Systems-thinking social marketing: conceptual extensions and empirical investigations

ABSTRACT

Systems thinking dominated the 2015 World Social Marketing conference with the premise that a more holistic approach takes into account all the issues at play for effective change. Augmenting the broadening social marketing literature, we contend that systems-thinking social marketing enhances the field’s conventional behavioural change with concepts of scale, causation, and iterative co-creating change processes for complex health and environmental problems. The results of our empirical Sea for Society study, a sustainable European marine ecosystem examination of what the barriers to change are and how they are interrelated, find systems-thinking social marketing offers the potential to strategically and critically reinforce, not replace, behavioural change campaigns. With systems-thinking social marketing, a coherent theory of change becomes a possibility. Orchestrating social change may become a reality.     

Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities,marketing agility,and market turbulence

While data-driven innovation capabilities have received considerable attention from academics and practitioners, there is insufficient longitudinal evidence on how they might contribute to improved marketing agility and competitive advantage. In this study, we make a preliminary effort to address this gap by developing a model based on the dynamic capabilities view. We also explore the moderating effects of market turbulence on the link among marketing agility and competitive advantage. We used two-waves data (T = 677 and T+1 = 569) and the cross-lagged panel approach was utilised to analyse the longitudinal data. Our findings provide robust empirical evidence on the causal and predictive temporal impact of data driven innovation capabilities on marketing agility and competitive advantage. It also indicated that marketing agility mediates this relationship over time. Moreover, the analysis suggested that market turbulence reinforce the influence of marketing agility on competitive advantage. We provided significant implications for theory and practice.     

Ethics of business students: Some marketing perspectives

This study explores the reactions of 412 business students to a range of ethical marketing dilemmas. Reviewing some of the comparable Australian and U.S. research in the field, the study examines the ethical judgements for potential demographic differences. The findings suggest that a majority of students are prepared to act unethically in order to gain some competitive or personal advantage. Yielding the highest ethical response are situations of potential and significant social impact. The results support some previous research that shows the existence of gender and age differences in ethical response and likely behaviour. This (gender) difference was most divergent on the issue of portrayal of women in advertising. In particular, females and older students respond more ethically in a majority of situations. The research concludes a number of opportunities for new directions in education, public policy making and further research.Jim Lane is Senior Lecturer in marketing at the Southern Cross University, Lismore, N.S.W., Australia. He lectures in Marketing at the M.B.A. and undergraduate levels, and has recently introduced Ethics to his Faculty's Marketing curricula. Research interests include ethics, corporate identity and positioning, and he has previously published in the Australian Marketing Institute'sMarketing journal.     

Editorial

This article reports the results of a research project into the development process of 100 new retail financial products, 42 innovative and 58 noninnovative, which is part of a broader study conducted on the development and launching practices of new financial products in Greece. The study revealed that innovative and non-innovative products follow similar development patterns, but with quite different emphasis placed on the distinctive parts of the NSD process. The analysis has shown that three development stages are significant determinants of non-innovative products' performance, namely (i) market analysis and commercialization, (ii) technical development, with a positive effect and (iii) operational testing with a negative impact on performance. In the case of innovative products, four development stages were found to impact their performance significantly and positively, namely (i) idea generation and screening, (ii) internal marketing and training, (iii) market analysis and commercialization and (iv) technical development.     

Neuromarketing: Ethical Implications of its Use and Potential Misuse

Neuromarketing is an emerging field in which academic and industry research scientists employ neuroscience techniques to study marketing practices and consumer behavior. The use of neuroscience techniques, it is argued, facilitates a more direct understanding of how brain states and other physiological mechanisms are related to consumer behavior and decision making. Herein, we will articulate common ethical concerns with neuromarketing as currently practiced, focusing on the potential risks to consumers and the ethical decisions faced by companies. We argue that the most frequently raised concerns—threats to consumer autonomy, privacy, and control—do not rise to meaningful ethical issues given the current capabilities and implementation of neuromarketing research. But, we identify how potentially serious ethical issues may emerge from neuromarketing research practices in industry, which are largely proprietary and opaque. We identify steps that can mitigate associated ethical risks and thus reduce the threats to consumers. We conclude that neuromarketing has clear potential for positive impact on society and consumers, a fact rarely considered in the discussion on the ethics of neuromarketing.     

