Dacko S.G. The Advanced Dictionary of Marketing Putting Theory to Use
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fan effect 210
fan effect
DESCRIPTION
A tendency in individual learning and long-term memory retrieval where the
greater the number of specific facts an individual links to a general mental
construct, the less likely it is that any particular fact will be retrieved or recalled
by the individual when the general mental construct is present later on.
KEY INSIGHTS
According to pioneering research by Anderson (1974) on the fan effect,
when an increasingly large number of facts is associated with a par-
ticular category or mental construct by an individual (e.g. the category
of ‘currency’ in contrast with the category of ‘tableware’), the retrieval
of any given fact by the individual becomes increasingly difficult when
the mental construct is subsequently present. Retrieval difficulty, for
example, may be in terms of the time it takes the individual to verify
that any particular fact is, in fact, linked to the particular category or
general mental construct.
KEY WORDS Learning, memory retrieval
IMPLICATIONS
Marketers concerned with how and to what extent consumers may ulti-
mately retrieve information learned regarding a category (e.g. a product
category, a service provider category, an industry, or a market) may ben-
efit from a greater appreciation and understanding of the fan effect. In
particular, the prevalence of the fan effect in memory retrieval suggests
that marketers should seek to understand how and when it may work
to the marketer’s disadvantage or advantage as well as how and when
the effect may be increased or decreased. The fan effect is decreased, for
example, when an individual, through increased expertise, creates sub-
categories or additional mental constructs that are linked with smaller
sets of facts that would otherwise be associated with larger categories or
broader mental constructs.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Till, B. D., and Nowak, L. I. (2000). ‘Toward Effective Use of Cause-Related Marketing
Alliances,’ Journal of Product & Brand Management, 9(7), 472–484.
Consumer Behavior
Till, B. D., and Shimp, T. A. (1998). ‘Endorsers in Advertising: The Case of Negative
Celebrity Information,’ Journal of Advertising, 27(1), 67–82.
Yoon, C. (1997). ‘Age Differences in Consumers’ Processing Strategies: An Investi-
gation of Moderating Influences,’ Journal of Consumer Research, 24, 329–342.
Gerard, L., Zacks, R., Hasher, L., and Radvansky, G. A. (1991). ‘Age Deficits in
Retrieval: The Fan Effect,’ Journals of Gerontology, 46(4), 131–136.
BIBLIOGRAPHY
Anderson, J. R., and Reder, L. M. (1999). ‘The Fan Effect: New Results and New
Theories,’ Journal of Experimental Psychology: General, 128, 186–197.
Anderson, John R. (1974). ‘Retrieval of Prepositional Information from Long-Term
Memory,’ Cognitive Psychology, 6, 451–474.
211 field marketing
fast follower see market entry timing
fast moving consumer goods see goods
fax marketing see e-marketing; direct marketing
field marketing
DESCRIPTION
A marketing approach involving the deployment of marketing, sales, or other
staff by a firm to engage in person-to-person interaction in the field, such as
at locations visited by customers.
KEY INSIGHTS
A field marketing approach enables a firm’s staff to use and offer their
personal expertise to enhance distributor effectiveness and/or customer
experiences. Field marketing encompasses a range of approaches and
activities that take place at or closer to places where customers engage
with the firm’s offerings. Field marketing can therefore be said to encom-
pass marketing approaches including event marketing and experiential
marketing. (See event marketing; experiential marketing.)
KEY WORDS Customer interaction, distributor interaction
IMPLICATIONS
Marketers seeking a greater marketing presence in the field where dis-
tributors and/or customers are present can benefit from a deeper under-
standing of the scope and range of the field marketing concept and
approaches. In particular, knowing how the approach has been used
effectively by other firms in marketing efforts for a variety of other
product and service categories can provide the marketer with a rich
set of field marketing strategies, techniques, and tactics to subsequently
evaluate for use in the marketing of the firm’s own products or services.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Sepe, E., Ling, P. M., and Glantz, S. A. (2002). ‘Smooth Moves: Bar and Nightclub
Tobacco Promotions that Target Young Adults,’ American Journal of Public Health,
92, 414–419.
Eisenberg, M., Ringwalt, C., Driscoll, D., Vallee, M., and Gullette, G. (2004). ‘Learn-
ing from Truth (SM): Youth Participation in Field Marketing Techniques to
Counter Tobacco Advertising,’ Journal of Health Communication, 9(3), 223–232.
Mistry, B. (1998). ‘Field Marketing: Event Marketing is Overtaking Traditional Tech-
niques,’ Promotions and Incentives, November–December, 61–66.
Barrand, D. (2004). ‘Field Marketing: Experiential Marketing is Having a Huge
Effect on the Sector,’ Promotions and Incentives, September, 27–30.
BIBLIOGRAPHY
Cramp, B. (1995). ‘Field Marketing: There’s More to Field Marketing than Sampling
Cheese In-store,’ Promotions and Incentives, 10, 46–54.
Cummings, K. M., Morley, C. P., Horan, J. K., Steger, C., and Leavell, N. R. (2002).
‘Marketing to America’s Youth: Evidence from Corporate Documents,’ Tobacco
Control, 11(Supplement 1), i5–i17.
field theory 212
field theory
DESCRIPTION
Theory or theories viewing behavior as being determined by the totality of an
individual’s situation.
KEY INSIGHTS
Field theory approaches to the study of phenomena in the social sciences
involve focusing on the interactions that occur in the space between
various objects of analysis as opposed to focusing on relations within
the objects of analysis. In the context of individual behavior, field theory
views individual behavior as being determined by an individual’s entire
situation or life space, including the individual’s goals, needs, and per-
ceptions of the environment.
In addition to marketing, field theory research spans disciplines in
the social sciences including psychology, sociology, and anthropology.
Field theory is also an area of study in both physics and mathemat-
ics, but the field theory term has different emphases in each of these
other fields and is not directly relevant to marketing even though
both fields can be said to have contributed to field theory applica-
tion in the social sciences. One of the early pioneers of field theory
development in the social sciences is Lewin (1951) and much of field
theory in the social sciences is therefore referred to as Lewin’s field
theory.
KEY WORDS Behavior, goals, need(s)
IMPLICATIONS
Marketers recognizing the complexity of consumer behavior may benefit
from a greater understanding of individual behaviors by adopting a field
theory perspective in their analysis and research efforts. In particular,
insights gained from a field theory perspective may enable marketers
to offer products and services which are more closely aligned with con-
sumer goals, needs, and perceptions of their purchase, service use, and
consumption environments.
APPLICATION AREAS AND FURTHER READINGS
Services Marketing
Houston, M. B., Bettencourt, L. A., and Wenger, S. (1998). ‘The Relationship
between Waiting in a Service Queue and Evaluations of Service Quality: A Field
Theory Perspective,’ Psychology and Marketing, 15(8), 735–754.
Mittal, B., and Baker, J. (1998). ‘The Services Marketing System and Consumer
Psychology,’ Psychology and Marketing, 15(8), 727–734.
Consumer Behavior
Solomon, M. R. (1983). ‘The Role of Products as Social Stimuli: A Symbolic Interac-
tionism Perspective,’ Journal of Consumer Research, 10, 319–329.
BIBLIOGRAPHY
Lewin, K. (1951). Field Theory in Social Science. New York: Harper.
Wheelan, S. A., Pepitone, E. A., and Abt, V. (eds.) (1990). Advances in Field Theory.
Newbury Park, Calif.: Sage Publications.
213 firm, theory of the
fighter brand see brand positioning
final goods see goods
firm, behavioral theories of the see firm, theory of the
firm, managerial theories of the see firm, theory of the
firm, theory of the
DESCRIPTION
Theory or theories aimed at understanding, explaining, and predicting the
conduct and behavior of firms.
KEY INSIGHTS
Theories of the firm comprise multiple theoretical perspectives on the
nature of the firm, with more specific emphases including firm pricing
decisions, investment decisions, choice of production process, output
decisions, and dividend policy. Major distinctions in various theories of
the firm include that of managerial theories of the firm, where the emphasis
is on analyses of the consequences of the firms’ conduct when managers
emphasize objectives other than that of profit maximization, and behav-
ioral theories of the firm, where the emphasis is on consideration of the
objectives and motives of multiple individuals and groups within the
firm.
KEY WORDS Management objectives, organizational behavior
IMPLICATIONS
Although there are multiple theories of the firm and specific research
emphases, an understanding of perspective associated with each can
potentially sensitize the marketer to issues and practices that may be oth-
erwise under-appreciated drivers, or consequences, of firm- and strategic
marketing-related actions. For example, the various theories may help to
gain insight into issues important to small firms (e.g. extent of ambition
within the firm to actually grow) as well as large firms (e.g. the possibility
that managers may engage in empire building at the expense of overall
firm profitability).
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Anderson, Paul F. (1982). ‘Marketing, Strategic Planning and the Theory of the
Firm,’ Journal of Marketing, 46(2), Spring, 15–26.
Heide, Jan B. (1994). ‘Interorganizational Governance in Marketing Channels,’
Journal of Marketing, 58(1), January, 71–85.
Hallen, Lars, Johanson, Jan, and Seyed-Mohamed, Nazeem (1991). ‘Interfirm Adap-
tation in Business Relationships,’ Journal of Marketing, 55(2), April, 29–37.
Jaworski, Bernard J. (1988). ‘Toward a Theory of Marketing Control: Environmental
Context, Control Types, and Consequences,’ Journal of Marketing, 52(3), July, 23–
39.
Noble, Charles H., and Mokwa, Michael P. (1999). ‘Implementing Marketing Strat-
egies: Developing and Testing a Managerial Theory,’ Journal of Marketing, 63(4),
October, 57–73.
floor effect 214
International Marketing
Andersen, O. (1993). ‘On the Internationalization Process of Firms: A Critical Analy-
sis,’ Journal of International Business Studies, 24(2), 209.
Marketing Research
Day, George S., and Montgomery, David B. (1999). ‘Charting New Directions
for Marketing,’ Journal of Marketing, 63, Fundamental Issues and Directions for
Marketing, 3–13.
BIBLIOGRAPHY
Bartlett, C. A., and Ghoshal, S. (1993). ‘Beyond the M-form: Toward a Managerial
Theory of the Firm,’ Strategic Management Journal, 14, Winter Special Issue, 23–46.
Cyert, R., and March, J. (1963). A Behavioral Theory of the Firm. Englewood Cliffs, NJ:
Prentice Hall.
Simon, Herbert A., and Bonini, Charles P. (1958). ‘The Size Distribution of Business
Firms,’ American Economic Review, 48(4), September, 607–617.
Simon, Herbert A. (1991). ‘Organizations and Markets,’ Journal of Economic Perspec-
tives, 5(2), Spring 25–44.
first law of marketing see marketing, laws of
first-mover advantage see market entry timing
fixed cost see cost
floor effect
(also called basement effect)
DESCRIPTION
Any effect on measurement or response where a lower limit to the range of
possible responses leads to a skewing of the distribution of responses.
KEY INSIGHTS
The floor effect becomes an issue in measurement and response when
the imposition of a lower limit on possible responses impedes under-
standing the true nature of responses for a phenomenon as a result of
its prominent effects on statistical analyses. Oftentimes, the existence of
the floor effect in a set of measurements means only limited insights
can be drawn about a phenomenon. For example, if consumers were
surveyed to indicate the number of car brands they are able to name,
where the range of choices given to them is, say, from five or fewer
to ten or more, information from the survey would be lost if a rela-
tively large proportion of respondents indicated the answer of five or
fewer.
KEY WORDS Measurement, response, statistical analysis
IMPLICATIONS
Marketers should be aware of the possibility of a floor effect in con-
ducting marketing research when the lower limit to a range of possible
responses to be collected or measured is essentially arbitrary.
