Demand and supply integration: a conceptual framework of value creation through knowledge management

Strategy identifies two primary sets of processes through which the firm creates value for its customers by moving goods and information through marketing channels: demand-focused and supply-focused processes. Historically, firms have invested resources to develop a core differential advantage in one or other of these areas—but rarely in both—often resulting in mismatches between demand (what customers want) and supply (what is available in the marketplace). This paper suggests that successfully managing the supply chain to create customer value requires extensive integration between demand-focused processes and supply-focused processes that is based on a foundation of value creation through intraorganizational knowledge management. Integrating demand and supply processes helps firms prioritize and ensure fulfillment based upon the shared generation, dissemination, interpretation and application of real-time customer demand as well as ongoing supply capacity constraints. We draw upon literature in marketing, logistics, supply chain management and strategy to introduce a conceptual framework of demand and supply integration (DSI). We also offer insights for managerial practice and an agenda for future research in the relatively under-researched, but strategically important, area of demand and supply integration.     

Toward a theory of the boundary-spanning marketing organization and insights from 31 organization theories

Now more than ever, marketing is assuming a key boundary-spanning role—a role that has also redefined the composition of the marketing organization. In this paper, the marketing organization’s integrative and mutually reinforcing components of marketing activities, customer value–creating processes, networks, and stakeholders are delineated within their boundary-spanning roles as a particular emphasis (labeled MOR theory). Thematic marketing insights from a collection of 31 organization theories are used to advance knowledge on the boundary-spanning marketing organization within four areas—strategic marketing resources, marketing leadership and decision making, network alliances and collaborations, and the domestic and global marketplace.     

Capabilities and financial performance: the moderating effect of strategic type

The Miles–Snow (M–S) strategic typology has continued to receive attention in the academic business press, even though it has been criticized for not making explicit the relationships between strategic type and ultimate profit performance. Using the market orientation and Resource-Based View literature, we develop hypotheses regarding relationships between M–S strategic type and four firm capabilities (technology, information technology, market-linking, and marketing capabilities), relationship between the four capabilities and performance, and the moderating role of M–S strategic type. An empirical test involves multiple data collections from 216 firms. The study results suggest that there are significant relationships between capabilities and performance if one does not account for the moderating role of strategic type. When strategic type is used as a moderating variable, we find that only certain capabilities had significant effects on profitability. For example, technology and information technology capabilities increase financial performance for prospector organizations, while a different set of capabilities (market-linking and marketing) are positively related to financial performance for defender organizations. We discuss how our findings are consistent with the expectations of the Resource-Based View of the firm. We conclude with a discussion of theoretical and managerial implications.

Cooperative advertising,pricing strategy and firm performance in the e-marketing age

Cooperative advertising plays a strategically important role in marketing programs. In this paper, we use a game theoretical model to study not only cooperative advertising but also pricing strategy in a manufacturer—e-retailer supply chain with the consideration of product categories. First, two cooperative advertising models (the leader-follower Stackelberg and the strategic alliance) are established and analyzed. We then compare the two models to develop some important theories and managerial insights. Furthermore, we utilize a bargaining model to implement profit sharing and determine the manufacturer’s participation rate for cooperative advertising in the channel coordination of strategic alliance. Based on our results, we derive optimal market strategies and identify probable paths of future research.     

Gaining comparative advantage in supply chain relationships: the mediating role of market-oriented IT competence

Trading partners continue to make significant investments in information technology (IT) infrastructure to facilitate the flow of market information across supply chains, yet the underlying mechanisms linking IT implementation to firm performance have not been clearly specified. Drawing on the resource-advantage theory of competition, we develop and test a model that proposes market-oriented IT competence as a mediator of the effects of a firm’s IT infrastructure on market information flow which, in turn, yields comparative advantages in supply chain relationships. Market-oriented IT competence is conceptualized as a firm’s ability to deploy an IT infrastructure in support of the organization-wide collection, dissemination and use of market information to respond to market needs. We test the effects of market-oriented IT competence using data collected from managers in the logistics services industry. Findings show that market-oriented IT competence is a critical link between IT infrastructure and comparative advantage in supply chain relationships.     

