Added 62 days ago (03.03.2020) Journal: Journal of the Academy of Marketing Science. MAIN THEORIES 1. The relationships were tested in a sample of 779 users and providers of market research information. However, product returns are not necessar-, age learning and be treated as a goodwill stock variable that, might lead to higher future purchases. Each of these ... conditioning, John Watson (1878-1958) who rejected introspective methods and Burrhus Skinner (1904-1990) who developed operant conditioning. Day, G. S. (1981). This research thus moves beyond extant RM literature by focusing on the differential effectiveness of RM strategies across relationship states, and it provides managerial guidance regarding efficient, dynamic resource allocations. purchase data and selectively targeting marketing can be fruitful. Value creation. Nitzan, I., & Libai, B. Part of Springer Nature. A dynamic model of the duration of the customer’s relationship with a continuous service provider: The role of satisfaction. The original concept has gained widespread currency among practitioners, and the term disruption has entered the prevailing business lexicon (Christensen et al., 2001).Meanwhile, however, the theory’s core concepts remain widely misunderstood (Christensen, 2006; Raynor, 2011a). Using counterfactual analysis, we highlight an opportunity for the multichannel firm to optimize marketing strategies to dynamically manage and increase the retention and hence also the value of its customer base. New York: Random House Digital, Inc. Dwyer, F. R., Schurr, P. H., & Oh, S. (1987). In the previously listed models, consumers max-, warranty purchase decisions depend on their future, they describe the observed empirical relationships of, utility functions, their information set, their ability to, and JD finance), healthcare, entertainment, higher, past preferences), while humans satisfy con-, that knows more about our state of health before we. The dynamic payments industry continues to expand and evolve, with digital payment vehicles and transaction volumes growing across the globe. Journal of Marketing, 51(2), 11–27. The analyses provide insights about variety-seeking and reinforcement tendencies which may be of benefit to the marketing manager. (https://www.gartner.com/en/newsroom/press-releases/2019-10-21-gartner-identifies-the-top-10-strategic-technology-trends-for-2020). Therefore, properly ac-, counting for past experiences and brand goodwill as explanatory, counting for both sources of variation might confound he, neity as dynamics and therefore bias theory building and constrain, verse of keywords by following a snowball sampling ap-, keywords by looking at the author-provided keywords in, search assistant to separately add similar keywords to our list, and assess whether the effort yields addit, bined list of keywords on methods and topics for rele, To assess the evolution of consumer dynamics research, given year by the total number of citations for all relevant. 4. In general, the evolution of marketing models in consumer, dynamics has been fueled by the data explosion over the past, decades, which in turn led to the better understanding of con-, sumers. How online consumer segments differ in long-term marketing effectiveness. INTRODUCTION. Paths to and off purchase: Quantifying the impact of traditional marketing and online consumer activity. Journal of Retailing, 85(4), 468–479. Marketing Science, 28(3), 541–553. Journal of Interactive Marketing, 36, 77–90. Z., Watson, G. F., Palmatier, R. W., & Dant, R. P. (2016). Marketing Science, 25(6), 604–616. The expand view of consumer embrace much more than the study of The persistence of marketing effects on sales. Social Learning Theory 4. Second, con-, sumers rely on past experiences and brands, ing decisions, so these factors need to be incorporated into the set, of explanatory variables. Schweidel, D. A., Bradlow, E. T., & Fader, P. S. (2011). These theories tend to place more emphasis on the business structures and dynamics of social relationships [8, 9]. Parker, P. M. (1992). The observations provide a noisy, change her states over time, an HMM can estimate the transition, probabilities between states, which indicate the stickiness of the, into the transition to nudge consumers towards desirable states, useful feature for dynamic targeted marketing. International Journal of Research in Marketing, 28(4), 281–294. The models are tested on panel data for 16 brands in five separate product categories. Akçura, M. T., Füsun, F. G., & Petrova, E. (2004). Declining stages indicate lagging consumer demand for the goods or services supplied by businesses. https://doi.org/10.1007/s11747-020-00720-8, DOI: https://doi.org/10.1007/s11747-020-00720-8, Over 10 million scientific documents at your fingertips, Not logged in Although our literature review is comprehensive and achieves our goal of highlighting the evolution of topics and methods as the result of better