ANZMAC, at its core, is an academy for and by marketing scholars in Australasia. This commentary reflects on its pivotal role in an increasingly fluid academic world where scholars move around and serve in different, overlapping organisations around the world. It also discusses how online technology enables novel value creation for members of the ANZMAC community and for PhD education.
For service providers, it is essential to understand how their business is affected by the macroeconomy. This is especially pressing for the tourism sector, the world's largest export service, because the number of incoming visitors is likely to be strongly determined by the business cycles in the countries of origin. Utilizing state-of-the-art business-cycle metrics, we derive novel insights on the relationship between international tourism and the business cycle. We find an excess sensitivity of the sector to economic cycles based on a multidecade data set of international visitors to New Zealand coming from multiple counties and with various visitor purposes. However, we find no asymmetries in the speed of adjustment across contractions and expansions, suggesting a quicker recovery than many other (nonservice) sectors. Moreover, a higher cyclical volatility results in higher growth in the long run. A robustness check for two more destination countries (Australia and Japan) yields comparable insights. The results underscore the need to closely monitor the cyclical sensitivity and long-term growth prospects of the various visitor streams into the country, in order to (i) better tailor the accommodations and services to these streams and (ii) exploit diversification opportunities to reduce the overall cyclical volatility.
Abstract To evaluate the success of a new product, managers need to determine how much of its new demand is due to cannibalizing the company's other products, rather than drawing from competition or generating primary demand. A new model allows managers to estimate cannibalization effects and to calculate the new product's net demand, which may be considerably less than its total demand. The new methodology is applied to the introduction of the Lexus RX 300 using detailed car transaction data. This case is especially interesting since the Lexus RX 300 was the first crossover SUV, implying that its demand could come from both the SUV and the Luxury Sedan categories. As Lexus was active in both categories, there was a double cannibalization potential. Indeed, demand is shown to originate from different sources and to vary over time. The results contain valuable insights for evaluating and managing brand extensions.
