The differing roles of success drivers across sequential channels: An application to the motion picture industry

In several product categories, it is typical to release products sequentially to different markets and customer segments. Conventional knowledge holds that the roles of various product success drivers do not differ significantly across these sequential channels of distribution. The authors examine sequential distribution channels within the motion picture industry and develop a model that proposes that such differences exist between a primary (short- and long-term theatrical box office) and a sequential (video rental) channel. The authors test their model with a sample of 331 motion pictures released in theaters and on video during 1999–2001 using partial least squares. Results reveal differences in the impact of success factors across channels. For example, cultural familiarity enhances box office success but relates negatively to video rental success, and distribution intensity and date of release enhance box office outcomes but have no impact on rental revenues. Thorsten Hennig-Thurau (tht@medien.uni-weimar.cie) is a professor of marketing and media research at Bauhaus-University of Weimar’s Media School and Honorary Visiting Professor of Movie Marketing in the Faculty of Management of Cass Business School, City University London. He has published articles in theJournal of Marketing, theJournal of Service Research, theInternational Journal of Electronic Commerce, theJournal of Interactive Marketing, Psychology & Marketing, and theJournal of Consumer Affairs, among others. He is author of the monograph Relationship Marketing, which has been translated into Chinese. He is member of the editorial board of three journals and serves as reviewer for theJournal of Marketing andMarketing Science. He has won eight Best Article and Best Paper Awards, including the Overall Best Paper Award of the 2005 American Marketing Association Summer Educators’ Conference and the 2002JSR Excellence in Service Research Award. Mark B. Houston (houstonmb@missouri.edu) (PhD, Arizona State University) is the David and Judy O’Neal MBA Professor at the University of Missouri-Columbia. His research on strategy, interfirm relationships, and innovation has been published in leading journals, including theJournal of Marketing, theJournal of Marketing Research, theJournal of Consumer Research, Marketing Science, theJournal of the Academy of Marketing Science, and theJournal of Financial and Quantitative Analysis. He cochaired the 2005 American Marketing Association (AMA) Summer Educators’ Conference and served for two terms as vice president of the AMA’s Technology and Marketing Special Interest Group. Gianfranco Walsh (g.walsh@strath.ac.uk) received his MPhil degree from UMIST (England) and PhD (2001) and Habilitation (2004) degrees from Hanover (Germany). His research focuses on consumer behavior, corporate reputation, and e-commerce. He has presented numerous papers at international conferences. His work has been published in, among others, theAcademy of Marketing Science Review, the International Journal of Electronic Commerce, theJournal of Consumer Affairs, theJournal of Interactive Marketing, theJournal of Macromarketing, and theJournal of Marketing Management. He is the Chair of Marketing and Electronic Retailing at the Institute for Management, University of Koblenz-Landau.     

Should we delight the customer?

Critics have suggested that delighting the customer “raises the bar” of customer expectations, making it more difficult to satisfy the customer in the next purchase cycle and hurting the firm in the long run. The authors explore this issue by using a mathematical model of delight, based on assumptions gathered from the customer satisfaction literature. Although delighting the customer heightens repurchase expectations and makes satisfying the customer more difficult in the future, and the delighting firm is injured by raised customer expectations, the (nondelighting) competition is hurt worse through customer attrition to the delighting firm. If customers forget delighting incidents to some degree from occasion to occasion, the delighting firm suffers if it is in a position to take customers from the competition. If taking customers from the competition is difficult, the delighting firm actually benefits from customer forgetting, because the same delighting experience can be repeated again, with the same effect. Roland T. Rust (Ph.D., University of North Carolina at Chapel Hill) is the Madison S. Wigginton Professor of Management and Director of the Center for Service Marketing at the Owen Graduate School of Management at Vanderbilt University. His publication record includes more than 60 journal articles and five books. His 1997Marketing Science article, “Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services,” won the Best Services Article Award from the American marketing Association, for the best services article in any journal, and his 1995 article, “Return on Quality (ROQ): Making Service Quality Financially Accountable,” won theJournal of Marketing's Alpha Kappa Psi Award for the article with the greatest impact on marketing practice. He has also won best article awards from theJournal of Advertising and theJournal of Retailing. His honors include career achievement awards from the American Statistical Association and the American Academy of Advertising, as well as the Henry Latané Distinguished Doctoral Alumnus Award from the University of North Carolina at Chapel Hill. His work has been covered widely in the media and has resulted in aBusiness Week cover story and an appearance onABC World News Tonight with Peter Jennings. He is the founder and chair of the American Marketing Association (AMA) Frontiers in Services Conference and serves as founding editor of theJournal of Service Research. He also serves on the editorial review boards of theJournal of Marketing Research, Journal of Marketing, andMarketing Science. Richard L. Oliver (Ph.D., University of Wisconsin, Madison) is the Valere Blair Potter Professor of Management at the Owen Graduate School of Management, Vanderbilt, University. His research interests include consumer psychology with a special focus on customer satisfaction and postpurchase processes. He holds the position of Fellow of the American Psychological Association for his extensive writings on the psychology of the satisfaction response. He is the author ofSatisfaction: A Behavioral Perspective on the Consumer (Irwin/McGraw-Hill) and coeditor ofService Quality: New Directions in Theory and Practice (Sage). He previously served on the boards of theJournal of Consumer Research, theJournal of Marketing, theJournal of Personal Selling & Sales Management, and theJournal of Retailing and has published articles in theJournal of Consumer Research, theJournal of Marketing Research, theJournal of Marketing, theJournal of Applied Psychology, Psychology & Marketing, Behavioral Science, theJournal of Economic Psychology, Applied Psychological Measurement, Psychometrika, Organizational Behavior and Human Decision Processes, Advances in Consumer Research, theJournal of Retailing, theJournal of Personal Selling & Sales Management, theJournal of Consumer Satisfaction/Dissatisfaction & Complaining Behavior, theJournal of Advertising, theJournal of Consumer Affairs, and others. He previously taught at the Wharton School, University of Pennsylvania, and at Washington University in St. Louis.     