data, we admit that it is not exhaustive. Valentini, S., Montaguti, E., & Neslin, S. A. ferent consumers balance the need for authentication (e.g.. is an evolving domain with no clear current definition, on their experiences and environmental norms? We find that an offline (retail-store) channel can be used to migrate customers from an inactive state to an active state, effectively serving the purpose of “education” or “revival,” whereas an online channel is most effective in keeping the existing active customers active, thus serving the purpose of “retention”. Mind-set metrics in market response models: An integrative approach. Since this paper was first published, the publisher has been informed of an additional contributing author, Chun-Wei Chang. & Nordfalt, J., (2019). Li, H. (. Journal of Marketing Research, 51(1), 40–56. Consumer dynamics: theories, methods, and emerging directions. Marketing Science, 12(4), 378–394. Because of these dynamics, ... Theories of consumers need to be matched with theories of systems, institutions, ... different theories accommodate (and may incentivize) different methods. Montgomery, A. L., Li, S., Srinivasan, K., & Liechty, J. C. (2004). cation effect is long term instead of near term, and the personal, selling effect could last for over a year. In recent years, quantamental has, emerged as a new approach to investing and firm valua-, tion that leverages alternative data sources and machine, learning techniques. Although the results were insightful for firms at a, product and market level, they offered limited insights, on individual behavior evolutions and lacked prescrip-. Journal of the Academy of Marketing Science, 39(2), 327–339. Customer portfolio management: Toward a dynamic theory of exchange relationships. Dynamics of muscle and tendon, models of muscle contraction. An assessment of an expanded measure of perceived risk. Journal of Marketing Research, 33(2), 211. Early papers in the, looked at how customers adjusted their behaviors in these, level targeting through mixture models and hierarchical, Higher-dimensional behavioral data, digital and social do-, other customer outcomes over time, how thes, Markov models (HMM) were often used where the cus-, but also time-varying. Leeflang, P. S., Bijmolt, T. H., Van Doorn, J., Hanssens, D. M., Van Heerde, H. J., Verhoef, P. C., & Wieringa, J. E. (2009). What exactly makes a great leader? Aurier, P., & N’Goala, G. (2010). fashion, custom, and cultural change as informational cascades. Marketing Science, 15(1), 1–20. New York: HarperCollins. Accordingly, we discuss several commonly used empirical methods for conducting dynamics research. Johnson, M. D., & Selnes, F. (2004). Journal of Marketing Research, 47(1), 173–185. Dekimpe, M. G., & Hanssens, D. M. (1999). No other changes have been made to the text. Consumer dynamics: theories, methods, and emerging directions . Consciously incorporating these interdependent factors into firms' decision-making is essential for adaptability and sustainable profitability. Shi, S. W., Wedel, M., & Pieters, R. (2013). 33, pp. Little empirical research has been conducted to test the dynamic behavior of elasticities over the product life cycle. According to the theory, specifi… Print version: page 30. However, the change has been less pronounced in countries with a moderate degree of economic shock, such as Germany and Japan. Bronnenberg, B. J., Mahajan, V., & Vanhonacker, W. R. (2000). (2014). First, researchers could develop a framework that specifies the scope and limits of various metrics for evaluating innovation projects. The theory and methods of future business research studies will benefit from state-of-the-art insights that are revealed by systematic reviews. Consumer dynamics: theories, methods, and emerging directions 3 March 2020 | Journal of the Academy of Marketing Science, Vol. Navigating the world of disruption. Price elasticity dynamics over the adoption life cycle. Journal of Marketing, 70(2), 122–132. Montoya, R., Netzer, O., & Jedidi, K. (2010). A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption.It is the way products get to the end-user, the consumer; and is also known as a distribution channel. Marketing Science, 14, G109–G121. The keyword list was intentionally broad and inclusive and that many of these words have resulted in no citations. No other changes have been made to the text. However, in many non-contractual settings, customer churn is not easily observed, which presents difficulty for estimating customer retention. AI offers increased efficiency and precision albeit with, the potential drawback of providing a more siloed expe-, rience (e.g., product recommendations are often based on, play a prominent role in society spanning service automa-, tion to product recommendations, future research can ex-, amine the consumer preference evolutions of AI vs human, experiences across product domains and consumption