the most productive sellers give priority to the live communication.

PATTERNS IN MARKETING PRACTICES OF RUSSIAN COMPANIES ACROSS FOUR FINANCIAL GROUPS

A.Grigoriev,Darya Lagutaeva,Olga Tretyak 글로벌지식마케팅경영학회 2016 Global Marketing Conference Vol.2016 No.7

This paper broadly addresses the development of optimal marketing budget allocating among firms in the Russian market and applies methodologies produced by the contemporary marketing practices (CMP) project (New Zealand, the university of Auckland). From that project, it would seem that there are two separate paradigms that distinguish modern firms, namely a transactional approach and a relational approach. In a transactional type, the marketing campaign depends entirely upon closing the sale, based on a marketing miх or 4P conception. Relational marketing is based, rather, on a long term relationships with the customer, and it is generally typical of B2B markets where a limited number of companies try to develop customer’s loyalty due to the strong competition. Using marketing practices according to these two paradigms in Russia as an emerging market, however, reveals a difficulty in determining how to apply the CMP method to businesses: how is firm efficiency in these markets associated with one paradigm or the other? Is the situation in Russia typical for transition or emerging markets, or is it closer to that of advanced market economies, and which patterns in marketing practices do companies from different financial level prefer? Finally, how can firms use this approach to optimize marketing resources allocation? These questions were not resolved by the CMP project, yet they are critical for understanding the evolution of firms in transition countries such as Russia. The theoretical understanding in the literature shows a general cross-country relationship between marketing practices and firm efficiency. It is generally admitted that marketing creates value for a company, e.g. by analyzing customer database, selecting profitable clients segments, activities of the company, choosing an appropriate business model and strategic direction of the company. These are some of the most prominent reasons why marketing and company’s revenues are closely connected (Doyle, 2000; Rust et.al. 2004). The literature on marketing practices additionally identifies several regularities for developed and emerging markets: 1. Increased effectiveness can be achieved primarily by using database technology: switch marketing attention from markets to customers (individuals) and analyze clients flow. (Sheth and Sisodia, 2002; Rust and Chung, 2006) 2. Markets should be aimed not only at the customer acquisition but also at the customer retention. (Sheth and Sisodia, 2002) 3. Marketing is mostly characterized by delayed effect in time, implying companies should relate marketing activities with longer term effects (Dekimpe, Hanssens, 1995). 4. The consumer-company interrelation influence on the cumulative level of the marketing assets of the company. (Reinartz and Kumar, 2002)

Semi-empirical calculation of quenching factors for ions in scintillators

North-Holland ; Elsevier Science Ltd 2010 Astroparticle physics Vol.33 No.1

Semi-empirical method of calculation of quenching factors for scintillators is described. It is based on classical Birks formula with the total stopping powers for electrons and ions which are calculated with the ESTAR and SRIM codes, respectively. Method has only one fitting parameter (the Birks factor kB) which can have different values for the same material in different conditions of measurements and data treatment. A hypothesis is used that, once the kB value is obtained by fitting data for particles of one kind and in some energy region (e.g. for a few MeV α particles from internal contamination of a detector), it can be applied to calculate quenching factors for particles of another kind and for another energies (e.g. for low energy nuclear recoils) if all data are measured in the same experimental conditions and are treated in the same way. Applicability of the method is demonstrated on many examples including materials with different mechanisms of scintillation: organic scintillators (solid C<SUB>8</SUB>H<SUB>8</SUB>, and liquid C<SUB>16</SUB>H<SUB>18</SUB>,C<SUB>9</SUB>H<SUB>12</SUB>); crystal scintillators (pure CdWO<SUB>4</SUB>,PbWO<SUB>4</SUB>,ZnWO<SUB>4</SUB>,CaWO<SUB>4</SUB>,CeF<SUB>3</SUB>, and doped CaF<SUB>2</SUB>(Eu), CsI(Tl), CsI(Na), NaI(Tl)); liquid noble gases (LXe). Estimations of quenching factors for nuclear recoils are also given for some scintillators where experimental data are absent (CdWO<SUB>4</SUB>,PbWO<SUB>4</SUB>,CeF<SUB>3</SUB>, Bi<SUB>4</SUB>Ge<SUB>3</SUB>O<SUB>12</SUB>, LiF, ZnSe).