The relationship of learning and memory with organizational performance: The moderating role of turbulence

Extensive research has documented how firms’ learning orientation and memory are related to organizational performance. The objective of this study is to examine the moderating role of turbulence on the relationships between firms’ learning orientation and memory and their organizational performance and innovativeness. The study also provides insight into the differential relationships of firms’ learning orientation and memory to their performance and innovativeness. Using survey data collected from 200 supply management professionals, the results suggest that the extent to which learning and memory are associated with organizational performance is contingent on the level of environmental turbulence. Specifically, under low environmental turbulence, learning orientation and organizational memory appear to be related to performance and innovativeness; however, under high environmental turbulence, only learning orientation is a useful predictor. Sangphet Hanvanich (hanvanich@xavier.edu) is an assistant professor of marketing at Xavier University. She received her PhD from Michigan State University. She has published in various journals including theJournal of Service Research andStrategic Management Journal. Her primary research interests are in the areas of marketing strategy, marketing alliances, international business, and international marketing. K. Sivakumar (k.sivakumar@lehigh.edu) (PhD, Syracuse University) is the Arthur Tauck Professor of International Marketing and Logistics, chairperson, and a professor of marketing in the Department of Marketing at Lehigh University. Before joining Lehigh in 2001, he spent 9 years as a faculty member with the University of Illinois at Chicago. His research interests include pricing, global marketing, and innovation management. His research has been published in theJournal of the Academy of Marketing Science, the Journal of Marketing, theJournal of International Business Studies, Decision Sciences Journal, Marketing Letters, the Journal of Business Research, the Journal of Interactive Marketing, theJournal of International Marketing, International Marketing Review, theJournal of Product Innovation Management, Pricing Strategy & Practice: An International Journal, Psychology & Marketing, Marketing Science Institute’s Working Paper Series, and other publications. He has won several awards for his research (including the Donald Lehmann Award) and is on the editorial review board of several scholarly journals. He has won outstanding reviewer awards from two journals. Home page: www.lehigh .edu/~kasg. G. Tomas M. Hult (nhult@msu.edu) is a professor of marketing and supply chain management and director of the Center for International Business Education and Research at Michigan State University. He serves as executive director of the Academy of International Business. He is associate editor of theJournal of International Business Studies, Decision Sciences, and theJournal of Operations Management. His research has been published in theJournal of the Academy of Marketing Science, Academy of Management Journal, Strategic Management Journal, theJournal of Marketing, Decision Sciences, theJournal of Operations Management, theJournal of Management, and theJournal of Retailing, among others.     

The influence of store environment on quality inferences and store image

The study reported here examines how combinations of specific elements in the retail store environment influence consumers’ inferences about merchandise and service quality and discusses the extent to which these inferences mediate the influence of the store environment on store image. Results show that ambient and social elements in the store environment provide cues that consumers use for their quality inferences. In addition, store environment, merchandise quality, and service quality were posited to be antecedents of store image—with the latter two serving as mediators—rather than components of store image (as they are typically treated in the store image literature). Theoretical and managerial implications of the findings are discussed, and future research directions are proposed. She received her Ph.D. from Texas A&M University. Her areas of interest include store environment, consumer behavior, and product/service quality. She has published articles in theInternational Journal of Research in Marketing and theJournal of Retailing. He received his Ph.D. from Virginia Polytechnic Institute and State University. His areas of interest include pricing, consumer behavior, product/service quality, and customer satisfaction. He has published articles in a number of journals, including theJournal of the Academy of Marketing Science, Journal of Marketing Research, Journal of Consumer Research, Journal of Public Policy and Marketing, andJournal of Retailing. He received his D.B.A. from Indiana University in 1975. His research interests focus on the measurement and improvement of service quality and on services marketing strategy. He is the recipient of several 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. His articles have appeared in theJournal of Marketing, Journal of Marketing Research, Journal of Services Marketing, andBusiness Horizons, among other publications. He is the author ofMarketing Research, a college textbook, as well as coauthor ofMarketing Services: Competing through Quality andDelivering Quality Service: Balancing Customer Perceptions and Expectations. He is also an active consultant to a number of major corporations.     

