Marketing information systems—The problem of system usage

Much literature has been devoted to singing the praises of present and potential computer utilization in marketing. Highly touted are “total information systems,” “on-line, real-time systems,” and “simulation-based systems.” One would be led to believe that each company has devoted or should be devoting its moneys and energies to the design and implementation of such sophisticated computer-based marketing information systems. Yet recent evidence has indicated a lack of enthusiasm-indeed, in some cases antagonism exists toward information systems in marketing. One reason for this disillusionment has been low usage of existing marketing information systems by marketing management. System utilization holds the key to a favorable return on investment in marketing information systems. This article explores many of the causes of infrequent to non-existent system usage and offers a plea and a plan for active elimination of this problem.     

Marketing as production: The development of a concept

The conventional view of marketing as somehow adding to the work of manufacturing is rooted in the concept of production as the creation of material attributes. A view of marketing as an integral part of a productive process generating “bundles of utilities” has a long history in economic analysis. This approach offers several advantages for marketing thought.     

Why “service”?

“Service-dominant logic” appears to have found resonance in the marketing community since its introduction as the evolving, “new dominant logic” in the Journal of Marketing (Vargo and Lusch 2004a, Journal of Marketing, 68, 1–17 (January)). But, on occasion, so has the question of whether the concept “service” captures the essence of the new logic. This article addresses the role of “service” as the heart of value-creation, exchange, markets, and marketing, as well as its considerable implications for research, practice, societal well-being, and public policy. The purposes are both to clarify the issues and to foster the continuing dialog around the service-dominant logic for marketing, as well as for other disciplines.     

Expanding our understanding of marketing in society

The Journal of the Academy of Marketing Science was started 40 years ago, at a time when “marketing in society” issues were capturing much attention from marketing scholars. Since that time both the field and this journal have grown and matured, but the marketing in society area has become somewhat removed from the dominant perspectives of marketing scholarship. This paper provides an historical perspective on these developments and offers an examination of the fundamental role of societal interests in our field. Six basic topics are explored: (1) the hundred years of history of marketing thought development, as reflected in the “4 Eras” of marketing thought; (2) the ebbs and flows of attention to marketing in society topics during these 4 Eras; (3) two illustrations of difficulties brought about by this area’s move to sideline status in the field; (4) our concept of the “aggregate marketing system” as a basis for appreciating the centrality of this research area for the field of marketing; (5) the nature of marketing in society research today; and (6) a discussion of several research challenges and opportunities for the future.     

Including the effects of prior and recent contact effort in a customer scoring model for database marketing

Database marketers often use a scoring model to predict the likely value of contacting customers based on their purchase histories and demographics. However, when purchase history has been a partial result of the firm’s own contacting efforts, these contacts should also be accounted for in the scoring model. The current work extends the existing literature to account for the firm’s contacts by focusing on each customer’s most recent purchase. Contacts prior to that purchase are designated “prior contacts” and those after that purchase “recent contacts.” A new latent variables formulation of the customer’s propensity to respond is used to predict the likelihood and time of response as well as the relationship to the independent variables. The methodology also addresses the statistical problems of “selection bias” and “endogeneity,” which have been largely ignored in most customer scoring models. An application to the database of a charitable organization confirms that, in this case: (1) the effect of the firm’s customer contact efforts is associated with a stronger propensity to respond than is the case for the included demographics; (2) the firm’s “recent contact” efforts are associated with larger returns in customers’ propensity to respond than the “prior contact” efforts; and (3) the “recent contact” efforts are associated with an at-first increasing but then diminishing propensity to respond up to a point beyond which actual decreasing returns are observed with further contacts. Clearly, too much contacting can alienate would-be donors. The proposed model is general enough to calibrate such impacts in other database marketing applications where the relative effects might be different.

