Dacko S.G. The Advanced Dictionary of Marketing Putting Theory to Use
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Herzberg’s theory of motivation 250
confounding influences in their research through appropriately rigorous
methods.
APPLICATION AREAS AND FURTHER READINGS
Marketing Research
Hubbard, Raymond, and Armstrong, Scott (1994). ‘Replications and Extensions in
Marketing: Rarely Published but Quite Contrary,’ International Journal of Research
in Marketing, 11, 233–248.
Cadotte, Ernest R., and Robinson, Larry M. (1978). ‘Measurement of Consumer
Satisfaction: An Innovation,’ Journal of Marketing, 42(3), July, 8–58.
BIBLIOGRAPHY
Schwartzman, H. B. (1993). ‘Ethnography in Organizations,’ Qualitative Research
Methods Series, 27.
Franke, R. H., and Kaul, J. O. (1978). Hawthorne Effect. London: Sage Publications.
Parsons, H. M. (1974). ‘What Happened at Hawthorne?’ Science, 183, 922–932.
heavy half, law of the see Pareto principle
Herzberg’s theory of motivation
DESCRIPTION
The theory of motivation proposed by Herzberg which characterizes factors
affecting people’s attitudes about work.
KEY INSIGHTS
Herzberg’s theory of motivation distinguishes between hygiene factors
(e.g. working conditions, interpersonal relationships) and motivators
which enrich a person’s job. According to Herzberg, the absence of
hygiene factors can create dissatisfaction but their presence does not
motivate. Motivators include achievement, recognition, the work itself,
responsibility, and advancements. As such, motivators are satisfiers asso-
ciated with long-term effects in job performance while hygiene factors
are dissatisfiers which produce only short-term changes.
KEY WORDS Work motivation, motivation, satisfaction
IMPLICATIONS
The principles and concepts found in Herzberg’s theory of motivation can
be applied to obtain useful insights into work motivation in marketing
organizations. Distinguishing between hygiene factors and motivators
provides a means to understand better how motivated and satisfied indi-
viduals may be in performing particular jobs such as those in the sales
function of an organization.
APPLICATION AREAS AND FURTHER READINGS
Marketing Management
Walker, Orville C., Jr., Churchill, Gilbert A., Jr., and Ford, Neil M. (1977). ‘Motivation
and Performance in Industrial Selling: Present Knowledge and Needed Research,’
Journal of Marketing Research, 14(2), May, 156–168.
Alvesson, M. (1998). ‘Management of Knowledge Intensive Companies,’ Organization
Studies (Berlin—European Group for Organizational Studies), 19(6), 1053.
251 hierarchy of effects
BIBLIOGRAPHY
Herzberg, F., Mausner, B., and Snyderman, B. B. (1959). The Motivation to Work,2nd
edn. New York: John Wiley & Sons.
Hick’s law
DESCRIPTION
The general proposition that one’s reaction time for making a choice increases
as the logarithm of the number of alternatives.
KEY INSIGHTS
Hick’s law indicates a systematic and generally predictable non-linear
relationship between the time required by an individual to choose from
a set of alternatives and the number of alternatives in the choice set.
It is often more formally expressed by the formula RT = a + blog
2
(n +1)
(where RT is reaction time, a is a constant representing the intercept of
the function, b is a constant representing the slope of the function, and
n is the number of alternatives). Hick’s law is sometimes referred to as
Merkel’s law as a result of Merkel’s earlier research on the relationship.
KEY WORDS Choice, reaction time
IMPLICATIONS
Hick’s law suggests that each additional choice available to a person
makes it increasingly difficult for people to make choices. Marketers
involved in the establishment of choices available to individual con-
sumers must be aware of how individual reaction time will increase with
the number of alternatives. In computer–human interaction, for exam-
ple, such an issue may influence consumer participation and satisfaction.
APPLICATION AREAS AND FURTHER READINGS
Online Marketing
Travis, David (2003). E-commerce Usability. London: Taylor & Francis.
Raskin, Jef (2000). The Humane Interface: New Directions for Designing Interactive Systems.
Reading, Mass.: Addison Wesley.
BIBLIOGRAPHY
Hick, W. E. (1952). ‘On the Rate of Gain of Information,’ Quarterly Journal of Experi-
mental Psychology, 4, 11–26.
Hyman, R. (1953). ‘Stimulus Information as a Determinant of Reaction Time,’
Journal of Experimental Psychology, 45, 188–196.
hierarchy of effects
(also called the hierarchy of effects model)
DESCRIPTION
The view that advertising is effective to the extent that it moves individuals
through a series of defined stages in consumer purchasing.