The customer economics of internet privacy

The World Wide Web has significantly reduced the costs of obtaining information about individuals, resulting in a widespread perception by consumers that their privacy is being eroded. The conventional wisdom among the technological cognoscenti seems to be that privacy will continue to erode, until it essentially disappears. The authors use a simple economic model to explore this conventional wisdom, under the assumption that there is no government intervention and privacy is left to free-market forces. They find support for the assertion that, under those conditions, the amount of privacy will decline over time and that privacy will be increasingly expensive to maintain. The authors conclude that a market for privacy will emerge, enabling customers to purchase a certain degree of privacy, no matter how easy it becomes for companies to obtain information, but the overall amount of privacy and privacy-based customer utility will continue to erode. Roland T. Rust (Ph.D., University of North Carolina at Chapel Hill) holds the David Bruce Smith Chair in Marketing at the Robert H. Smith School of Business at the University of Maryland, where he directs the Center for e-Service. His lifetime achievement honors include the American Marketing Association’s (AMA’s) Gilbert A. Churchill Award for contributions to marketing research, the Outstanding Contributions to Research in Advertising Award from the American Academy of Advertising, Fellow of the American Statistical Association, the AMA Career Contributions to the Services Discipline Award, and the Henry Latané Distinguished Doctoral Alumnus Award from the University of North Carolina at Chapel Hill. He has won best article awards for articles inMarketing Science, Journal of Marketing Research, Journal of Marketing, Journal of Advertising, andJournal of Retailing, as well as the Marketing Science Institute (MSI) Best Paper Award. His seven books includee-Service, Driving Customer Equity, Service Marketing, andReturn on Quality. His work has received extensive media coverage, including aBusiness Week cover story and an appearance onABC World News Tonight With Peter Jennings. He is the founder and chair of the AMA Frontiers in Services Conference and serves as founding editor of theJournal of Service Research. Professor Rust also is an area editor atMarketing Science and serves on the editorial review boards of theJournal of Marketing Research, Journal of Marketing, and theJournal of Interactive Marketing. P. K. Kannan (Ph.D., Purdue University) is Safeway Fellow and Associate Professor of Marketing at the Robert H. Smith School of Business at the University of Maryland, where he is the associate director of the Center for E-Service. His research focuses on e-commerce, centering on marketing information services on the Internet, pricing information products, and marketing and product development in virtual communities. He is working with the IBM Institute for Advanced Commerce on e-couponing and also with National Academy Press on pricing information products. He is an associate editor ofDecision Support Systems and Electronic Commerce and serves on the editorial board of theJournal of Service Research and theInternational Journal of Electronic Commerce. He is currently editing a special issue on marketing in the e-channel for theInternational Journal of Electronic Commerce. He is the chair for the American Marketing Association Special Interest Group on Marketing Research. He has corporate experience with Tata Engineering and Ingersoll-Rand and has consulted for companies such as Frito-Lay, Pepsi Co, Giant Food, SAIC, Fannie Mae, Proxicom, and IBM. Na Peng is a doctoral student at the University of Maryland.     

Customer response capability in a sense-and-respond era: The role of customer knowledge process

An organization’s customer response capability, its comptence in satisfying customer needs through effective and quick responses, is critical for sustained success. In this article, the authors examine how customer knowledge process influences customer response capability. They highlight two dimensions of customer response capability, customer response expertise and customer response speed. It is observed that apart from its direct positive association with customer response expertise and speed, the customer knowledge process also diminishes the positive association between risk propensity and these dimensions of customer response capability. The influence of customer response expertise and speed on performance is also examined. The hypotheses are tested using survey data collected from a sample of retailing firms and the findings triangulated using qualitative data collected through depth interviews with managers. The results highlight the importance of customer knowledge in enhancing customer response capability. Satish Jayachandran is with the Department of Marketing at the University of South Carolina. His research interests are in the area of marketing strategy, specifically market responsiveness of firms and the impact of organizational performance on subsequent managerial and firm behavior. His research has been published in theJournal of Marketing and theJournal of the Academy of Marketing Science. He was a recipient of the Harold H. Maynard award for 2001 from theJournal of Marketing. Kelly Hewett is with the Department of Marketing at the University of South Carolina. Her research focuses on the management of relationships between buyers and sellers, as well as between headquarters and foreign subsidiaries in managing the marketing function globally. Her research has been published in theJournal of Marketing, theJournal of International Business Studies, theJournal of the Academy of Marketing Science, and theJournal of International Marketing, among others. Peter Kaufman is with the Department of Marketing at Illinois State University. His research focuses on buyer-seller relationships, retailing, and distribution issues. He received an Honorable Mention in the Marketing Science Institute’s 2003 Alden G. Clayton Doctoral Dissertation Proposal Competition.     

