Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance

ABSTRACT

Purpose: This study examines the role of product development capability for transforming marketing intelligence activities into firm performance on industrial markets.

Methodology/Approach: The authors apply structural equation modeling to analyze survey data from 342 industrial manufacturing companies.

Findings: Results reveal that sales integration and holistic macroeconomic view are particularly important features of the marketing intelligence capability on industrial markets to gain additional insights in order to develop products successfully. Results also reveal that product development capability transforms the marketing intelligence activities into firm performance on industrial markets.

Research Implications: This study offers new insights on marketing theory by extending and concretizing the concept of market orientation to a broader concept of the marketing intelligence capability for industrial markets. Further, this research reveals that the product development capability serves as a mediator to business performance.

Practical Implications: This study’s systematic and tangible outline of the dimensions of marketing intelligence and its link to the product development capability helps firms to better understand how to capitalize on market orientation’s potential values.

Originality/Value/Contribution: This research (a) reveals the relevant dimensions of marketing intelligence on industrial markets and (b) shows how the product development capability tranforms marketing intelligence activities into firm performance on industrial markets.     

Trust and direct marketing environments: A consumer perspective

The desire to establish long‐term customer relationships has led companies to consider normative as well as outcome related aspects of relationship development. Much of the research undertaken in this field has focused upon such activity in business‐to‐business markets. The current study sought to examine these issues, from the consumer perspective, in relation to approaches made by firms using direct marketing techniques, specifically direct mail. Empirical assessment was made of a sample of consumers in relation to their receptivity to product and service offerings from firms, and the effects of commitment, trust and privacy concerns upon this receptivity. In conclusion, some implications for marketing practice in developing customer relationships in direct marketing environments are discussed.     

Perceptions of the Environment and Wholesaler Structure in a Channel of Distribution in a Developing Country

Abstract

This study explores relationships between perceptions of the technological environment and selected structural variables of wholesalers in the channel of distribution for petroleum products in a developing country from a systems theory perspective. Survey research was used to collect primary data related to technolgical environment factors and size, assortment structure, and market coverage of wholesalers of petroleum products in Nigeria. Canonical correlation analysis was used to assess the relationships between constructs. From a theory development perspective, the study explores the applicability of systems theory concepts to an important marketing area. From a managerial standpoint, the study has implications for international marketing managers concerned about the nature of specific aspects of the business environment in newly emerging third world markets.     

Examining the Role of Brand Equity in Business Markets: A Model,Research Propositions,and Managerial Implications

ABSTRACT

This paper presents a model of brand equity for business markets. It is argued that the potential benefits of branding and brand equity development have been neglected in business markets and that a general model and stream of relevant empirical research could be useful to managers in business markets depending on the situational nature of their market and competitive structure. The model adapts and extends existing brand equity literature to reflect the unique aspects involved in a business-to-business marketing context. The model developed considers marketing strategies as antecedents, two different classes of moderator variables, brand equity as a perception by the buyer or the market, a series of consequences of brand equity perceptions, and perceived risk as a moderator of the brand equity-consequences relationship. Propositions have been defined and discussed to help facilitate research and provide guidelines for industrial marketing managers.     

CCT applied research and the limits of consumers’ heroicisation

Abstract

The sum total of the research produced by Consumer Culture Theory (CCT) researchers has enabled a spectacular improvement in our understanding of markets and consumption. Yet, this knowledge has struggled to penetrate the business world due to a dearth of practical proposals appealing to managers looking for action-guiding toolkits. Based on a relatively small corpus of CCT-related articles published in the main applied journals with academic values, the present article traces the contours of CCT managerial knowledge revolving around the concept of cultural branding and composed of four main approaches: relationship marketing, retromarketing, tribal marketing and collaborative marketing. The article also synthesises the contributions that CCT researchers propose for each of these approaches and discusses the limits of the heroicisation of the consumers. The conclusion looks at potential research paths for the dissemination of CCT applied kind of knowledge.     

