Dacko S.G. The Advanced Dictionary of Marketing Putting Theory to Use
Подождите немного. Документ загружается.
subjective expected utility theory 510
Marketing Management
Deshpande, Rohit, and Webster, Frederick E., Jr. (1989). ‘Organizational Culture
and Marketing: Defining the Research Agenda,’ Journal of Marketing, 53(1), Janu-
ary, 3–15.
Consumer Behavior
Schouten, John W., and McAlexander, James H. (1995). ‘Subcultures of Consump-
tion: An Ethnography of the New Bikers,’ Journal of Consumer Research, 22(1), June,
43–61.
Harris, Lloyd C. (1998). ‘Cultural Domination: The Key to Market-Oriented Culture?’
European Journal of Marketing, 32(3–4), April, 354–373.
Mathur, Anil, and Moschis, George P. (2005). ‘Antecedents of Cognitive Age: A
Replication and Extension,’ Psychology and Marketing, 22(12), October, 969–994.
Marketing Research
Thompson, Craig J. (1997). ‘Interpreting Consumers: A Hermeneutical Framework
for Deriving Marketing Insights from the Texts of Consumers’ Consumption
Stories,’ Journal of Marketing Research, 34(4), November, 438–455.
International Marketing
Steenkamp, Jan-Benedict E. M. (2001). ‘The Role of National Culture in Interna-
tional Marketing Research,’ International Marketing Review, 18(1), February, 30–44.
BIBLIOGRAPHY
Blackman, Shane (2005). ‘Youth Subcultural Theory: A Critical Engagement with
the Concept, its Origins and Politics, from the Chicago School to Postmod-
ernism,’ Journal of Youth Studies, 8(1), March, 1–20.
Calluri, R. (1985). ‘The Kids are All Right: New Wave Subcultural Theory,’ Social Text,
12, 43–53.
subjective expected utility theory
DESCRIPTION
A theory of decision making under risk involving making choices among
alternatives in order to maximize a decision maker’s subjective expected
utility.
KEY INSIGHTS
Developed in pioneering research by Savage (1954), subjective expected
utility theory views decision making under uncertainty in terms of two
major subjectivities of an individual decision maker: the individual’s per-
sonal utility function and the individual’s personal probability analysis.
In contrast to decision-making where objective probabilities can be estab-
lished based on the relative frequencies of observable events, subjective
probabilities are used in the decision-making process. The theory enables
decision making to be characterized by the determination and use of such
probabilities in combination with the decision maker’s subjective utility
function to maximize the decision maker’s overall subjective expected
utility.
KEY WORDS Decision making, uncertainty, subjective probability, subjec-
tive utility
511 subliminal advertising
IMPLICATIONS
Marketers concerned with the modeling of decision making under risk
where probabilities are based on a decision maker’s beliefs, as opposed
to being purely objective, may benefit from a greater understanding of
subjective expected utility theory. In particular, where there is signifi-
cant ambiguity involved in the decision-making process, as in strategic
marketing decisions involving uncertain future events, the theoretical
approach to modeling the decision may be beneficial to provide struc-
ture and rigor for greater clarity and consistency in the decision-making
process.
APPLICATION AREAS AND FURTHER READINGS
Marketing Modeling
Kahn, Barbara E., and Sarin, Rakesh K. (1988). ‘Modeling Ambiguity in Decision
Making under Uncertainty,’ Journal of Consumer Research, 15, September, 265–272.
Lynch, J. J., and Cohen, J. L. (1982). ‘The Use of Subjective Expected Utility Theory
as an Aid to Understanding Variables that Influence Helping Behavior,’ Journal of
Personality and Social Psychology, 36(10), 1138–1151.
Eliashberg, Jehoshua (1980). ‘Consumer Preference Judgments: An Exposition with
Empirical Applications,’ Management Science, 26(1), January, 60–77.
BIBLIOGRAPHY
Savage, Leonard J. (1954). The Foundations of Statistics. New York: John Wiley & Sons.
subliminal advertising
DESCRIPTION
The incorporation of persuasive messages in advertising which are presented
at a level that is below the threshold of a viewer’s consciousness.
KEY INSIGHTS
While early uses of subliminal advertising with consumer audiences
considered the approach to be effective in influencing consumer behav-
ior, subsequent research on subliminal advertising suggests a lack of
robust results on which to draw any such conclusion. Nevertheless,
claims of its use in advertising periodically arise resulting in public
controversy over the ethical nature of its use as well as its actual
effect.