KEY INSIGHTS
Based on pioneering research by Lavidge and Steiner (1961), a hierarchy
of effects modeling approach for predicting advertising effectiveness
hierarchy of needs theory 252
considers the effect of advertising to be that of moving consumers
through purchasing stages including awareness, knowledge, liking, pref-
erence, conviction, and purchase. Similarly, Palda (1966) considers the
critical stages to be attention, interest, desire, and action (AIDA). More
generally, the view can be said to extend to broader models of informa-
tion response including, for example, consumer response to information
presented through persuasive methods of personal selling.
KEY WORDS Advertising effectiveness, persuasion, consumer purchasing,
stages, models
IMPLICATIONS
The hierarchy of effects model suggests an approach for the structured
development of persuasive marketing communications where the ulti-
mate aim is to persuade consumers to take action through purchase.
In essence, the approach suggests that composition and presentation of
marketing messages must be carefully developed and evaluated for the
extent that they encourage, persuade, and reinforce consumers to move
successfully through a set of distinct stages of consumer purchasing.
APPLICATION AREAS AND FURTHER READINGS
Marketing Modeling
Smith, Robert E., and. Swinyard, William R. (1982). ‘Information Response Models:
An Integrated Approach,’ Journal of Marketing, 46(1), Winter, 81–93.
Advertising
Vakratsas, Demetrios, and Ambler, Tim (1999). ‘How Advertising Works: What Do
We Really Know?’ Journal of Marketing, 63(1), January, 26–43.
BIBLIOGRAPHY
Palda, Kristian S. (1966). ‘The Hypothesis of a Hierarchy of Effects: A Partial Evalu-
ation,’ Journal of Marketing Research, 3(1), February, 13–24.
Lavidge, Robert J., and Steiner, Gary A. (1961). ‘A Model for Predictive Measure-
ments of Advertising Effectiveness,’ Journal of Marketing, 25, October, 59–62.
hierarchy of effects model see hierarchy of effects
hierarchy of needs theory
(also called Maslow’s theory of motivation, need hierarchy theory,
Maslow’s need hierarchy, or Maslow’s theory of self-actualization)
DESCRIPTION
The view that human needs are categorical and hierarchical, where it is not
until certain categories of lower-level needs are met or reasonably well satis-
fied that other higher-level categories of needs can be attended to.
KEY INSIGHTS
The hierarchy of needs theory as developed by Maslow (1943, 1954,
1970) considers human needs as consisting of five categories in ascending
order: physiological or biological needs (e.g. food, water, sleep), safety
needs (e.g. physical security, financial security), belongingness and love
253 hindsight bias
needs (e.g. friends, relationships, intimacy), esteem needs (respect, sta-
tus), and self-actualization needs (e.g. making the most of one’s unique
abilities). While the theory is viewed as having merit over earlier theories,
some subsequent research including that of Wahba and Bridwell (1976)
has questioned elements of the view including support for the existence
of a definite hierarchy and further has drawn attention to vagueness in
terminology including that for the self-actualization concept.
KEY WORDS Need(s), need categories, need hierarchy
IMPLICATIONS
While the hierarchy of needs theory is not without detractors, it never-
theless provides a means with which to categorize and analyze human
needs in ways suggestive of priorities for needs being met. Marketers
should seek to understand how consumers define and prioritize their
own particular needs in relation to those that can be met through the
marketer’s offerings.
APPLICATION AREAS AND FURTHER READINGS
International Marketing
Malhotra, N. K., Ulgado, F. M., Agarwal, J., and Baalbaki, I. B. (1994). ‘International
Services Marketing: A Comparative Evaluation of the Dimensions of Service
Quality between Developed and Developing Countries,’ International Marketing
Review, 11(2), 5.
Marketing Management
Salancik, Gerald R., and Pfeffer, Jeffrey (1977). ‘An Examination of Need-
Satisfaction Models of Job Attitudes,’ Administrative Science Quarterly, 22(3),
September, 427–456.
Marketing Research
Sirgy, M. Joseph, and Samli, A. Coskun (1995). New Dimensions in Marketing/Quality-of-
Life Research. Westport, Conn.: Quorum Books.
Oleson, Mark (2004). ‘Exploring the Relationship between Money Attitudes and
Maslow’s Hierarchy of Needs,’ International Journal of Consumer Studies, 28(1), Janu-
ary, 83.
BIBLIOGRAPHY
Maslow, A. H. (1943). ‘A Theory of Human Motivation,’ Psychological Review, 50, 370–
396.
Maslow, A. H. (1954). Motivation and Personality. New York: Harper & Row.
Maslow, A. H. (1970). Motivation and Personality, 2nd edn. New York: Harper & Row.
Wahba, M. A., and Bridwell, L. G. (1976). ‘Maslow Reconsidered: A Review of
Research on the Need Hierarchy Theory,’ Organizational Behavior and Human Per-
formance, 15, 212–240.
hindsight bias
(also called the I-knew-it-all-along effect)
DESCRIPTION
A tendency where an individual’s knowledge of the occurrence of a past event
leads them to overestimate in hindsight the likelihood that it would have been
predicted in foresight.
hockey stick effect 254
KEY INSIGHTS
The hindsight bias phenomenon was first studied in pioneering research
by Fischhoff and Beyth (1975) where it was found that individuals’ recall
of their predictions tended to be biased in the direction of events which
have actually occurred. Mechanisms leading to a hindsight bias tendency
in an individual include the view that actual events are more available to
the individual in their recall when compared to that for events which did
not occur. Hindsight bias has been observed to be a tendency in a variety
of settings where past events are reflected upon.
Formal examinations of possible alternatives by individuals may lead
to reductions in hindsight bias.
KEY WORDS Bias, perception, hindsight, event likelihood
IMPLICATIONS
Marketers must be aware of how individuals’ assessments of past events
may be affected by hindsight bias, where the result is a distorted current
view of what could, or should, have been able to be predicted in foresight.
Consumer and managerial perceptions alike may be subject to hindsight
biases. Efforts to remove, control for, or draw attention to such biases to a
greater extent may include engaging an individual in critical evaluations
of possible alternatives.
APPLICATION AREAS AND FURTHER READINGS
Marketing Ethics
Sligo, F., and Stirton, N. (1998). ‘Does Hindsight Bias Change Perceptions of Busi-
ness Ethics?’ Journal of Business Ethics, 17(2), 111–124.
Services Marketing
Pieters, R., Koelemeijer, K., and Roest, H. (1995). ‘Assimilation Processes in Service
Satisfaction Formation,’ International Journal of Service Industry Management, 6(3), 17.
Consumer Behavior
Pieters, R., and Zwick, R. (1993). ‘Hindsight Bias in the Context of a Consumption
Experience,’ European Advances in Consumer Research, 1, 307–11.
BIBLIOGRAPHY
Fischhoff, B., and Beyth, R. (1975). ‘ “I Knew it would Happen”: Remembered Proba-
bilities of Once-Future Things,’ Organizational Behavior and Human Performance, 13,
1–16.
hockey stick effect
DESCRIPTION
A phenomenon where an organization’s quarterly performance (e.g. sales) is
characterized by a steep upturn in the performance measure as a fiscal period
nears a close.
KEY INSIGHTS
The hockey stick effect, named after the hockey stick-shaped graph that
results when daily performance is plotted over a fiscal period (e.g. one
quarter), is an artificial phenomenon that is observed among some firms
255 honeymoon effect
in different industries and markets (e.g. computing and business soft-
ware). Explanations for the phenomenon vary and include the view that
increases in sales at the end of each quarter may be a result of managers
of firms in buying situations making purchases to avoid the loss of budget
money within their firms.
KEY WORDS Buying cycle, fiscal performance
IMPLICATIONS
To the extent the phenomenon of the hockey stick effect is present
in a firm’s industry and market, there may be important implications
for the firm’s internal operations. In particular, the cyclical nature of
the aggregate customer buying cycle may require the marketer’s firm
to adopt more flexible manufacturing practices. At the same time, the
phenomenon may present an opportunity to the marketer to adopt mar-
keting practices aimed at smoothing the customer buying cycle.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Gerwin, D. (1993). ‘Manufacturing Flexibility: A Strategic Perspective,’ Management
Science, 39, 395–410.
Klein, William, and Ramseyer, J. Mark (1997). Business Associations, 3rd edn. West-
bury, Conn.: Foundation Press.
Marketing Management
Rehfeld, John E. (1994). Alchemy of a Leader: Combining Western and Japanese Manage-
ment Skills to Transform your Company. New York: J. Wiley.
BIBLIOGRAPHY
O’Guinn, M. C. (1991). The Complete Guide to Activity-Based Costing. Englewood Cliffs,
NJ: Prentice-Hall.
honeymoon effect
DESCRIPTION
A positive initial effect on performance attributed to conditions that are most
favorable at the early stages of a new relationship or venture in comparison to
conditions encountered as the relationship or venture continues.
KEY INSIGHTS
Any time a new relationship or ventures is established by an organization
with customers, suppliers, or firms in alliance with the organization,
there is a possibility that performance may be enhanced initially as the
newness of the relationship or venture may be chacterized initially by
harmony, euphoria, calmness, or similar qualities analogously associ-
ated with that of a marital honeymoon. As honeymoons, by definition,
are temporary, however, perceptions of the relationship or venture and
associated actions of the participants may change over time resulting in
differences (e.g. decreases) in performance relative to that demonstrated
during the honeymoon period.
KEY WORDS Performance, relationships, ventures
house of quality 256
IMPLICATIONS
Marketers involved in developing or managing any new venture or rela-
tionship of the firm with others, whether it is in constructing a new
stadium to draw sports fans or engaging in a new comarketing alliance
with another organization, may benefit from anticipating the occurrence
of honeymoon effects in managing and measuring new venture or rela-
tionship performance over time. Depending on the context, performance
measures, and information available, the effect may be assessed (e.g.
predicted or retrospectively examined) either qualitatively or through
rigorous and systematic quantitative methods.
APPLICATION AREAS AND FURTHER READINGS
Sports Marketing
McEvoy, C., Nagel, M., DeSchriver, T., and Brown, M. (2005). ‘Facility Age and
Attendance in Major League Baseball,’ Sport Management Review, 8(1), 19–41.
Leadley, John C., and Zygmont, Zenon X. (2005). ‘When is the Honeymoon Over?
National Basketball Association Attendance 1971–2000,’ Journal of Sports Eco-
nomics, 6(2), 203–221.
Consumer Behavior
Crosby, Lawrence A., and Taylor, James R. (1983). ‘Psychological Commitment and
its Effects on Post-Decision Evaluation and Preference Stability among Voters,’
Journal of Consumer Research, 9(4), March, 413–431.
Heilman, C. M., Bowman, D., and Wright, G. P. (2000). ‘The Evolution of Brand
Preferences and Choice Behaviors of Consumers New to a Market,’ Journal of
Marketing Research, 37(2), 139–155.
Marketing Strategy
Bucklin, Louis P., and Sengupta, Sanjit (1993). ‘Organizing Successful Co-marketing
Alliances,’ Journal of Marketing, 57(2), April, 32–46.
BIBLIOGRAPHY
Clapp, Christopher M., and Hakes, Jahn K. (2005). ‘How Long a Honeymoon? The
Effect of New Stadiums on Attendance in Major League Baseball,’ Journal of Sports
Economics, 6(3), 237–63.
horizontal integration see integration
horns and halo effect see halo effect
house of quality
DESCRIPTION
A house-shaped planning matrix that is developed during organizational deci-
sionmaking involving customer needs assessments andshowstherelationship
of customer requirements to the means of achieving those requirements.
KEY INSIGHTS
The house of quality, a graphical planning tool, helps to define the
relationship between customer preferences and the way the firm is able
to fulfill such preferences. The specific planning approach is considered
to be most effective when it is used as part of a broader planning process
involving flexible and comprehensive group decision making focused on
developing products or services that are aligned closely with customer
needs.
257 hybrid marketing
KEY WORDS Quality, customer needs, product development, service devel-
opment
IMPLICATIONS
Marketers involved in new product and service development efforts may
benefit from adopting a house of quality-based planning approach to help
ensure the firm’s offerings are well matched with customer needs. In par-
ticular, mastering the methodology provides the marketer with a means
to develop and articulate critical product or service plans collaboratively
with others in a range of organizational functions.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Griffin, Abbie, and Hauser, John R. (1993). ‘The Voice of the Customer,’ Marketing
Science, 12(1), Winter, 1–27.
Marketing Research
Bech, A., Hansen, M., and Wienberg, L. (1997). ‘Application of House of Quality in
Translation of Consumer Needs into Sensory Attributes Measurable by Descrip-
tive Sensory Analysis,’ Food Quality and Preference, 8, 329–348.
Vairaktarakis, G. L. (1999). ‘Optimization Tools for Design and Marketing of
New/Improved Products Using the House of Quality,’ Journal of Operations Man-
agement, 17, 645–663.
Marketing Modeling
Ramaswamy, Rajan, and Ulrich, Karl (1993). ‘Augmenting the House of Quality with
Engineering Models,’ Research in Engineering Design, 5(2), 70–79.
BIBLIOGRAPHY
Hauser, John R., and Clausing, Don (1988). ‘The House of Quality,’ Harvard Business
Review, 88(3), May–June, 68–72.
hybrid marketing
(also called multimarketing)
DESCRIPTION
Marketing involving multiple strategies, methods, processes, and/or tactical
approaches in order to achieve the firm’s marketing objectives.