EMBEDDING INNOVATIVE INTERNET-BASED COMMUNICATION TOOLS INTO BUSINESS MODEL: LONGITUDINAL QUANTITATIVE STUDY

Kolesnik Nadezda,Tretyak Olga 글로벌지식마케팅경영학회 2018 Global Marketing Conference Vol.2018 No.07

The paper presents the longitude study of Internet technologies introduction into business model. Rapid spread of Internet technologies has a significant impact on the business models transformation. Today, information technology has become an integral part of communication with customers. In 2017 the penetration rate of the Internet in Russia reached 73%. Thus, almost 3/4 of the population is currently Internet users and be reached online. On the one hand, Internet communication speeds up and simplifies the processes; on the other hand, the key competitive advantage of direct selling business model is blurred. For ages business model was based on direct interpersonal contacts between the distributor and the customer. In this business model relationship creates more value than the product itself [Luk, Fullgrabe, Yi, 1996] and face-to-face meeting is the key descriptor [Sanan, 1997]. Direct selling is cultivated through relationships and provides customer-centric marketing opportunities [Harrison, Hair, 2017]. The question of this study is whether introduction of innovative Internet technologies into communication with customers is beneficial for traditional direct selling business model. Empirical research is based on comparative analysis of data from three survey waves (6380 respondents in 2011, 5638 respondents in 2014 and 6800 respondents in 2017). Effectiveness of Internet usage the for communicate with customers was analized in dynamics over the three waves of 2011, 2014, 2017. Using the one-way analysis of variance (ANOVA) method 15 (fifteen) hypotheses were checked. Nine (9) out of 15 (fifteen) hypotheses were confirmed. Research revealed that personalization determines the effectiveness of communication with customers via internet-based tools (e-mail, web site, social networks, professional social networks, video channels, blogs, microblogs, videoconferences and webinars, messaging applications and files). Nevertheless, face-to-face communication remains significant communication channel for success in direct-selling

INSIGHTS ON CONTEMPORARY MARKETING PRACTICES (CMP) IN RUSSIA: EVIDENCE FROM EMPIRICAL RESEARCH

Vera Rebiazina,Olga Tretyak 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.5

Emerging markets represent a significant part of the world economy and tend to expand their share, but they are still not well examined. Specifically, one of the BRIC economies, Russia seems to be avoided in the overall marketing strategy academic discussion. According to Sheth (2011, p. 7) market orientation and relationship marketing are marketing strategies that have become mainstream for empirical research in marketing. But existing research shows that these marketing strategies have hardly been investigated in-depth in Russian context for the last twenty years. The purpose of this paper is to test Contemporary Marketing Practices model in Russian market. Classification scheme of marketing practices is based on “Contemporary marketing practices - CMP” methodology: TM (Transactional marketing, DM (Database marketing), IM (Interactive marketing), NM (Network marketing) and RM (Relationship marketing) (Coviello et al, 2002). Thus, main research question is to reveal what types of marketing practices (transactional, data based, interactive, relational or network) are more often used by Russian companies. Paper is based on empirical data (quantitative study of 329 Russian companies). Cluster analysis was conducted to show that types of marketing practices are common for Russian market: transactional, relational or interactive.

INSIGHTS ON CONTEMPORARY MARKETING PRACTICES (CMP) IN RUSSIA: EVIDENCE FROM EMPIRICAL RESEARCH

Vera Rebiazina,Olga Tretyak 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

Emerging markets represent a significant part of the world economy and tend to expand their share, but they are still not well examined. Specifically, one of the BRIC economies, Russia seems to be avoided in the overall marketing strategy academic discussion. According to Sheth (2011, p. 7) market orientation and relationship marketing are marketing strategies that have become mainstream for empirical research in marketing. But existing research shows that these marketing strategies have hardly been investigated in–depth in Russian context for the last twenty years. The purpose of this paper is to test Contemporary Marketing Practices model in Russian market. Classification scheme of marketing practices is based on “Contemporary marketing practices – CMP” methodology: TM (Transactional marketing, DM (Database marketing), IM (Interactive marketing), NM (Network marketing) and RM (Relationship marketing) (Coviello et al, 2002). Thus, main research question is to reveal what types of marketing practices (transactional, data based, interactive, relational or network) are more often used by Russian companies. Paper is based on empirical data (quantitative study of 329 Russian companies). Cluster analysis was conducted to show that types of marketing practices are common for Russian market: transactional, relational or interactive.