KEY WORDS Advertising, persuasive messages, unconscious processing
IMPLICATIONS
Marketers involved in the development of advertising campaigns should
avoid practices that either use such a method or give the appearance of
using such a method in order to ensure the advertising is evaluated fairly
on the basis of accepted practices by individuals or organizations that
represent consumer interests.
substitute awareness effect 512
APPLICATION AREAS AND FURTHER READINGS
Advertising
Trappey, C. (1996). ‘A Meta-analysis of Consumer Choice and Subliminal Advertis-
ing,’ Psychology and Marketing, 13(5), 517–530.
Theus, K. T. (1994). ‘Subliminal Advertising and the Psychology of Processing
Unconscious Stimuli: A Review of Research,’ Psychology and Marketing, 11(3), 271–
290.
BIBLIOGRAPHY
Moore, Timothy E. (1982). ‘Subliminal Advertising: What You See Is What You Get,’
Journal of Marketing, 46(2), Spring, 38–47.
substantiality see segmentation viability
substitute awareness effect
DESCRIPTION
An effect on consumer price sensitivity resulting from a consumer’s awareness
of one or more substitutes for a particular product or service offering.
KEY INSIGHTS
Consumer awareness of alternatives to a given product or service offering
has the potential to significantly influence the consumer’s price sensi-
tivity to the offering. In particular, increased awareness of substitutes is
associated with a reduction in the price the consumer is willing to pay
for the offering.
KEY WORDS Substitute product(s), consumer awareness, price sensitivity
IMPLICATIONS
Marketers involved in price setting should strive to understand consumer
price sensitivity for any given offering in order to set and manage prices
effectively. Recognizing how and to what extent price sensitivity is due
to consumer awareness of substitutes can be beneficial in dynamically
setting prices as consumer knowledge of substitute offerings also changes
with time.
APPLICATION AREAS AND FURTHER READINGS
Online Marketing
Dou, Wenyu (2004). ‘Will Internet Users Pay for Online Content?’ Journal of Adver-
tising Research, 44, 349–359.
Marketing Strategy
White, Gerald B., and Uva, Wen-fei L. (2000). Developing a Strategic Marketing Plan
for Horticultural Firms. Ithaca, NY: New York State College of Agriculture and Life
Sciences, Cornell University.
BIBLIOGRAPHY
Erdem, T., Keane, M., and Sun, B. (2004). The Impact of Advertising on Consumer Price
Sensitivity in Experience Goods Markets. New Haven: Yale University Mimeograph.
513 substitute product
substitute product
DESCRIPTION
A product perceived by the consumer as an alternative to another product.
KEY INSIGHTS
A substitute product, as an alternative to a product that it is able to
replace, may vary from the original product in price or availability, but it
usually meets the required utility. An understanding of brand-switching
behavior relies on studies related to motivations behind seeking substi-
tutes, which can relate to variety-seeking behaviour, complementarity
among brands, brand unavailability, changing prices, or shifting con-
sumer needs.
KEY WORD Alternative products
IMPLICATIONS
Identifying competitive substitutes and studying them is essential for
marketers. Substitute products pose threats such as competitive pricing
that can impose a ceiling on prices companies charge for their prod-
ucts. The presence of close substitutes also gives consumers a chance
to make quality, performance, and price comparisons, having the lux-
ury of another alternative to shift to. Lower switching costs also entice
consumers to move to substitutes.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Moorthy, K. Sridhar (1984). ‘Market Segmentation, Self-Selection, and Product Line
Design,’ Marketing Science, 3(4), Autumn, 288–307.
Marketing Management
Dobson, Gregory, and Kalish, Shlomo (1993). ‘Heuristics for Pricing and Positioning
a Product-Line Using Conjoint and Cost Data,’ Management Science, 39(2), February,
160–175.
Miller, Danny (1988). ‘Relating Porter’s Business Strategies to Environment and
Structure: Analysis and Performance Implications,’ Academy of Management Jour-
nal, 31(2), June, 280–308.
Retail Marketing
Walters, Rockney G. (1991). ‘Assessing the Impact of Retail Price Promotions on
Product Substitution, Complementary Purchase, and Interstore Sales Displace-
ment,’ Journal of Marketing, 55(2), April, 17–28.
Marketing Research
Hoffman, Elizabeth, Menkhaus, Dale J., Chakravarti, Dipankar, Field, Ray A., and
Whipple, Glen D. (1993). ‘Using Laboratory Experimental Auctions in Marketing
Research: A Case Study of New Packaging for Fresh Beef,’ Marketing Science , 12(3),
Summer, 318–338.
Sullivan, Mary (1990). ‘Measuring Image Spillovers in Umbrella-Branded Products,’
Journal of Business, 63(3), July, 309–329.