Leveraged high-variety strategies: From portfolio thinking to platform thinking

Summary Barbara Kahn correctly points out the importance of creating dynamic relationships with customers and adopting high-variety strategies to succeed in today’s fiercely competitive world. However, high variety is also often high cost and high complexity. In this commentary, I propose that platform thinking is a powerful way to manage these contradictions in becoming a high-variety provider. Platform thinking relies on a simple insight—understand the common strands that tie your firm’s offerings, markets, and processes together, and exploit these commonalities to create leveraged growth and variety. Platform thinking should permeate all aspects of the firm’s strategy and should guide all strategic decisions on diversification and growth. Marketers who master platform thinking may find the 21st century to be a somewhat more inviting prospect. Mohanbir S. Sawhney is an assistant professor of marketing in the Kellogg Graduate School of Management, Northwestern University. His research interests include strategic marketing in technology-based industries, marketing decisions for experiential products, and cross-functional integration in new product development. His research has been published inManagement Science andMarketing Science, and his modeling work in the motion picture industry has been widely cited in the trade press. He is a consultant for several large technology firms as well as small Internet start-up firms. His current research projects include strategic planning for market-driving firms, cross-functional product line management, and strategy formulation for digital opportunity arenas.     

Transparent pricing: theory,tests, and implications for marketing practice

In today’s retail markets, products display opaque pricing, i.e., a single number that provides no information about the allocation of the retail proceeds among agents who bring the product to market. We study transparent pricing, which is an alternative strategy in which allocation information is revealed. We differentiate transparent pricing from related marketing practices such as social marketing, cause-related marketing, and pay-what-you-want. Using controlled experiments in multiple product categories with diverse sampling frames, we find that transparent prices systematically alter consumer utility functions and stated choice behavior. Our results support explanations drawn from both neoclassical and behavioral economic theory, including inequity aversion, procedural justice, and altruism. Classical theory predicts that price transparency should have little effect on consumer behavior. However, results from behavioral economics suggest that consumers may relax “self-interest” in the face of transparent prices, leading to counter-intuitive preferences. For example, in one set of studies we observe a significant proportion of consumers selecting the more expensive of two replicates of the same product. In another study, a subset of motorists willingly pays higher gasoline taxes for the same gallon of gas, increasing the overall price per gallon. We explain this behavior via parameterized utility functions that contain both self-interested and other-interested components moderated by characteristics of the decision-maker and characteristics of the choice context.     

Coping with organizational role stress: Intrinsic motivational orientation,perceived role benefits,and psychological withdrawal

Researchers have long recognized that individuals in stressful marketing roles find ways to cope with organizational role stress. This study examines the effects of three psychological coping strategies—intrinsic motivational orientation, perceived role benefits, and psychological withdrawal—in a model of organizational role stress. Results indicate that intrinsic motivational orientations reduce perceptions of role conflict and role ambiguity, and increase job satisfaction; that perceived role benefits positively influence job satisfaction; and that job dissatisfaction is the primary cause of psychological withdrawal. The study supports the importance of coping efforts in models of organizational role stress among marketing personnel. Dr. Keaveney’s research interests focus on retailing issues including retail buyer behavior, retail store image, and retail price promotions. Dr. Keaveney has also published in the areas of marketing organizational behavior, services marketing, and international marketing. She is co-author with Philip R. Cateora ofMarketing: An International Perspective, which has been published both in English and in Japanese. Dr. Keaveney has published articles in theJournal of the Academy of Marketing Science, Journal of Retailing, Journal of Promotion Management, Journal of Marketing Channels, andJournal of Volunteer Administration. Dr. Nelson’s research interests include topics in marketing research, consumer behavior, and advertising. He has published in theJournal of Marketing, Journal of Advertising, Journal of Business Research, Journal of Marketing Research, and serves as occasional reviewer to these publications as well as to theJournal of the Academy of Marketing Science. He teaches courses in marketing management, marketing research, and multivariate statistics.     

