Dacko S.G. The Advanced Dictionary of Marketing Putting Theory to Use
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behavioral decision theory 50
BIBLIOGRAPHY
Rossi, P. E., and Allenby, G. M. (2003). ‘Bayesian Statistics and Marketing,’ Marketing
Science, 22(3), 304–328.
Berger, James O. (1985). Statistical Decision Theory and Bayesian Analysis. New York:
Springer-Verlag.
BCG growth-share matrix see product portfolio analysis
behavioral decision theory
DESCRIPTION
Theory or theories for judgment and decision-making evaluation which
emphasize individuals’ subjective expected utilities, personal utility functions,
and personal probability analyses.
KEY INSIGHTS
Behavior decision theory as pioneered by Edwards (1954) provides a sys-
tematic approach for describing how individual decision makers’ values
and beliefs are incorporated into their decisions as well as for prescribing
courses of action which reflect closely the values and beliefs of decision
makers. Explicit in the theoretical approach is the view that decision
makers are able to express preferences given alternatives, where such
preferences are able to be systematically evaluated with consideration of
subjective expected utilities.
KEY WORDS Judgment, decision making, utility
IMPLICATIONS
Behavioral decision theory highlights the critical role of values and beliefs
in the judgments and decision making of marketers as well as consumers.
As such, marketing efforts aimed at understanding, explaining, and
predicting strategically important decisions should consider analytical
approaches grounded in behavioral decision theory. Many behavioral
decision-based models have been developed by researchers with the
purpose of providing ways to evaluate and explain successful marketing
decisions and important consumer judgments.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Glazer, Rashi, and Weiss, Alien M. (1993). ‘Marketing in Turbulent Environments:
Decision Processes and the Time-Sensitivity of Information,’ Journal of Marketing
Research, 30(4), November, 509–521.
Marketing Management
Curren, Mary T., Folkes, Valerie S., and Steckel, Joel H. (1992). ‘Explanations for
Successful and Unsuccessful Marketing Decisions: The Decision Maker’s Perspec-
tive,’ Journal of Marketing, 56(2), April, 18–31.
Consumer Behavior
Hoyer, W. D. (1984). ‘An Examination of Consumer Decision Making for a Common
Repeat Purchase Product,’ Journal of Consumer Research, 11, December, 822–829.
51 below-the-line marketing
BIBLIOGRAPHY
Slovic, P., Fischhoff, B., and Lichtenstein, S. (1977). ‘Behavioral Decision Theory,’
Annual Review of Psychology, 28, January, 1–39.
Edwards, Ward (1954). ‘The Theory of Decision Making,’ Psychological Bulletin, 51(4),
July, 380–417.
behavioral segmentation see segmentation
behavioral theory of the firm see firm, theory of the
below-the-line marketing
DESCRIPTION
Marketing comprising of activity that, traditionally, is commission free or
charged at a fixed fee by advertising agencies which, mainly, excludes mass
media advertising.
KEY INSIGHTS
Below-the-line activity in marketing generally refers to marketing prac-
tices making use of forms of promotion that do not involve the use of
mass media, where, in a firm’s use of an advertising agency, there is
usually no commission charged by the advertising agency, and thus the
expense typically appears ‘below-the-line’ on the ad agency’s bill to the
firm. Below-the-line marketing activity can be contrasted with ‘above-
the-line’ marketing activity, which typically is that where an ad agency
would charge a firm a commission based on advertising placements in
mass media such as television, newspaper, and radio. (See above-the-line
marketing.) Through-the-line marketing refers to a marketing approach that
makes use of both above-the-line marketing and below-the-line market-
ing. Below-the-line advertising can involve the use of any form of non-
mass media promotion including sales promotions (e.g. premiums, price
reductions, displays, and related point-of-sale activity), direct marketing,
public relations activity, sponsorship, etc.
Firms may emphasize the use of below-the-line marketing activity
for any number of reasons. For example, in the tobacco industry, such
activity has been a way that firms in the industry have been able to con-
duct marketing that attracts less scrutiny from regulators in comparison
to heavily regulated mass media advertising. Below-the-line marketing
activity is also considered by some of its adopters to encounter a less
cluttered communications environment in efforts to communicate with
a target market, in contrast to the relatively more cluttered environment
of mass media advertising.