Linking employee confidence to performance: A study of self-managing service teams

The increasing implementation of self-managing teams (SMTs) in service delivery suggests the importance of developing confidence beliefs about a team’s collective competence. This research examined causality in the linkage between employee confidence beliefs and performance for boundary-spanning SMTs delivering financial services. The authors distinguish between task-specific (i.e., team efficacy) and generalized (i.e., group potency) employee confidence, as well as between customer-based (i.e., customer-perceived service quality) and financial (i.e., service revenues) performance. They analyzed employee and customer survey data as well as financial performance data from 51 SMTs at two points in time using lagged analyses. The findings reveal divergent results for team efficacy and group potency, suggesting that team efficacy has reciprocal, causal relationships with service revenues and customer-perceived service quality. In contrast, group potency has no causal relationship with service revenues. Finally, customer-perceived service quality predicts group potency, whereas no evidence for the reverse effect is provided. Ad de Jong (a.d.jong@tm.tue.nl) is an assistant professor in the Department of Organization Science & Marketing, Eindhoven University of Technology, Eindhoven, the Netherlands. His main research interests are service marketing and management, the service-profit chain, multilevel theory and research, and multichannel research. He has published in journals such asManagement Science, theJournal of Marketing, theJournal of Retailing, theInternational Journal of Research in Marketing, Decision Sciences, theJournal of Management Studies, and theJournal of Service Research, as well as many conference proceedings. Ko de Ruyter (k.deruyter@mw.unimaas.nl) is a professor of marketing and head of the Department of Marketing at Maastricht University, Maastricht, the Netherlands. He has published six books and numerous scholarly articles in, among others, theJournal of Marketing, Management Science, theJournal of Retailing, theInternational Journal of Research in Marketing, Decision Sciences, Marketing Letters, theJournal of Management Studies, theJournal of Business Research, theJournal of Economic Psychology, theJournal of Service Research, theInternational Journal of Service Industry Management, Information and Management, theEuropean Journal of Marketing and Accounting, andOrganisation andSociety. He serves on the editorial boards of various international academic journals, including theJournal of Service Research and theInternational Journal of Service Industry Management. His research interests concern international service management, e-commerce, and customer satisfaction and dissatisfaction. Martin Wetzels (m.wetzels@mw.unimaas.nl) is a professor of marketing and supply chain research in the Department of Marketing at Maastricht University, Maastricht, the Netherlands. His main research interests are customer satisfaction and dissatisfaction, customer value, services marketing, business-to-business marketing, (online) marketing research, supply chain management, cross-functional cooperation, e-commerce, new product development, technology infusion in services, and relationship marketing. His work has been published inManagement Science, Marketing Letters, the International Journal of Research in Marketing, theJournal of Business Research, theJournal of Interactive Marketing, theJournal of Economic Psychology, Industrial Marketing Management, theEuropean Journal of Marketing, theJournal of Management Studies, andTotal Quality Management. He has contributed more than 60 papers to conference proceedings.     

A three-component model of customer commitment to service providers

Although research into the determinants of service provider switching has grown in recent years, the focus has been predominantly on transactional, not relational, variables. In this research, the authors address the role of consumer commitment on consumers’ intentions to switch. Drawing from the organizational behavior literature, they build on previous service switching research by developing a switching model that includes a three-component conceptualization of customer commitment. Structural equation modeling is used to test the model based on data from a survey of 356 auto repair service customers. The authors’ results support the notion that customer commitment affects intentions to switch service providers and that the psychological states underlying that commitment may differ. As such, future marketing research should consider these different forms of commitment in understanding customer retention. The implications of this model for theory and practice are discussed. Havir S. Bansal (hbansal@wlu.ca) is an associate professor of marketing at Wilfrid Laurier University. He earned his Ph.D. from Queen’s University in 1997. His research interests are focused in the area of services marketing with emphasis on cuctomer switching behavior, word-of-mouth processes in services, and tourism. His research has been published in theJournal of Service Research, theJournal of Quality Management, andPsychology and Marketing and has publications forthcoming in theJournal of Services Marketing andTouris Management. He has also presented at and published articles in the proceedings of various national and international conferences. P. Gregory Irving (girving@wlu.ca) is an associate professor of organizational behavior at Wilfrid Laurier University. He received his Ph.D. in industrial/organizational psychology from the University of Western Ontario. His research interests included commitment and work-related attitudes, psychological contracts, and organizational recruitment and socialization. His research has appeared in a variety of journal including theJournal of Applied Psychology, Personnel Psychology, theJournal of Organizational Behavior, theJournal of Management, Human Performance, andBasic and Applied Social Psychology. Shirley F. Taylor (Ph.D., University of British Columbia) (staylor@business.queensu.ca) is an associate professor in the School of Business at Queen’s University, where she teaches and conducts research in the area of services marketing. Her research interests include service provider loyalty and switching, customer commitment, and perceptions management of service delays. Her work has been published in theJournal of the Academy of Marketing Science, theJournal of Marketing, Psychology & Marketing, theJournal of Service Research, theInternational Journal of Research in Marketing, and theJournal of Public Policy and Marketing. She currently serves on the editorial boards of theJournal of the Academy of Marketing Science, theJournal of Business Research, and theCanadian Journal of Administrative Sciences.     

