Physical stores are significant contact points for customers to have unique shopping experience with hedonic values (Hirschman and Holbrook, 1982). The value is becoming even more important as a differentiating factor for companies in the digital era when e-commerce is dramatically expanding and growing (Kotler, Kartajaya, and Setiawan, 2017). In order to deepen our understanding on online for offline (O4O) shopping experience, we focus on Visual Merchandizing Design (VMD) as one of the key factors to differentiate physical stores from e-commerce. VMD has a long history since 18th century VMD and has been extensively researched in various ways, but no study has been done in the setting of online for offline (O4O). VMD is defined as an art of displaying the things in a manner to attract the attention of the customer and persuade them to buy the product (Kerfoot, Davies, and Ward, 2003; Krishnakumar, 2014). In the VMD's extant research, many suggest the importance of VMD from the viewpoint of experiential marketing. It has been discussed that VMD is an effective way to impress consumers with company brands (e.g., Kim and Kim, 2011; Park and Jeon, 2004 Sun and Lee, 2017). In order to analyze the effectiveness of VMD, we use the three elements commonly used in practice that include Visual Presentation (VP), Point of Sales Presentation (PP), and Item Presentation (IP). The role of Visual Presentation (VP) is to invite customers from outside to inside of the store. When a customer enters the store, it is expected to encourage customers to stay longer to look around through PP (Point of sales Presentation). Finally, attractive Item Presentation (IP) on the shelves or hangers encourages customers to purchase products. We combine this VP-PP-IP framework of VMD with New AIDA model proposed by Iwamoto, Kawakami and Suzuki (2016). New AIDA model is a revised version of AIDMA that incorporates online related factors such as search, keep and share. Using this framework, we conducted three case studies on JINS BRAIN Lab by JINS Inc. in Japan, LAB101 in South Korea and On and the Beauty by Lotte Shopping in South Korea. We visited the store to observe how these companies realize the elements of VMD (VP-PP-IP) at each store. The results suggest that, for the better O4O experience to shop at a physical store looking at a mobile device, companies need to design the store from VMD point of view in addition to data-driven or artificial intelligence supported merchandizing. Physical stores with better VMD also play a significant role for generating word-of-mouth for engaging other customers.

The concept of co-creation with consumers has been extensively studied in the literature documented in innovation management and marketing literatures. In this study, we contribute to the literature threefold. First, we develop a model to investigate how co-creation with fans enhance purchase intent and engagement of other customers. Second, we test the model using the data collected from consumers on four different product categories including beer, car, cosmetics and travel. By doing so, we examine the differences between product vs. service as well as different product categories. Third, we will compare the results with that of ordinary consumers to check if there are any differences in the case of co-creating with fans. Most of the extant studies have found a positive effect of co-creation on the outcome evaluation. However, engaging other consumers by co-creation with fans has not been studied. For bridging this research gap, we developed a conceptual model to investigate the antecedents and consequences of co-creation with fans. The hypotheses are as follows. H1: Product class involvement and domain specific knowledge affect perception on co-creation positively. H2: Perception on co-creation affects purchase intent and word-of-mouth positively. H3: The relationships of H1 and H2 differs depending on product categories. H4: The relationships of H1 and H2 differs if companies work with ordinary customers or fans. We tested the hypotheses with the data collected from consumers an online questionnaire survey. Data collection was conducted through a market research agency in 2016 for beer and cars, and in 2019 for cosmetics and travel. The data was collected from 240 consumers in their 20s, 30s, and 40s in Japan. Each segment has same number of males and females, 40 people each for six segments. The findings shed a new light on the co-creation literature and help companies to design better co-creation with fans in different product and service categories.