Tradition Versus Change: Evaluating the Currency of Some Traditional Chinese Values in Today's Business Environment

Abstract

In the last decade, the discussion about how marketing is changing has focused largely on practices in more affluent industrialized economies. Far less attention has been given to understanding the marketing strategies and practices of firms in emerging and transition economies. In this paper, we compare marketing of multinational firms versus local firms in Argentina. We identify the environmental characteristics of Argentina's emerging economy and, using survey data of 96 firms, we group firms into five clusters. We refer to two clusters as “traditional/local” as they use very basic marketing methods, with one serving business markets and the other consumer markets. The other three clusters we refer to as “progressive” as they represent state-of-the-art practices. The first two of these are foreign-owned and serve consumer and business markets, the third represents locally-owned service firms. The managerial implications are examined.     

Information Technology Professionals’ Perceived Organizational Values and Managerial Ethics: An Empirical Study

This paper summarizes the results of an analysis of empirical data on ethical attitudes of professionals and managers in relation to organizational core values in the Information Technology (IT) industry. This study investigates the association between key organizational values as independent variables and the ethical attitudes of IT managers as dependent variables. The study also delves into differences among IT non-managerial professionals, mid-level managers, and upper-level managers in their ethical attitudes and perceptions. Research results indicated that IT professionals from mechanistic organizations were much more likely to report – compared to those from organic organizations – that managers in their corporate environment engage in behaviors considered unethical and that successful managers were more unethical relative to unsuccessful managers. There were significant differences between the upper-level managers and the mid-level managers and between the mid-level managers and the IT non-managerial professionals on certain key ethical issues. This paper discusses the conceptual framework, hypotheses, research methodology, data analysis, implications of the findings, and suggested areas of further research. K. Gregory Jin, D.B.A, is Professor of the MIS Department, Ancell School of Business, Western, Connecticut State University. He has published numerous conference papers, chapters, and articles in such areas as MIS professional ideology and ethics, communication and control, behavioral issues in information systems development, role of IT and human factors in business process reengineering, service learning in database design, systems theory, MIS participant action research strategy, and political factors in IT management. He has more than twenty years of MIS administrative and professional experiences. He holds a D.B.A. in Information Technology Management from George Washington University. He is a member of the Association of Information Technology Professionals and a former member of DSI. Ronald G. Drozdenko, Ph.D., is Professor and Chair of the Marketing Department, Ancell School of Business, Western Connecticut State University. He is also the founding Director of the Center for Business Research at the Ancell School. Dr. Drozdenko has co-directed more than 100 proprietary research projects since 1978 for the marketing and research and development departments of several corporations, including major multinationals. These projects were in the areas of strategic planning, marketing research, product development, direct marketing, and marketing database analysis. Dr. Drozdenko co-authored Optimal Database Marketing: Strategy, Development and Data Mining and also has published professional and academic articles and book chapters. He holds a Ph.D. in Experimental Psychology from the University of Missouri and is a member of the American Marketing Association, the Society for Consumer Psychology, and the Academy of Marketing Sciences. Richard A. Bassett, D.P.S, is an Associate Professor of Management Information Systems at Western Connecticut State University. He was founder and CEO of Bassett Computer Systems, Inc. for 17 years where he was involved with the design and implementation of information systems for hundreds for small and midsized businesses. He has authored several papers and articles in such areas as web-design as a web-master, web-based course design, the security threats and concerns faced by telecommuters, minimal steps required to secure a Local Area Network and the technology decision challenges which growing companies face. He is actively involved with technology endeavors of numerous nonprofit organizations including: The Children’s Center, Bridges of Milford, North Haven Rotary, Communicare, and the Amber Alert System. He holds a D.P.S. in Computing from Pace University.     

A systems perspective on markets – Toward a research agenda

This paper addresses the implications of an emerging, increasingly important way of thinking about markets: systems thinking. A market is one of the most founational abstractions in marketing and business research; yet, it often receives too little attention. As a result, the taken-for-granted assumptions about markets spur from over-simplified conceptualizations of neoclassical economics that depict markets as static and mechanistic. Systems thinking represents a major change in perspective that involves transcending this mechanistic worldview and thinking instead in terms of wholes, relationships, processes, and patterns. We argue that building a theory of markets based on systems thinking, would enable scholars to develop more realistic models that correspond with fast-changing business environment and therefore, increase both the rigor and relevance of future research. To further this aim, we identify the main implications of systems thinking and formulate them into a research agenda to further the systemic understanding of markets.     

