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.     

Reconfiguration of the conceptual landscape: a tribute to the service logic of Richard Normann

This article is a tribute to the late Richard Normann, whose call for a “service logic” (Normann, Reframing Business: When the Map Changes the Landscape, Wiley, Chichester, p. 99, 2001) both parallels and enriches service-dominant (S-D) logic (Vargo and Lusch, J. Mark, 68:1–17, 2004a). Like Vargo and Lusch, Normann shifted the focus of the offering from an output to a process of value creation and perceived the firm as an organizer of this process, with the customer as a co-producer, rather than a receiver of value. He also argued that offerings are “frozen knowledge,” similar to Vargo and Lusch’s contention that the basis of exchange is applied operant resources (service) and suggested that the ‘dematerialization’ of resources increases their ‘liquidity’, which allows increased “density” for value creation. Thus, he suggested that firms need to “reframe business”—rethink the logic of value creation—to reveal opportunities in reconfiguring the value constellations of which they are part. This tribute explores these and other similarities and differences between Normann’s work and the evolving S-D logic.     

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.     

Salesperson cooperation: The influence of relational, task, organizational, and personal factors

Salesperson cooperation has become a crucial issue for the overall performance of most sales organizations. The authors examine the antecedents of task-specific, cooperative behaviors of salespersons toward other salespeople working in the same organization. The main theses of the study are that (1) the four major antecedent categories of factors—relational, task, organizational, and personal— constitute, collectively, the primary determinants of salesperson cooperation and (2) each antecedent category exerts, independently, significant influence on the cooperative behaviors of salespersons. The results support the main theses and provide useful insights for sales managers attempting to foster cooperation among salespeople. The relative impact of each antecedent category, as well as the effects of specific variables within each, is discussed. Cengiz Yilmaz is an assistant professor of marketing at Gebze Institute of Technology, Turkey. He obtained his Ph.D. in marketing from Texas Tech University in 1999. His research interests focus on sales management, distribution channels and relationship marketing, and strategic issues concerning intra- and interfirm aspects in marketing systems and their links with business performance. His research has been published in various conference proceedings. 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), he is the author ofModern Marketing Theory: Critical Issues in the Philosophy of Marketing Science (South-Western, 1991) andA General Theory of Competition: Resources, Competences, Productivity, Economic Growth (Sage Publications, 2000). He has written 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) (with Robert M. Morgan) won the Harold H. Maynard Award for the “best article on marketing theory.” His 1985Journal of Business Research article with Lawrence B. Chonko, “Ethics and Marketing Management,” received the 2000 Elsevier Science Exceptional Quality and High Scholarly Impact Award. His 1989 article, “Reification and Realism in Marketing: In Defense of Reason,” won theJournal of Macromarketing Charles C. Slater Award. For his contributions to theory and science in marketing, he received the 1986 Paul D. Converse Award from the American Marketing Association, 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.     

Interimistic relational exchange: Conceptualization and propositional development

Research on relational exchange has focused primarily on long-term, or “enduring,” relational exchange. The evolutionary model of relationship development that is the foundation for much of the research on enduring relational exchange lacks applicability for short-term, or “interimitic,” relational exchange. Interimistic relational exchange is defined as a close, collaborative, fast-developing, short-lived exchange relationship in which companies pool their skills and/or resources to address a transient, albeit important, business opportunity and/or threat. Because interimistic exchange relationships must quickly become functional and have a short life, these relationships have less time to fully develop the relational governance mechanisms assumed in the evolutionary model. There-fore, interimistic relational exchange appears to relymore on nonrelational mechanisms than does enduring relational exchange. This article (1) examines how interimistic relational exchange governance differs from that of enduring relational exchange and (2) develops propositions for further research on interimistic relational exchange. C. Jay Lambe received his doctorate from the Darden School at the University of Virginia. He is an assistant professor of marketing at Texas Tech University. Prior to entering academe, he was engaged in business-to-business marketing for both Xerox and AT&T. His research interests include business-to-business marketing, relationship marketing, marketing strategy, and sales management. He has publications in theJournal of Product Innovation Management, theEuropean Journal of Marketing, theJournal of Personal Selling and Sales Management, and theInternational Journal of Management Reviews. In 1999, he was one of five Texas Tech University faculty members chosen by the students for the annual Outstanding Faculty Member Award. Robert E. Spekman is the Tayloe Murphy Professor of Business Administration at the Darden School. He was formerly a professor of marketing and associate director of the Center for Telecommunications at the University of Southern California (USC). He is a recognized authority on business-to-business marketing and strategic alliances. His consulting experiences range from marketing research and competitive analysis to strategic market planning, supply chain management, channels of distribution design and implementation, and strategic partnering. He has taught in a number of executive programs in the United States, Canada, Latin America, Asia, and Europe. He has edited/written seven books and has authored (coauthored) more than 80 articles and papers. He also serves as a reviewer for a number of marketing and management journals as well as for the National Science Foundation. Prior to joining the faculty at USC, he taught in the College of Business at the University of Maryland, College Park. During his tenure at Maryland, he was granted the Most Distinguished Faculty Award by the MBA students on three separate occasions. 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 written numerous articles on competitive theory, macro marketing, ethics, channels of distribution, and marketing theory. Three of hisJournal of Marketing articles, “The Nature and Scope of Marketing” (1976), “General Theories and the Fundamental Explananda of Marketing” (1983), and “The Comparative Advantage Theory of Competition” (1995) 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 “outstanding 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. His new and provocative book is titledA General Theory of Competition: Resources, Competences, Productivity, Economic Growth (Sage, 2000).     

