Journal of the Academy of Marketing Science

Published by SAGE Publications
Online ISSN: 1552-7824
Print ISSN: 0092-0703
Comparison of rival models 
Empirical model with results. 
Measurement model results (standardized estimates) 
This study investigates whether consumers’ perceptions of motives influence their evaluation of corporate social responsibility (CSR) efforts. The study reveals the mediating role of consumer trust in CSR evaluation frameworks; managers should monitor consumer trust, which seems to be an important subprocess regulating the effect of consumer attributions on patronage and recommendation intentions. Further, managers may allay the negative effects of profit-motivated giving by doing well on service quality perceptions. On the other hand, appropriately motivated giving continues to positively affect trust regardless of the performance of the firm on service quality provision.
During 1930–1950, the purpose and content of corporate annual reports were vigorously debated in the business press. Using these writings as a case file, this research presents evidence that contradicts the received view that the Marketing Era post-dates 1950. The evidence strongly suggests that the reports themselves were marketed. Target audiences were identified and researched, and their needs and desires were respected in content, design, and distribution decisions. Furthermore, the debate over the reports' substantive content suggests that both product/service marketing and social marketing were pervasive before 1950. *** DIRECT SUPPORT *** A00BV057 00011
Recent changes in the business environment have prompted marketing scholars to pay particular attention to sustainability as a topic of inquiry. Despite the progress made in the study of sustainability, there is a paucity of research on the topic in premier marketing journals. To address this issue, we focus on marketing-related journals and assess the intellectual structure of sustainability research in detail. Drawing on social network theory, we perform an extensive co-citation analysis using multidimensional scaling to examine 76,342 citations made in 1,320 sustainability-focused articles from 36 journals over 51years (1958–2008). This study specifies that the topics of citizenship behavior, stakeholder theory, corporate performance, and the triple bottom line are integral sustainability research areas. In addition, the results indicate five required topics for examining sustainability in the marketing context: external-internal focus, social-environmental emphasis, legal-ethical-discretionary intent, marketing assets, and financial performance. Supported by the capabilities-based resource perspective, the sustainability-focused typology and framework advanced provide directed structure for future research. KeywordsSustainability–Multidimensional scaling–Intellectual structure–Longitudinal analysis–Triple bottom line–Corporate responsibility–Corporate social responsibility–Corporate environmental responsibility–Corporate social performance–Corporate environmental performance–Marketing-finance interface–Bibliometric analysis–Social network theory
The marketing environment has experienced dramatic changes in the late 1960's and the 1970's. This article deals with the design of the marketing mix in the 1970's to meet the demand of its changing environment. It encompasses a conprehensive review of the marketing literature pertinent to the subject.
Replication is critical in furthering both the science and art of marketing; too often academicians and practitioners alike operate on the basis of outdated information. The author reports on a partial replication, conducted in 1984, of a 1973 study of bankcard holders and explores the changes in holdership and use patterns of consumers possessing either a VISA card, a MasterCard or both. Some notable changes have occurred in the eleven years since the first study was conducted. While MasterCard was the leading card in 1973, VISA has now taken a commanding lead. It is also the card of choice among holders of both cards. Average annual use of the cards has also increased, with single card holders increasing their use of their card more than holders of both bankcards.
Certified Public Accountants were not allowed to advertise from 1922 to 1977. Even though the AICPA Code was changed in 1978, there has been continued discussion and disagreement among practitioners about whether accountants should advertise. A content analysis of 38 publications (over a six year period) from industry/trade, accounting, and general business was performed in order to determine where advertisments appeared, timing, frequency and to whom CPAs were advertising as well as the message content, components, and objectives of the advertisements. Of 812 advertisements, 71% were from Big Eight firms. The advertisements promoting services not requiring CPA certification and were found mostly in industry/trade publications. The number of advertisements increased through the years except for 1982. Advertising by CPA firms still appears to be conservative in numbers; however, the trend indicates that such advertising will increase in the future.
Life-style analysis was performed to determine the activities, opinions and interests of the socially-ecologically concerned consumer. The more “concerned” consumer was found to be more physically active, family oriented, liberal and self-assured than those not demonstrating such concern, and more rational and deliberate in respect to their consumer behavior.
The use of multi-item scales reported in six marketing journals during the 1980s is analyzed. The analysis replicates some aspects of the Churchill and Peter (1984) study and extends the examination to issues not reviewed previously in marketing. The database for the study is unique in that it attempts to incorporate every instance of scale usage from the defined domain. Among the findings is that the use of multi-item scales increased substantially during the 1980s but the reliability of those scales was not different from earlier periods. A majority of scales have their origins in marketing and nearly half of all scales were used to measure consumer behavior constructs.