Introduction Kotler (2015) warned that, if we only pursue economic growth and revenue/profit expansion, we will end up with overconsumption and wastes, bringing serious damage to our planet. He advocated the transition from the growth-oriented economy to the steady-state economy. Steady state economy is defined as an economy that maintains desired sufficient level of throughput with the lowest feasible flows of matter and energy from production to consumption (Kotler, 2015). As Kotler mentioned, this idea is somewhat utopian as most companies are still living in the growth-oriented economy. The purpose of this research is to extend Kotler’s idea by conceptualizing a more concrete model to visualize the marketing in the steady state economy. The model consists of five major elements; customers, stakeholders, employees, suppliers and community. The authors also present twelve propositions that explain promoting factors for the marketing in the steady state economy based on the multiple case studies conducted in Japan. Literature review The steady-state economy itself is actually not a new idea in economics. For example, typical classical economists (e.g., Adam Smith and John Stewart Mill) advocated the transition to the steady-state economy after saturation of economic growth. Neo-classical economists have also postulated the concept of steady state economy with regard to the law of diminishing returns (Tellis, 2008). Many previous studies have continuously put efforts on developing theories and practices to meet with economic, social and environmental needs simultaneously, since Kotler and Zaltman (1971) proposed the concept of social marketing. Although social marketing is closely related to marketing in the steady-state economy, its ethical egotism remains a problem (Crane and Desmond, 2002). Lerman and Shfrin (2015) and Gopaldas (2015) claim positive marketing which creates value for the firm, its customers, and society at large. In short, these concepts suggest the possibility that individual, self-seeking, and short-run behaviors can be consistent with aggregate, altruistic, and long-run behaviors. Besides above exceptions, however, most marketing researchers have evaded the question: What is marketing in the steady-state economy? The purpose of our study is to develop a conceptual framework to analyze “steady-oriented” companies and their marketing strategies based on the case studies in Japan. Research methodology In order to answer the above question, we adopt qualitative heuristic approaches (Kleining, 1994), because our question has not been addressed enough in previous studies mentioned above. First, we collected primary and secondary data from various information sources including company websites, press releases, online business journals, academic case studies, public seminars, presentations at academic meetings and so on (Yin, 2014). As stated by Eisenhardt (1989), we used a theoretical sampling to identify the informants for our multiple case studies. We intentionally chose companies from different industries, locations, length of history, manufacturing technology, etc. Based on the review and data collection, we developed a basic framework and series of theoretical propositions (Yin, 2014). For our study, we selected Japanese companies respecting “sanpo-yoshi” [good for three parties] philosophy. It is a belief that business should be good for sellers, buyers, and society. In fact, positive marketing is similar to this concept of “sanpo-yoshi” which is based on the family precepts of “Ohmi region merchants” in the Edo period (1600-1857) (Ogura, 1991; Usami 2015). Our selected “sanpo-yoshi” oriented companies aim for a harmonious relationship with all the concerning stakeholders and community (see Appendix for the list of selected companies). Figure 1 identifies five key parties covered in the “sanpo-yoshi” management and shows bilateral relations between the company and the five parties. First, “sanpo-yoshi” oriented companies try to build good long-term relationships not only with their customers by selling high-quality products at fair prices, but also with suppliers by buying a stable volume of products at fair prices. In addition, some companies provide their loyal customers with special experience concerning their own brands and their suppliers with technical assistant. In return, customers feel strong loyalty to the brand and suppliers offer a stable supply of high- quality raw materials at fair prices. Moreover, “sanpo-yoshi” companies take an active interest in their employees and the community where they operate because their confidence contributes to sustainable development of the companies. Shareholders for short-term returns, however, are unlikely to give heavy weight to social activities by their investee companies. Therefore, companies whose stocks are unlisted or occupied by long-term shareholders are more favorably inclined toward “sanpo-yoshi” management. Research propositions Based on the case studies of “sanpo-yoshi” companies in Japan, we argue that the enforcement of marketing in the steady-state economy can be tied to three factors: (1) management factors, (2) competitive factors, and (3) financial factors. Within these factors, twelve research propositions are developed for testing in the future research (Eisenhardt and Gaebner, 2007). These factors and propositions are summarized in Figure 2. Management factors are divided into two subcomponents: decision-making and employment factors. First, decision-making factors basically mean that