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).     

“Migrating” to new service providers: Toward a unifying framework of consumers’ switching behaviors

This article explores the applicability of a model of migration from the human geography literature as a unifying, theoretical framework for understanding consumers’ service provider switching behaviors. Survey data from approximately 700 consumers are used to examine the usefulness of the push, pull, and moorings (PPM) migration model. The PPM migration model performs better than an alternative model; all three categories of antecedents to switching (migration)—push, pull, and mooring variables—have significant direct, and some moderating, effects on switching intentions. Harvir S. Bansal (Ph.D., Queen’s University, hbansal@wlu.ca) is an associate professor of marketing at Wilfrid Laurier University. His research interests are focused in the area of services marketing with emphasis on customer switching behavior, word-of-mouth processes in services, structural equation modeling, and tourism. His research has been published in theJournal of the Academy of Marketing Science, the Journal of Services Marketing, the Journal of Service Research, Tourism Management, theJournal of Quality Management, andPsychology and Marketing. He has also presented at and published articles in the proceedings of various national and international conferences. Shirley F. Taylor (Ph.D., University of British Columbia, staylor@business.queensu.ca) is an associate professor in the School of Business at Queen’s University, where she teaches and conducts research in the area of services marketing. Her research interests include service provider loyalty and switching, customer commitment, and perceptions management of service delays. Her work has been published in theJournal of the Academy of Marketing Science, the Journal of Marketing, Psychology & Marketing, theJournal of Service Research, theInternational Journal of Research in Marketing, and theJournal of Public Policy and Marketing. She currently serves on the editorial boards of theJournal of the Academy of Marketing Science, theJournal of Business Research and the Canadian Journal of Administrative Sciences. Yannik St. James (ystjames@business.queensu.ca) is a doctoral candidate in the School of Business at Queen’s University, where she conducts research at the intersection of consumer behavior and marketing strategy. Her research interests include the role of affect in consumer behavior, brand management, and services marketing. She has presented her work at the Association for Consumer Research Conference, the Academy of Marketing Science Conference, and the Frontiers in Services Conference.     

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.     

Contractual governance,relational governance,and the performance of interfirm service exchanges: The influence of boundary-spanner closeness

Academics and managers are confronted with reconciling the social and economic aspects of business-to-business exchanges. In a service context, the authors investigate the relative importance of contractual and relational governance on exchange performance and the influence of the boundary spanner on the implementation of these governance mechanisms and on exchange performance. They test a model of the governance of commercial banking exchanges using interview data with both parties to the exchange (the account manager as the bank’s boundary spanner and the business client). Relational governance is the predominant governance mechanism associated with exchange performance. Contractual governance is also positively associated to exchange performance, but to a much lesser extent. The closeness of the account manager to the client company in terms of information gathering is also positively associated to exchange performance. However, this is mediated through both contractual and relational governance mechanisms with relational governance being the stronger mechanism. Ronald J. Ferguson (rferguson@jmsb.concordia.ca) is an associate professor of management and director of the John Molson MBA at Concordia University (Montreal, Canada). He received his Ph.D. from the University of Michigan. During 25 years of research and management in the health field, he published inCirculation, theAmerican Journal of Cardiology, and theAmerican Journal of Physiology. In recent years he has published in theEuropean Journal of Marketing, theInternational Journal of Service Industry Management, Managing Service Quality, and theInternational Journal of Bank Marketing. His current research interests focus on international studies of the effectiveness of relationship marketing and management in the fields of health care, emerging biotechnology clusters, and commercial banking. He was coorganizer of the 2001 International Colloquium in Relationship Marketing. Michèle Paulin (mpaulin@jmsb.concordia.ca) is an associate professor in the John Molson School of Business at Concordia University. She has a law degree from Sherbrooke University, an MBA from Concordia University, and a Ph.D. in marketing from the University of Quebec at Montreal. Her research focuses on business-to-business relationships; service marketing; and service management in the areas of commercial banking, health services, hospitality, and biotechnology industries in Canada, USA, Mexico, and Europe. She has made presentations at major conferences such as the American Marketing Association, the Industrial Marketing Purchasing group, the European Marketing Association Conferences, and the European Academy of Management. She was coorganizer of the 2001 International Colloquium in Relationship Marketing. Her research has appeared in theEuropean Journal of Marketing, Managing Service Quality, theInternational Journal of Service Industry Management, and theInternational Journal of Bank Marketing. Jasmin Bergeron (bergeron.jasmin@uqam.ca) is an associate professor of marketing at the University of Quebec at Montreal. He authored or coauthored four marketing books, 20 case studies, and more than 10 articles in academic journals such as theJournal of Service Research and theJournal of Services Marketing. His research interests are in the areas of services marketing, relationship banking, and research methodology. He also serves as a marketing consultant in professional selling, service quality, and bank marketing.     

