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In today’s marketplace, the consumption of luxury goods is at a peak due to increasing global wealth and low interest rates, resulting in a vast supply of goods and services to which customer experiences are more relevant than ever before. One of the most recent developments in this field shows that consumers no longer simply purchase a product or service based on the fact sheet; they are also interested in the experience around the product. Successful brands must develop and maintain individual images to sustain their competitive advantage and build brand equity that is beneficial for customers and firms. Ideally, these will lead to satisfaction and loyalty between a brand, its products, and its customers. Existing research about brand experience and brand equity has mainly focused on functional aspects, which seem to differ for high-value luxury goods. Most studies have focused on industries like retail and fashion brands, sampling university students or visitors to shopping malls, and some have even mixed different types of industries together. This underpins the need for research within a single luxury industry with actual luxury customers who have a solid background with brand experiences.
The purpose of this study was to explore the brand experience spectrum within the automotive industry in Germany, particularly in the affordable luxury sport car sector. Identifying the factors and components that constitute, influence, or leverage/drive a brand experience from their perspective was a clear aim of the study. To achieve this, the study collected data from indepth interviews with German (n=60) respondents who had experience with affordable and luxury sport cars. The conceptual framework was based on two empirically tested models guiding this exploratory consumer research. The first model to build on was the consumerbased brand equity model, empirically tested by Çifci et al. (2016) and Nam et al. (2011). The second conceptual framework was Lemon and Verhoef’s (2016) customer journey model consisting of relevant touchpoints along the following three stages: pre-purchase, purchase, and post-purchase.
The findings of the research demonstrate that, although the six brand equity concepts – brand awareness, physical quality, staff behaviour, self-congruence, brand identification, and lifestyle – are broadly applicable in understanding customer experience in the affordable luxury car industry, the content of these dimensions differs from that suggested by the previous authors. The research established that cognitive and affective (or symbolic) components build the foundation of customer brand experience and supports Çifci et al.’s (2016) and Nam et al.’s (2011) study results. The study also identified brand trust as an important and highly relevant concept for customer brand experience in the luxury automotive car industry. Brand trust influences customer satisfaction and loyalty, therefore improving and complementing the existing model. Furthermore, the study confirmed Lemon and Verhoef’s (2016) process model of the customer journey and experience; however, it suggested two different customer journeys depending on the customers’ previous experience (first-time and experienced buyers). The differences between the two groups and the relevance of the journey touchpoints within the three purchase stages vary significantly in terms and are distinct. Identified key touchpoints for both groups are the contact to a dealer as well as information gathering online. Differences have been found in the length of purchase stages and across the customer journey. The study highlights the importance of trust, identification, and product quality for customer brand experience. Moreover, the findings of this study complement the brand equity model of Çifci et al. (2016) by adding the new concept of trust, which is highly relevant. The current knowledge is complemented by a new understanding and mapping of the customer journey for luxury sports cars in Germany. This study can assist practitioners and managers by providing a compass indicating which touchpoints are relevant to which customer group. Social value can be achieved by encouraging interactions between brand and consumer (e.g. central product launch events) and through brand-oriented interactions among consumers (e.g. dealer events, clubs, or communities). Customers are motivated to express their distinctiveness through product experience and brand identification (belonging/distinction) and to develop a loyal link to brands.
Affordable Luxury Sports Cars in Germany : Investigating the Determinants of Customer Experience
(2022)
The article discusses the factors affecting the customer experience when buying affordable luxury sports cars in Germany by identifying differences between first-time and experienced buyers. It emphasizes the need for the creation of two different customer journeys based on different customer experience clusters, a touchpoint analysis from the customer perspective identified differences in purchase stages, and staff behaviour and brand trust for customer satisfaction and brand identification.
Das vorliegende Taschenbuch fasst die bekannten Berechnungsformeln und Erkenntnisse aus der betrieblichen Praxis und aus wissenschaftlichen Untersuchungen im Bereich des Weberei-Vorwerks und der Weberei zusammen. Die bei der Gewebeherstellung notwendigen Entscheidungsprozesse sollen damit erleichtert werden.