BIBLIOGRAPHY
Lattin, James M., and McAlister, Leigh (1985). ‘Using a Variety-Seeking Model to
Identify Substitute and Complementary Relationships among Competing Prod-
ucts,’ Journal of Marketing Research, 22(3), August, 330–339.
substitution effect 514
substitution effect
DESCRIPTION
An effect of a price change that causes a consumer to purchase another good
of similar utility as a substitute for a good that becomes comparatively more
expensive. More generally, any effect on buyer behavior resulting from the
availability of substitutes for a good.
KEY INSIGHTS
The substitution effect suggests that, as the price of a product or service
rises, a consumer will tend to shift purchases to substitute products
or services of similar utility to the consumer in its place. While the
availability of substitute products or services enables the consumer to
switch, the costs associated with switching are also a factor that must be
taken into consideration. When switching costs are low and when there
are multiple substitutes available that provide consumers with similar
utility to the original product or service, substitution effects may be most
pronounced.
KEY WORDS Substitute product(s), price changes
IMPLICATIONS
Marketers involved in setting prices and managing price changes should
seek to understand how and to what extent price changes may lead
consumers to shift to substitute products. As many products or services
do not have perfect substitutes, understanding in what way other prod-
ucts or services are substitutes (e.g. in form and function) may also be
beneficial to marketers considering price changes.
APPLICATION AREAS AND FURTHER READINGS
Consumer Behavior
Allenby, Greg M., and Rossi, Peter E. (1991). ‘Quality Perceptions and Asym-
metric Switching between Brands,’ Marketing Science, 10(3), Summer, 185–
204.
Huber, Joel, and Puto, Christopher (1983). ‘Market Boundaries and Product Choice:
Illustrating Attraction and Substitution Effects,’ Journal of Consumer Research, 10(1),
June, 31–44.
Johnson, W. C., and Bhatia, K. (1997). ‘Technological Substitution in Mobile
Communications,’ Journal of Business and Industrial Marketing, 12(5–6), 383–
399.
BIBLIOGRAPHY
Walters, Rockney G. (1991). ‘Assessing the Impact of Retail Price Promotions on
Product Substitution, Complementary Purchase, and Interstore Sales Displace-
ment,’ Journal of Marketing, 55(2), April, 17–28.
sundown rule see marketing, rules of
sunk cost see cost
515 sunk cost fallacy
sunk cost fallacy
(also called the Concorde fallacy)
DESCRIPTION
Themistaken belief that acontinued investment in aproject or similar initiative
is warranted based on past investment in it.
KEY INSIGHTS
As sunk costs, by definition, have already occurred and cannot be recov-
ered to any significant degree, the fallacy involves inappropriately con-
sidering what investment has already occurred as opposed to assessing
the current rationality for any additional investment.
KEY WORDS Decision making, judgment, bias, error
IMPLICATIONS
Marketers making investments in marketing strategies and programs
must be aware of committing the sunk cost fallacy in making judg-
ments lest further investment becomes at risk of becoming sunk costs
as well. For example, the term is referred to as the Concorde fallacy due
to the observed behaviors of investors supporting the development of
the Concorde supersonic jet: after a point was reached where the high
development costs made continued investment clearly uneconomical,
the British and French governments ultimately supported the project to
justify the past investments.
APPLICATION AREAS AND FURTHER READINGS
Decision Making
Armstrong, J. Scott, Coviello, Nicole, and Safranek, Barbara (1993). ‘Escalation Bias:
Does it Extend to Marketing?’ Journal of the Academy of Marketing Science, 21(3),
247–253.
Soman, Dilip (2001). ‘The Mental Accounting of Sunk Time Costs: Why Time is Not
Like Money,’ Journal of Behavioral Decision Making, 14(3), 169–185.
Hsee, Christopher K., Zhang, Jiao, Yu, Fang, and Xi, Yiheng (2003). ‘Lay Rationalism
and Inconsistency between Predicted Experience and Decision,’ Journal of Behav-
ioral Decision Making, 16(4), 257–272.
BIBLIOGRAPHY
Arkes, Hal R., and Ayton, Peter (1999). ‘The Sunk Cost and Concorde Effects: Are
Humans Less Rational Than Animals?’ Psychological Bulletin, 125(5), 591–600.
superior goods see goods
supermarketing see retail marketing
supply, law of
DESCRIPTION
An economic principle that holds that, all else equal, the quantity of a good
supplied rises as the price of the good rises and falls as the price of the good
falls.
supply and demand, law of 516
KEY INSIGHTS
Developed by economist Alfred Marshall, the law of supply asserts that
the supply and price of a good are directly proportional. That is, the
amount of a good that a producer or supplier will be willing to bring
to market to sell at a given price at a given time will be in proportion to
the price of the good. Higher prices will lead a supplier to offer more of
the product in the market, whereas lower prices will lead a supplier to
offer less of the product.