How effective are public policy decissions?…The need for a general evaluation model

The successful inplementation of public policy decisions depends heavily upon knowing what information is required by the consumers and knowing the situational factors that determine whether or not the consumer will use the information. Implementation will only succeed if there is an attempt made to educate the consumer through methods other than “full disclosure.” The successful education of the consumer will only succeed if the policy decision makers are able to determine what the consumers need to know and how best to communicate this to them. The purpose of this paper is to present a general methodology for gathering information about groups of consumers or industries that will be affected by the policy decision. One of the major thrusts of the model is the emphasis placed on acquiring the information before the policy decision is made. The second major thrust is the proposal to “test market” policy decisions before they are actually made.     

A pre-diffusion growth model of intentions and purchase

In this paper, we investigate whether information on the history of purchase intentions is useful in predicting actual purchase behavior. The research is motivated by two factors. The first factor is the empirical finding in the literature that measuring intentions just prior to purchase provides better predictions of actual purchase as compared to when these intentions are measured earlier. The second factor is the role of the timing of the formation of intentions prior to purchase. While one stream of literature based on preference fluency predicts that early formation of intentions is more likely to lead to actual purchase, the other stream based on the memory-based “recency” effect predicts that formation of intentions just prior to purchase is more likely to lead to actual purchase. Together, these two factors motivate the potential need to account for the entire history of intentions prior to purchase. A canonical example of a market where intention histories are tracked is the movie industry, where “first choice” movie watching intentions are tracked up to (and in some cases beyond) the time of release. Accommodating the history of intentions in an econometric model that predicts actual box office performance is challenging due to the differing numbers of observations for the movies, the large numbers of observations for certain movies, as well as the role of various time-invariant and time-varying covariates influencing intentions. We propose a two-part model where the first part involves a hierarchical growth model that summarizes the trajectories of intentions via “growth factors.” These growth factors also reflect the role of the various covariates. The second part is a regression of the box office performance on the growth factors and other covariates. The models are simultaneously estimated within a Bayesian framework. Consistent with the previous literature, we find that including information on intentions improves our ability to predict behavior, with the recent intentions being the most informative. Importantly, when the history of intentions is accounted for, our results indicate that the data support the “recency” literature—intentions grow over time leading up to purchase, and this growth has a positive impact on opening box office performance. While a linear growth model performs best for most movies, there exists a subset of movies for which the quadratic growth model better captures the “spike” in intentions just prior to purchase. Further, accounting for information on the history of intentions dramatically improves model fit and forecasting performance relative to when only the intentions at one point in time (e.g., the ones just prior to purchase) are accounted for.     

Literary criticism and the history of marketing thought: A new perspective on “reading” marketing theory

This paper proposes the addition of concepts drawn from literary criticism to philosophical and historical ones in order to provide insights into “reading” marketing theory. The paper sets forth three modes of literary criticism applicable to the analysis of marketing theory—psychobiographical, editorial, and structural. It offers as an illustrative example a reading of the history of Ernest Dichter's motivation research movement using these methods. The addition of literary analysis demonstrates how textual clues can enrich the historian's study of the rise and fall of marketing phenomena over time.     

Macroenvironmental forces,marketing strategy and business performance: A futures research approach

A method of futures research is used to empirically test a structure-conduct-performance (SCP) model in a marketing setting. It is proposed that within the macroenvironment there exist, varying levels of resource constraints and structural fluctuations which are positively correlated. Increased resource constraints and structural fluctuations, which are characteristics of a turbulent environment, are expected to increase the competitive intensity is an industry. This higher level of competitive intensity is hypothesized to result in increased use of nonprice marketing strategies. Nonprice marketing strategies are also expected to increase business performance because of the contingency relationship between conduct (strategy) and performance. The possible role of “blind” luck or stochastic processes in determining success is also discussed.     

Identifying critical problems for mutual cooperation between the private and public sectors: A marketing perspective

The study presented in this article is an application of “futures research.” One objective is to identify some of the more pressing future world-wide problems that require the combined effort of both the government and the private sector to reach a solution. A second objective is to suggest ways in which marketers can become more involved in the solution of them. Prominent problem clusters of particular importance to marketers, including “Social Values,” “Social Institutions,” and “Resources” were uncovered by this research. The authors hope that this article will stimulate marketing research in each of these areas.     