Mit dieser Formelsammlung lassen sich jedoch nicht nur die optimalen Fertigungsvorschriften für Gewebe praxisgerecht erstellen, sondern auch die wichtigsten technischen und physikalischen Grundlagen des Fabrikbetriebs werden in der gebotenen Kürze dargestellt.
Das vorliegende Buch ist als eine zusammenfassende Bearbeitung der über viele Jahre gesammelten Erkenntnisse im Bereich der Schussfadenzugkraftmessung entstanden. Für die Schusseintragstechniken mit Greifern, Projektilen und Luftstrahl ist es gelungen, Formeln zur Berechnung der Schussfadenzugkräfte zu erarbeiten, die es auch dem Weberei-Praktiker ermöglichen, die maximalen Schussfadenzugkräfte mit guter Genauigkeit voraus zu berechnen. Ausgehend von diesen Ergebnissen kann über einen Vergleich mit dem Schwachstellenniveau des Schussgarns die Entscheidung über die Einsatzfähigkeit des Schussgarns auf der vorgesehenen Webmaschine oder über die Einsatzfähigkeit der vorgesehenen Webmaschine selbst bei der gewünschten Drehzahl herbeigeführt werden.
Das vorliegende Taschenbuch fasst die bekannten Berechnungsformeln und Erkenntnisse aus der betrieblichen Praxis und aus wissenschaftlichen Untersuchungen im Bereich des Weberei-Vorwerks und der Weberei zusammen. Die bei der Gewebeherstellung notwendigen Entscheidungsprozesse sollen damit erleichtert werden.
Mit dieser Formelsammlung lassen sich jedoch nicht nur die optimalen Fertigungsvorschriften für Gewebe praxisgerecht erstellen, sondern auch die wichtigsten technischen und physikalischen Grundlagen des Fabrikbetriebs werden in der gebotenen Kürze dargestellt.
Purpose: The purpose of this paper is to elaborate if video marketing enhance emotional involvement. Therefore a literature research is done in two parts. Firstly there is a review on the development of marketing communication and video marketing. In the second part of the review the focus is set on emotions itself, how emotional involvement is generated and how emotions influence consumption behavior.
Findings: The key finding of this paper is that videos can enhance emotions through their multi-sensory character in an efficient way. Furthermore there could be identified that especially viral videos create emotional enhancement and meet the direct marketing approach.
Understanding the factors that influence the accuracy of visual SLAM algorithms is very important for the future development of these algorithms. So far very few studies have done this. In this paper, a simulation model is presented and used to investigate the effect of the number of scene points tracked, the effect of the baseline length in triangulation and the influence of image point location uncertainty. It is shown that the latter is very critical, while the other all play important roles. Experiments with a well known semi-dense visual SLAM approach are also presented, when used in a monocular visual odometry mode. The experiments show that not including sensor bias and scale factor uncertainty is very detrimental to the accuracy of the simulation results.
In the period from the 1950s to 2013, the American Food and Drug Administration (FDA) approved 1346 new molecular entities (NMEs) or new biologics entities (NBEs). On average, the approval rate was 20 NMEs per year. In the past 40 years, the number of new drugs launched into the market increased slightly from 15 NMEs in the 1970s to 25–30 NMEs since the 1990s. The highest number of new drugs approved by FDA was in 1996 and 1997, which might be related to the enactment of the Prescription Drug User Fee Act (PDUFA) in 1993.
The reduced research and development (R&D) efficiency, strong competition from generics, increased cost pressure from payers, and an increased biological complexity of new target indications have resulted in a rethinking and a change from a traditional and more closed R&D model in the pharmaceutical industry toward the new paradigm of open innovation. In the past years, pharmaceutical companies have broadened their external networks toward research collaborations with academic institutes, technology providers, or codevelopment partners. To fulfill the demand to reduce timelines and costs, research-based pharmaceutical companies started to outsource R&D activities. In addition, internal R&D processes were adjusted to the more open R&D model and new processes such as alliance management were established. The corporate frontier of pharmaceutical companies became permeable and more open. As a result, the focus of pharmaceutical R&D expanded from a purely internal toward a mixed internal and external model. Today, the U.S. pharmaceutical company Eli Lilly may have established the most open model toward external innovation, as it has integrated its innovation processes with its business model. Other companies are following this more open R&D model with newer concepts such as new frontier sciences, drug discovery alliances, private public partnerships, innovation incubators, virtual R&D, crowdsourcing, open source innovation, and innovation camps.