KEY WORDS Supply, price, modeling
IMPLICATIONS
In order to manage effectively both the price and supply of an offering,
marketing strategists should seek to understand the nature and extent
of the price–supply relationship. While there may be deviations from
the law of supply based on market and/or product characteristics that
the marketer should also seek to appreciate and understand fully, the
law of supply nevertheless emphasizes an important economic principle
of influence to marketing strategy development and management over
time.
APPLICATION AREAS AND FURTHER READINGS
Marketing Modeling
Engl, G., and Scotchmer, S. (1997). ‘The Law of Supply in Games, Markets and
Matching Models,’ Economic Theory, 9(3), 539–550.
Marketing Strategy
Low, Linda (2000). The Economics of Information Technology and the Media. Singapore:
Singapore University Press.
BIBLIOGRAPHY
Buchholz, Todd G. (1990). New Ideas from Dead Economists. New York: Penguin Books.
supply and demand, law of
DESCRIPTION
An economic principle of free markets in equilibrium that holds that prices are
determined such that demand equals supply, and where changes in prices are
a result of a shift in demand and/or supply.
KEY INSIGHTS
In free markets, the law of supply and demand asserts that the prices
and quantities of goods produced are determined by the relationship
between supply and demand. When either the demand or supply for
goods changes, the result will be either changes in prices or in the
quantities of goods produced, or both, in order to achieve equilibrium
in the market.
KEY WORDS Demand, supply, prices, market equilibrium
IMPLICATIONS
Marketers involved in marketing strategy development and implemen-
tation should strive to understand how and to what extent the relative
517 survey research
balance or imbalance between demand and supply may potentially influ-
ence the prices of the marketer’s offerings. As marketers are constantly
engaged in managing demand relative to supply for products and addi-
tionally frequently concerned with setting prices, an appreciation of
the law of supply and demand and its implications for the marketing
strategies of the firms’ offerings is essential.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Einav, Liran, Orbach, Barak Y., and Olin, John M. (2001). Uniform Prices for Differen-
tiated Goods: The Case of the Movie-Theater Industry. Cambridge, Mass.: Harvard Law
School.
Brewer, P. J., Huang, M., Nelson, B., and Plott, C. R. (2002). ‘On the Behavioral
Foundations of the Law of Supply and Demand Human Convergence and Robot
Randomness,’ Experimental Economics, 5(3), 179–208.
BIBLIOGRAPHY
Gale, D. (1955). ‘The Law of Supply and Demand,’ Mathematica Scandinavica,3,
155–169.
supply push see push marketing
survey research
DESCRIPTION
In marketing research, a method of collecting data about a certain population
using a systematic approach for measurement.
KEY INSIGHTS
Research involving surveys, also called questionnaires, can be conducted
with varying levels of interaction with the subjects of interest. Examples
are omnibus surveys, which are surveys covering a number of topics that
can be answered by a national and general sample of the population;
telephone surveys, which are typically calls to respondent’s residences
and involve questioning the respondents over the phone; mail surveys,
which are sent by mail to selected respondents to be filled out and
sent back (or similarly, e-mail surveys sent via the internet); in-person or
face-to-face surveys, which involve direct questioning by an interviewer.
Questions asked can be very structured, especially in mail surveys, or
less structured, which is often the case in face-to-face surveys. The data
generated varies along a continuum of highly quantitative data for pur-
poses of statistical analysis to highly qualitative data for sense making
and exploratory interpretation.
KEY WORDS Data gathering, information, measurement, research
IMPLICATIONS
The use of surveys in marketing research has been a long-held method of
conducting field studies. The choice of the specific method depends on
the research question, the population of interest, and its accessibility. As
all types of surveys involve a cost in collecting the information required,
sustainable competitive advantage 518
in terms of time, effort, and money, the detailed planning of survey
questions and layout must be based not only on the research objectives
but also on its means of administration (e.g. e-mail, mail, or face to face).
APPLICATION AREAS AND FURTHER READINGS
Marketing Research
Deshpande, Rohit (1983). ‘ “Paradigms Lost”: On Theory and Method in Research
in Marketing,’ Journal of Marketing, 47(4), Autumn, 101–110.
Hunt, Shelby D., Sparkman, Richard D., Jr., and Wilcox, James B. (1982). ‘The
Pretest in Survey Research: Issues and Preliminary Findings,’ Journal of Marketing
Research, 19(2), May, 269–273.