Effects of accountability on symbolic information search and information analysis by organizational buyers

Most studies of the organizational buying process assume that buyers acquire and use information “prosocially”—to make better decisions and promote their company’s welfare. The authors propose, however, that demands to account for their behavior causes organizational buyers to also gather and use information for political purposes—to protect their own self-interest. The authors present the results of an empirical study that investigates the extent to which four types of accountability—informal, official, process, and decision accountability—result in political (or symbolic) information search and prosocial information analysis by organizational buyers. Study findings suggest that buyers accountable to superiors and those accountable to subordinates or peers engage in more symbolic information search. Buyers accountable for their decision-making process analyze information more extensively. Surprisingly, buyers accountable for decision outcomes neither search for symbolic information nor analyze information more extensively. She received her Ph.D. from the University of North Carolina at Chapel Hill. Her research interests include industrial buying behavior, business-to-business relationships, and international marketing. She has published articles in theJournal of International Marketing and theJournal of Macromarketing, as well as various conference proceedings. He received his Ph.D. from Northwestern University. His research interests are in the marketing strategy and public policy areas. His work has been published inJournal of Marketing, Journal of Consumer Research, Journal of Public Policy and Marketing, Journal of Advertising Research, and several other journals.     

Extending the service-dominant logic: from customer centricity to balanced centricity

This is a contribution to the reorientation of marketing. It aligns the service-dominant logic with other developments in marketing and management. It claims that the marketing concept and customer-centricity are too limited as a foundation for marketing and have not—and cannot—but partially be implemented in practice. It urges marketing scholars and educators to accept the complexity of marketing and develop and teach a network-based stakeholder approach—balanced centricity—epitomized by the concept of many-to-many marketing.     

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.     

A comprehensive model of customer direct and indirect revenge: understanding the effects of perceived greed and customer power

This article develops and tests a comprehensive model of customer revenge that contributes to the literature in three manners. First, we identify the key role played by the customer’s perception of a firm’s greed—that is, an inferred negative motive about a firm’s opportunistic intent—that dangerously energizes customer revenge. Perceived greed is found as the most influential cognition that leads to a customer desire for revenge, even after accounting for well studied cognitions (i.e., fairness and blame) in the service literature. Second, we make a critical distinction between direct and indirect acts of revenge because these sets of behaviors have different repercussions—in “face-to-face” vs. “behind a firm’s back”—that call for different interventions. Third, our extended model specifies the role of customer perceived power in predicting these types of behaviors. We find that power is instrumental—both as main and moderation effects—only in the case of direct acts of revenge (i.e., aggression and vindictive complaining). Power does not influence indirect revenge, however. Our model is tested with two field studies: (1) a study examining online public complaining, and (2) a multi-stage study performed after a service failure.     

Frontiers of the marketing paradigm in the third millennium

The domain and theories of marketing have been expanding since the origins of the discipline. Since the 1970s marketing science has been organized around the exchange paradigm. Marketing concepts apply to all forms of exchange, whether it is goods, services, personages, places or ideas, and whether it is between individuals, for-profit and nonprofit firms, governments and NGOs. Marketing theories evolved from a firm oriented view to encompass the exchanging dyad. More recently the paradigm expanded to a network level of explanation, and relational theories have come to the fore. But even as the field struggles to grasp its new fields of explanation, there is a Kuhnian shift happening at its boundaries. The shift significantly bends the marketing worldview as well as the theoretical tools and methodologies we use to study it. In this paper we develop a three-tiered explanation of the emerging field of marketing—its subphenomena (consumer experiences and sensory systems), its phenomena (marketing networks), and its superphenomena (sustainability and development).     

A taxonomy of marketing planning styles

This study examines marketing planning styles among a sample of organizations in the health care industry. A taxonomy of marketing planning styles—limited marketing planners, constituency-oriented marketing planners, and comprehensive marketing planners—is derived and then related to the literature on planning. Differences among the marketing planning styles are tested based on hypotheses relating to planning comprehensiveness. The results suggest that: (i) marketing planning styles differ fairly distinctly in their attention to selected elements of the environment; and (ii) the marketing planning style employed is related to the level of competition and to organization size and complexity.     