Managing the co-creation of value

Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation; and utilize field-based research to illustrate practical application of the framework. This process-based framework provides a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights into managing the process of value co-creation.     

Marketing to and serving customers through the internet: An overview and research agenda

The authors discuss the motivations for this special issue and propose a conceptual framework pertaining to the issue’s theme. Using this framework as a backdrop, they then offer an overview of the remaining articles by segmenting them into categories and discussing their relationship to the framework. They conclude by highlighting research avenues for augmenting our understanding of marketing to and serving customers through the Internet. A. Parasuraman (D.B.A., Indiana University) is a professor and holder of the James W. McLamore Chair in Marketing at the University of Miami. He has received many distinguished teaching and research awards. In 1988, he was selected as one of the “Ten Most Influential Figures in Quality” by the editorial board ofThe Quality Review. In 1998, he received the American Marketing Association’s “Career Contributions to the Services Discipline Award.” In 2001, he received the Academy of Marketing Science’s “Outstanding Marketing Educator Award.” Dr. Parasuraman has published numerous articles in leading scholarly and managerial journals. He has served as editor of theJournal of the Academy of Marketing Science for a 3-year term (1997–2000). He has authored or coauthored several books, the most recent of which isTechno-Ready Marketing: How and Why Your Customers Adopt Technology (2001). George M. Zinkhan is the Coca-Cola Company Chair of Marketing at the University of Georgia. After receiving his doctorate from the University of Michigan, he served on the faculty at both the University of Houston and the University of Pittsburgh. His main research focus is in the areas of communication, advertising, and electronic commerce. His recent coauthored books includeElectronic Commerce: A Strategic Perspective (2000) andConsumers (2002).     

Serving customers and consumers effectively in the twenty-first century: A conceptual framework and overview

In this article, the authors first propose and discuss a conceptual framework pertaining to the theme of this special issue. This framework portrays “markets” as consisting of “customers” and “consumers,” specifies the distinction as well as linkages between the two, and outlines specific components of individual linkages between pairs of entities within markets. Using this framework as a backdrop, the article then provides an overview of the rest of the special issue by discussing how each of the remaining articles relate to the framework and to one another. A. Parasuraman (D.B.A., Indiana University) is a professor and holder of the James W. McLamore Chair in Marketing at the University of Miami. He teaches and does research in services marketing, service-quality measurement, and the role of technology in marketing to and serving customers. He has received many distinguished teaching and research awards, including, most recently, the “Career Contributions to the Services Discipline Award” given by the American Marketing Association's (AMA) SERVSIG. He has written numerous articles in journals such as theJournal of Marketing, theJournal of Marketing Research, theJournal of Retailing, andSloan Management Review. He is the author of a marketing research text and coauthor of two books on service quality and services marketing. In addition to being the editor of theJournal of the Academy of Marketing Science (JAMS), he serves on the editorial review boards of five other journals. Dhruv Grewal (Ph.D., Virginia Tech) is Interim-Chair and a professor of marketing at the University of Miami. He has published more than 40 articles in journals such as theJournal of Marketing, theJournal of Consumer Research, theJournal of Marketing Research, theJournal of the Academy of Marketing Science, and theJournal of Retailing. His research interests focus on retailing, pricing, international marketing, and consumer behavior issues. He currently serves on the editorial review boards of theJournal of Marketing, theJournal of the Academy of Marketing Science, theJournal of Retailing, and theJournal of Public Policy & Marketing. He has won awards for both his teaching and research. He has coedited a special issue of theJournal of Public Policy & Marketing and of theJournal of Retailing. He was recently elected to the AMA Academic Council—VP Research and Conferences (1999–2001). He is currently writing a book onMarketing Research (publisher: Houghton Mifflin).     