How does regulatory monitoring of cause marketing affect firm behavior and donations to charity?

Cause marketing (CM) typically involves for-profit firms donating part of their sales revenue to a charity, with the hope that this will increase their revenue. We argue that it is important for a regulator to monitor firms’ CM activities, and to assess how differences in the enforcement of CM laws impact the CM practice by firms. Our analytical model uses a Stackelberg leader–follower game that endogenizes the regulator’s decision to enforce CM. The firm then decides whether to truthfully declare or overstate the amount it contributes to charity (and if overstate: by how much). We find the following results in equilibrium under different conditions: (i) CM campaigns are a win–win–win situation – they increase profit for the firm while being truthful, generate larger donations for the charity, and generate a cause marketing surplus for the regulator, resulting in doing well while doing good, (ii) the best response of the firm is to be strategic, even when the regulator is strict with monitoring, (iii) the regulator itself decides not to monitor CM, even though it knows that this results in untruthful behavior by firms. When we endogenize the extent of overstatement, we find that the firm tends to be strategic by overstating donation percentage, whether the regulator is strict or not. As the proportion of unsophisticated consumers (who believe a firm’s claims, whether truthful or not) increases, the donation proportion decreases in general, and the overstatement level increases when the regulator is lenient and decreases when the regulator is strict. In equilibrium, the regulator is strict if the market size is large, and lenient otherwise. A survey with consumers supports key modeling assumptions regarding consumers' lack of knowledge of CM laws.     

This is your brain on neuromarketing: reflections on a decade of research

ABSTRACT

In this commentary, we reflect on the last decade of research in the field of neuromarketing and present a schematic illustration of the basic process of a typical neuromarketing study. We then identify three critical points of interest in this illustration that have not received enough discussion in neuromarketing-relevant literature, and which we consider to be somewhat problematic. These are the dominance of event-based designs in neuromarketing, the potential of alternative modalities in neuromarketing and the current focus on reverse inference in neuromarketing. We argue that, taken together, these points have substantive implications for the development of a more reflective neuromarketing, which in turn has greater potential to make a positive impact on marketing knowledge, marketing practice and public perceptions of marketing activity in general.     

Private Regulation and Trade Union Rights: Why Codes of Conduct Have Limited Impact on Trade Union Rights

Codes of conduct are the main tools to privately regulate worker rights in global value chains. Scholars have shown that while codes may improve outcome standards (such as occupational health and safety), they have had limited impact on process rights (such as freedom of association and collective bargaining). Scholars have, though, only provided vague or general explanations for this empirical finding. We address this shortcoming by providing a holistic and detailed explanation, and argue that codes, in their current form, have limited impact on trade union rights due to (i) buyers paying lip service to trade union rights, (ii) workers being treated as passive objects of regulation in codes of conduct, (iii) auditing being unable to detect and remediate violations of trade union rights, (iv) codes emphasizing parallel means of organizing, (v) suppliers having limited incentives for compliance, and (vi) codes being unable to open up space for union organizing when leveraged in grassroots struggles. Our arguments suggest that there is no quick fix for codes’ limited impact on trade union rights, and that codes, in their current form, have limited potential to improve trade union rights. We conclude by discussing ways in which codes of conduct, and private regulation of worker rights more generally, could be transformed to more effectively address trade union rights.     