KEY WORDS Advertising agencies, commission free, fixed-fee, point-of-sale,
sales promotions
IMPLICATIONS
Marketers should seek to understand carefully their competitive and reg-
ulatory environments in addition to consumer buying behavior in order
benchmarking 52
to be in a position to evaluate the potential benefits and costs of below-
the-line marketing approaches. In a marketplace filled with advertising
clutter, for example, below-the-line marketing efforts may be potentially
more cost effective and provide the marketer with opportunities to use
more sophisticated marketing approaches in comparison to mass media-
based approaches. In other instances, a marketing strategy involving the
selective integration of below-the-line and above-the-line approaches may
be more beneficial than those that rely on below-the-line approaches
alone.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Harper, T. (2001). ‘Marketing Life after Advertising Bans,’ Tobacco Control, 10(2), 196–
198.
Retail Marketing
Carter, S. M. (2003). ‘New Frontier, New Power: The Retail Environment in
Australia’s Dark Market,’ Tobacco Control, 12 (suppl. III), iii. 95–110.
Promotions
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.
BIBLIOGRAPHY
Carter S. M. (2003). ‘Going Below the Line: Creating Transportable Brands for
Australia’s Dark Market,’ Tobacco Control, 12 (suppl. III), iii. 87–94.
benchmarking
DESCRIPTION
A process involving organizational comparisons of processes or performance
and particularly comparisons with organizations considered to be following
best industry practices or setting the industry standard, with the aim of
identifying and implementing process and performance improvements within
the organization.
KEY INSIGHTS
The process of benchmarking involves examining how the organization
or some part of the organization is performing in comparison to one
or more organizations or parts of organizations of strategic interest to
the firm and learning from the findings. Whether the comparisons are
solely within the firm, with competing firms, or only with those firms or
firms considered to have superior performance or that are implementing
best practices within the industry for certain processes, the ultimate aim
of benchmarking is to identify and adopt methods for improving the
performance of the organization.
KEY WORDS Organizational processes, performance evaluation, performa-
nce improvement
IMPLICATIONS
Marketers have many opportunities to benchmark an organization’s
marketing processes and performance with similar or best-performing
53 benefits
organizations. Although the process is time consuming and not with-
out development and maintenance costs, the benefits of benchmarking,
particularly for organizations in search of new ideas for process and
performance improvements, may be such that the gains exceed the costs
involved. At the very least, marketers should recognize how their firm
compares with others of strategic interest to assess the extent that actions
should be pursued for further improvement.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Gable, Myron, Fairhurst, Ann, and Dickinson, Roger (1993). ‘The Use of Bench-
marking to Enhance Marketing Decision Making,’ Journal of Consumer Marketing,
10(1), March.
Vorhies, D. W., and Morgan, N. A. (2005). ‘Benchmarking Marketing Capabilities
for Sustainable Competitive Advantage,’ Journal of Marketing, 69(1), 80–94.
Brownlie, D. (1999). ‘Benchmarking your Marketing Process,’ Long Range Planning,
32(1), 88–95.
Marketing Management
Horsky, Dan, and Nelson, Paul (1996). ‘Evaluation of Salesforce Size and Productiv-
ity through Efficient Frontier Benchmarking,’ Marketing Science, 15(4), 301–320.
BIBLIOGRAPHY
Zairi, Mohamed, and Leonard, Paul (1994). Practical Benchmarking: The Complete Guide.
London: Chapman & Hall.
Drew, S. (1995). ‘Strategic Benchmarking: Innovation Practices in Financial Institu-
tions,’ International Journal of Bank Marketing, 13(1), 4–16.
benefit segmentation see segmentation
benefits
DESCRIPTION
The particular advantages or gains that are attained by an individual as a result
of purchasing or using a particular product or service.
KEY INSIGHTS
While a product or service is commonly viewed as being able to provide
one or more functional benefits to a consumer, such as a running shoe’s
ability to provide its wearer with good traction while running, the same
product or service may also possess numerous other non-functional ben-
efits to a consumer. For example, a running shoe’s original styling can
provide a self-expressive benefit in that it provides a means for allowing
consumer self-expression. Similarly, a running shoe’s reputable brand
name can provide an emotional benefit to a consumer in that it can
provide comfort, reassurance, and a sense of trust to the consumer who
is new to running but who nevertheless recognizes the running shoe’s
brand name.
KEY WORDS Product advantages, service advantages
bespoke marketing 54
IMPLICATIONS
Marketers of new products and services must seek to understand and
strategically manage the range and benefits provided by the offerings.
