Making Up Lost Ground: The Relative Advantage of Achieving Relationship Marketing Outcomes Versus Time-In-Market Effects

Abstract

ABSTRACTThe authors study the time-in-market phenomenon among Kuwait coffee shops. Data was collected from more than 600 users of 39 separate coffee shop brands in the Kuwait market. The evidence does not support a direct effect for time-in-market impact on market share. The evidence does, however, show an interaction effect, with time-in-market interacting with relationship marketing (RM)-related consumer outcome measures to influence market share. Specifically, (1) coffee shops in the market longer and that exhibit higher levels of consumer preference exhibit higher market shares, and (2) coffee shops in the market for a shorter period, yet with higher rates of consumer trial, also exhibit higher market shares. Additionally, evidence shows that two RM outcomes (the percentage of respondents that include a retailer in their brand repertoire and the percentage of respondents indicating a preference for a given retailer) are positively related to market share. Therefore, time-in-market may not be as important in this setting as RM efforts to establish consumer trial and preference.