Status games in Wine industry .pdf

In some cases the challenge is so great that learning

Info icon This preview shows pages 14–15. Sign up to view the full content.

In some cases, the challenge is so great that learning requires a university-based course, as in the case of art, music, or investing. When learning is noisy and dif fi cult, consumers are less able to form judgments independently (Hoch and Deighton 1989), creating an opportunity for market driving through social in uence. Indeed, taking cues from experts and friends becomes part of the learning process (Salganik, Dodds, and Watts 2006). Expertise. Consumers lack expertise in many markets such as health care, auto repair, and fi nancial services. Given the ambiguity of preferences, the complexity of the product, and the dif fi culty in learning, choosing not to gain expertise is en- tirely understandable. Moreover, with thousands of options and continual changes with new products,sustainingexpertise is time consuming. With the increasing sophistication of products, gaining and maintaining expertise is increasingly challenging. Limited expertise, however, makes consumers more vulnera- ble to in uence (Buehler and Grif fi n 1994; Coleman, Blake, and Mouton 1958). The gap between consumer and producer knowledge gives the fi rm and others in the system an advantage when it comes to building status. Our analysis suggests that when value is ambiguous, products are complex, learning is noisy, and expertise is limited, consumers are more open to in uence, and therefore fi rms have greater opportunities to drive the market. They do so through a complex social process. Earlier work has explored the social construction of preferences and brand meaning (Becker 1953; Maciel and Wallendorf 2017; Nakamoto and Schultz 2010; Salganik, Dodds, and Watts 2006; Wildavsky 1987), and status has also received ample and continued interest (e.g., Benjamin and Podolny 1999; Dion and Borraz 2017; Washington and Zajac 2005; ¨ Ust¨uner and Thompson 2012). We show that social in uence and status can be a powerful combination that con- structs the social reality that consumers and competitors share. Established Frameworks Our fi ndings suggest new ways that fi rms drive markets. Previous research has focused on three broad ways to drive the market, with signi fi cant attention focused on innovation. Our analysis focuses on market driving over time in the absence of techno- logical disruption. The previous research and our fi ndings suggest new avenues for market driving, as summarized in Table 4. Internal change. Market-driving fi rms pursue a vision rather than employ market research. They are forward looking, develop revolutionary marketing practices, and offer customers a leap in value and breakthrough technology (Kumar, Scheer, and Kotler 2000). Our analysis of enduring market driving suggests an important role for long-term vision over short-term commercial interests for creating distinct value for consumers.
Image of page 14

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern