Market-Based Assets and Shareholder Value: A Framework for Analysis
01 Jan 1998-Journal of Marketing (SAGE PublicationsSage CA: Los Angeles, CA)-Vol. 62, Iss: 1, pp 2-19
TL;DR: The authors developed a conceptual framework of the marketing-finance interface and discussed its implications for the theory and practice of marketing, and proposed that marketing is concern, concern, and concern.
Abstract: The authors develop a conceptual framework of the marketing–finance interface and discuss its implications for the theory and practice of marketing. The framework proposes that marketing is concern...
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TL;DR: In this article, the authors explore and critically evaluate use of the resource-based view of the firm (RBV) by information systems researchers and suggest extensions to make the RBV more useful for empirical IS research.
Abstract: Information systems researchers have a long tradition of drawing on theories from disciplines such as economics, computer science, psychology, and general management and using them in their own research. Because of this, the information systems field has become a rich tapestry of theoretical and conceptual foundations. As new theories are brought into the field, particularly theories that have become dominant in other areas, there may be a benefit in pausing to assess their use and contribution in an IS context. The purpose of this paper is to explore and critically evaluate use of the resource-based view of the firm (RBV) by IS researchers.
The paper provides a brief review of resource-based theory and then suggests extensions to make the RBV more useful for empirical IS research. First, a typology of key IS resources is presented, and these are then described using six traditional resource attributes. Second, we emphasize the particular importance of looking at both resource complementarity and moderating factors when studying IS resource effects on firm performance. Finally, we discuss three considerations that IS researchers need to address when using the RBV empirically. Eight sets of propositions are advanced to help guide future research.
2,588 citations
Posted Content•
TL;DR: In this paper, the authors developed and tested a conceptual framework, which predicts that customer satisfaction partially mediates the relationship between CSR and firm market value (i.e., Tobin's q and stock return), and corporate abilities (innovativeness capability and product quality) moderate the financial returns to CSR, and these moderated relationships are mediated by customer satisfaction.
Abstract: Although prior research has addressed the influence of corporate social responsibility (CSR) on perceived customer responses, it is not clear whether CSR affects market value of the firm. This study develops and tests a conceptual framework, which predicts that (1) customer satisfaction partially mediates the relationship between CSR and firm market value (i.e., Tobin’s q and stock return), (2) corporate abilities (innovativeness capability and product quality) moderate the financial returns to CSR, and (3) these moderated relationships are mediated by customer satisfaction. Based on a large-scale secondary data set, the results show support for this framework. Notably, the authors find that in firms with low innovativeness capability, CSR actually reduces customer satisfaction levels and, through the lowered satisfaction, harms market value. The uncovered mediated and asymmetrically moderated results offer important implications for marketing theory and practice.
2,358 citations
TL;DR: The authors identified some of the influential work in the branding area, highlighting what has been learned from an academic perspective on important topics such as brand positioning, brand integration, brand-equity measurement, brand growth, and brand management.
Abstract: Branding has emerged as a top management priority in the last decade due to the growing realization that brands are one of the most valuable intangible assets that firms have. Driven in part by this intense industry interest, academic researchers have explored a number of different brand-related topics in recent years, generating scores of papers, articles, research reports, and books. This paper identifies some of the influential work in the branding area, highlighting what has been learned from an academic perspective on important topics such as brand positioning, brand integration, brand-equity measurement, brand growth, and brand management. The paper also outlines some gaps that exist in the research of branding and brand equity and formulates a series of related research questions. Choice modeling implications of the branding concept and the challenges of incorporating main and interaction effects of branding as well as the impact of competition are discussed.
2,050 citations
TL;DR: In this article, the authors present a unified strategic framework that enables competing marketing strategy options to be traded off on the basis of projected financial return, which is operationalized as the change in a firm's customer equity relative to the incremental expenditure necessary to produce the change.
Abstract: The authors present a unified strategic framework that enables competing marketing strategy options to be traded off on the basis of projected financial return, which is operationalized as the change in a firm’s customer equity relative to the incremental expenditure necessary to produce the change. The change in the firm’s customer equity is the change in its current and future customers’ lifetime values, summed across all customers in the industry. Each customer’s lifetime value results from the frequency of category purchases, average quantity of purchase, and brand-switching patterns combined with the firm’s contribution margin. The brand-switching matrix can be estimated from either longitudinal panel data or cross-sectional survey data, using a logit choice model. Firms can analyze drivers that have the greatest impact, compare the drivers’ performance with that of competitors’ drivers, and project return on investment from improvements in the drivers. To demonstrate how the approach can be implemented in a specific corporate setting and to show the methods used to test and validate the model, the authors illustrate a detailed application of the approach by using data from the airline industry. Their framework enables what-if evaluation of marketing return on investment, which can include such criteria as return on quality, return on advertising, return on loyalty programs, and even return on corporate citizenship, given a particular shift in customer perceptions. This enables the firm to focus marketing efforts on strategic initiatives that generate the greatest return.