Business Marketing Education: A Distinctive Role in the Undergraduate Curriculum

ABSTRACT

By extending their knowledge of markets beyond the consumer-goods domain, by deepening their understanding of how organizations make buying decisions, by strengthening their grasp of cross-functional processes, and by providing them with decision-making skills in this important area of marketing, the business marketing course makes a special contribution to undergraduates and the undergraduate marketing curriculum. Moreover, the content and focus of the business marketing course are closely tied to important themes that are transforming business practice. This article isolates the distinct contribution of business marketing education and examines important trends that are reshaping this domain. The central knowledge areas that comprise the undergraduate business marketing course are detailed and linked to specific course design strategies that can be pursued to strengthen the skill set of marketing students and respond to the needs of important constituents.     

An empirical study of ethical predispositions

Using a two-part instrument consisting of eight vignettes and twenty character traits, the study sampled 141 employees of a mid-west financial firm regarding their predispositions to prefer utilitarian or formalist forms of ethical reasoning. In contrast with earlier studies, we found that these respondents did not prefer utilitarian reasoning. Several other hypotheses were tested involving the relationship between (1) people's preferences for certain types of solutions to issues and (2) the forms of reasoning they use to arrive at those solutions; the nature of the relationship between utilitarian and formalist categories; and the possibility of measuring ethical predispositions using different methods. F. Neil Brady is Professor of Public Management and Associate Director for the Center for the Study of Values in Organizations in the Marriott School of Management at Brigham Young University. He is the author of Ethical Managing: Rules and Resultsand has published numerous articles on business ethics, ethical theory, and moral reasoning.Gloria E. Wheeler is Associate Professor of Public Management and Associate Director of the Institute of Public Management at Brigham Young University. Her primary areas are research methodology and human resource management. She has extensive survey research experience in many substantive fields and has published articles in journals covering such diverse areas as taxation, teaching, marketing, and human behavior in organizations.     

Envisioning consumers: how videography can contribute to marketing knowledge

ABSTRACT

Based on a review of the past 30 years of videographic research and outputs in the field of marketing, we highlight the key contributions that videography has made to the marketing literature and identify the key issues facing videographic research today. We develop a typology that identifies four ways that videography can contribute to theory development and verification, presenting new criteria for assessing academic videographies. We note that making theoretical contributions is one of the most difficult issues facing videographic researchers and that this is an area in need of significant developments to help the field progress. Finally, we envision what the future of videography might look like and consider the implications of new forms of videographies.     

Change in international market strategy as a reaction to performance decline

While a great deal of research has explored how international marketing strategy influences performance, researchers have paid scant attention to understanding changes to international marketing strategy resulting from firm reaction to past performance. In this study, organizational learning theory addresses when and how international marketing strategy will change. Employing data from over 500 exporters, the results, which are consistent with theoretical predictions, indicate that (1) firms are generally not prone to inertia and do, in fact, change their international marketing strategy when facing declines in performance, and (2) that the direction of change depends on the level of competition in the specific foreign market, with firms adapting their international marketing strategy in low competitive markets and standardizing their international marketing strategy in highly competitive markets. The paper includes implications for academics and practitioners.     

Trends in Advertising Research: A Longitudinal Analysis of Leading Advertising,Marketing, and Communication Journals, 1980 to 2010

This study provides a longitudinal content analysis of advertising research articles in 17 top-tier advertising, marketing, and communication journals published over the past 30 years (1980–2010, n = 926). The study's purpose is to shed light on the direction and progression of advertising as an academic field by updating and extending Yale and Gilly's (1988) study of advertising research trends. Nine content characteristics of the journal articles were examined: (1) theory presence (theory driven versus not theory driven), (2) names, types (theory versus theoretical framework/model versus construct), and originating disciplines of theory, (3) topic areas, (4) media of interest, (5) research approaches (empirical versus nonempirical and quantitative versus qualitative versus mixed), (6) methods, (7) types of effects, (8) units of analysis, and (9) research implications. Changes in the content characteristics of journal articles were found across the 30 years analyzed in five-year intervals. Implications for the field, scholars, and advertising practitioners are discussed.     