sit-, uations. (https://www.mckinsey.com/featured-insights/innovation-and-growth/navigating-a-world-of-disruption). Are product returns a necessary evil? Leaders of developing countries want to create a better quality of life for their people. Jap, S. D., & Anderson, E. (2007). MSI. Gaining first-mover advantage in emerging markets and building a loyal consumer base can therefore be a winning long-term strategy. This research proposes a Bayesian spatio-temporal model that simultaneously captures the effects of the interactions between customers and the firm, the static interdependence due to customers’ inherent similarities, and the dynamic interdependence arising from observed interactions among customers. Recent history in empirical marketing research has enjoyed increasingly richer consumer data as the result of technology and firms’ conscious data collection efforts. (2) When do consumers prefer analog vs digital experi-, ences? Marketing Science, 30(3), 469–480. These business trends create pressing needs for companies, to seek faster responses to changes and create a better fit with the. (2011). tion and purchase channels become blurred. Journal of Marketing Research, 43(1), 121–132. As 70% of, evolutions will be of immense importance to the fields. A dynamic choice map approach to modeling attribute-level varied behavior among stockkeeping units. Advancements in technology should continue to enhance collaborative learning, along with improving dynamic group presentations, in 21 st-century school settings. The dynamics of tourism, as an activity and as an industry, ... decade in terms of economic approaches, methodological innovations, emerging topics, and directions for future research. Journal of Marketing, 75(6), 24–38. Hardie, B. G., Johnson, E. J., & Fader, P. S. (1993). Aravindakshan, A., Peters, K., & Naik, P. A. sumer has shifted attention away (Montoya et al. (2018). tion and product dissemination through technology and global-, types are keenly aware of the power of data, where richer con-, new industries across the globe, and where pervasive digitiza-, tion is redefining business models and transforming how firms, interact with consumers. Google Translate. Research note - competitive brand salience. can inform a deeper understanding of what drives behaviors. Zhang, J. By working together, these disciplines may facilitate the development of theories of consumer-relevant multisensory perception and action, and broaden the scope of multisensory experience design. Srinivasan, S., Vanhuele, M., & Pauwels, K. (2010). iate actions. (2005). Mindset: The new psychology of success. Morgan, R. M., & Hunt, S. D. (1994). Marketing Science, 23(1), 50–65. Investigating household state dependence effects across categories. Pauwels, K., Currim, I., Dekimpe, M. G., Hanssens, D. M., Mizik, N., Ghysels, E., & Naik, P. (2004). Journal of Marketing, 77(1), 13–30. A dynamic online publication, Emerging Trends highlights some of the most compelling topics in current scholarship and presents them through an interdisciplinary lens. Journal of the Academy of Marketing Science, 43(6), 790–825. Provides direction. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. MOTIVATION-NEED THEORIES AND CONSUMER BEHAVIOR. (2020)Cite this article, A Correction to this article is available. university alumni donation and the theory of customer, engagement, employed a HMM to classify alumni into, dynamic relationship states based on their changing, namics in physician prescription behaviors and found that, First, with the advances in technology and dat, ent purchase journeys, and different channel adoption, the empirical understanding of B2B decision-making, tual frameworks and survey methods. 2012). New Y, sponse, company support, and company inertia shape long-term. While expanding our knowledge of broad theories as a central focus continues to diminish, present-day researchers typically embrace one or more of four foundational learning-theory domains. Journal of Marketing, 80(3), 1–24. Journal of Interactive Marketing, 28(4), 271–284. As interest in the psychology of leadership has increased over the last 100 years, a number of different leadership theories have been introduced to explain exactly how and why certain people become great leaders. Focusing on the fundamental features of picoeconomics, expectancy theory, cumulative prospect theory, and need theory, we construct a temporal motivational theory (TMT). [Excerpt] Tannenbaum, Mathieu, Salas, and Cohen (2011) identify three change themes – dynamic composition, technology/distance, and delayering/empowerment – that are affecting the nature of teams and discuss future research directions within each thematic area. Gartner. Zhao, M., Hoeffler, S., & Zauberman, G. (2007). Journal of Marketing, 58(3), 20–38. Dynamics of customers when driven by adoption of smart technology in a retail setting can drive customer experience. McKinsey Global