Development of User Subscription Services in E-Commerce: Effects on Consumer Behavior

Irina Gladilina,Gennady Degtev,Evgeniy Kochetkov,Elena Tretyak,Diana Stepanova,Lyailya Mutaliyeva International Journal of Computer ScienceNetwork S 2023 International journal of computer science and netw Vol.23 No.11

The trend of satisfying consumer needs (payment for mobile communication, music services, cab ordering, banking products, and food delivery) on a unified online platform has shaped a digital ecosystem, an instrument creating a unified space of economic interaction. Representatives of e-commerce are major stakeholders in the development of such tools. In particular, subscription services (multiservice subscriptions) allow users to create their own ecosystems based on their personal preferences. The rate of subscription service use is growing around the world, yet understanding of the peculiarities of development of this e-commerce sphere is limited due to insufficient research.The study aims to determine the motives and barriers to the use of subscription services (multiservice subscriptions) by consumers and their relationship with consumer characteristics.Proceeding from an online survey of 200 users, the study determines the relationship between the gender and income of consumers and their use of subscription services, motives and motivators for using subscription services, and barriers to the choice of a particular subscription service. The obtained results may serve as a basis for managerial decisions in e-commerce and for improving the effectiveness of marketing solutions.

Assessment of the Risks of Occupational Diseases of the Passenger Bus Drivers

Golinko, Vasyl,Cheberyachko, Serhiy,Deryugin, Oleg,Tretyak, Olena,Dusmatova, Olga Occupational Safety and Health Research Institute 2020 Safety and health at work Vol.11 No.4

Background: The working conditions of bus drivers are difficult; they lead to occupational diseases and require careful study, particularly in Ukraine. The objective of the article is the description of occupational health risks of passenger bus drivers that lead to deteriorating health. Methods: The risk assessment was performed using a modified Risk Score method, which allowed determining the generalized level of danger to the driver's health. The hygienic hazards level was assessed as based on Stevenson's law, which was generalized later. Results: Based on the modification of the Risk Score method, it was possible to depart from expert assessments method of the risk level and calculate the general indicator based on the degree of dependence of the impact on the human body on its intensity, proposed by V. Minko. This allows objective determining of the impact of hygiene hazards on the health of the driver and to predict the occurrence of occupational diseases associated with the cardiovascular system, musculoskeletal system, and partial or complete disability due to the accumulation of emotional fatigue. The hazard assessment was carried out for three brands of passenger buses common in Ukraine, in which the driver is exposed to the dangers of fever, vibration, noise, harmful impurities in the bus cabin, and emotional load. Conclusion: The health of drivers in the cabins of passenger buses is most affected by hygiene hazards: fever, vibration, and emotional stress. The generalized level of risk is calculated by the modified method of Risk Score is 0.83; -0.99, -0.92 respectively.

Random Optimization of the Green Closed Chain Supply Chain of Perishable Products

Anuarbek Suychinov,Maksim Rebezov,Lyudmila Tretyak,Viacheslav Zhenzhebir,Nikolai Maksimiuk,Radion Pavlov,Alina Ostapenko,Yulia Zubtsova,Galiya Abdilova 대한산업공학회 2021 Industrial Engineeering & Management Systems Vol.20 No.2

The nature of the market has changed in many products so that manufacturers are increasingly forced to reconsider their supply chain strategies. In particular, perishable products can mentioned that require better and more accurate planning in terms of inventory and distribution in the supply chain. This paper presents a mathematical model for designing a supply chain network for perishable products. The supply chain includes a set of factories, warehouses, customers and collection centers. The objectives of this mathematical model are to reduce the total cost of the supply chain and reduce environmental pollution. In order to evaluate the performance of the mathematical model, three scenarios have been considered. In the first scenario, the reduction of product prices and in the second scenario, the stability of product prices and in the third scenario, the increase of product prices is considered. Then these scenarios are probably included in the mathematical model. The analysis performed in the study of the effect of each scenario shows that the increase in product prices has a more severe impact on environmental pollution. There is also always a conflict between costs and the environmental impact of the supply chain.