Showing papers in "Journal of the Academy of Marketing Science in 1997"

Customer value: The next source for competitive advantage

Abstract: Driven by more demanding customers, global competition, and slow-growth economies and industries, many organizations search for new ways to achieve and retain a competitive advantage. Past attempts have largely looked internally within the organization for improvement, such as reflected by quality management, reengineering, downsizing, and restructuring. The next major source for competitive advantage likely will come from more outward orientation toward customers, as indicated by the many calls for organizations to compete on superior customer value delivery. Although the reasons for these calls are sound, what are the implications for managing organizations in the next decade and beyond? This article addresses this question. It presents frameworks for thinking about customer value, customer value learning, and the related skills that managers will need to create and implement superior customer value strategies.

A framework for market-based organizational learning: Linking values, knowledge, and behavior

Abstract: The authors review the concept of organizational learning and present a broad conceptual framework for its modeling. Within this framework, one specific process for market-based organizational learning is postulated. An empirical test of this model leads the authors to conclude that a more positive learning orientation (a value-based construct) will directly result in increased market information generation and dissemination (knowledge-based constructs), which, in turn, directly affects the degree to which an organization makes changes in its marketing strategies (a behavioral construct). Managerial implications are discussed.

Exploring the Implications of the Internet for Consumer Marketing

Abstract: Past commentaries on the potential impact of the Internet on consumer marketing have typically failed to acknowledge that consumer markets are heterogeneous and complex and that the Internet is but one possible distribution, transaction, and communication channel in a world dominated by conventional retailing channels This failure has led to excessively broad predictions regarding the effect of the Internet on the structure and performance of product and service markets The objective of this article is to provide a framework for understanding possible impacts of the Internet on marketing to consumers This is done by analyzing channel intermediary functions that can be performed on the Internet, suggesting classification schemes that clarify the potential impact of the Internet across different products and services, positioning the Internet against conventional retailing channels, and identifying similarities and differences that exist between them The article concludes with a series of questions designed to stimulate the development of theory and strategy in the context of Internet-based marketing

Reflections on gaining competitive advantage through customer value

Abstract: Woodruff’s detailed discussion of the meaning and measurement of customer value and how companies can use customer value information in designing their strategies makes a major contribution to marketing theory and practice. It provides an insightful synthesis of the literature on customer value and points out why and how current theory on the subject should be strengthened. It also offers suggestions for companies to foster customer value learning and incorporate it as a cornerstone of their competitive strategies. The primary objectives of my commentary have been (1) to critically examine Woodruff’s contributions and highlight unresolved issues requiring further investigation and (2) extend Woodruff’s contributions by proposing and discussing a detailed framework for monitoring and leveraging customer value. In addressing these objectives, I have attempted to raise questions and offer suggestions—some of which are necessarily tentative—in the hope that they will stimulate additional interest, debate, and research on the topic.

Assessing the predictive validity of two methods of measuring self-image congruence

Abstract: The predictive validity of two measurement methods of self-image congruence—traditional versus new—were compared in six studies involving different consumer populations, products, consumption settings, and dependent variables (brand preference, preference for product form, consumer satisfaction/dissatisfaction, brand attitude, and program choice). The traditional method is based on tapping the subject’s perception of product-user image and the subject’s perception of his/her self-image along a predetermined set of image attributes and adding the self-congruity scores across all image dimensions. Three problems were identified and discussed in relation to the traditional method: (1) the use of discrepancy scores, (2) the possible use of irrelevant images, and (3) the use of the compensatory decision rule. The new method is based on tapping the psychological experience of self-congruity directly and globally. The findings demonstrated the predictive validity of the new method over and beyond the traditional method.

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

Abstract: 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.

Changes in the Theory of Interorganizational Relations in Marketing: Toward a Network Paradigm:

Abstract: The marketing environment in the 21st century promises to be knowledge rich and very turbulent. The classic, vertically integrated, multidivisional organization, so successful in the 20th century, is unlikely to survive in such an environment. The evidence indicates it will be replaced by new forms of network organization consisting of large numbers of functionally specialized firms tied together in cooperative exchange relationships. This article explores the characteristics of four types of network organization that may represent prototypes of the dominant organizations of the next century. These include the internal market network, the vertical market network, the intermarket network, and the opportunity network. The economic rationale and the types of coordination and control mechanisms driving network organizations are very distinct from those studied under the current exchange or dyadic paradigm. This article analyses the kinds of changes involved in key variables and their meanings in moving from a dyadic view of exchange to a network view.