Environmental risks,localization and the overseas subsidiary performance of MNEs from an emerging economy

Despite the fact that multinational enterprises (MNEs) from emerging economies invest actively in host countries with substantial risks, we have limited understanding of how they manage environmental risks to achieve desirable performance in their overseas subsidiaries. Drawing on resource dependence theory, we argue that different localization strategies serve as a mediating mechanism linking environmental risks and overseas subsidiary performance. Our findings based on a sample of Chinese MNEs show that industry risks significantly reduce the levels of input localization and marketing localization of Chinese MNEs’ subsidiaries, and thus negatively affect subsidiary performance. Political risks have an insignificant impact on input localization and marketing localization, but a positive direct impact on Chinese MNEs’ overseas subsidiary performance. We also find that state-owned MNEs’ localization strategies are more sensitive to industry risks compared with privately owned MNEs.     

Roles of actors in combining resources into complex solutions

Combining resources to develop complex solutions (e.g., products or services) involves a varied set of business actors. Research tends to assume that actors are more or less autonomous in combining the resources they use. Presenting findings from a study of the construction of the first two pre-discharge homes for patients with cognitive and motor disabilities, we show that the autonomy of the single actor in combining resources is limited and that resource combinations are collectively enacted. Consequently, the features of the emergent resource combinations depend on the set of actors involved. We also argue that each actor takes part in resource combination both as provider and as user of resources; the two roles imply different perspectives that lead to different focal points which, in turn, impact how resources interface. The two roles orient the conduct of parties and, as confronted in business relationships, they shape the development of business relationships and resource combinations.     

On voluntarism and the role of governments in CSR: towards a contingency approach

In the corporate social responsibility (CSR) literature, the principle of voluntarism is predominant and implies that responsible business activities are discretionary and reach beyond the rule of law. This principle fails to explain that governments have a great interest in CSR and exercise influence on firms’ CSR activities. Therefore, we argue in favour of a contingency approach on voluntarism in CSR. To this end, we analyse the academic literature to demonstrate how governments are part of the CSR debate. We selected 703 papers where the impact of governments is mentioned from five journals in our field (BEER, BEQ, BSE, BAS, JBE) in the period 1982–2011. We studied the titles and abstracts of these papers and provide an overview of: (i) the geographical orientation of the reviewed studies; (ii) the variety of government levels involved; and (iii) the various subjects where governments appear to be involved. In addition, an in‐depth reading of a subsample of 39 articles offers more details on the role of governments in the CSR literature. Hence, we offer a structured overview on the discussion of CSR and governments while stimulating a contingent understanding of the voluntarism concept in CSR.     

Divergent and Convergent Idea Generation in Teams: A Comparison of Computer-Mediated and Face-to-Face Communication

Many tasks and decisions in business, including management consulting, are performed in group settings. Computer-mediated communication (CMC) tools (e.g., Lotus Notes) are increasingly being used by businesses to support teams in a variety of settings. Considerable research in information systems has demonstrated the advantages of electronic brainstorming (EBS) for generic tasks involving only divergent thinking. However, it is unclear whether the benefits of CMC extend to tasks that require both divergent and convergent processes. Per task–technology fit theory (TTF) (Zigurs and Buckland 1998), the use of computer-based group communication support tools, including chat systems in wide-spread use today, may be less effective for convergent processes than for divergent processes. This study experimentally compares the performance of computer-mediated and face-to-face (FTF) teams on tasks requiring both divergent and convergent processes. Consistent with theoretical predictions, the results revealed that computer-mediated teams outperformed FTF teams in the divergent aspects of the tasks, while FTF teams outperformed computer-mediated teams in the convergent aspects of the tasks.     

Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded

Ethical corporate marketing—as an organisational-wide philosophy—transcends the domains of corporate social responsibility, business ethics, stakeholder theory and corporate marketing. This being said, ethical corporate marketing represents a logical development vis-a-vis the nascent domain of corporate marketing has an explicit ethical/CSR dimension and extends stakeholder theory by taking account of an institution’s past, present and (prospective) future stakeholders. In our article, we discuss, scrutinise and elaborate the notion of ethical corporate marketing. We argue that an ethical corporate marketing positioning is a prerequisite for corporations which claim to have an authentic ethical corporate identity. Our article expands and integrates extant scholarship vis-a-vis ethical corporate identities, the sustainable entrepreneur and corporate marketing. In delineating the breadth, significance, and challenges of ethical corporate marketing we make reference to the BP Deepwater Horizon (Gulf of Mexico) catastrophe of 2010.     