The price of competitiveness in competitive pricing

This study examines how pricing decisions might be improved. We test the hypothesis that managers have a tendency to overcompete by comparing the performance of managers with the performance of computerized strategies in a Prisoner’s Dilemma pricing experiment. We find that the subjects in our study obtain lower profits than matched computer strategies. The subjects appear to value relative performance against competitors, even when they are explicitly instructed to maximize profits and are compensated based on profits. The implication for managers is that pricing to maximize profits may require tolerating the strong performance of competitors, even to the point of accepting a lower profit than some or all the competitors. If competitiveness means an adversarial, “zero-sum game” view of one’s competitors, then the price of competitiveness in competitive markets such as those in our experiment may be lower profits. Being less competitive may be more profitable. His major areas of research are pricing competition and channels of distribution. His research has been published inMarketing Letters andJournal of Marketing Channels. He has also cowritten a chapter on wholesaler liability for the bookWholesale Distribution Channels: New Insights and Perspectives, edited by Bert Rosenblum. where he directs Vanderbilt’s Center for Services Marketing. His 1995 article “Return on Quality (ROQ): Making Service Quality Financially Accountable” (written with Anthony Zohorik and Timothy Keiningham) won theJournal of Marketing’s Alpha Kappa Psi award for the article that had the greatest impact on the practice of marketing. He has also won best article awards from theJournal of Advertising and theJournal of Retailing. He serves on the editorial boards of seven journals, includingMarketing Science and theJournal of Marketing Research. His books includeService Marketing, Return on Quality, Advertising Media Models, Service Quality, andReadings in Service Marketing.     

An expanded and strategic view of discontinuous innovations: deploying a service-dominant logic

The service-dominant logic (S-D logic) provides a novel and valuable theoretical perspective that necessitates a rethinking and reevaluation of the conventional literature on innovation. This literature is built upon a goods-dominant logic and has resulted in a restricted and out-moded perspective that overlooks many major discontinuous innovations. In this article, we show how many innovations can be better understood by deploying a S-D logic perspective. We present six S-D logic categories of discontinuous innovation positing that they can help scholars and managers analyze, design and implement breakthrough advances in resource use. We argue that discontinuous innovation can arise by changing any of the customers’ roles of users, buyers and payers on the first dimension. On the second dimension, the firm changes its value creation by embedding operant resources into objects, by changing the integrators of resources, and by reconfiguring value constellations. Finally, we offer some managerial and research implications of this expanded and strategic view of discontinuous innovation.

The evolving brand logic: a service-dominant logic perspective

The meanings of brand and branding have been evolving over the past several decades. This evolution is converging on a new conceptual logic, which views brand in terms of collaborative, value co-creation activities of firms and all of their stakeholders and brand value in terms of the stakeholders’ collectively perceived value-in-use. The authors argue that this new logic parallels and reflects the related, evolving service-dominant (S-D) logic in marketing. They provide an historical account of the branding literature, organize it into eras, and connect it to the evolution in marketing as captured by S-D logic. The analysis provides further support for the S-D logic of marketing and suggests a related research agenda for furthering the understanding of brand and branding. It also suggests that marketing managers might benefit from investing resources in building strong brand relationships with all of their stakeholders and a service-dominant firm philosophy built around brand value co-creation.     