215 foot-in-the-door technique
APPLICATION AREAS AND FURTHER READINGS
Marketing Research
Mela, Carl F., Gupta, Sunil, and Lehmann, Donald R. (1997). ‘The Long-Term Impact
of Promotion and Advertising on Consumer Brand Choice,’ Journal of Marketing
Research, 34(2), May, 248–261.
Smith, Robert E. (1993). ‘Integrating Information from Advertising and Trial:
Processes and Effects on Consumer Response to Product Information,’ Journal
of Marketing Research, 30(2), May, 204–219.
BIBLIOGRAPHY
Singh, Surendra N., Rothschild, Michael L., and Churchill, Gilbert A., Jr. (1988).
‘Recognition versus Recall as Measures of Television Commercial Forgetting,’
Journal of Marketing Research, 25(1), February, 72–80.
Joyce, William F. (1986). ‘Matrix Organization: A Social Experiment,’ Academy of
Management Journal, 29(3), September, 536–561.
Cook, Thomas D., and Campbell, Donald T. (1979). Quasiexperimental Designs for
Research. Chicago: Rand McNally.
FMCGs see goods
focus group see marketing research
focus strategy see strategies, generic
follow-up see selling process
follower advantage see market entry timing
follower firm see market entry timing
foot-in-the-door technique
DESCRIPTION
A technique for persuading an individual to accept or adopt a particular large
course of action where the individual is first presented with a request to accept
a much smaller course of action which has the effect of making the individual
more amenable to subsequently accepting the larger course of action.
KEY INSIGHTS
Based on pioneering research by Freedman and Fraser (1966), the foot-
in-the-door technique was observed to be more effective in obtain-
ing individuals’ commitments to particular causes relative to the
condition where individuals were sought for the same causes with-
out using the technique. The technique therefore involves present-
ing a small request that is relatively palatable to an individual
and where the individual’s commitment to accepting the request
weakens the individual’s interest in rejecting a subsequently larger
request.
KEY WORDS Persuasion, compliance, negotiation, selling
IMPLICATIONS
While the technique may certainly not be appropriate for use in all or
even in most instances where marketers seek to persuade as it is one
forecasting methods 216
technique among many, it nevertheless may be an alternative; marketers
may wish to explore its viability in areas of persuasive communication
including personal selling and negotiations.
APPLICATION AREAS AND FURTHER READINGS
Marketing Research
Fern, Edward F., Monroe, Kent B., and Avila, Ramon A. (1986). ‘Effectiveness of
Multiple Request Strategies: A Synthesis of Research Results,’ Journal of Marketing
Research, 23(2), May, 144–152.
Scott, Carol A. (1977). ‘Modifying Socially-Conscious Behavior: The Foot-in-the-Door
Technique,’ Journal of Consumer Research, 4(3), December, 156–164.
Hansen, Robert A., and Robinson, Larry M. (1980). ‘Testing the Effectiveness of
Alternative Foot-in-the-Door Manipulations,’ Journal of Marketing Research, 17(3),
August, 359–364.
BIBLIOGRAPHY
Freedman, J. L., and Fraser, S. C. (1966). ‘Compliance without Pressure: The Foot-in-
the-Door Technique,’ Journal of Personality and Social Psychology, 4(2), 195–202.
Dillard, James P., Hunter, John E., and Burgoon, Michael (1984). ‘Sequential-Request
Persuasive Strategies: Meta-analysis of Foot-in-the-Door and Door-in-the-Face,’
Human Communication Research, 10(4), June, 461.
for-profit marketing see commercial marketing
forecasting methods
DESCRIPTION
Any of an array of methods for estimating or predicting future events or
conditions.