This article reviews the latest perceptions among AACSB school professionals in the field of marketing regarding journal hierarchies. With the proliferation of marketing journals during the past few years comes the need to address the relative position of all marketing journals. This study lists journal rankings using prestige and importance indices. The paper concludes with a discussion on the relative importance of journal rankings in the consideration of promotion and tenure among faculty members.
Organization theories: original scope, marketing scope, and marketing insights
Now more than ever, marketing is assuming a key boundary-spanning role—a role that has also redefined the composition of the marketing organization. In this paper, the marketing organization’s integrative and mutually reinforcing components of marketing activities, customer value–creating processes, networks, and stakeholders are delineated within their boundary-spanning roles as a particular emphasis (labeled MOR theory). Thematic marketing insights from a collection of 31 organization theories are used to advance knowledge on the boundary-spanning marketing organization within four areas—strategic marketing resources, marketing leadership and decision making, network alliances and collaborations, and the domestic and global marketplace. KeywordsMarketing organization–Organization theory–Marketing activities–Networks–Stakeholders–Customer value-creating processes–MOR theory
Utilizing Resource-Advantage Theory as the underlying theoretical foundation and drawing on literature from a variety of disciplines, we develop a market-oriented sustainability framework. By incorporating sustainability into market orientation, the goal of strategic alignment of sustainability with marketing strategies is achieved to create a competitive advantage. Three constructs identified in the model are DNA, stakeholder involvement, and performance management. These three constructs are the drivers of sustainability. DNA is used as an extended metaphor to clarify and illustrate the workings of an organization and how sustainability may be implemented. This construct includes core ideology, dynamic capabilities, and societal engagement. The firm’s DNA is communicated to both internal and external stakeholders, and stakeholders’ concerns should be an influence on strategic marketing planning. Performance management is the third major construct in the model and includes corporate social performance and corporate financial performance metrics. Within the model explication, we offer propositions to support market-oriented sustainability research and provide directions for sustainability theory, research, and practice. KeywordsSustainability–Market orientation–Corporate social responsiblity–Marketing strategy–Resource-Advantage Theory
This paper presents the results of a comprehensive survey of microcomputer usage in marketing education today. This status report indicates that AACSB-accredited universities are making considerable progress in integrating microcomputers into their marketing programs.
E-Purchase Process and the Determinants of Electronic Shopping Cart Abandonment
Construct Inter-Correlations
Key Determinants of Consumer Shopping Cart Abandonment: The Conceptual Model and Results (Study 1 [Study 2])
Total Standardized Effects on Shopping Cart Abandonment
Despite placing items in virtual shopping carts, online shoppers frequently abandon them —an issue that perplexes online retailers and has yet to be explained by scholars. Here, we identify key drivers to online cart abandonment and suggest cognitive and behavioral reasons for this non-buyer behavior. We show that the factors influencing consumer online search, consideration, and evaluation play a larger role in cart abandonment than factors at the purchase decision stage. In particular, many customers use online carts for entertainment or as a shopping research and organizational tool, which may induce them to buy at a later session or via another channel. Our framework extends theories of online buyer and non-buyer behavior while revealing new inhibitors to buying in the Internet era. The findings offer scholars a broad explanation of consumer motivations for cart abandonment. For retailers, the authors provide suggestions to improve purchase conversion rates and multi-channel management. KeywordsOnline shopping cart abandonment-Online buyer behavior theory-E-tail-E-commerce
Recent concerns have focused on the adequacy of the power of Marketing Departments to implement the marketing concept and to put into effect marketing plans and strategies. The article analyzes the marketing function as an information processing activity, where one significant element of information processing is sales forecasting as an uncertainty absorption process. The major hypothesis is that the power of the Marketing Department can be partially explained by its control of sales forecasting, both directly but also indirectly through a set of strategic contingencies which make marketplace uncertainty critical to the firm. The argument is supported by empirical data from a study of manufacturing firms in the United Kingdom, and leads to the identification of a number of implications for managers and researchers.