It is known that the costs related with drug research and development (R&D) and the timelines to develop a new drug increased over the past years. In parallel, the success rates of drug projects along the pharmaceutical R&D phases are still very low, and the outcome of all R&D efforts is stagnating. In consequence, the R&D efficiency defined as the financial investment per drug has been steadily decreasing. As innovation is the major growth driver of the pharmaceutical industry, reliable data on R&D efficiency and new concepts to overcome these challenges are of great interest for R&D managers and the sustainability of the pharmaceutical industry as a whole. This book chapter reviews publications on R&D performance indicators of the past years, such as the success rates and timelines per phase. Additionally, it illustrates the factors influencing the success rates, timelines, and costs of pharmaceutical R&D most and, thus, the denominators of the R&D efficiency.
The efficiency of pharmaceutical research and development (R&D) reflected by increasing costs of R&D, long timelines, and low probabilities of technical and regulatory success decreased continuously in the past years. Today, the costs for discovering and developing a new drug are enormously high with more than USD 2 billion per new molecular entity (NME), while the average overall success of a research project to provide an NME is in the single-digit percentage rate, and the total timelines of R&D easily exceeds 10 years questioning the return on investment (ROI) of pharmaceutical R&D. As a consequence and also caused by numerous patent expirations of blockbuster drugs that increased the pressure to return to an acceptable ROI, the pharmaceutical industry addressed this challenge and the related causes and identified several actions that need to be taken to increase the output/input ratio of R&D. This book chapter will review the pipeline sizes and the R&D investments of multinational pharmaceutical companies, will describe new processes that have been implemented to increase the reach and to reduce costs of pharmaceutical R&D, and it will illustrate new innovation models that were developed to increase the R&D efficiency.
New drugs serving unmet medical needs are one of the key value drivers of research-based pharmaceutical companies. The efficiency of research and development (R&D), defined as the successful approval and launch of new medicines (output) in the rate of the monetary investments required for R&D (input), has declined since decades. We aimed to identify, analyze and describe the factors that impact the R&D efficiency. Based on publicly available information, we reviewed the R&D models of major research-based pharmaceutical companies and analyzed the key challenges and success factors of a sustainable R&D output. We calculated that the R&D efficiencies of major research-based pharmaceutical companies were in the range of USD 3.2–32.3 billion (2006–2014). As these numbers challenge the model of an innovation-driven pharmaceutical industry, we analyzed the concepts that companies are following to increase their R&D efficiencies: (A) Activities to reduce portfolio and project risk, (B) activities to reduce R&D costs, and (C) activities to increase the innovation potential. While category A comprises measures such as portfolio management and licensing, measures grouped in category B are outsourcing and risk-sharing in late-stage development. Companies made diverse steps to increase their innovation potential and open innovation, exemplified by open source, innovation centers, or crowdsourcing, plays a key role in doing so. In conclusion, research-based pharmaceutical companies need to be aware of the key factors, which impact the rate of innovation, R&D cost and probability of success. Depending on their company strategy and their R&D set-up they can opt for one of the following open innovators: knowledge creator, knowledge integrator or knowledge leverager.
Artificial intelligence (AI) technologies, such as machine learning or deep learning, have been predicted to highly impact future organizations and radically change the way how projects are managed. The Project Management Institute (PMI), the network of around 1.1 million certified project managers, ranked AI as one of the top three disruptors of their profession. In an own study on the effect of AI, 37% of the project management processes can be executed by machine learning and other AI technologies. In addition, Gartner recently postulated that 80% of the work of today's project managers may be eliminated by AI in 2030.
This editorial aims to outline today's project and portfolio management in context of pharmaceutical research and development (R&D), followed by an AI-vision and a more tangible mission, and illustrate what the consequences of an AI-enabled project and portfolio management could be for pharmaceutical R&D.