Alliance competence, resources, and alliance success: Conceptualization, measurement, and initial test

This research examines the effect of an alliance competence on resource-based alliance success. The fundamental thesis guiding this research is that an alliance competence contributes to alliance success, both directly and through the acquisition and creation of resources. Using survey data gathered from 145 alliances, empirical tests of the hypotheses provide support for the posited explanation of alliance success. The findings indicate that an alliance competence is not only antecedent to the resources that are necessary for alliance success but also to alliance success itself. C. Jay Lambe (Ph.D., The Darden School at University of Virginia) is an assistant professor of marketing in the Pamplin College of Business at Virginia Tech. For 10 years prior to entering academe, he was engaged in business-to-business marketing for both Xerox and AT&T. His research interests include business-to-business marketing, relationship marketing, marketing strategy, and sales management. He has publications in theJournal of the Academy of Marketing Science, theJournal of Product Innovation Management, theEuropean Journal of Marketing, theJournal of Personal Selling and Sales Management, theInternational Journal of Management Reviews, theJournal of Business-to-Business Marketing, and theJournal of Relationship Marketing. He also serves as a reviewer for theJournal of Business-to-Business Marketing. Prior to joining the faculty at Virginia Tech, he was one of five Texas Tech University faculty members chosen in 1999 from the entire university for the annual Outstanding Faculty Member Award by the Mortar Board and Omicron Delta Kappa (Texas Tech University student organizations that recognize excellence in teaching). Robert E. Spekman is the Tayloe Murphy Professor of Business Administration at the Darden School at the University of Virginia. He was formerly a professor of marketing and associate director of the Center for Telecommunications at the University of Southern California. He is an internationally recognized authority on business-to-business marketing and strategic alliances. His consulting experiences range from marketing research and competitive analysis, to strategic market planning, supply chain management, channels of distribution design and implementation, and strategic partnering. He has taught in a number of executive programs in the United States, Canada, Latin America, Asia, and Europe. His executive program experience ranges from general marketing strategy, to sales force management, to channels strategy, to creating strategic alliances, to business-to-business marketing strategy, to a number of single-company and senior executive management programs. He has edited and/or written seven books and has authored (coauthored) more than 80 articles and papers. He also serves as a reviewer for a number of marketing and management journals, as well as for the National Science Foundation. Prior to joining the faculty at the University of Southern California, he taught in the College of Business at the University of Maryland, College Park. During his tenure at Maryland, he was granted the Most Distinguished Faculty Award by the MBA students on three separate occasions. Shelby D. Hunt is the J. B. Hoskins and P. W. Horn Professor of Marketing at Texas Tech University, Lubbock. A past editor of theJournal of Marketing (1985–87), he is the author ofModern Marketing Theory: Critical Issues in the Philosophy of Marketing Science (South-Western, 1991) andA General Theory of Competition: Resources, Competences, Productivity, Economic Growth (Sage, 2000). He has written 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) (with Robert M. Morgan)—won the Harold H. Maynard Award for the best article on marketing theory. His 1985Journal of Business Research article with Lawrence B. Chonko, “Ethics and Marketing Management,” received the 2000 Elsevier Science Exceptional Quality and High Scholarly Impact award. His 1989 article, ”Reification and Realism in Marketing: in Defense of Reason,” won theJournal of Macromarketing Charles C. Slater Award. For his contributions to theory and science in marketing, he received the 1986 Paul D. Converse Award from the American Marketing Association, 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.     

Service quality delivery through web sites: A critical review of extant knowledge

Evidence exists that service quality delivery through Web sites is an essential strategy to success, possibly more important than low price and Web presence. To deliver superior service quality, managers of companies with Web presences must first understand how customers perceive and evaluate online customer service. Information on this topic is beginning to emerge from both academic and practitioner sources, but this information has not yet been examined as a whole. The goals of this article are to review and synthesize the literature about service quality delivery through Web sites, describe what is known about the topic, and develop an agenda for needed research. In the offline worl...30% of a company’s resources are spent providing a good customer experience and 70% goes to marketing. But online...70% should be devoted to creating a great customer experience and 30% should be spent on “shouting” about it. Valarie A. Zeithaml is the Roy and Alice Richards Bicentennial Professor and Area Chair at the Kenan-Flagler Business School of the University of North Carolina, Chapel Hill. She obtained an M.B.A. and doctorate from the University of Maryland and has devoted the past 20 years to researching and teaching the topics of service quality and services management. She is the author of three service books:Delivery Quality Service: Balancing Customer Perceptions and Expectations, Driving Customer Equity, andServices Marketing, a textbook now in its second edition. She has won numerous teaching and research awards, including the Ferber Award from theJournal of Consumer Research, the Maynard Award from theJournal of Marketing, the Jagdish Sheth Award from theJournal of the Academy of Marketing Science, and the O’Dell Award from theJournal of Marketing Research. She has consulted with more than 40 service and product companies. A. Parasuraman (D.B.A., Indiana University) is a professor and holder of the James W.McLamore Chair in Marketing at the University of Miami. He has received many distinguished teaching and research awards. In 1988, he was selected as one of the “Ten Most Influential Figures in Quality” by the editorial board ofThe Quality Review. In 1998, he received the American Marketing Association’s “Career Contributions to the Services Discipline Award.” In 2001, he received the Academy of Marketing Science’s “Outstanding Marketing Educator Award.” Dr. Parasuraman has published numerous articles in leading scholarly and managerial journals. He has served as editor of theJournal of the Academy of Marketing Science for a 3-year term (1997–2000). He has authored or coauthored several books, the most recent of which isTechno-Ready Marketing: How and Why Your Customers Adopt Technology (2001). Arvind Malhotra is an assistant professor at the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. He has conducted award-winning research on how companies exploit information technology to reinvent themselves for e-business. He teaches e-commerce strategies to executive M.B.A.s and strategic use of information technology to M.B.A. students.     