Who are your successful salespeople?

Utilizing a systematic sample of 200 sales managers selected from manufacturing and wholesaling firms listed in the Dun and BradstreetMillion-Dollar Directory, a survey was conducted to determine whether or not a general profile of “successful” salespersons and another profile of “unsuccessful” salespersons could be constructed. A seven-point semantic differential scale was used to obtain ratings by sales managers of salespeople on each of twenty-four personal attributes. Profiles of “successful” and “unsuccessful” salespersons were found which showed large differences in ratings on the twenty-four personal attributes. Using factor analysis, a reduced set of personal characteristics was determined to predict “successful” and “unsuccessful” salespersons.     

Theory and external validity

Winer (1999 [this issue]) proposes that external validity concerns require more attention in theoretical research. The author argues that one cannot “enhance” external validity by choosing one method over another. External validity can only be “assessed” by better understanding how the focal variables in one’s theory interact with moderator variables that are seen as irrelevant early in a research stream. Findings from single real-world settings and specific sets of “real” people are no more likely to generalize than are findings from single laboratory settings with student subjects. Both the laboratory and real world vary in background facets of subject characteristics, setting, context, relevant “history,” and time. It is only when these facets vary and we see how they interact that understanding of external validity is enhanced. For this to happen, the observable “background” factors have to be conceptualized in terms of more general constructs and incorporated as moderators into the researcher’s theory. Enriched theory—not method—confers confidence in our understanding of whether effects will be robust or highly contingent. To map this knowledge to some specific substantive system requires an added step of understanding the mapping from observables in that system onto theoretical constructs. The author proposes “friendly amendments” to Winer’s three proposals to pursue a better understanding of external validity through theory. John G. Lynch, Jr. is the Hanes Corporation Foundation Professor of Business Administration at Duke University. His research and teaching interests are in consumer behavior, electronic commerce, and validity issues in research methodology. He a past president of the Association for Consumer Research, past associate editor for theJournal of Consumer Research, and past associate editor and coeditor of theJournal of Consumer Psychology. He has been the recipient of the MSI/Paul Root Award atJournal of Marketing, the William O’Dell Award atJournal of Marketing Research, and has twice been the recipient of theJournal of Consumer Research best article award.     

Consumer motivation: A developmental self concept approach

Self theory is reviewed and then operationalized as three modes of the self concept—“actual,” “expected,” and “ideal.” Results support hypotheses concerning agreement across subjects for self concept modes within personality and products and services categories, individual consistency among self concept modes, and developmental directionality over time.     

A reexamination of the concept of privilege groups

The research reported here examines the degree to which Coleman's now famous concept of social class “privilege group” can be generalized outside the historical confines of the automobile market. An examination of the concept over twenty-seven goods and service categories produced mixed results, and raised several questions concerning the usefulness of the concept in segmenting markets.     

Rethinking marketing: Peter Drucker’s challenge

Just as Peter Drucker pointed out the importance of assessing whether a company’s “theory of business” is relevant, marketers need to consider whether the current “theory of marketing” still fits in a world of rapid change. The author examines how Drucker challenged the theory of business at financial services firm Edward Jones, helping to identify new market opportunities. For example, he urged the company to move into metropolitan areas, which now account for 60 percent of the firm’s business. The article then considers how the field of marketing needs to reexamine its own mental models. Finally, the article considers how Drucker’s seminal insights on marketing, particularly his emphasis on an interdisciplinary approach, might point the way to new approaches.     

Performance congruence and value congruence impact on sales force annual sales

The separate and joint impact of performance congruence (similarity between salespeople and their sales managers) and value congruence on annual sales are investigated in a field study. Two hundred thirty-nine salespeople and their sales managers from several industries participated in the study. A significant association was found for separate and joint associations between performance congruence and value congruence and annual sales. More specifically, the more similar salespeople and their sales managers are regarding performance congruence measures, “identifying new prospects” and “setting up an initial appointment” and personal values, “warm relationships with others,” and “sense of belonging,” the higher annual sales.     