In particular, astute marketers will recognize that, for some offerings,
functional benefits can actually be less important to certain consumers
than other non-functional benefits including emotional or self-expressive
benefits.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Haley, Russell I. (1968). ‘Benefit Segmentation: A Decision-Oriented Research Tool,’
Journal of Marketing, 32(3), July, 30–35.
Services Marketing
Gwinner, Kevin P., Gremler, Dwayne D., and Bitner, Mary Jo (1998). ‘Relational
Benefits in Services Industries: The Customer’s Perspective,’ Journal of the Academy
of Marketing Science, 26(2), 101–114.
Promotions
Chandon, Pierre, Wansink, Brian, and Laurent Gilles (2000). ‘A Benefit Congruency
Framework of Sales Promotion Effectiveness,’ Journal of Marketing, 64(4), October,
65–81.
Marketing Education
Easterling, D., and Rudell, F. (1997). ‘Rationale, Benefits, and Methods of Service-
Learning in Marketing Education,’ Journal of Education for Business, 73(1), 58–61.
BIBLIOGRAPHY
Young, Shirley, and Feigin, Barbara (1975). ‘Using the Benefit Chain for Improved
Strategy Formulation,’ Journal of Marketing, 39(3), July, 72–74.
bespoke marketing
DESCRIPTION
Marketing that is heavily customized or developed from scratch to meet
customer requirements or needs.
KEY INSIGHTS
Bespoke marketing can be potentially beneficial when customer needs
are highly distinctive and when more-routinized marketing approaches
commonly employed as alternatives tend to lack impact. In developing
bespoke marketing strategies and plans for an organizational customer,
it is often essential to build a good relationship with the client in order
to get a clear understanding of the client organizations’ needs.
KEY WORDS Customized marketing plans
IMPLICATIONS
Whether in addressing the marketing needs of an organization or a
consumer market, the development of bespoke marketing approaches
provides a marketer with an opportunity to tailor and potentially opti-
mize a marketing approach to be most suited to the client or customer.
55 better mousetrap fallacy
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Dibb, S., Farhangmehr, M., and Simkin, L. (2001). ‘The Marketing Planning Expe-
rience: A UK and Portuguese Comparison,’ Marketing Intelligence and Planning,
19(6/7), 409–417.
Marketing Management
Dibb, S., and Simkin, L. (1997). ‘A Program for Implementing Market Segmenta-
tion,’ Journal of Business and Industrial Marketing, 12(1), 51–65.
Marketing Modeling
Doyle, Shaun (2004). ‘Software Review: Which Part of my Marketing Spends Really
Works? Marketing Mix Modelling may have an Answer,’ Journal of Database Mar-
keting & Customer Strategy Management, 11(4), July, 379–385.
BIBLIOGRAPHY
Goodman, M. R. V. (1999). ‘The Pursuit of Value through Qualitative Market
Research,’ Qualitative Market Research: International Journal, 2(2), 111–120.
better mousetrap fallacy
DESCRIPTION
The myth or mistaken belief in the development and marketing of new prod-
ucts that any given market will more readily adopt technologically advanced
or superior products should they ever be developed.
KEY INSIGHTS
While Ralph Waldo Emerson may have held this belief as he is quoted as
saying, ‘Build a better mousetrap and the world will beat a path to your
door,’ such a belief is clearly unjustified based on numerous marketing
principles and practices. In most instances, superior product offerings do
not automatically market themselves and drive consumers to seek them
out and acquire them. Consumers may be resistant to change due to their
investments in current products or they may view a superior product as
overkill relative to their needs and have little or no need for them. The
influential role of marketing strategy and functional area strategies of
pricing, promotion, and distribution are neglected as well.
KEY WORDS Product development, product superiority, myth, false belief
IMPLICATIONS
When present, such a belief is a symptom that new product developers
and/or marketers are so intent on developing products with superior
attributes that they often end up making unwarranted assumptions
regarding a market’s true need for them and/or the marketing challenges
associated with bringing such new products to market. While to some
it may seem counter-intuitive that markets would not automatically
welcome better products, such a view is simplistic given the richness
of marketing knowledge regarding successful marketing strategies, new
product development practices, consumer behavior, and competitive
dynamics. Marketers should be on guard for individuals and organiza-
tions adopting such a mistaken belief.
bias 56
APPLICATION AREAS AND FURTHER READINGS
New Product Development
Calantone, Roger, and Cooper, Robert G. (1981). ‘New Product Scenarios: Prospects
for Success,’ Journal of Marketing, 45(2), Spring, 48–60.