The service-dominant logic and the future of marketing

According to Vargo and Lusch (Journal of Marketing, 68:1–17, 2004a, Journal of Service Research, 6:324–335, b), service is the appropriate logic for marketing. For them, service is an interactive process of “doing something for someone” that is valued. More radically, goods also render service and have value-in-use. In this context service becomes the unifying purpose of any business relationship. This marketing world-view involves broadening and reframing what by convention counts as service and stands in opposition to 200 years of mainstream economic logic in explaining productive capacity. In our view they have succeeded in applying their scholarly thinking to old themes with synergistic results. Their thesis challenges marketing orthodoxy, and will in our view support much future innovation in both theoretical and practical terms.     

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.     

The moderating effect of organizational cohesiveness in knowledge use and new product development

This study examined the influence of cohesiveness, an organizational cultural variable, on knowledge use and organizational learning within the context of new product development (NPD). The authors surveyed NPD managers from 323 firms, representing a wide range of product classifications, about their firms’ levels of cohesiveness and NPD efforts. Using structural equation modeling, the authors demonstrated that organizational cohesiveness has a moderating influence on both an organization’s use of its existing knowledge to develop innovative new products and the resulting performance of those products, which emphasizes how influential organizational “mind-set” can be. By considering cohesiveness an influence in new product innovativeness and new product performance, the authors incorporated a cultural variable that has received little attention in the NPD and more general marketing literature. This research reveals that much is left to learn about cohesiveness and that understanding it can advance knowledge use, organizational learning, and innovation. Beverly K. Brockman (bev-brockman@utc.edu) is an assistant professor of marketing at the University of Tennessee at Chattanooga. She holds BBA and MBA degrees from the University of Kentucky and a PhD from the University of Alabama. Her specialty areas include marketing strategy, entrepreneurship, product development, and organizational learning. Dr. Brockman has been an American Marketing Association Doctoral Consortium Fellow, and her work has been published inDecision Sciences, Journal of Services Research, Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior, and others. Robert M. Morgan (rmorgan@cba.ua.edu) (PhD, 1991, Texas Tech University) is Phifer Faculty Fellow and department head, Department of Management and Marketing, in the Culverhouse College of Commerce and Business Administration at the University of Alabama. His interests focus on relationship marketing and marketing strategy, and his research in these areas has been published in theJournal of Marketing, theAcademy of Management Journal, Decision Sciences, and other journals and book chapters. His article “The Commitment-Trust Theory of Relationship Marketing,” coauthored with Shelby D. Hunt and published in 1993 in theJournal of Marketing, was recognized in 2004 by the Institute for Scientific Information as the most cited article in business and economics journals over the previous decade. His article “The Comparative Advantage Theory of Competition,” also coauthored with Shelby D. Hunt and published in 1995 in theJournal of Marketing, received the Sheth Foundation/Journal of Marketing Award in 2004.     