Organizational capabilities in e-commerce: An empirical investigation of e-brokerage service providers

E-commerce not only has tremendous potential for growth but also poses unique challenges for both incumbents and new entrants. By examining drivers of firm performance in e-commerce from a capabilities perspective, the authors conceptualize three firm capabilities that are critical for superior firm performance in e-commerce: information technology capability, strategic flexibility, and trust-building capability. The extent and nature of market orientation is conceptualized as a platform for leveraging e-commerce capabilities. The authors test the effects of e-commerce capabilities on performance (e.g., relative profits, sales, return on investment) using data from 122 e-brokerage service providers. The results indicate that information technology capability and strategic flexibility affect performance given the right market orientation. Amit Saini (asaini2@unl.edu) is an assistant professor of marketing at University of Nebraska-Lincoln. He conducts research in the area of marketing strategy, technology-marketing interface, e-commerce strategy, and customer relationship management. He has presented papers at major conferences, and his research appears in theJournal of the Academy of Marketing Science and American Marketing Association—Marketing Educator’s Conference Proceedings. His industry experience includes sales management and quantitative market research. Jean L. Johnson (Johnsonjl@wsu.edu) is a professor of marketing at Washington State University. Her research includes partnering capabilities development in, and management of, interfirm relationships and management of international strategic alliances. Her research appears in journals such as theJournal of Marketing, the Journal of International Business Studies, theJournal of the Academy of Marketing Science, and theInternational Journal of Research in Marketing. She serves on the editorial boards of theJournal of Marketing, theJournal of the Academy of Marketing Science, the Journal of Retailing, theJournal of Business and Industrial Marketing, and reviews for others. She spent several years in the advertising industry and has lived, taught, and conducted research in France and Japan. She has been selected to cochair the 2006 winter American Marketing Association (AMA) conference.     

Foreign market entry mode choice of service firms: A contingency perspective

Research on how service firms choose their initial mode of operation in foreign markets appears to have led to two contradictory conclusions. Findings from one group of studies suggest that factors determining entry mode choice by manufacturing firms are generalizable to service firms. Findings from another group of studies contradict that view. The authors reconcile the two views by means of a classification scheme that allows some services to be grouped with manufactured goods in terms of entry mode choice. A conceptual model of factors affecting the entry mode choice of service firms is proposed, research propositions are developed, and managerial implications and future research directions are discussed. Ikechi Ekeledo is a doctoral candidate in marketing at the University of Illinois at Chicago. His research interests include international marketing, services marketing, and strategic market planning. K. Sivakumar (Ph.D., Syracuse University, 1992) is an associate professor of marketing at the University of Illinois at Chicago. His research interests include pricing, international marketing, and innovation management. His research has been published or is forthcoming inBarron’s, International Marketing Review, theJournal of Business Research, theJournal of Marketing, theJournal of Marketing Theory & Practice, theJournal of Product Innovation Management, theJournal of Social Behavior & Personality, Marketing Letters, Marketing Science Institute’s Working Paper Series, and Pricing Strategy & Practice: An International Journal, and summarized as Editors’ Briefings inHarvard Business Review. He has won several awards for research and is on the editorial boards of four scholarly journals.     