1,939 citations
TL;DR: In this article, the authors developed and tested a conceptual framework, which predicts that customer satisfaction partially mediates the relationship between CSR and firm market value (i.e., Tobin's q and stock return), and corporate abilities (innovativeness capability and product quality) moderate the financial returns to CSR, and these moderated relationships are mediated by customer satisfaction.
Abstract: Although prior research has addressed the influence of corporate social responsibility (CSR) on perceived customer responses, it is not clear whether CSR affects market value of the firm. This study develops and tests a conceptual framework, which predicts that (1) customer satisfaction partially mediates the relationship between CSR and firm market value (i.e., Tobin's q and stock return), (2) corporate abilities (innovativeness capability and product quality) moderate the financial returns to CSR, and (3) these moderated relationships are mediated by customer satisfaction. Based on a large-scale secondary data set, the results show support for this framework. Notably, the authors find that in firms with low innovativeness capability, CSR actually reduces customer satisfaction levels and, through the lowered satisfaction, harms market value. The uncovered mediated and asymmetrically moderated results offer important implications for marketing theory and practice.
1,921 citations
References
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TL;DR: In this article, the authors examined the link between firm resources and sustained competitive advantage and analyzed the potential of several firm resources for generating sustained competitive advantages, including value, rareness, imitability, and substitutability.
46,648 citations
Book•
01 Jan 2008TL;DR: The Japanese companies, masters of manufacturing, have also been leaders in the creation, management, and use of knowledge-especially the tacit and often subjective insights, intuitions, and ideas of employees as discussed by the authors.
Abstract: Japanese companies, masters of manufacturing, have also been leaders in the creation, management, and use of knowledge-especially the tacit and often subjective insights, intuitions, and ideas of employees.
16,886 citations
TL;DR: Senge's Fifth Discipline is a set of principles for building a "learning organization" as discussed by the authors, where people expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nutured, where collective aspiration is set free, and where people are contually learning together.
Abstract: Peter Senge, founder and director of the Society for Organisational Learning and senior lecturer at MIT, has found the means of creating a 'learning organisation'. In The Fifth Discipline, he draws the blueprints for an organisation where people expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nutured, where collective aspiration is set free, and where people are contually learning together. The Fifth Discipline fuses these features together into a coherent body of theory and practice, making the whole of an organisation more effective than the sum of its parts. Mastering the disciplines will: *Reignite the spark of learning, driven by people focused on what truly matters to them. *Bridge teamwork into macro-creativity. *Free you from confining assumptions and mind-sets. *Teach you to see the forest and the trees. *End the struggle between work and family time. The Fifth Discipline is a remarkable book that draws on science, spiritual values, psychology, the cutting edge of management thought and Senge's work with leading companies which employ Fifth Discipline methods. Reading it provides a searching personal experience and a dramatic professional shift of mind. This edition contains more than 100 pages of new material about how companies are actually using and benefiting from Fifth Discipline practices, as well as a new foreword from Peter Senge about his work with the Fifth Discipline over the last 15 years.
16,386 citations
Book•
17 Apr 2015TL;DR: A "balanced scorecard" is developed, a new performance measurement system that gives top managers a fast but comprehensive view of the business and complements those financial measures with three sets of operational measures having to do with customer satisfaction, internal processes, and the organization's ability to learn and improve.
Abstract: Frustrated by the inadequacies of traditional performance measurement systems, some managers have abandoned financial measures like return on equity and earnings per share. "Make operational improvements and the numbers will follow," the argument goes. But managers do not want to choose between financial and operational measures. Executives want a balanced presentation of measures that allow them to view the company from several perspectives simultaneously. During a year-long research project with 12 companies at the leading edge of performance measurement, the authors developed a "balanced scorecard," a new performance measurement system that gives top managers a fast but comprehensive view of the business. The balanced scorecard includes financial measures that tell the results of actions already taken. And it complements those financial measures with three sets of operational measures having to do with customer satisfaction, internal processes, and the organization's ability to learn and improve--the activities that drive future financial performance. Managers can create a balanced scorecard by translating their company's strategy and mission statements into specific goals and measures. To create the part of the scorecard that focuses on the customer perspective, for example, executives at Electronic Circuits Inc. established general goals for customer performance: get standard products to market sooner, improve customers' time-to-market, become customers' supplier of choice through partnerships, and develop innovative products tailored to customer needs. Managers translated these elements of strategy into four specific goals and identified a measure for each.
12,976 citations
TL;DR: In this article, a conceptual model of brand equity from the perspective of the individual consumer is presented, which is defined as the differential effect of brand knowledge on consumers' perceptions of the brand.
Abstract: The author presents a conceptual model of brand equity from the perspective of the individual consumer. Customer-based brand equity is defined as the differential effect of brand knowledge on consu...
12,021 citations