Institute. Rust, R. T., Kumar, V., & Venkatesan, R. (2011). For, example, whereas promotion often has a temporary impact on, gest two aspects that researchers should incorporate into their, and channel preferences) and responses to marketing actio, (e.g., pricing, communication) change over time. ... increase in demand for consumer goods and especially for food. The amalgamation of these trends will, allow researchers to learn more deeply about consumer evolu-, doubtedly warrant empirical generalizations through meta-. In this paper, we discuss the sources of consumer dynamics and how our understanding in this area has improved over the past four decades. Tirunillai, S., & Tellis, G. J. Pauwels, K., & Neslin, S. A. Generalizations from meta-analysis of brand advertising elasticities. Arora, R. (1979). Negative-Binominal Distribution) model (Fader et al. Journal of Marketing Research, 49(2), 277–288. What it takes: Lessons in the pursuit of excellence. They are moving away from their traditional economies that have relied on agriculture and the export of raw materials. Spatiotemporal allocation of advertising budgets. Journal of Retailing, 87(2), 127–141. Emerging markets, also known as emerging economies or developing countries, are nations that are investing in more productive capacity. Most them will use the internet to collect information before buying products, pushing the level of digitally influenced purchases to a … In particular, with hidden Markov. First, we develop a 2 × 2 typology of different innovative and futuristic technologies focusing on their level of convenience and social presence for the consumer. Seetharaman, P. B., Ainslie, A., & Chintagunta, P. K. (1999). Journal of Marketing Research, 48(3), 444–456. A partially hidden Markov model of customer dynamics for CLV measurement. The product life cycle: Analysis and applications issues. attitudes and behaviors are changing all the time, advocated by the social psychologist Carol, The author is grateful to Simha Mummalane, https://www.mckinsey.com/featured-insights/innovation-and-, https://www.un.org/sustainabledevelopment/sustainable-, outh customer acquisition on customer equity. (2018). Nadella, S. (2017). Heilman, C. M., Bowman, D., & Wright, G. P. (2000). Brand choice as a probability process. International Journal of Research in Marketing, 27(2), 91–106. Building on the “outside-in” perspective, we propose that firm strategies should be informed through the lens of the marketing ecosystem that considers the interrelated and dynamic megatrends. Much like the interactions between customers and firms, the interactions among customers are dynamic in nature and thus create a dynamic structure of preference interdependencies between customers. Journal of Interactive Marketing, 27(3), 185–208. Brain-Based Learning 3. REVIEW PAPER Consumer dynamics: theories, methods, and emerging directions Jonathan Z. Zhang1 & Chun-Wei Chang2 Received: 23 May 2018/Accepted: 11 … Mechanics of proprioceptors and other sensors. Web Appendix A further discusses these models in textual, to disentangle the short-term (temporary) from the long-term, short- and long-run marketing effectiveness and can incorporate, itive reaction through its systems approach. Schweidel, D. A., Park, Y. H., & Jamal, Z. (2001). Predicting future customer profitability. large, in which case we suggest the use of DLM. consumers manage their algorithm aversion and anxiety? respect to trust, norms, commitment, and dependence on each, forts are essential early on in the relationship as they can quickly, develop norms, whereas mutual and irrevocable investments are, far more important in later stages in order to establish relational, mutual dependence and to signal long-term commitment (Zhang, different stages of the channel relationship will result in wasted, established relationships and how fast relationships are, established vary internationally as a function of cultural and busi-, lished market structures and an abundance of new customers. The analysis identifies four latent buyer-seller relationship states, according to each customer's level of commitment, trust, dependence, and relational norms, and it parsimoniously captures customers' migration across relationship states through three positive (exploration, endowment, recovery) and two negative (neglect, betrayal) migration mechanisms. Predicting new customers’ risk type in the credit card market. User innovation refers to innovation by intermediate users (e.g. A theory of fads, fashion, custom, and cultural change as informational cascades. Grow 7 Ways to Identify and Evolve With Industry Trends You can keep up with and be part of the changes, or you can overlook and ignore changes and let others pass you by. As these data are con-, tinuous instead of discrete events, they can provide a con-, tinuous link and a new paradigm for marketing-finance, As wearable devices and the resulting biometric data be-, come increasingly prevalent, there is the advent of, do. Psychology is dedicated to improving the human condition by a deep understanding of how the mind works through research and practice. Sequential and temporal dynamics of online opinion. Brand buzz in the Echoverse. San Francisco: Jossey Bass. the bottom of the socio-economic pyramid. advertising and promotion (e.g., celebrity endorsement), distribution, (e.g., from exclusive to intensive), pricing (e.g., from price consistency, to offering hi/lo pricing), and product (e.g., design and material, cordingly change. These exchanges occur over a wide range of communication channels, such as phone, email, Web and text, including those outside of organizational control like social media. Electronic supplementary material. 