Today, virtualizing pharma R&D is increasingly related with data analytics and artificial intelligence (AI), technologies that have been developed by software companies outside the healthcare sector. The process of virtualizing pharma R&D is closely related to the technological advancements that result in the generation of large data sets ranging from genomics, proteomics, metabolomics, medical imaging, IoT wearables and large clinical trials, making it necessary for pharma companies to find new ways to store and ultimately analyze information. As a consequence, pharma companies are experimenting with AI in R&D ranging from in-silico drug design to clinical trail participants identification or dosage error reduction.
Historically, research and development (R&D) in the pharmaceutical sector has predominantly been an in-house activity. To enable investments for game changing late-stage assets and to enable better and less costly go/no-go decisions, most companies have employed a fail early paradigm through the implementation of clinical proof-of-concept organizations. To fuel their pipelines, some pioneers started to complement their internal R&D efforts through collaborations as early as the 1990s. In recent years, multiple extrinsic and intrinsic factors induced an opening for external sources of innovation and resulted in new models for open innovation, such as open sourcing, crowdsourcing, public–private partnerships, innovations centres, and the virtualization of R&D. Three factors seem to determine the breadth and depth regarding how companies approach external innovation: (1) the company’s legacy, (2) the company’s willingness and ability to take risks and (3) the company’s need to control IP and competitors. In addition, these factors often constitute the major hurdles to effectively leveraging external opportunities and assets. Conscious and differential choices of the R&D and business models for different companies and different divisions in the same company seem to best allow a company to fully exploit the potential of both internal and external innovations.
We investigated the state of artificial intelligence (AI) in pharmaceutical research and development (R&D) and outline here a risk and reward perspective regarding digital R&D. Given the novelty of the research area, a combined qualitative and quantitative research method was chosen, including the analysis of annual company reports, investor relations information, patent applications, and scientific publications of 21 pharmaceutical companies for the years 2014 to 2019. As a result, we can confirm that the industry is in an ‘early mature’ phase of using AI in R&D. Furthermore, we can demonstrate that, despite the efforts that need to be managed, recent developments in the industry indicate that it is worthwhile to invest to become a ‘digital pharma player’.
Research and Development (R&D) is crucial for the growth and future success of research-based pharma companies. To maintain their R&D organisations efficient, pharmaceutical companies started to hedge the potential of open innovation to cut R&D costs and to access external knowledge. These new strategies could be divided into several categories: open source, innovation centres, crowd sourcing and virtual R&D.
Pharmaceutical companies are among the top investors into research and development (R&D) globally, as product innovation is still the main growth driver for the industry and because the related complexities necessitate enormous R&D investments. The market demand for new medicines to be more efficacious or to provide better safety than existing drugs and the regulatory need to prove superiority in clinical trials are reasons why drug R&D is increasingly expensive and pharmaceutical companies need to manage extraordinarily high costs per approved new compound.
Comparative analysis of the R&D efficiency of 14 leading pharmaceutical companies for the years 1999–2018 shows that there is a close positive correlation between R&D spending and the two investigated R&D output parameters, approved NMEs and the cumulative impact factor of their publications. In other words, higher R&D investments (input) were associated with higher R&D output. Second, our analyses indicate that there are "economies of scale" (size) in pharmaceutical R&D.
Circular economy aims to support reuse and extends the product life cycles through repair, remanufacturing, upgrades and retrofits, as well as closing material cycles through recycling. To successfully manage the necessary transformation processes to circular economy, manufacturing enterprises rely on the competency of their employees. The definition of competency requirements for circular economy-oriented production networks will contribute to the operationalization of circular economy. The International Association of Learning Factories (IALF) statesin its mission the development of learning systems addressing these challenges for training of students and further education of industry employees. To identify the required competencies for circular economy, the major changes of the product life cycle phases have been investigated based on the state of the science and compared to the socio-technical infrastructure and thematic fields of the learning factories considered in this paper. To operationalize the circular economy approach in the product design and production phase in learning factories, an approach for a cross learning factory network (so called "Cross Learning Factory Product Production System (CLFPPS)") has been developed. The proposed CLFPPS represents a network on the design dimensions of learning factories. This approach contributes to the promotion of circular economy in learning factories as it makes use of and combines the focus areas of different learning factories. This enables the CLFPPS to offer a holistic view on the product life cycle in production networks.