In writing this invited commentary, I would like to make some remarks on publishing processes in the academic marketing discipline in leading U.S. journals from the perspective of a person whose academic background is not in the United States. My educational and academic roots are in Germany, a country that was recently classified by a U.S. politician as belonging to the "Old Europe" (This gentleman probably referred to the fact that universities existed in Germany before the United States were even founded.) The German university system is different from the U.S. system in many structural respects, and it has always been interesting for me to observe the two systems and to compare them with each other. In this comment, I
It may be easier to describe “what not to do” than it is to describe “what to do” when writing a conceptual or theoretical article. In this sense, the five “wrong way” signs may be of limited value. Nonetheless, it is our experience that quite a number of marketing manuscripts sometimes wander down one of these streets where strong theory is rarely present. We realize that some of our recommendations are difficult to implement. The reality is that good theoretical work is far more difficult to do and requires far greater creativity than most empirical research. This fact should not deter such efforts, and journals, includingJAMS, must work to nurture such scholarship, even in the face of a very high hurdle. Nonetheless, we believe that marketing theorists have made significant progress over the past 50 years, but, if the discipline is to play an important role in the social sciences and influence management practice, it must accelerate its efforts to create its own unique theories of markets and marketing phenomena.JAMS is a welcoming and nurturing place for such work.
Many curriculums have failed to demonstrate prolonged growth in academic enrollments. This indicates the need for using the marketing concept as a systematic approch to evaluate this problem. Marketing-Oriented Instructional Planning provides a formalized, systematic approach to gather information for planning curriculums by career tracts.
Generalizability of results is an important issue in academic research. We have attempted to identify some of the major issues related to this topic and to propose consequent guidelines for research practices. Any working researcher knows all too well how difficult it can be to gain access to data and get good samples. Fortunately, academic research can make good use of imperfect samples, but it is incumbent on us to be aware of this issue and make our best efforts.
This paper was undertaken to help academicians and practitioners better fit manuscripts to journals. Fifty selected journals were analyzed for perceptions of quality.
Many universities have increased the emphasis on faculty research and publication productivity as a means of enhancing their reputation. Such emphasis contributes to the increased competition for available journal space, heightened pressures on the efficiency of the editorial system, and increases the temptation to lower ethical research and publication standards. A survey of 328 marketing academicians about their perceptions of ethical and unethical research and publication practices for academicians, editors, and review board members revealed wide variation among respondents’ perceptions of what constitutes ethical academic conduct. In particular, the respondent’s level of publication experience was found to be significantly related to his/her assessment of the ethicality of research practices. The authors suggest that a recognized code of ethics for the marketing academic community would be valuable in maintaining professional standards, increase justice in the academic reward system, and further the growth of knowledge in our discipline.
This article presents an analysis of the research published in theJournal of the Academy of Marketing Science (JAMS). A brief history of the journal is chronicled, and its output in recent years is considered. Special attention is paid to the content of the articles published and the research methods used. An analysis of frequent contributors is also conducted. Much of the analysis focuses on the past 10 years. The conclusion is thatJAMS has made a significant impact on marketing scholarship and has emerged as a top marketing journal of which all the fellows of the academy can justifiably be proud.
The purpose of this article is to review and assess the special marketing problems of smaller-city retailing. A better understanding of the problems peculiar to small-city retailing is prerequisite to the assessment of opportunities and formulation of strategies. The article traces the recent evolution of the retail trade structure in the small city. Distinctive characteristics of the nonmetropolitan market setting are discussed. The role of the small store, its relationship with new retail competitors, and other strategic issues and implications are considered.
Since restrictions were eliminated by the Supreme Court in 1977, it was to be expected that advertising would increase among professionals in all fields. Both within and across various professions, however, practitioners have been found to advertise their services in markedly varying ways and degrees. The present study attempts to analyze those factors which relate to differentials in the acceptability of various advertisements by three groups of professional practitioners: accountants; dentists; and, lawyers. Utilizing Guttman scaling techniques and multiple regressions analysis, three of five components of professionalism, “collegial maintenance of standards.” adherence to a “code of ethics” and “professional identification,” all emerged as significant differentiators of practitioners’ use of advertisements. In addition, several background factors, years in practice, specific occupation, and location of practice, also were found to be significantly related to professionals’ use of advertisements.
Most studies of the organizational buying process assume that buyers acquire and use information “prosocially”—to make better decisions and promote their company’s welfare. The authors propose, however, that demands to account for their behavior causes organizational buyers to also gather and use information for political purposes—to protect their own self-interest. The authors present the results of an empirical study that investigates the extent to which four types of accountability—informal, official, process, and decision accountability—result in political (or symbolic) information search and prosocial information analysis by organizational buyers. Study findings suggest that buyers accountable to superiors and those accountable to subordinates or peers engage in more symbolic information search. Buyers accountable for their decision-making process analyze information more extensively. Surprisingly, buyers accountable for decision outcomes neither search for symbolic information nor analyze information more extensively.