Trademark dilution and the practice of marketing

This article considers the marketing implications of the Federal Trademark Dilution Act (FTDA) of 1995. The FTDA, an amendment to the Lanham Act, will influence the manner in which marketing is practiced well into the twenty-first century. Although the FTDA is specifically concerned with protecting famous trademarks from being diluted—either by having their distinctiveness diminished or positive associations tarnished—by similar trademarks, its influence will not be limited to trademark or branding issues. Implications range from the allocation of advertising resources to the increased use of marketing research. Robert A. Peterson holds the John T. Stuart III Centennial Chair in Business Administration and the Charles E. Hurwitz Fellowship, both at The University of Texas at Austin. His Ph.D. is from the University of Minnesota. Dr. Peterson’s publications have appeared in such journals as theJournal of the Academy of Marketing Science, Journal of Marketing, Journal of Marketing Research, Journal of Consumer Research, andMarketing Science. His research interests range from Internet marketing to research methodology to marketing strategy. He presently serves on the boards of several for-profit and not-for-profit organizations as well as an advisory committee to the Bureau of the Census. Karen H. Smith is an assistant professor at Southwest Texas State University. Her Ph.D. is from The University of Texas at Austin. Dr. Smith’s research interests include consumer information processing, consumer knowledge structures (schemata), dilution of brand equity, and adolescent smoking. Her research has been published in theJournal of Consumer Research, Journal of Marketing Education, andAdvances in Consumer Research. Philip C. Zerrillo is executive MBA director at The University of Texas at Austin. His Ph.D. is from Northwestern University. Dr. Zerrillo’s research interests have focused on broad-based business innovation, strategic development of distribution channel arrangements, the value of brands in the distribution channel, managing brands as assets, and the legal aspects of branding and channel decisions. His most recent research on antitrust regulation appeared in theJournal of Corporation Law, a University of Iowa law review.     

The family and consumer decision making: A cultural view

An understanding of consumer behavior based on the traditional Western nuclear family (husband, wife, and unmarried children) model is inadequate to handle marketing on a global scale or to interpret changes at home. The number of relatives influencing purchase—and who they are—can vary as can the type of decision making, which may be allocative, stressing individual responsibility, or consensual. This article re-examines our basic assumptions and then considers marketing under alternative family scenarios—extended families, further familial shrinkage, and more participatory decision-making.     

Modeling the determinants of customer satisfaction for business-to-business professional services

This research empirically examines for the first time the determinants of customer satisfaction or dissatisfaction (CS/D) in the context of business professional services. The simultaneous effect of key CS/D constructs (expectations, performance, and disconfirmation) and several variables—fairness (equity), purchase situation (novelty, importance, and complexity)—and individual-level variables (decision uncertainty and stakeholding) are examined in a causal path framework. Data were obtained from a two-stage longitudinal survey of client organizations. The results indicated substantial support for the hypothesized model. The effect of purchase situation and individual-level variables (via their indirect affects) rivals that of disconfirmation and expectations in explaining CS/D. Performance was found to affect CS/D directly but not as powerfully as disconfirmation. His current research interests include modeling customer satisfaction and service quality, services marketing (especially in a business-to-business environment), and relationship marketing. His research has appeared in theInternational Journal for Research in Marketing, Industrial Marketing Management, Advances in Services Marketing and Management, European Journal of Marketing, Journal of Business-to-Business Marketing, Psychology & Marketing, Asia-Pacific Journal of Management, R & D Management, Journal of International Marketing, and others. he has been on the faculty of a number of U.S. and Australian universities. His research interests focus on services marketing, marketing research methods, and modeling satisfaction processes. He has published in theJournal of Advertising Research, Journal of Business, Journal of Services Marketing, and others. He is currently the editor of theAustralasian Journal of Market Research. He received his Ph.D. from Indiana University. His research interests include consumer satisfaction, service quality, and consumer information processing. His work has appeared in theJournal of Consumer Research, Journal of Marketing, Journal of the Academy of Marketing Science, Journal of Retailing, Journal of Services Marketing, Journal of Product Innovation Management, and others.     

Gender,income differences,and marketing: Examining the “earnings gap” in three areas of marketing

This research explores empirically a socioeconomic/equity issue that has been extensively investigated in many areas, but never marketing—the so-called “earnings gap.” Specifically, the study investigates income differences between men and women in marketing, while controlling for differences in business experience, level of education, corporate level, type of industry, and size of firm. The research focuses on three areas in marketing: (1) marketing management, (2) marketing research, and (3) advertising agency management. Findings indicate that there is an “earnings gap” for marketers. Importantly, however, the data show that a substantial portion of the gap can be explained by variables other than sex.     

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.