KEY INSIGHTS
Marketers have a range of methods to draw upon in making forecasts
concerning events and conditions which vary in the likelihood of their
occurrence in both the short and long term. Three notable forecasting
methods used in marketing are: the market factor index method, where mar-
ket factors found to correlate with market potential are identified and
then combined to form a weighted index; the Delphi method, where the
views of individual experts forming an expert panel are obtained, summa-
rized, and fed back to individuals for reconsideration and where succes-
sive iterations of the process are aimed at arriving at panel consensus; and
the jury method, where the views of a certain number of customers (e.g.
50 to 100) are used to establish a collective opinion about an event’s or
condition’s likelihood of occurrence, which may include opinions regard-
ing the degree of consumer acceptance of a new offering by the firm. No
single method is considered superior to any other as each has benefits and
limitations which must be weighed in accordance with the marketer’s
objectives.
KEY WORDS Estimates, predictions
217 forgetting curve
IMPLICATIONS
In forecasting, marketers should evaluate multiple methods for charac-
teristics including accuracy and bias potential, resource requirements
(e.g. time, money, effort), and potential for contribution to the firm’s mar-
keting objectives. To the extent that stakes are high regarding the accu-
racy and usefulness of an estimate or prediction, marketers may benefit
from the adoption of multiple forecasting methods, which may further
include a combination of both quantitative and qualitative approaches.
APPLICATION AREAS AND FURTHER READINGS
Marketing Research
Yokum, T., and Armstrong, J. S. (1995). ‘Beyond Accuracy: Comparison of Criteria
Used to Select Forecasting Methods,’ International Journal of Forecasting, 11, 591–
597.
Urban, Glen L., Weinberg, Bruce D., and Hauser, John R. (1996). ‘Premarket Fore-
casting for Really New Products,’ Journal of Marketing, 60(1), 47–60.
Armstrong, J. S., and Collopy, F. (1992). ‘Error measures for Generalizing about
Forecasting Methods: Empirical Comparisons,’ International Journal of Forecasting,
8, 69–80.
Marketing Management
Fildes, R., and Hastings, R. (1994). ‘The Organization and Improvement of Market
Forecasting,’ Journal of the Operational Research Society, 45, 1–16.
BIBLIOGRAPHY
Armstrong, J. S., Brodie, R. J., and McIntyre, S. H. (1987). ‘Forecasting Methods for
Marketing: Review of Empirical Research,’ International Journal of Forecasting,3,
335–376.
Armstrong, J. S. (2001). Principles of Forecasting: A Handbook for Researchers and Practi-
tioners. Dordrecht: Kluwer.
Forer effect see Barnum effect
forgetting, law of see forgetting curve
forgetting curve
(also called the Ebbinghaus forgetting curve, Ebbinghaus curve of for-
getting, Ebbinghaus forgetting function, Ebbinghaus effect, Ebbinghaus’s
law of forgetting, or, more generally, the law of forgetting)
DESCRIPTION
A curve depicting the outcome of Ebbinghaus’s recall experiments relating the
time since a learning session to the percentage of recall.
KEY INSIGHTS
Ebbinghaus (1913) conducted pioneering experimental research on mem-
ory. As a result of experiments which involved using sets of items to be
committed to memory that had no previous associations, he produced a
now-famous curve summarizing his findings. With time since learning
session on the x-axis and percentage of recall on the y-axis, a plot of
the following numbers can be used to show the Ebbinghaus forgetting
curve:
forgetting curve 218
Time since Learning Session Percentage of Recall
28 minutes 58.2%
1 hour 44.2%
9 hours 35.8%
1 day 33.7%
2 days 27.8%
6 days 25.4%
31 days 21.1%
The forgetting curve involves recall, which is simply trying to recall each
item. Ebbinghaus also examined recollection, which involves trying to
recognize which items had been on the list studied, and found that
recollection is a more sensitive test of memory than recall as people may
be able to recognize items that they cannot recall.