Schwarz, N., and Sudman, S. (eds.) (1996). Answering Questions: Methodology for Deter-
mining Cognitive and Communicative Processes in Survey Research. San Francisco: Jossey-
Bass.
Sudman, S., and Bradburn, N. M. (1982). Asking Questions: A Practical Guide to Question-
naire Design. San Francisco: Jossey-Bass.
BIBLIOGRAPHY
Babbie, E. (1990). Survey Research Methods, 2nd edn. Belmont, Calif.: Wadsworth.
Krosnick, Jon A. (1999). ‘Survey Research,’ Annual Review of Psychology, 50, 537–567.
Bagozzi, R. P. (1994). ‘Measurement in Marketing Research: Basic Principles of
Questionnaire Design,’ in R. P. Bagozzi (ed.), Principles of Marketing Research.
Malden, Mass.: Blackwell Publishers, 1–49.
sustainability see segmentation viability
sustainable competitive advantage
(also abbreviated as SCA)
DESCRIPTION
An element of a business or marketing strategy that provides a meaningful
advantage over both existing and future competitors.
KEY INSIGHTS
While there are many possible strategic options that provide routes to
a sustainable competitive advantage or SCA (e.g. quality, product design,
value through low production costs, etc.) obtaining a highly effective SCA
is often difficult to achieve as it means the SCA is both substantial and dif-
ficult to imitate or replicate by competitors. An SCA provides a firm with
an advantage relative to competing firms that is able to be sustained by
the firm and not easily eroded by competitors over time. As such, a firm
mayhaveacompetitive advantage in that they are able to offer consumers
greater value (e.g. through low prices or more benefits at a higher price)
relative to that of competing firms, but such competitive advantages may
not be sustainable, as when the rate and benefits of technological change
outpace the firm’s abilities to take advantage of such changes. Whatever
strategic options are chosen by a firm, managers should recognize that
the strategy should exploit organizational assets and competencies and
neutralize weaknesses. Much of marketing strategy development and
implementation is concerned with the pursuit of SCAs by a firm.
519 SWOT analysis
KEY WORDS Competitive advantage, sustainability, marketing strategy
IMPLICATIONS
Marketers should recognize that a major aim of a firm’s marketing strat-
egy should be to achieve and maintain a sustainable competitive advan-
tage. While almost all SCAs may be only temporarily achieved in the long
run, their pursuit should nevertheless be the foremost consideration in
strategic decisions including the way the firm decides to compete (e.g.
its product strategy, manufacturing strategy), its basis of competition in
terms of assets and competencies, what is offered in terms of its value
proposition, and its choice of where to compete in terms of product-
market and competitor selection.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Bharadwaj, Sundar G., Varadarajan, P. Rajan, and Fahy, John (1993). ‘Sustainable
Competitive Advantage in Service Industries: A Conceptual Model and Research
Propositions,’ Journal of Marketing, 57(4), October, 83–99.
Mata, Francisco J., Fuerst, William L., and Barney, Jay B. (1995). ‘Information
Technology and Sustained Competitive Advantage: A Resource-Based Analysis,’
MIS Quarterly, 19(4), December, 487–505.
Fahy, J. (2002). ‘A Resource-Based Analysis of Sustainable Competitive Advantage in
a Global Environment,’ International Business Review, 11(1), February, 57–77.
Williams, Jeffrey R. (1992). How Sustainable is your Competitive Advantage? Berke-
ley and Los Angeles: University of California Press.
Vorhies, Douglas W., and Morgan, Neil A. (2005). ‘Benchmarking Marketing
Capabilities for Sustainable Competitive Advantage,’ Journal of Marketing, 69(1),
January, 80–94.
BIBLIOGRAPHY
Ghemawat, Pankaj (1986). ‘Sustainable Advantage,’ Harvard Business Review, 64,
September–October, 53–58.
Aaker, David A. (2005). Strategic Market Management. New York: John Wiley & Sons,
Inc.
switching cost see cost
SWOT analysis
DESCRIPTION
An internal and external assessment of a firm in terms of its strengths,
weaknesses, opportunities, and threats of its operations in a market.
KEY INSIGHTS
As a situational scanning of a firm’s internal and external environment,
SWOT analysis helps match a firm’s internal capabilities with its external
prospects. It is a framework used extensively in marketing management
as it entails an in-depth view of a firm. This involves looking at the
political and legislative environment, socioeconomic variables, indus-
try trends, technological advances, competitive advantages, competitors,
and all organizational factors that may impact its strategy and plans.
Strengths and weaknesses are related to factors in the firm’s internal