The role of disclosure in organized word‐of‐mouth marketing programs

Prevailing views of organized word‐of‐mouth (WOM) marketing programs suggest that disclosing corporate affiliation reduces perceived credibility and hampers campaign effectiveness. To test this view we surveyed WOM marketing agents and their conversational partners (CP) after a WOM marketing episode. Results indicate that when disclosure occurred – defined as when the CP was aware they were talking with a person participating in an organized WOM marketing program – agents were rated as more credible, CPs had fewer negative feelings about the agent's corporate affiliation, and CPs told more people about the brand being discussed. These counter‐intuitive results can be explained in part by the existing personal relationship between the agent and CP and invite us to consider how personal relationships may moderate the impact and potential business advantages of disclosure in organized WOM marketing programs.     

Factors affecting the study of important marketing issues: Implications and recommendations

Academic research in marketing has produced many useful insights and tools over the years. Lately, however, an increasing number of scholars have voiced concern that much of the current academic research is not particularly useful. We explore reasons why this may be the case, and offer a set of recommendations to address them. We first identify three general factors that must be present in order for academics to develop important marketing insights: (i) awareness of important marketing issues, (ii) ability to address these issues, and (iii) motivation to address them. Using this as a framework, we identify several variables that may be reducing the likelihood of our studying important marketing issues. These variables suggest actions that we may take to increase the likelihood of our producing important marketing insights and tools.     

International capital flows under dispersed private information

It is well established that private information is critical to our understanding of asset prices. In this paper we argue that it also affects international capital flows and use a simple two-country DSGE model to illustrate its impact. We show that private information (i) increases the volatility of both net and gross capital flows, (ii) leads to a high correlation between capital inflows and outflows, (iii) leads to a disconnect of capital flows from observed macro fundamentals and (iv) implies that capital flows contain information about the future macro fundamentals. We also show that dispersed information affects capital flows both through asset prices and directly, so that the impact on flows is not just the mirror image of the impact on prices.     

Academic labour,journal ranking lists and the politics of knowledge production in marketing

In this paper, we engage with the rising importance of journal ranking lists. We explore the pressure these place on marketing academics and the politics of knowledge production, stressing academic game-playing, careerism, and paradigmatic homogeneity. We appreciate that scholars are disciplined by these lists, their line managers, and reaffirm list power through their own patterns of self-management. Nonetheless, marketing academics should avoid making the naïve assumption that the appearance of a paper in a highly rated journal necessarily serves as a proxy for ‘quality’. Publication in a particular outlet does not transform the ultimate contribution being made in any substantive fashion. We provide an extensive critique of the function and impact of journal lists. However, it is also recognised that these are very important for members of the marketing community. As such, we explain our reasons for contesting the recent regrading of the Journal of Marketing Management (JMM) by a prominent journal list and underline the changes that have been made to the Journal since the beginning of the current editorial term. Finally, the support of prominent scholars among our thought community for the policies being implemented is highlighted and we underscore the rigour of contributions to the Journal, the review process, the rising citations, downloads and truly global readership of the JMM.     