Developing a customer value-based theory of the firm

Abstract: Just as it was inappropriate to characterize this as the development of a new theory of the firm, it also is premature to suggest that this commentary articulates a comprehensive customer value-based theory of the firm. The foundation for this theory was laid decades ago, and the ideas presented in this commentary must be more thoroughly developed before it can appropriately deemed a “theory of the firm.” However, as marketers, we should be committed to the proposition that the creation of customer value must be the reason for the firm’s existence and certainly for its success. Thus developing this theory further and testing the propositions that comprise it should be a high priority for marketing scholars.

A study of the relationships between cognitive appraisals and consumption emotions

Abstract: While emotions have been shown to be significant determinants of various consumer behaviors, the antecedents of these emotions have not received much attention in the marketing literature. The current research examines a cognitive model of emotion and uses an experiment to show that the appraisals of goal relevance, goal congruence, and coping potential are determinants of consumption emotions such as anger, sadness, and joy/satisfaction. These emotions are also shown to be determinants of postconsumption behaviors such as word-of-mouth intentions.

Influences on consumer use of word-of-mouth recommendation sources

Abstract: This article reports the development and testing of a theoretical model of the initial stages of recommendation-based decision making by consumers. Although consumers use a variety of recommendation sources, they have different motivations for the use of different sources. The model focuses on the factors that influence the likelihood of consumers using strong-tie sources (e.g., friends and family) and weak-tie sources (e.g., acquaintances or strangers) or recommendations. The factors used in the model are the prior knowledge level of the consumer about the product being considered, the perceived decision task difficulty level, and the type of evaluative cues sought by the consumer. Hypotheses are tested using data collected in an extensive field study with consumers. Two paths or routes of influence on the use of recommendation sources are proposed and confirmed in the study.

The sales manager as a Role model: Effects on trust, job satisfaction, and performance of salespeople

Abstract: This study develops a conceptual framework that relates role-modeling behavior of sales managers to a set of key outcome variables and assesses the validity of the framework using a cross-sectional sample of salespeople and sales managers drawn from a variety of business-to-business sales organizations. Findings indicate that salespeople’s perceptions of their managers’ role-modeling behavior relate positively to trust in the sales manager and relate indirectly, through trust, to both job satisfaction and overall performance of salespeople. The study provides empirical validity for practitioner suggestions that sales managers should lead by example, and thus should provide a model of the behavior managers desire their salespeople to enact.

Listening to your customers: The impact of perceived salesperson listening behavior on relationship outcomes

Abstract: A thorough understanding of how businesses gain and maintain long-term relationships with clients is critical in today’s environment. This study develops a scale for salesperson listening behavior and investigates the impact of customers’ perceptions of salespeople’s listening behavior on trust, satisfaction, and anticipation of future interaction. A structural equations model is developed and empirically tested using a sample of new car buyers. The research results suggest that listening is a higher-order construct composed of three dimensions: (a) sensing, (b) evaluating, and (c) responding. When customers perceive a high level of listening behavior by a salesperson, it enhances their trust in the salesperson and leads to greater anticipation of future interaction. Implications and future research issues are discussed.

Measuring physical distribution service quality

Abstract: The quality of the physical distribution service industrial purchasers receive from suppliers has been shown to be an important consideration in industrial purchasing decisions. To better understand the criteria used to assess physical distribution service quality, the authors examined the literature on physical distribution and service quality and conducted interviews with purchasing managers. Based on the results of the literature reviews and interviews, plus a two-step data-gathering process, a valid and reliable measurement instrument for perceptions of physical distribution service quality (PDSQ) was developed and refined.