As the American Institute of Certified Public Accounts relaxes its practice development restrictions, CPA firms find themselves with a need to develop more aggressive approaches to the markets they serve. This paper focuses on the development of a marketing strategy for an illustrative market, that of small, rapidly-growing high technology firms. Results from a telephone survey of company executives serve as the basis for strategy development. In addition, the evaluation of a small firm and its accounting needs are provided in a hypothetical example to dramatize the conclusions. The results suggest that the burden may be on CPA firms to anticipate, recognize, and meet the accounting needs of their clientele.
The nutrition facts panel on food packages was designed to provide comprehensible quantitative nutrition information that would allow consumers to make more informed food choices that could result in significant long-term health benefits. This study (1) examines how accurately consumers can use nutrient information in the facts panel to determine if a product has more or less than the recommended daily values of certain nutrients and (2) offers predictions and tests of the relationships between this usage ability and product nutrition evaluations and purchase intentions. Results show that more accurate use moderates the effect of product nutrition value on consumer evaluations, as predicted. Findings also reveal that several variables (e.g., measures of nutrition knowledge, attitude toward the “facts” label) are related to accuracy in the usage task. Implications based on these findings are offered.
Marketing managers face increasing pressure to justify any strategic action with financial metrics that facilitate comparative evaluations with alternative options. Using event study method, the authors focus attention on the impact of high-profile quality achievement awards on the stock prices of the award-winning firms. Two types of awards are investigated: the Malcolm Baldrige National Quality Award (MBNQA) and J. D. Power and Associates Awards (JDPAA). Previous event studies found no major impact of MBNQA announcements on the stock price of MBNQA winners; in contrast, this study’s results show that these awards generate significant shareholder value for MBNQA winners. With respect to the JDPAA, the authors— analyses did notfind any such impact in the Automotive, Travel, and Finance categories. Multiple regression analyses suggest that firms with higher amounts of intangible assets are more likely to create shareholder value. Implications of the results for different decision horizon perspectives are derived.
Illustrative research summarizing the antecedents to relationship orientation
Descriptive statistics and correlations
Relationship marketing research and practice operate according to the paradigm that firms should invest in relationship marketing to build better relationships, which will generate improved financial performance. However, findings that relationship marketing efforts vary in their effectiveness across customers and may even be detrimental to performance challenge this belief. This article, therefore, offers a theoretical model that addresses three key issues: 1) what factors determine a customer’s need for relational governance (relationship orientation); 2) what mediating mechanism captures the negative effects of relationship marketing on performance (exchange inefficiency); and 3) how does a customer’s relationship orientation determine the effectiveness of relationship marketing, thus allowing for effective segmentation. The authors demonstrate in an empirical study that the trust in the salesperson and exchange inefficiency both mediate the effect of relationship marketing on seller financial outcomes. In addition, customers’ relationship orientation moderates the impact of relationship marketing on both trust and exchange inefficiency.
Difference in the relationship between customer satisfaction and the number of referrals for high and low product involvement.  
Descriptive statistics and correlation matrix for independent variables in the consumer study
Descriptive statistics and correlation matrix for independent variables in the business-to-business study
It has often been argued that word-of-mouth (WOM) can contribute significantly to a firm’s success in a variety of ways. Here, we analyze the functional linkage between customer satisfaction, WOM, and new customer acquisition. Using data from two empirical studies we conceptualize and test the direct, non-linear, and moderated relationship between satisfaction and WOM. We further explore the circumstances under which WOM leads to new customer acquisition using a logistic regression model. We do so for two groups (new customers and long-term customers) from the customer base of a large energy provider (n = 688), and for a random sample of B2B customers (n = 416) in the same market. Results indicate that the satisfaction-WOM link is non-linear and is moderated by several customer involvement dimensions. Based on our results, we demonstrate how the satisfaction-WOM-new customer acquisition link can enrich return on quality and satisfaction models. Further, we draw conclusions about how companies can make use of both the satisfaction-WOM and the WOM-new customer acquisition link for better allocating their marketing resources.