Marketing Management
Griffin, Abbie, and Hauser, John R. (1992). ‘Patterns of Communication among
Marketing, Engineering and Manufacturing: A Comparison between Two New
Product Teams,’ Management Science, 38(3), March, 360–373.
Kohli, Ajay K., and Jaworski, Bernard J. (1990). ‘Market Orientation: The Construct,
Research Propositions, and Managerial Implications,’ Journal of Marketing, 54(2),
April, 1–18.
Business-to-Business Marketing
Hise, Richard T., O’Neal, Larry, McNeal, James U., and Parasuraman, A. (1989).
‘The Effect of Product Design Activities on Commercial Success Levels of New
Industrial Products,’ Journal of Product Innovation Management, 6(1), March, 43.
BIBLIOGRAPHY
Hultink, Erik Jan, and Hart, Susan (1998). ‘The World’s Path to the Better Mouse-
trap: Myth or Reality? An Empirical Investigation into the Launch Strategies of
High and Low Advantage New Products,’ European Journal of Innovation Manage-
ment, 1(3), December, 106–122.
bias
DESCRIPTION
In a measurement context, any situation where results or conclusions misrep-
resent what is being studied.
KEY INSIGHTS
Bias in measurement can take many forms. Aside from biases or errors
in the choice or implementation of a sampling method (e.g. where a
non-random sampling method is used as opposed to a random one),
there may also be observation biases where results do not reflect what
is observed or, alternatively, what is not observed. Bias from that which
is not observed includes non-response bias, where results are skewed as
a result of excessive non-response. In such an instance, results obtained
are not representative of what is being studied as a result of responses
obtained from respondents differing from that which would have been
obtained from non-respondents. Another form of bias is late response
bias which refers to bias in results due to responses of late respondents
differing from responses of early respondents.
Biases may also be associated with particular measurement methods. In
mail surveys, for example, respondents are able to see the entire survey
before answering any question. Such a situation has the potential for
what is referred to as sequence bias, where respondents’ replies to certain
questions are not independent but rather conditioned by knowledge of,
or responses to, other questions and where the result may be distortions
in the answers provided.
KEY WORDS Measurement, sampling, misrepresentation, error, surveys
57 blaming the victim
IMPLICATIONS
Marketers should be wary of research designs that introduce bias into the
study which ultimately lead to results which misrepresent that which is
being studied. Marketers should employ methods of statistical analysis to
prevent and identify the many forms of bias. An example is comparing
the mean responses of early and late responders of a survey to deter-
mine if there is a statistically significant difference. Understanding the
relationships among biases present may also provide useful insights, as
in the case of research supporting the view that the later the responses
of late responders, the more likely they will represent the views that
would have been given by non-respondents (Armstrong and Overton
1971).
APPLICATION AREAS AND FURTHER READINGS
Marketing Research
Bradburn, Norman M., Sudman, Seymour, Blair, Ed, and Stocking, Carol (1978).
‘Question Threat and Response Bias,’ Public Opinion Quarterly, 42(2), Summer, 221–
234.
Armstrong, J. Scott, and Overton, Terry S. (1977). ‘Estimating Nonresponse Bias in
Mail Surveys,’ Journal of Marketing Research , 14(3), Special Issue: Recent Develop-
ments in Survey Research, August, 396–402.
Jones, Wesley H., and Lang, James R. (1980). ‘Sample Composition Bias and
Response Bias in a Mail Survey: A Comparison of Inducement Methods,’ Journal
of Marketing Research, 17(1), February, 69–76.
O’Dell, William F. (1962). ‘Personal Interviews or Mail Panels?’ Journal of Marketing,
26(4), October, 34–39.
BIBLIOGRAPHY
Kanuk, Leslie, and Berenson, Conrad (1975). ‘Mail Surveys and Response Rates: A
Literature Review,’ Journal of Marketing Research, 12(4), November, 440–453.
blaming the victim
DESCRIPTION
Making the assumption that another person’s misfortune is somehow
deserved as a result of something they must have done.
KEY INSIGHTS
Individuals having a tendency to blame victims for their misfortunes
are operating under the principle that the world is fair and just—that
people will always get what they deserve. To the extent that there is
a pervasive tendency for individuals to believe the world is just, there
will be a tendency to place other people responsible for their mishaps or
failures.