Ebbinghaus further developed the concept of savings in relation to
rememorization. Specifically, in trying to rememorize a list of items
after some long period of time (i.e. after a time when neither recall nor
recollection demonstrate much evidence of prior learning), an individual
can attempt to rememorize the list through further trials. By comparing
the number of trials required to rememorize the list (e.g. five trials) to
the number of trials required to memorize the list the first time (e.g. ten
trials), a percent savings can be calculated (e.g. 5/10 or 50%). Ebbinghaus
views the concept of savings to be the most sensitive test of memory,
as it characterizes a residual effect of previous learning, especially when
recall and recognition show little evidence of prior learning. The savings
concept of Ebbinghaus is often referred to in research as the Ebbinghaus
savings function.
It is important to note that the forgetting curve should not be confused
with the power law of forgetting which mathematically characterizes
the forgetting function as a specific power function. (See power law of
forgetting.)
Note also that the forgetting curve should not be confused with the
forgetting law, also known as Jost’s law, or Jost’s law of forgetting. The
forgetting law encompasses two specific, formal ideas developed by Jost
(1897) concerning aspects of memory. Specifically, the forgetting law
states that if two associations or memories are of the same strength but
different ages, the older will (a) benefit more from a learning trial and (b)
decay more slowly in a given period of time than the younger one. While
of interest in the field of psychology, the forgetting law as developed by
Jost has not received significant research attention in marketing.
KEY WORDS Forgetting, memory, recall
IMPLICATIONS
Much marketing practice is aimed at encouraging consumer recall and
recognition of a marketer’s products and brands. Recognizing that con-
sumers have a systematic tendency to forget part of what they learn over
time, knowledge of such tendencies, and its quantification can form the
219 framing effect
basis for marketing models, policies, and practices that help to make the
best use of marketing resources and strategies for particular marketing
objectives for short- and long-term consumer learning. Advertising poli-
cies and practices are particularly influenced by a careful understanding
of consumers’ forgetting tendencies.
APPLICATION AREAS AND FURTHER READINGS
Consumer Behavior
Lodish, Leonard M. (1971). ‘Empirical Studies on Individual Response to Exposure
Patterns,’ Journal of Marketing Research, 8(2), May, 212–218.
Advertising
Bagozzi, Richard P., and Silk, Alvin J. (1983). ‘Recall, Recognition, and the Mea-
surement of Memory for Print Advertisements,’ Marketing Science, 2(2), Spring,
95–134.
Mahajan, Vijay, and Muller, Eitan (1986). ‘Advertising Pulsing Policies for Generat-
ing Awareness for New Products,’ Marketing Science, 5(2), Spring, 89–106.
Krugman, Herbert E. (1965). ‘The Impact of Television Advertising: Learning with-
out Involvement,’ Public Opinion Quarterly, 29(3), Autumn, 349–356.
BIBLIOGRAPHY
Anderson, J. R. (2000). Learning and Memory: An Integrated Approach, 2nd edn. New
York: Wiley.
Ebbinghaus, H. (1913). Memory: A Contribution to Experimental Psychology, trans. H. A.
Ruger and C. E. Bussenius. New York: Teachers College, Columbia University.
(Original work published 1885.)
Jost, A. (1897). ‘Die Assoziationsfestigkeit in ihrer Abhangigkeit von der Verteilung
der Wiederholungen’ (The Strength of Associations in their Dependence on the
Distribution of Repetitions), Zeitschrift für Psychologie und Physiologie der Sinnesor-
gane, 16, 436–472.
forgetting law see forgetting curve
forward integration see integration
four Ps see marketing mix
framing effect
DESCRIPTION
Any effect of how a problem is described, presented, or labeled on an
individual’s response to it.
KEY INSIGHTS
Based on pioneering research by Tversky and Kahneman (1981), the
framing effect is observable when significantly different responses (e.g.
decisions) are obtained by individuals when the same problem is merely
presented in different ways, as when saying a surgical operation has a
10% chance of failure vs. a 90% chance of success. How problems are
framed can therefore influence the way problems are evaluated, which
may include leading individuals to pay more or less attention to their
tendencies to be either risk averse or risk seeking.
KEY WORDS Problem framing, choice, decision making