The relative extent to which subjects employ six risk reduction strategies (RRSs) in two different risk conditions and on each of nine experimental trials is examined in the context of a brand choice decision (BCD) task. It was expected that there would occur: (1) a decline in the use of RRSs over trials, (2) a greater use of RRSs in a high inherent risk (HIR) condition than in a low inherent risk (LIR) condition an average over trials, and (3) a more rapid decrease in the use of RRSs over trials in the LIR condition. Although a decline apparently occurred in use of two of the five RRSs over trials, none of the other expectations were supported. Post hoc analyses suggest that methodological problems confounded the results. Nevertheless, both the theoretical model which integrates several consumer behavior research areas and the findings have significance for future research in these areas.
Correlation matrix and descriptive statistics 
Determinants of depth and diversity of customer knowledge development 
Determinants of resource exploration and resource exploitation 
Hypotheses 6 a/b. Levels of resource exploration and exploitation across different combinations of customer orientations 
Determinants of radical and incremental innovation performance 
The effect of a firm’s strategic focus on acquiring new customers and/or retaining existing customers (customer acquisition and retention orientations) on innovation performance is evaluated. With dyadic primary data collected from 225 strategic business units, the authors demonstrate that a firm’s focus on customer acquisition enhances its radical innovation performance but hinders its incremental innovation; a firm’s strategic orientation toward customer retention has the opposite effects. These effects are mediated by both customer knowledge development and the firm’s resource configuration decisions. In addition, the authors provide insight into the impact of managerial decision trade-offs when implementing customer engagement strategies. The results suggest that the effect of customer acquisition and retention orientations on customer knowledge and investment decisions, and ultimately on innovation performance, is amplified when a firm consistently implements a specific engagement strategy. Implementing a dual strategy by attempting to focus on both acquiring and retaining customers undermines resource configuration decisions, with diverse effects on both radical and incremental innovation. KeywordsRadical innovation–Incremental innovation–Innovation performance–Customer acquisition–Customer retention
Cross-mode surveys are on the rise. The current study compares levels of response styles across three modes of data collection: paper-and-pencil questionnaires, telephone interviews, and online questionnaires. The authors make the comparison in terms of acquiescence, disacquiescence, and extreme and midpoint response styles. To do this, they propose a new method, namely, the representative indicators response style means and covariance structure (RIRSMACS) method. This method contributes to the literature in important ways. First, it offers a simultaneous operationalization of multiple response styles. The model accounts for dependencies among response style indicators due to their reliance on common item sets. Second, it accounts for random error in the response style measures. As a consequence, random error in response style measures is not passed on to corrected measures. The method can detect and correct cross-mode response style differences in cases where measurement invariance testing and multitrait multimethod designs are inadequate. The authors demonstrate and discuss the practical and theoretical advantages of the RIRSMACS approach over traditional methods.
Extant research on marketing strategy making (MSM) lacks process-based theoretical frameworks that elucidate how marketing strategies are made when sales and marketing functions are involved in the process. Using a grounded theory approach and data collected from (a) 58 depth interviews with sales and marketing professionals and (b) a focus group with 11 marketing professionals, we propose that MSM within the sales-marketing interface is a three-stage, multifaceted process that consists of Groundwork, Transfer and Follow-up stages. Our process-based model explicates the specific activities at each stage that are needed to develop and execute marketing strategies successfully, the sequence in which these activities may unfold, and the role sales and marketing functions may play in the entire process. Managerially, this paper highlights that successful strategy creation and execution requires marketing and sales functions to be equally invested in the entire process.
Findings are reported for two studies that examined the effects of three forms of tensile price claims (i.e., stating a minimum, maximum, or range of savings) on consumers’ price perceptions, search and shopping intentions, and estimates of price reduction across four different discount range levels. Hypotheses are offered based on a rationale drawn from an anchoring and adjustment framework. Results of both studies indicate that for broader discount ranges, tensile claims stating the maximum level of savings have more positive effects than those stating the minimum level or the entire savings range. For more narrow discount ranges, tensile claims stating the maximum level of savings appear to be no more effective than claims stating the minimum level or the entire savings range.
Drawing upon Hirschman’s (1970) framework for Exit, Voice and Loyalty, a model is proposed which predicts and explains variation in voice, exit, and negative work-of-mouth behaviors. The findings from extant consumer complaining behavior (CCB) literature are also incorporated into the hypothesized model. Using data from customer dissatisfaction with three different service categories, the proposed model is subjected to empirical investigation. Despite the parsimony of Hirschman’s framework, results show that the hypothesized model provides good model-fit indices in each of the three data sets. In addition, the explanatory power of the model is encouraging, ranging from 36 percent to 50 percent variance explained. However, the support for the hypothesized pattern of CCB rates across the service categories is mixed. Specifically, while voice responses conform to the hypothesized pattern, exit responses do not. Implications stemming from a comparative analysis of the results are discussed, and directions for future research outlined.