Contracts, norms, and plural form governance

The organization of interfirm exchanges has become of critical importance in today’s business environment. Many scholars have criticized the inadequacies of legal contracts as mechanisms for governing exchange, especially in the face of uncertainty and dependence. Other scholars argue that it is not the contracts per se but the social contexts in which they are embedded that determine their effectiveness. This study investigates the performance implications of governance structures involving contractual agreements and relational social norms, individually and in combination (plural form) under varying conditions and forms of transactional uncertainty and relationship-specific adaptation. Hypotheses are developed and tested on a sample of 396 buyer-seller relationships. The results provide support for the plural form thesis—increasing the relational content of a governance structure containing contractual agreements enhances performance when transactional uncertainty is high, but not when it is low. Implications for theory and future research are discussed. Joseph P. Cannon (Ph.D., University of North Carolina) is an assistant professor of marketing at Colorado State University. His areas of research interest include the effective management of business-to-business buyer-seller relationships in domestic and international markets. His research has appeared in theJournal of Marketing Research, theJournal of Marketing, theAcademy of Management Review, theJournal of Public Policy & Marketing, and other publications. He is a member of the Editorial Review Board of theJournal of Marketing. Ravi S. Achrol (Ph.D., Northwestern University) is a professor of marketing and global management research professor in the School of Business and Public Administration at George Washington University. Prior to joining George Washington University in 1991, he served for 10 years on the faculty of the University of Notre Dame. His areas of research interests include interorganization theory and marketing strategy. His articles have appeared in theJournal of Marketing, theJournal of Marketing Research, Social Science Research, theJournal of Business Strategy, theJournal of Public Policy and Marketing, and various other publications. He is a member of the Editorial Review Board of theJournal of Marketing. Gregory T. Gundlach (Ph.D. J.D. University of Tennessee) is an associate professor of marketing in the College of Business Administration at the University of Notre Dame. His areas of research interest include theories of exchange governance, industrial organization, and antitrust policy. His articles have appeared in theJournal of Marketing, theJournal of Marketing Research, Marketing Science, theJournal of Public Policy & Marketing, theJournal of Business Research, Antitrust Bulletin, and other publications. He is a member of the Editorial Review Board of theJournal of Marketing, theJournal of the Academy of Marketing Science, theJournal of Public Policy & Marketing, and theJournal of Retailing.     

Does success diminish competitive responsiveness? Reconciling conflicting perspectives

Previous research provides conflicting evidence of the association between the past performance of a business and its competitive responsiveness, with researchers observing both positive and negative relationships. To clarify this issue, the authors test a model using survey data from the retailing industry. The model delineates direct and indirect mediated paths through ability to respond, motivation to respond, and awareness of competitors’ actions to show how past performance can have both positive and negative influence on competitive responsiveness. However, the overall impact of past performance of an organization on its competitive responsiveness is positive. The implications of these findings for research, practice, and theory are discussed. Satish Jayachandran (satish@moore.sc.edu) is an assistant professor of marketing in the Moore School of Business at the University of South Carolina. His research interests are focused on issues related to the market responsiveness of firms. His research has been published in theJournal of Marketing and theJournal of the Academy of Marketing Science. He was a recipient of the Harold H. Maynard Award for 2001 from theJournal of Marketing. He was nominated a young scholar by the Marketing Science Institute in 2003. Rajan Varadarajan (varadarajan@tamu.edu) is Distinguished Professor of Marketing and holder of the Ford Chair in marketing and e-commerce at Texas A & M University. His teaching and research interests are in the areas of strategy, international marketing, and e-commerce. His research on these topics has been published in theJournal of Marketing, theJournal of the Academy of Marketing Science, theAcademy of Management Journal, Strategic Management Journal, Sloan Management Review, California Management Review, Business Horizons, theJournal of Business Research, and other journals.     

Marketing research: A state-of-the-art review and directions for the twenty-first century

This article provides observations on the state of the art in marketing research during 1987–1997. As such, it updates the earlier state-of-the-art review by Malhotra (1988), which won theJournal of the Academy of Marketing Science (JAMS) Best Article Award. The primary thrust of articles published in theJournal of Marketing Research during 1987–1997 is reviewed to determine important areas of research. In each of these areas, the authors summarize recent developments, highlight the state of the art, offer some critical observations, and identify directions for future research. They present a cross-classification of various techniques and subject areas, and make some observations on the applications of these techniques to address specific substantive and methodological issues in marketing research. The article concludes with some general directions for marketing research in the twenty-first century. Naresh K. Malhotra is Regents’ Professor in the DuPree College of Management at the Georgia Institute of Technology. He is listed in Marquis Who’s Who in America. In an article by Wheatley and Wilson (1987 AMA Educators’ Proceedings), he was ranked number one in the country based on articles published in theJournal of Marketing Research during 1980–1985. He also holds the all-time record for the maximum number of publications in theJournal of Health Care Marketing. He is ranked number one based on publications in theJournal of the Academy of Marketing Science (JAMS) since its inception through Volume 23, 1995. He is also number one based on publications inJAMS during the 10-year period 1986–1995. He has published more than 75 articles in major refereed journals including theJournal of the Academy of Marketing Science, theJournal of Marketing Research, theJournal of Consumer Research, Marketing Science, theJournal of Marketing, theJournal of Retailing, theJournal of Health Care Marketing, and leading journals in statistics, management science, and psychology. He was chairman of the Academy of Marketing Science Foundation from 1996 to 1998, president of the Academy of Marketing Science from 1994 to 1996, and chairman of the Board of Governors from 1990 to 1992. He is a Distinguished Fellow of the Academy and Fellow of the Decision Sciences Institute. Mark Peterson is an assistant professor at the University of Texas at Arlington. His research interests include methods, affect, international marketing, and quality of life. His work has been published in theInternational Marketing Review, theJournal of Business Research, and theJournal of Macromarketing. He is on the editorial review board for theJournal of Macromarketing. Susan Bardi Kleiser is an assistant professor of marketing at the University of Texas at Arlington. She holds a Ph.D. in marketing from the University of Cincinnati. Her research interests include consumer decision making, product management, international marketing, marketing ethics, and marketing research and modeling techniques. Her research has appeared inResearch in Marketing, Advances in Consumer Research, and several proceedings.     