An examination of the effects of perceived difficulty of manufacturing the extension product on brand extension attitudes

This paper examines the relationship between extension difficulty, defined as the perceived difficulty of manufacturing the extension product, and attitudes toward brand extensions. Although extant literature has hitherto modeled this relationship as a simple monotonic relationship, a study by Bottomley and Holden (Journal of Marketing Research, 38(4):494–500, 2001) has questioned its empirical generalizability. We suggest that the relationship between extension difficulty and extension attitudes may be far more complex than a simple linear relationship. Based on theoretical evidence drawn from the concept of evaluation difficulty, we suggest that the relationship between extension difficulty and extension attitudes is best modeled as a curvilinear (inverted U-shaped) relationship. Further, we explore the specific role of perceived transferability as a moderator of this curvilinear relationship. Empirical tests conducted using two studies provide support for both the theoretical mechanism and the proposed hypotheses. Entry into “easy” or “extremely difficult” extension categories carries its own penalties while entry into “moderately difficult” categories appears to garner high consumer attitudes for brand extensions.     

Imperfect information: The persistence of price dispersion on the web

In this article, the authors empirically test the notion that as the mean price of durables increases, the degree of dispersion also increases. This effect holds even when they specifically consider variables such as the number of competitors and store quality. The authors suggest that an individual-level perceptual mechanism, the psychophysics of price, at the aggregate level helps explain continued price dispersion on the Web. These results are contrary to predictions from standard economic theory, which suggest that readily available price information will result in increased price competition and lower price dispersion. Two studies consistently demonstrate that as the mean price of an item increases, price dispersion also increases. These results provide evidence that, contrary to general economic expectations, the Internet has not commoditized products. Retailers and managers need to pay attention to Internet information but not be fearful of its impact on their pricing strategies. Joan Lindsey-Mullikin (jmullikin@babson.edu; Ph.D., Arizona) is an assistant professor of marketing at Babson College. Her research and teaching interests focus on pricing, retailing, and consumer behavior. She has published in journals such as theJournal of Retailing, Journal of the Academy of Marketing Science, Journal of Consumer Affairs, Journal of Social Psychology, andJournal of Product and Brand Management. She serves on the review board of theJournal of Product and Brand Management. Dhruv Grewal (dgrewal@babson.edu; Ph.D., Virginia Tech) is the Toyota Chair in Commerce and Electronic Business and a professor of marketing at Babson College. He is currently coeditor of theJournal of Retailing (2001-present). His research and teaching interests focus on e-business, retailing, global marketing, pricing and value-based marketing strategies. He will be awarded the 2005 Lifetime Achievement in Behavioral Pricing Award (Fordham University, November 2005). He is a “Distinguished Fellow” of the Academy of Marketing Science. He has published more than 65 articles in journals such as theJournal of Marketing, Journal of Consumer Research, Journal of Marketing Research, Journal of Retailing, andJournal of the Academy of Marketing Science. He was won awards for his teaching and research. He cochaired the 1993 Academy of Marketing Science Conference, the 1998 Winter American Marketing Association Conference “Reflections & Future Directions for Marketing,” and the 2001 AMA doctoral consortium. He will be cochairing the American Marketing Association 2006 Summer Educator’s Conference.     

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.     

Intelligence generation and superior customer value

It has become conventional wisdom that an organization's ability to continuously generate intelligence about customers' expressed and latent needs, and about how to satisfy those needs, is essential for it to continuously create superior customer value. However, intelligence generation typically has been treated as a generic firm activity. The authors propose that there are four distinct modes of intelligence generation, each of which is part of a welldeveloped intelligence-generation capability. The article reports the results of an exploratory study that supports this proposition. Stanley F. Slater is the vice chancellor for academic affairs and a professor of business administration at the University of Washington, Bothell. His research interests lie primarily in the areas of market-based organizational learning and market strategy implementation. He has published more than 30 articles in theJournal of Marketing, theJournal of the Academy of Marketing Science, theStrategic Management Journal, and theJournal of Management, among others. He has won “Best Paper” awards from the International Marketing Review and from the Marketing Science Institute. He currently serves on five editorial review boards including those of theJournal of Marketing and theJournal of the Academy of Marketing Science. John C. Narver is a professor of marketing in the Graduate School of Business Administration at the University of Washington, Seattle. His general research interests lie in the area of strategic marketing. His current research is primarily concerned with the creation and effects of a market orientation in an organization. His work has been published in theJournal of Marketing, theStrategic Management Journal, theAcademy of Management Journal, and theJournal of Market-Focused, Management, among other scholarly journals. He has won the “Best Paper” award from the Marketing Science Institute.