KEY INSIGHTS
Hybrid marketing encompasses many areas of marketing ranging from
the combined use of multiple strategic planning processes to the strategic
use of multiple, distinct distribution channels. Multimarketing may be
viewed as an equivalent term to hybrid marketing as it conveys the use
of more than one marketing approach, although the term is also used by
Weigand (1977) to refer more specifically to the use of multiple marketing
channels to distribute the same product to markets differing in some
important way. When the firm’s objectives involve reaching and influenc-
ing a firm’s target market, hybrid marketing may be used to increase the
likelihood that those within the firm’s target market will be successfully
reached and persuaded at some point in their purchase deliberations. On
the other hand, hybrid marketing may also be beneficial when a single
marketing approach is insufficient to reach multiple market segments.
hybrid marketing 258
KEY WORDS Multiple marketing approaches, channels, distribution
IMPLICATIONS
While it may be tempting to conclude that some distinct marketing
approaches (e.g. distribution strategies) are most effective when adopted
to the mutual exclusion of other approaches, hybrid marketing empha-
sizes the view that superior results may be achievable through the inter-
actions of multiple marketing approaches. Convergence marketing, for
example, adopts such a view, as does fusion marketing (see convergence
marketing; fusion marketing). Toward assisting efforts evaluating alter-
native combinations, marketers may therefore benefit from a greater
knowledge of research examining not only the relative effectiveness of
hybrid approaches but the many issues associated with their develop-
ment and implementation as well.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Moriarty, Rowland T., and Moran, Ursula (1990). ‘Marketing Hybrid Marketing
Systems,’ Harvard Business Review, 6, 146–155.
Duan, Y., and Burrel, P. (1995). ‘A Hybrid System for Strategic Marketing Planning,’
Marketing Intelligence & Planning, 13(11), 5–12.
Webb, K. L., and Hogan, J. E. (2002). ‘Hybrid Channel Conflict: Causes and Effects
on Channel Performance,’ Journal of Business & Industrial Marketing, 17(5), 338–356.
Marketing Management
Littman, M. (2000). ‘Hybrid Engine Cars do Better with Hybrid Marketing Tactics,’
Marketing News,6.
BIBLIOGRAPHY
Moriarty, R. T., and Moran, U. (1990). ‘Managing Hybrid Marketing Systems,’ Har-
vard Business Review, 68(6), 146–155.
Gandolfo, A., and Padelleti, F. (1999). ‘From Direct to Hybrid Marketing: A New IBM
Go-to-Market Model,’ European Journal of Innovation Management, 2(3), 109–117.
Weigand, R. E. (1977). ‘Fit Products and Channels to your Markets,’ Harvard Business
Review, 1, 95–105.
I
Icarus paradox
DESCRIPTION
The situation where an organization’s great success precedes its severe
decline.
KEY INSIGHTS
The Icaraus paradox phenomenon as developed and researched by
Miller (1990) views an effect of organizational success as con-
tributing to blinding it to future threats, thereby increasing the
likelihood of failure in the future. Such organizations become
slow in their ability to react to changing environments as a
result of success contributing to an overall sense of organizational
superiority.
KEY WORDS Success, failure
IMPLICATIONS
Marketers must be aware of how an organization’s successes may
ultimately contribute to its vulnerability to decline. Anticipating
competitive moves, for example, is an activity that could increase
in importance and scope as an organization becomes increasingly
successful.
APPLICATION AREAS AND FURTHER READINGS
Marketing Management
Chen, Ming-Jer (2002). ‘Transcending Paradox: The Chinese “Middle Way” Perspec-
tive,’ Asia Pacific Journal of Management, 19(2–3), August.
Mumby-Croft, Roger, and Williams, Juliet (2002). ‘The Concept of Workplace
Marketing: A Management Development Model for Corporate and Enterprise
Sectors,’ Strategic Change, 11(4), 205–214.
Moulton, Wilbur N., Thomas, Howard, and Pruett, Mark (1996). ‘Business Failure
Path Ways: Environmental Stress and Organizational Response,’ Journal of Man-
agement, 22(4), 571–595.
BIBLIOGRAPHY
Miller, D. (1990). The Icarus Paradox: How Exceptional Companies Bring about their Down-
fall. New York: HarperBusiness.
Miller, Danny (1993). ‘The Architecture of Simplicity,’ Academy of Management Review,
18(1), January, 116–138.