The strategic imperative and sustainable competitive advantage: Public policy implications of resource-advantage theory

Strategy theorists share (1) the view that the strategic imperative of a firm should be sustained, superior financial performance and (2) the belief that this goal can be achieved through a sustainable competitive advantage in the marketplace. Neoclassical perfect competition and traditional industrial organization economics, however, imply that the sustained performance goal advocated by strategy theorists is anticompetitive and its achievement presumptively detrimental to social welfare. This article addresses the strategy-is-anticompetitive thesis with the goal of grounding strategy in a theory of competition— resource-advantage theory—that does not imply that the strategic imperative and its achievement are presumptively anticompetitive and antisocial. As such, this article initiates a discussion of the public policy implications of resource-advantage theory. Shelby D. Hunt is the J. B. Hoskins and P. W. Horn Professor of Marketing at Texas Tech University, Lubbock, Texas. A past editor of theJournal of Marketing (1985–1987) and author ofModern Marketing Theory: Critical Issues in the Philosophy of Marketing Science (South-Western, 1991), he has numerous articles on competitive theory, macromarketing, ethics, channels of distribution, philosophy of science, and marketing theory. Three of hisJournal of Marketing articles, “The Nature and Scope of Marketing” (1976), “General Theories and Fundamental Explananda of Marketing” (1983), and “The Comparative Advantage Theory of Competition” (1995), have won the Harold H. Maynard Award for the “best article on marketing theory.” He received the 1986 Paul D. Converse Award from the American Marketing Association for his contributions to theory and science in marketing. He received the 1987 Outstanding Marketing Educator Award from the Academy of Marketing Science and the 1992 American Marketing Association/Richard D. Irwin Distinguished Marketing Educator Award.     

Stochastic modelling and industrial networks—complementary views of organisational buyer behavior

This paper investigates the common ground between two apparently contrasting approaches to the understanding of organizational purchasing behavior; stochastic modelling and the IMP (or “markets as networks”) approach. These two schools of inquiry have travelled along parallel tracks for many years but there has never been a systematic attempt to analyse the ontological, epistemological and methodological similarities between them. We present a coherent theoretical framework to investigate the common ground between stochastic modelling and IMP and demonstrate that the two approaches offer complementary insights that can and should be exploited in the context of research into organizational purchasing behavior.     

Commentary on an empirical investigation of a general theory of marketing ethics

The article “An Empirical Investigation of a General Theory of Marketing Ethics” by Mayo and Marks constitutes a major effort at testing the theory of marketing ethics developed by Scott Vitell and me (1986). Mayo and Marks (hereafter, “M&M”) deduce several key research hypotheses from the theory, test those hypotheses using a marketing research scenario, and conclude: “The core relationships in Hunt and Vitell’s model appear to capture much of the decision-making processes that marketing managers employ in resolving an ethical dilemma.” Although no single empirical study ever provides a definitive test of a theory, their encouraging findings will likely prompt further empirical studies. The objective of this commentary is not to criticize the design of M&M’s research, for there is no such thing as a perfect research design. All efforts to test empirically a theory will necessarily involve significant amounts of interpretive creativity and there are always trade-offs to be made. Rather, the objective here is to (1) review certain exemplary aspects of the M&M research design, (2) suggest some alternative interpretations and procedures for future researchers in this area to consider, and (3) show how some of the issues in their article relate to more fundamental philosophy of science concerns.     

Unidimensional (global) vs. multidimensional composite performance appraisals of store managers

This study attempts to demonstrate: 1) that weighting performance dimensions produces evaluations very similar to the unweighted approach; 2) that “unidimensional” or “global” assessment based on employees' overall value to the firm produces results similar to the multidimensional approach. Both propositions were supported by the data employed in this study, providing encouragement to organizations using the simpler and less expensive “global” evaluations.