KEY WORDS Misfortunes, attributions, justice
IMPLICATIONS
While some marketers may believe that another person’s problems
are always in some way deserved or brought on by them (as when
a customer’s new product fails upon their first using it or when a
customer is injured in using a product), such a view assumes a just
bliss point 58
world, which isn’t the case in reality. Marketers must strive to be
objective and realistic in their assessments of and attributions for the
causes of consumer misfortunes which may include the marketers
themselves.
APPLICATION AREAS AND FURTHER READINGS
Social Marketing
Ling, J. C., Franklin, B. A. K., Lindsteadt, J. F., and Gearon, S. A. N. (1992). ‘Social
Marketing: Its Place in Public Health,’ Annual Review of Public Health, 13, May, 341–
362.
Yeo, Michael (1993). ‘Toward an Ethic of Empowerment for Health Promotion,’
Health Promotion International, 8(3), 225–235.
BIBLIOGRAPHY
Konovsky, Mary A., and Jaster, Frank (1989). ‘ “Blaming the Victim” and Other Ways
Business Men and Women Account for Questionable Behavior,’ Journal of Business
Ethics, 8(5), May, 391–398.
bliss point
DESCRIPTION
A consumer equilibrium point where a consumer’s total satiation for a good
consumed is within the consumer’s budget constraint.
KEY INSIGHTS
The concept of a bliss point most often refers to a point of consumer equi-
librium and, as such, may refer to an individual consumer, a household,
or the like. A bliss point is possible only when a consumer does not prefer
an ever-increasing amount of a good.
KEY WORDS Consumption equilibrium
IMPLICATIONS
Marketers of consumer goods should seek to understand the nature of
consumers’ consumption of goods offered to determine to what extent it
is possible or likely that consumption behavior, combined with consumer
budget constraints, may result in a bliss point for the consumer. Such
knowledge can provide the marketer with insight into subsequent con-
sumer behavior as well as indications of a possible benefit to modifying
or changing the offering (e.g. marketing mix elements) to enable future
consumption of goods offered.
APPLICATION AREAS AND FURTHER READINGS
Marketing Modeling
Butler, David J., and Moffatt, Peter G. (2000). ‘The Demand for Goods under Mixture
Aversion,’ The Manchester School, 68(3), June, 349.
Pollak, Robert A. (1970). ‘Habit Formation and Dynamic Demand Functions,’ Journal
of Political Economy, 78(4), July–August, 745–763.
Haller, Hans (2000). ‘Household Decisions and Equilibrium Efficiency,’ International
Economic Review, 41(4), 835–47.
59 blog marketing
BIBLIOGRAPHY
Ryan, A. J., and Pearce, D. W. (1977). Price Theory. Basingstoke: Macmillan.
blog marketing
DESCRIPTION
Marketing through the use of a website primarily composed of personal or
professional observations and in journal or diary format.
KEY INSIGHTS
Blogs, short for weblogs, which are websites comprising of frequently
updated personal or professional observations, can be used by individuals
or organizations for marketing purposes. The typically informal journal
style of an individual writer’s blog can impart to its readers a sense of
trust, honesty, credibility, or objectivity that may be somewhat more
difficult to achieve through more polished or professionally prepared
marketing communications material and media. Even though some blogs
may actually be prepared by employees of organizations who are aiming
to present their organization or its products or services in a positive light,
the approach nevertheless has appeal to some readers as it is seen as
communication that is not subject to as much organizational censorship
or scrutiny as more mainstream marketing communications or public
relations materials.
KEY WORDS Marketing communication, personal websites, professional
websites
IMPLICATIONS
Marketers should recognize the growing power of blogs in the marketing
of ideas, causes, products, services, brands, and organizations. While
marketers can use blogs originating inside the organization to effectively
communicate to the general public (or, at least to communicate to those
who have discovered the blogger’s website), marketers should also be
aware of and learn from the growing number and power of independent
bloggers’ blogs who are informing, persuading, or at least partially influ-
encing reader opinion or knowledge of timely issues that may be relevant
to the marketer’s organization.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Lang, E. (2005). ‘Would You, Could You, Should You Blog?’ Journal of Accountancy,
199(6), 36–39.
Marketing Management
Lawson, J. (2004). ‘Blogs as a Disruptive Technology,’ Law Practice, 30(1), 41–45.
Gomez, J. (2005). ‘Thinking outside the Blog: Navigating the Literary Blogosphere,’
Publishing Research Quarterly, 21(3), 3–11.
BIBLIOGRAPHY
Wright, J. (2006). Blog Marketing: The Revolutionary New Way to Increase Sales, Build your
Brand, and Get Exceptional Results. New York: McGraw-Hill.