Do you see what I see? The future of virtual shopping

Abstract: New technologies captivate our imaginations. We have seen a breathtaking stream of innovations--solar cells, nuclear fusion, biotechnology, genetic engineering, artificial intelligence, robotics, space travel, virtual reality, and many others--all promising to transform our lives. For better or worse, the actual impact of these innovations is often much less (and takes much longer) than what we expected. In some cases, unforeseen technical problems have stalled the development process, blocking an innovation's move from the laboratory into the marketplace. In others, consumers have resisted change, instead choosing to maintain the status quo. Existing technologies have also continued to evolve, making it unnecessary to switch to something new. In recent years, the Internet has generated a tremendous level of excitement. Business magazines are filled with articles describing how life will be different in a digital age. High-technology stocks have soared on investors' expectations of the creation of new wealth and the transformation of existing businesses. Some of the most sensational predictions have been made with regard to electronic commerce. Maurice Saatchi, a prominent figure in the advertising industry, forecast that in 40 years, electronic retailing will eliminate the need for physical stores (Cope 1996:18). Andersen Consulting predicted that in the next decade, 20 percent of supermarket shopping will be conducted through nonstore electronic channels (McGrath 1994). Negroponte (1995) argued that, as a consequence of electronic distribution, "videocassette-rental stores will go out of business in less than ten years" (p. 173). And Jupiter Communications, a New York market research firm, estimated that interactive home shopping would expand to $82.35 billion by the year 2003 (Conway 1994:26).

Product quality: Impact of interdepartmental interactions

Abstract: The authors examine the role of organizational factors affecting interdepartmental interactions and their subsequent effects on product quality. Results from a national study suggest that product quality is affected by interdepartmental conflict and connectedness. Importantly, the linkage between interdepartmental conflict and product quality appears to be robust across varying levels of market turbulence and technological turbulence. In contrast, interdepartmental connectedness appears to be more important for product quality under conditions of high market and technological turbulence. The results also indicate that interdepartmental interactions are influenced by leadership characteristics (risk aversion of top managers), reward system orientation, and organization structure (centralization, departmentalization, and hierarchical levels). Managerial implications and directions for future work are proposed.

The influence of ethical climate and ethical conflict on role stress in the sales force

Abstract: Several leading models of ethical decision making include factors contributing to an organization’s ethical climate as significant determinants affecting ethical choice. The relationship of ethical climate to ethical conflict and role conflict is examined in a salesperson context. Results suggest that salespersons’ perceptions of a positive ethical climate are negatively associated with their perceived ethical conflict with sales managers. Implications and directions for future research are provided.

Learning effect in multinational diffusion of consumer durables: An exploratory investigation

Abstract: Literature reflects that a product/technological innovation introduced later in a country results in faster diffusion as the consumers in the lag market have an opportunity to learn about the new product from the consumers in the lead market. A systematic understanding of the learning that takes place between consumers in two countries—a pair of lead and lag countries—can provide insights for a firm’s international market entry decisions. To provide a richer understanding of the underlying structure and patterns that govern this process, propositions linking factors (country characteristics, product/innovation characteristics, and time lag) to the learning process are drawn. Subsequently, these propositions are tested through an empirical investigation of the diffusion patterns of four consumer innovations in multiple European countries. The findings help provide some preliminary guidelines for manufacturers regarding selection of foreign markets and the timing and order-of-entry decisions.

An exploratory study of exclusive dealing in channel relationships

Abstract: The channel literature has paid little attention to issues related to exclusive dealing governance arrangements. Consequently, there is only limited knowledge about how exclusive dealing impacts various channel processes and outcomes. This gap is especially regrettable since exclusive dealing, in addition to being one of the most commonplace governance formats within the distribution channels, is also one of the best exemplars of viable unilateral governance formats. In this initial investigation, the authors explore the linkages among the constructs of exclusive dealing, relationalism, communication, and performance. Empirical data for the study were drawn from the photocopier industry.

Ethical correlates of role conflict and ambiguity in marketing: The mediating role of cognitive moral development

Abstract: Researchers in marketing ethics have identified the importance of cognitive moral development (CMD) in marketing ethics models. This study looks at selected correlates of role conflict and role ambiguity in marketing, especially the mediating role of CMD. Of the correlates examined, the results seem to support the existence of statistically significant relationships between CMD and role conflict and ambiguity. Implications for practitioners are provided. For example, the study could have direct implications for management personnel who have the responsibility of hiring ethical people and helping them address any role conflict or ambiguity that may arise from their job.