the independence of management from the investors seeking short-term profits enables the management to enforce steady-oriented marketing. The most feasible method is corporate governance by founders or his/her family, although it is not a requirement. For instance, Kagome Co., Ltd. ended the family business operation in 1996, and around 180,000 individual “fan shareholders” accounting for 55.4% (Nikkei, 2017) are supporting the management with a long-term perspective. Second, employment factors indicate that the companies are likely to enforce steady-oriented marketing when they maintain high labor productivity and excellent human resources. In particular, it is more important for companies having many female employees with accumulated experience and know-hows to prevent those employees from quitting the job because of pregnancy or child rearing. Competitive factors are associated with the conditions of the steady state economy surrounding the companies. If the companies have maintained high market share in a mature market for many years, they can afford to enforce “sanpo-yoshi” oriented marketing for sustainability. In terms of financial factors, equity ratio shows the soundness of management, which has positive effects on the enforcement of marketing in the steady state economy. Moreover, ROE measures a company’s profitability by revealing how much profit a company generates with the money which its shareholders have invested. Finally, payout ratio provides valuable insight into a company’s dividend policy. Higher payout ratio indicates that the company is sharing more of its earnings with the shareholders. Implications The findings of this research contribute to the academics by providing a new framework for the marketing in the steady state economy. Further research can empirically test the proposed model in various countries to investigate if this framework is culturally specific to Japan or not. This research also provides practical implications for managers. For sustainable business and better society, companies should keep their eyes on the five elements presented in our research. Thus we can take the very first step for the marketing in the steady state economy.

economic growth and revenue / profit expansion, we will end up with overconsumption and wastes, bringing serious damage to our planet (Kotler, 2015). He advocated the transition from the growth-oriented economy to the steady-state economy. This research explores marketing in such steady-state economy. Researchers have put efforts in developing theories in related concepts such as social marketing (e.g., Kotler & Zaltman, 1971) and corporate social responsibility (CSR; see Peloza & Shang, 2011 for a review). Inoue and Kent (2014) developed a conceptual framework that explains antecedents and consequences of corporate social marketing. However, their research, as well as those on CSR, has not addressed marketing in steady-state economy. Thus, we attempt to fill this research gap by developing propositions. We conducted multiple case studies (Eisenhardt, 1989; Yin 2014). Based on theoretical sampling, three firms were selected from different industries (food, alcohol, and furniture) with different technologies, located in different areas in Japan (Tokyo, Nagano, and Kagoshima). We collected primary and secondary data, and conducted interviews. In spite of the differences, the three firms run business similarly. First, they pursue a sustainable growth and not a rapid growth. Second, doing what is good for society is a part of their business goal and not CSR. Finally, they choose inefficiency than lowering the product quality.economy are developed: P1. Selling high quality products at profitable but reasonable price enhances firm’s credibility, which in turn improves the probability of firm’s long-term survival. P2. Limiting distribution channel allows firm to avoid price competition and set reasonable pricing, which in turn improves the probability of firm’s long-term survival. P3. Marketing mix of high quality product, reasonable pricing, and limited distribution channel generates positive word-of-mouth, allowing firm to save promotion costs. P4. Prosocial behavior in procurement increases the brand loyalty, which in turn improves the probability of firm’s long-term survival. P5. Portfolio of business-to-business and business-to-consumers businesses allows stable management and building strong brand. Further research is needed to develop these propositions into hypotheses and empirically test them with large samples. The authors hope that this research will be the first step for “steadiness-oriented marketing.”

This research extends the seminal work on the role of haptic (touch) information for consumers’ purchase decisions in both online and store shopping settings. Especially, this research focuses on which information consumers rely on as substitutes for haptic information when they cannot touch products at online shopping. A conceptual model is developed to investigate and compare the relative importance of touch, brand, virtual word-of-mouth, and product design. The proposed model is tested with the data collected from 380 consumers in an Asian country (Japan). The empirical results on two product categories (leather bags and smart phone cases) suggest that 1) consumers rely on other information than touch for online shopping, 2) the priority of substitute information differs depending on product categories, and 3) the priority also changes between online and store shopping for the same product category.