Enjoyment or autonomy? The interactive effect of brand ritual and brand personality on consumer purchase

The use of brand rituals is a pervasive tactic in business, but the marketing effectiveness of this practice largely remains unknown. In the present research, we postulate the contingent nature of brand rituals on consumer purchase. Based on the two countervailing processes—the enhancement of perceived enjoyment and the reduction of perceived autonomy, we suggest that the effectiveness of brand rituals is determined by the interaction between the degree of brand ritual (simple vs. sophisticated) and the brand personality (excitement vs. sincerity). By means of field and laboratory experiments in various product categories (i.e., fruit tea, juice, stationery, and hand cream), we show that for a sincere brand, a sophisticated brand ritual elicits higher consumer purchase than a simple brand ritual only via the process of enhanced enjoyment because its sincerity personality weakens the salience of the process of reduced autonomy. In contrast, for an exciting brand, a sophisticated brand ritual elicits lower consumer purchase than a simple brand ritual via the process of enhanced enjoyment but reduced autonomy (the autonomy route dominates the enjoyment route) because its exciting personality intensifies the salience of the process of reduced autonomy. In simple words, a sophisticated brand ritual benefits a sincere brand, but a simple one benefits an exciting brand. Our findings extend the research on ritual and brand ritual and offer implications for marketing practice regarding how to design a brand ritual more effectively.     

Nanomarketing: A New Frontier for Neuromarketing

The emergence of neuromarketing has significantly advanced conventional marketing research, illuminating how unconscious responses and emotions impact consumers’ perceptions and decision‐making processes. Neuromarketing is founded on the assumption that individual sensory and motor systems can be identified in specific networks of brain cells, the observation of which can reveal the unconscious or emotional characteristics of consumer decision making. Yet, neuromarketing technologies present several limitations that can impede the extension and validation of their application: (i) the development of high‐priced and time‐restricted neuroimaging experiments; (ii) the employment of large and immovable devices confined to artificial laboratory environments; (iii) the use of a single neuroimaging technology at a time (usually the functional magnetic resonance imaging); (iv) the use of a single nonneuroimaging device at a time; and (v) the potentially unethical manipulation of research subjects. One way to address these issues involves nanotechnologies, which present a ground‐breaking opportunity for neuromarketing research. These technologies encompass not only the traditional notion of structures, devices, and systems created by limiting shape and size at the nanometer scale, but also the new miniaturized tools based on one or more nanocomponents. The integration of neuromarketing and nanotechnologies could start a new field of research, which is termed here nanomarketing. Nanomarketing makes it possible to: (i) carry out noninvasive and nonintrusive experiments in shopping places; (ii) monitor consumers’ mental processes in real time; (iii) combine different technologies to corroborate results obtained by different neuroscientific tools; (iv) integrate neurophysiological field indicators with laboratory neuroimaging results; and (v) highlight ethical issues raised by the use of these novel, portable, and easy‐to‐use nanodevices. This study thus has a twofold aim: (i) investigating both the limitations and opportunities, for researchers and practitioners, that accompany the miniaturization process and application of nanotechnologies to neuromarketing; and (ii) providing a critical review of the aforementioned limitations, highlighting the theoretical and managerial implications, and summarizing the discussion for future research.     

The Trouble with Harrod: The fundamental instability of the warranted rate in the light of the Sraffian Supermultiplier

The paper argues that Harrodian instability is an instance of what Hicks in his book Capital and Growth (1965) called static instability, related to the direction (and not to the intensity) of the disequilibrium adjustment process. We show why such instability obtains in demand‐led growth models in which the ratio of capacity creating private investment to output ratio is given exogenously by the aggregate marginal propensity to save. We also show that Sraffian Supermultiplier model overcomes the Harrodian instability and that its demand‐led equilibrium is statically stable. It is explained that the latter results do not follow from the presence of autonomous non‐capacity creating expenditure component as such but from its presence within a model in which investment is driven by the capital stock adjustment principle (i.e., the flexible accelerator). Finally, we argue that, although being statically stable, the equilibrium growth path of the Sraffian Supermultiplier model can be dynamically stable or unstable depending on the intensity of the reaction of investment to demand. We then provide a discrete time sufficient condition for the dynamic stability of such equilibrium that implies that the marginal propensity to invest remains lower than the marginal propensity to save during the adjustment process, a modified Keynesian stability condition.