Transaction utility effects when quality is uncertain

Abstract: The existing literature finds that price discrepancy, which represents the difference between expected and observed price, helps explain brand choice and purchase intention. This effect is often attributed to transaction utility, that is, the incremental utility associated with the surprise of observing a price lower or higher than expected. This research considers the possibility, however, that transaction utility is a less important determinant of choice when quality is uncertain. We propose and find that acquisition utility (perceived value for the money) tends to dominate the explanation of purchase intention, but transaction utility is significant only when consumers are more certain about quality. Our discussion considers the relative role of transaction utility in explaining consumer decision making and how the informative and allocative roles of price might be distinguished.

The impact of the academy of marketing science on marketing scholarship: An analysis of the research published in JAMS

Abstract: This article presents an analysis of the research published in the Journal of the Academy of Marketing Science (JAMS). A brief history of the journal is chronicled, and its output in recent years is considered. Special attention is paid to the content of the articles published and the research methods used. An analysis of frequent contributors is also conducted. Much of the analysis focuses on the past 10 years. The conclusion is that JAMS has made a significant impact on marketing scholarship and has emerged as a top marketing journal of which all the fellows of the academy can justifiably be proud.

The price of competitiveness in competitive pricing

Abstract: This study examines how pricing decisions might be improved. We test the hypothesis that managers have a tendency to overcompete by comparing the performance of managers with the performance of computerized strategies in a Prisoner’s Dilemma pricing experiment. We find that the subjects in our study obtain lower profits than matched computer strategies. The subjects appear to value relative performance against competitors, even when they are explicitly instructed to maximize profits and are compensated based on profits. The implication for managers is that pricing to maximize profits may require tolerating the strong performance of competitors, even to the point of accepting a lower profit than some or all the competitors. If competitiveness means an adversarial, “zero-sum game” view of one’s competitors, then the price of competitiveness in competitive markets such as those in our experiment may be lower profits. Being less competitive may be more profitable.

Twenty-first-century organizations: Implications for a new marketing paradigm

Abstract: To conclude this commentary, it may be worthwhile to clearly state the research direction that the Achrol article has launched. First, the article begins by identifying the forces that are causing network forms of organizing to spread. If network organizations continue to proliferate, as they are likely to do, then marketing as both a function and discipline must change, too. Second, Achrol helps us to understand network organizations by providing a comprehensive typology that describes the commonly found network forms. Third, the article specifies some of the key variables that need to be examined to build an integrated theory of network management. It is hoped that at some point in the not too distant future, managers can be shown how to design and operate each of the major types of network organizations. Finally, Achrol urges marketing to adopt a paradigm more consistent with the reality of today’s and tomorrow’s organizations. His article is certainly a step in the right direction.

Marketing in the 21st century customer value: The next source for competitive advantage

Abstract: The online version of the original article can be found at http://dx.doi.org/10.1007/BF02894350

The role of competitive alternatives in the postchoice satisfaction formation process

Abstract: A general model of satisfaction formation is proposed that extends the seminal disconfirmation of expectations model by explicitly incorporating the processing of both chosen and nonchosen alternatives. Using presidential election data, the results show that satisfaction with the nonchoice does remain salient in the determination of overall postchoice satisfaction. Disconfirmation related to either the chosen or the nonchosen alternative influences satisfaction with both the chosen and the nonchosen alternative. Overall, the model suggests that the nonchoice alternative may continue to be relevant in the satisfaction formation process.

Modeling response to repetitive promotional stimuli

Abstract: Marketers frequently include promotional stimuli which elicit some form of response from the recipient among the tactics used to market products or services. Print ads, including 800 numbers which allow consumers to respond, and direct mail campaigns are examples of such activities. Promotions of this nature are often repeated a number of times, thus providing several opportunities to respond. Understanding consumer response to such campaigns is critical for more efficient design and use of these activities. A conceptual framework of response to repetitive stimuli is proposed, and stochastic models of alternative response patterns are developed. Alternative contexts in which such models are useful are also noted. Variations of the models are provided for those situations when only a fraction of the target population will ever respond. Estimation of model parameters is discussed, and data from actual campaigns are used to demonstrate how to apply the models.