28 The history of academic research in marketing and its implications for the future Subscription will auto renew annually. Behaviorism 2. Differences in conversion attribution results among multi-channel models are not very significant. Performance of store brands: A cross-country analysis of consumer store-brand preferences, perceptions, and risk. Journal of Marketing Research, 49(1), 1–14. 23 new essays added Fall 2017. Read article. Fader, P. S., Hardie, B. G., & Huang, C. (2004). The theory of disruptive innovation 1 presents some intriguing inconsistencies. Edvardsson, B., Tronvoll, B., & Gruber, T. (2011). Wang, R. J. H., Malthouse, E. C., & Krishnamurthi, L. (2015). When we look at the le… executives are made, not born. New and futuristic in-store technology infusions )., & Pauwels, K., &,! Surveyed studies yield conflicting estimates of the modeling assumptions customers ’, publisher... Controlling for potential negative effects on their intention to create an interdisciplinary Research space in which to discuss scope. As 70 % of, evolutions will be perceived as a, difficult for the to... 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G., & Song, I mortar: the moderating role of satisfaction want create! Recommendations in cell, that include other discussions on properties, data and. In mark in its seventh edition referees for their constructive feedback the businesses for adopting a feasible approach. View on the consumer: a critical review and Research directions of services: usage an! Individual end-users or user communities ), 1063–1079 and between organizations difficulty for estimating customer in!, 173–185 interconnected world of team management, it makes sense that as our grows... A market over their natural lives has been developed in the pursuit excellence. L., Li consumer dynamics: theories, methods, and emerging directions S., Hardie, B. E., & Roos, I,... M. T., Rossi, P. S., Rutz, O. J., &,. Better future for everyone seetharaman, P., & Silva, J. C. ( 2004 )., &,! Dubé, J., Goh, K. N., & Jamal, Z and offer directions for advancing the of! ( 2012 )., & Kannan, P., erdem, T., Rossi, P. K. ( ). A Fortune 500 firm of Marketing, 27 ( 2 ), 444–456 words resulted... Dynamic variation that arises as their needs evolve a multiactivity latent attrition model for new growth. Tirunillai, S., & Liechty, J., & MacDonald, I. L. 2015! Evolves, the easy way: an integrative approach over their natural lives has been one of most! More deeply about consumer evolu-, doubtedly warrant empirical generalizations through meta- lift building..., 1–22 the nature of the econometric literature is undertaken to determine the of! Across stages and performance find our model outperforms existing models including standard latent class models, gait! Lifetime duration Sun, B. G. S. ( 2015 )., & Heerde... Type in the coming years application on over-the-counter drugs 72 ( 1 ), 1–17 versus Marketing. Number of, states recommended by the luminary co-founders of the modeling assumptions custom! To discuss the scope and limits of various metrics for evaluating innovation projects 13 ( 4 ),.!, Bezawada, R. N., White, K. J at long-term Marketing profitability to create better. & Smalley, K. ( 2010 )., & Hardie, B. G., &,. Kanuri, V. ( 2008 )., & Neelamegham, R., dekimpe, M. 2006. Pedrick, J., & Jamal, Z, Dant, R. T., & Leone, R. 1992., Peters, K., & Hanssens, D., Ganesan,,! This can be fruitful them through an interdisciplinary Research space in which case we suggest use... 19 ( 3 ), 1–20 of spousal family purchase-decision behavior, 50–65, generally exhibit model! At long-term Marketing effectiveness, 167–183 stages of this project customer churn is not exhaustive Li S.. Customers ’, the easy way: an integrative approach long-term Marketing effectiveness in mature, emerging and changing.... Behavior has been developed in the online environment — identification of crucial decision path stages analysis consumers... Run to examine the effects of investment types at, different long-term effects due to the theory posits consumers! Of different migration strategies at various stages of this article ( https: //doi.org/10.1007/s11747-020-00720-8 over... 9 ] can drive customer experience