The effect of market orientation on product innovation

Numerous scholars have debated whether marketing fosters or stifles innovation. The discussions, however, have been inconclusive due to limited empirical evidence. The authors investigate the relationship between two focal constructs in the debate: market orientation and product innovation. On the basis of a sample of U.S. manufacturing companies, the authors’ analysis shows that product innovation varies with market orientation. Specifically, (1) customer orientation increases the introduction of new-to-the-world products and reduces the launching of me-too products, (2) competitor orientation increases the introduction of me-too products and reduces the launching of line extensions and new-to-the-world products, and (3) interfunctional coordination increases the launching of line extensions and reduces the introduction of me-too products. Bryan A. Lukas is a senior lecturer in marketing at the University of Melbourne, Australia. His research interests are in the areas of strategic marketing and strategic innovation. His publications have appeared in theJournal of Business Research and other journals. Two conference papers have received recognition from the American Marketing Association. O. C. Ferrell is a professor of marketing at Colorado State University. He has served as president of the Academic Council of the American Marketing Association and is a fellow of the Society for Marketing Advances and Southwest Marketing Association. His publications have appeared in theJournal of Marketing, theJournal of Marketing Research theJournal of the Academy of Marketing Science, theJournal of Public Policy & Marketing, theJournal of Business Research, as well as others. He has co-authored 17 books and more than 100 articles and proceedings’ publications. He has worked as a consultant with organizations such as General Motors, Emerson Electric, and the Water Quality Association.     

The impact of technology on the quality-value-loyalty chain: A research agenda

In this article, the authors first propose a simple model summarizing the key drivers of customer loyalty. Then, on the basis of this model and drawing on key insights from the preceding articles in this issue, they outline a set of issues for further research related to the quality-value-loyalty chain. Next, the authors develop a conceptual framework that integrates the quality-value-loyalty chain with the “pyramid model,” which emphasizes the increasing importance of technology-customer, technology-employee, and technology-company linkages in serving customers. Using this integrated framework as a spring-board, they identify a number of avenues for additional inquiry pertaining to the three types of linkages. 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).     

Price levels and price dispersion within and across multiple retailer types: Further evidence and extension

In this article, the authors develop hypotheses on how prices and price dispersion compare among pure-play Internet, bricks-and-mortar (traditional), and bricks-and-clicks (multichannel) retailers and test them through an empirical analysis of data on the book and compact disc categories in Italy during 2002. Their results, based on an analysis of 13,720 prkce quotes, show that when posted prices are considered, traditional retailers have the highest prices, followed by multichannel retailers, and pure-play e-tailers, in that order. However, when shipping costs are included, multichannel retailers have the highest prices, followed by pure-play e-tailers and traditional retailers, in that order. With regard to price dispersion, pure-play e-tailers have the highest range of prices, but the lowest standard deviation. Multichannel retailers have the highest standard deviation in prices with or without shipping costs. These findings suggest that online markets offer opportunities for retailers to differentiate within and across the retailer types. SDA Bocconi Graduate School of Management Fabio Ancarani (fabio.ancarani@sdabocconi.it) is an assistant professor of marketing at SDA Bocconi University’s School of Management, Milan, Italy. He has been a visiting scholar at the Robert H. Smith School of Business, University of Maryland at College Park. His teaching and research interests are related to marketing strategies in the digital economy. His research has been published in journals such as the theJournal of Interactive Marketing and theEuropean Management Journal. Venkatesh Shankar (vshankar@rhsmith.umd.edu) is a Ralph J. Tyser Fellow and an associate professor of marketing in the Robert H. Smith School of Business at the University of Maryland at College Park. His areas of reseach are e-business, competitive strategy, international marketing, pricing, new product management, and supply chain management. His research has been published or is forthcoming in theJournal of Marketing Research, Marketing Science, theJournal of Marketing, Strategic Management Journal, theJournal of Retailing, theInternational Journal of Research in Marketing, theJournal of Public Policy and Marketing, andMarketing Letters. He is co-editor of theJournal of Interactive Marketing; associate editor ofManagement Science; and serves on the editorial boards ofMarketing Science, theJournal of Marketing, theInternational Journal of Research in Marketing, theJournal of Retailing, and theJournal of the Academy of Marketing Science. He is a three-time winner of the Krowe Award for Outstanding Teaching and teaches Marketing Management, Digital Business Strategy, Competitive Marketing Strategy, and International Marketing (http://www.venkyshankar.com).