In the academic world of marketing professors, we like to think we know everything that is “relevant” about marketing. Of course we do not, because the discipline is too broad and diverse for one to be thoroughly knowledgeable in all its aspects. This article examines the understanding of the ROBINSON-PATMAN ACT by university professors. This 1936 law is the most important marketing statute dealing with pricing activities. Marketing students must be exposed to this key legislation during their marketing classes. But do marketing professors understand the law well enough to teach it?
Marketing and the entrepreneurship process: comparing developed and base-of-the-pyramid markets 
Marketing and entrepreneurship have long been recognized as two key responsibilities of the firm. Despite their tight integration in practice, marketing and entrepreneurship as domains of scholarly inquiry have largely progressed within their respective disciplinary boundaries with minimal cross-disciplinary fertilization. Furthermore, although firms increasingly undertake their marketing and entrepreneurial activities across diverse settings, academe has provided little insight into how changes in the institutional environment may substantially alter the processes and outcomes of these undertakings. Herein, we integrate research on marketing activities, the entrepreneurship process, and institutional theory in an effort to address this gap. We first discuss market orientation as enhancing a firm’s opportunity recognition and innovation, whereas marketing mix decisions enhance opportunity exploitation. We then examine how entrepreneurship leads to innovation directed toward market orientation and marketing mix activities. Based on this foundation, we examine differences in marketing and entrepreneurship activities across institutional contexts. KeywordsEntrepreneurship process–Market orientation–Marketing mix–Institutional theory–Customer needs–Opportunity
Adaptation of Holbrook's value model to organic foods
Corporate social responsibility (CSR) activities have the potential to create stronger relationships between firms and stakeholders. Although marketing researchers have studied the impacts of CSR activities on stakeholder responses, the CSR activities and outcomes measured have been varied and inconsistent. In this article we (a) review the extant literature to outline which CSR activities and outcomes have been included in previous research; (b) synthesize the means by which CSR activities can add value for consumers and how these have been represented in CSR literature, and; (c) present a research agenda for future research to allow greater consistency among CSR researchers. KeywordsCorporate social responsibility–Sustainability–Systematic review–Green marketing–Consumption values–Philanthropy–Identification–Customer value
The centralized structuring (or consolidation) of logistics activities within the firm is shown to have a major impact on (1) the total number of activities that are the direct responsibility of logistics, (2) formalization, and (3) the capability of the logistics system to accommodate certain channel activities. In particular, centralized structuring enhances the accommodation of product introduction, phaseout and recall in functional firms, and the customization of service levels to specific segments or customers in divisional firms.
The primary focus of this study is an examination of differences between characteristics and activities ofsporadic andregular exporters. This mode of classifying exporting firms, which has not previously been studied in a rigorous fashion is shown to be valid and has important policy implications. This classification is robust, with a high degree of convergent and internal validity. The two groups are shown to be similar along several key dimensions of exporting behavior such as size, age, and size of export orders. However, there are distinct differences with regard to such factors as initial market entry influences, export profit margins, export distribution channels, and information use. These critical differences relate to dynamism and level of exportmarketing activities undertaken. Conceptual, practical, and policy implications are discussed.
Using customer level data, prior marketing research has developed a micro or bottom up approach to link marketing activities with shareholder value. This study develops a macro or top down approach using longitudinal firm level data from publicly available financial statements. Test results show that the earnings component supported by sales has higher pricing multiples than other components of earnings in firm specific time-series data. We also test hypotheses of five marketing-related drivers of sales capitalization rate (the rate at which sales increases are converted into increased shareholder value). From the research effort, we develop three managerially useful tools. First, we suggest enterprises develop alpha or sales margin strategies and beta or margin capitalization strategies, and we show that one can map these strategies into a planning matrix. Second, using financial statements of publicly traded firms, we develop an alternative method of estimating customer equity. Third, we show how a company may use our macro approach and compare its performance with its industry competitors to develop insights into competitive dynamics. KeywordsMarketing strategy–Marketing management–Customer value–Accounting and finance
Top-cited authors
Jörg Henseler
  • University of Twente
Marko Sarstedt
  • Ludwig-Maximilians-University of Munich
Christian M. Ringle
  • Technische Universität Hamburg
Valarie A. Zeithaml
  • University of North Carolina at Chapel Hill
David H. Henard
  • North Carolina State University