Part II: Titles and Abstracts

ABSTRACT

The commentary discusses the analysis of the content of business marketing textbooks by Backhaus, Mell and Sabel and in particular the dichotomy managerial used to classify the approaches adopted. It is argued that such a dichotomy tends to veil different and changing assumptions regarding the task of marketing management in business markets, and the claim is made that the interplay between the different approaches is beneficial for the development of the body of knowledge of the discipline of business marketing.     

“Relationship marketing” and the “markets‐as‐networks approach”—a comparative analysis of two evolving streams of research

Predating the increased attention by marketing academics on relationship marketing, European marketing scholars developed a network approach to the study of industrial markets that is also based on relationships between seller and buyer as a fundamental concept. This article aims to analyse the similarities and the differences between relationship marketing studies and network studies. After comparative analyses of definitions, empirical and research foundations, attributes related to governance structures and to the marketing mix approach and of major issues addressed in the research agendas, the conclusion is: relationship marketing in its limited interpretation is just a development within the marketing mix approach. Relationship marketing in its extended interpretation is, or rather could become, close to the markets‐as‐networks approach. However the basic attribute in network studies of “embeddedness” is largely missing in relationship marketing. To develop relationship marketing as a generic concept, researchers need to address also the issue of the generic nature of the market. Because when relationships are regarded as the generic governance form for transactions, then the market itself becomes network‐like!     

In search of corporate governance in franchising

Abstract

A firm’s governance structure and business model might explain the firm’s failure or success. Franchising is a business model that has not received much attention within the corporate governance (CG) literature even though it obviously brings several unique CG challenges. Therefore, we review articles at the interface of CG and franchising. We identify and thematize the literature in four focus areas, each with a different relationship to CG: 1) traditional CG, 2) governance challenges unique to franchising, 3) governance modes, and 4) contracts. We find that the literature largely ignores the traditional view of CG when examining many aspects of franchising. We also find that the franchising literature covers governance topics when discussing governance modes, which provides a basis for developing CG theories. Altogether, our findings open a promising avenue for future research that incorporates CG into studies of franchising.     

The Role of Business and Friendships on WeChat Business: An Emerging Business Model in China

ABSTRACT

WeChat business is an emerging way of doing business in China, which can be considered as a marriage between traditional e-business and social networking communications. In WeChat business, firms have developed customer relationships along two distinct ways: business relationships and friendships. However, research on the combination of business relationships and friendships is relatively nascent, and there are contradictory findings. In this study, we examine the effectiveness of the two relationship strategies using data from a field experiment through the WeChat platform by an apparel firm. Results from the field experiment suggest that development of friendships with new customers can help the strategy of developing business relationships; but developing friendships and business relationships with experienced customers negates each other. The study contributes to the literature on relationship marketing and role theory, and helps WeChat managers clarify how new social networking relationships with customers can be effectively leveraged.     

Call for Book Reviews and Review Essays

ABSTRACT

The Journal of Business to Business Marketing, an important thematic journal within the field of marketing, serves as a vital venue for both academicians and practitioners interested in business-to-business marketing phenomena. Articles cover a broad spectrum of topics related to business marketing management.

A subject-based listing classifies these articles into 16 categories according to their key research issues. Those categories are: Advertising and Communication, Brand Management, Buyer-Seller Dyad and Relationships, Channels, Customer Relationships, Education, International Issues, Literature Reviews, Methodology, Networks and Strategic Alliances, Organizational Buying Behavior, Pricing and Value, Product Development, Segmentation, Selling and Salesforce Management, Technology.

After the subject listing, titles and abstracts of all articles appearing in the first ten volumes of JBBM are listed in volume/issue order. We hope that this index will provide a useful tool for academicians and practitioners who are interested in business-to-business marketing research.