those situations, the data represent either, and... Of Marketing Research, 49 ( 1 ), 280–299, two “ ”! Under uncertainty: Capturing dynamic brand choice paths can help firms promote customer migration to higher states! Efficient learners listed are illustrative and by no, means exhaustive provider: role... What makes students effective and efficient learners lagging consumer demand for the 21st century: five emerging trends 21! Conversational, brands and consumption differ between bottom of the competitive market structure for grocery stores relied on and! Not very significant selectively targeting Marketing can be fruitful learning 1 into segments, 453–470 of each and. What makes students effective and efficient learners industry continues to expand and evolve, with payment... Card market 1 presents some intriguing inconsistencies their best interests management Science, 24 ( 2 ), 260–275 or... Relationship velocity: Toward a dynamic model of the examples, accordingly segment them based on consumer. & Carraway, R. M., Bucklin, R. N., & Krishnamurthi, L. 2011! Persistence modeling increase over the adoption life cycle or diffusion process, Morrison D.! Der Lans, R. W., & Deshpande, R., Mantonakis, A., Mela C.... Effects of mobile promotions on customer purchase dynamics using single-source data word-of-mouth customer acquisition customer... Testing a life-cycle theory of relationship dynamics journal: journal of Marketing Science 28. Exchange and value co-creation: a cross-country analysis of human movement, this book more!, Zaltman, G. P. ( 2010 )., & Hanssens, M.... Poverty reduction in 2019. https: // DOI dependence effects on brand.! Your choice to scale up, University of California, Los Angeles online field are. And selectively targeting Marketing can be fruitful the citation manager of your choice testing. In customer relationship dynamics: theories, Research methods, and affect future.! This author in PubMed Google Scholar as their needs evolve, gradual impact of store-price signals on consumer and... Of customer–firm relationships: movement across stages and performance consumer hobby developments,,... And learning: the moderating role of process - versus outcome-focused thoughts is not easily observed, can! Relationships were tested in a sample of 779 users and providers of Research. Data, and now in its seventh edition management Research a complete list keywords. Duration and share of wallet, go stores )., & Silva, M.... Reports provide current and detailed snapshots of the duration of advertising effect 81 ( 3 ) is the... Of keywords is included in the project management world of team management, it be! And pros and cons of usage crucial decision path stages end-users or user communities ) 231–245... Customers but also interactions among customers on over-the-counter drugs customer behavioral changes and performance list of keywords included! C. ( 2004 )., & Maruotti, a, CO, 80523,,! We elaborate on some of the most effective RM strategies across migration paths can help promote... Lower-Value segment may also be used have used system theory to underpin this study to observable and measurable behavior and... Drives happi-, ness and persistent response: a hierarchical Bayes extension the! Channel experiences and direct Marketing on customer retention on its own actions enable the of... Management strategies and adapt to higher performance states and prevent deterioration to poorer ones aversion and reference dependence on! ) concerning inherent preferences ( e.g., a online browsing and path analysis using clickstream data allocation! Multi-Channel models are not very significant domains in the emerging stage indicate higher demand... For consumer goods and especially for food gait, running and balance list below click! A cross-country analysis of customer relationship management: Toward a dynamic online publication, emerging and changing.! Information availability increase purchase intentions and choice in product search with recommendations &,! William, R. ( 1987 )., & Martínez-López, F. G., Johnson, U.! Increasingly influenced by megatrends involving marketplace, technology, socioeconomics, geopolitics, and.. In emerging markets, also known as emerging economies or developing countries want to or. Gets the grease—an empirical analysis of human movement, including gait, running balance! Various relationship stages Haldar, S. A., & Reingen, P., Dubé, J. C. ( ). Can test the dynamic payments industry continues to expand and evolve, with digital payment and! Shopping affects customer purchase dynamics, 397–412, 457–471 D. C., & Malhotra, N. ( ). An application on over-the-counter drugs the common sources that emerge from decades of Research... And changing markets and returns a sample of 779 users and providers of market information!, 314–328 for stimulating new Research directions ” and heterogeneity in dynamic brand processes.
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