MARKETING DECISIONS AND METHODS

B9610 D.R. Lehmann

Summer, 2006

Class Topic

1 Meta Analysis: Method and Philosophy

2 Multiple Choice: Variety, Bundles, and

Assortments

3 Customer Response to New Products

4 Diffusion Modeling: Descriptive and Normative

5 Satisfaction and Post Purchase Behavior;

Presentation of Research Ideas

6 Decisions in Groups

7 Brand Equity

8 The Value of Customers;

Presentation of Research Ideas

9 Assessing the Impact of Strategy

10 Current Hot Topics

11 Qualitative Research
12 Presentations
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Class 1. META-ANALYSIS: METHOD AND PHILOSOPHY

Everyone Reads
Lehmann, Donald R. (2001) “Quantitative Empirical Generalizations and Progress
Toward Knowledge: Pushing the Meta-Analysis Envelope,” in Abbie Griffin and James
D. Hess, eds. 15th Paul D. Converse Symposium. Chicago: American Marketing
Association, 1-21.

Assigned Readings
Assmus, Gert, John U. Farley, and Donald R. Lehmann (1984) "How Advertising Affects Sales:
Meta-Analysis of Econometric Results," Journal of Marketing Research, 21, February, 65-74.

Farley, John U., Donald R. Lehmann, and Michael J. Ryan (1982) "Patterns in
Parameters of Buyer Behavior Models: Generalizing from Sparse Replication,"
Marketing Science, 1, Spring, 181-204.

Farley, John U., Donald R. Lehmann, and Michael J. Ryan (1981) "Generalizing from
‘Imperfect’ Replication," Journal of Business, 54, October, 597-610.

Tellis, Gerald (1987) “The Price Elasticity of Selective Demand: A Meta-Analysis of

Econometric Models of Sales,” Journal of Marketing Research, 25, November, 331-41.

Background
Farley, John U., Scott Hoenig, Donald R. Lehmann, and David M. Szymanski (2004)
“Meta-Analysis as a Tool for Assessing Marketing Strategy,” in Moorman, Christine and
Donald R. Lehmann (2004) Cool Tools for Strategy Research, Cambridge, MA.
Marketing Science Institute.

Farley, John U., John A. Howard, and Donald R. Lehmann (1976) "A ‘Working’ System
Model of Car Buyer Behavior," Management Science, 23, November, 235-47.

Farley, John U. and Donald R. Lehmann (1986) Meta-Analysis in Marketing:

Generalization of Response Models, Lexington, MA, Lexington Books.

Glass, Gene V., Barry McGaw, and Mary Lee Smith (1981) Meta-Analysis in Social
Research, Beverly Hills, CA: Sage.

Hedges, Larry V. (1987) “Advances in Statistical Methods for Meta-Analysis,” in David

S. Cordray and Mark W. Lipsey, eds., Evaluation Studies Review Annual, Vol. III,
Beverly Hills, CA: Sage, 731-48.

Hedges, Larry V. and Ingram Olkin (1985) Statistical Methods for Meta-Analysis,
Orlando, FL: Academic Press.

Hunter, John E., Frank I. Schmidt, and Gregg B. Jackson (1982) Meta-Analysis:
Cumulating Research Findings Across Studies, Beverly Hills, CA: Sage.
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Class 2. MULTIPLE CHOICE: VARIETY, BUNDLES, AND ASSORTMENTS

Assigned Readings

Bawa, Kapil (1990) “Modeling Inertia and Variety Seeking Tendencies in Brand Choice
Behavior,” Marketing Science, 9, Summer, 263-78.

Broniarczyk, Susan M., Wayne D. Hoyer, and Leigh McAlister (1998) “Consumers’
Perceptions of the Assortment Offered in a Grocery Category: The Impact of Item
Reduction,” Journal of Marketing Research, 35, May, 166-76.

Chernev, Alexander (2003) “When More is Less and Less is More: The Role of Ideal Point
Availability and Assortment in Consumer Choice,” Journal of Consumer Research, 30,
September, 170-83.

Harlam, Bari A . and Leonard M. Lodish (1995) “Modeling Consumers’ Choices of Multiple
Items,” Journal of Marketing Research, 32, November, 404-18.

Kahn, Barbara and Donald R. Lehmann (1991) "Modeling Choice Among Assortments,"
Journal of Retailing, 67, Fall, 274-99.

Menon, Satya and Barbara E. Kahn (1995) “The Impact of Context on Variety Seeking in
Product Choices,” Journal of Consumer Research, 22, December, 285-95.

Background

Berlyne, D.E. (1970) “Novelty, Complexity, and Hedonic Value,” Perception and
Psychophysics, 8, 5A, 279-86.

Givon, Moshe (1984) “Variety Seeking Through Brand Switching,” Marketing Science, 3,
Winter, 1-22.

Harlam, Bari A., Aradhna Krishna, and Donald R. Lehmann (1995) “Impact of Bundle Type,
Price Framing, and Familiarity on Purchase Inte ntion for the Bundle,” Journal of Business
Research, 33, May, 57-66.

McAlister, Leigh and Edgar Pessemier (1982) “Variety Seeking Behavior: An

interdisciplinary Review, Journal of Consumer Research, 9, December, 311-22.

Simonson, Itamar (1990) “The Effect of Purchase Quantity and Timing on Variety-Seeking
Behavior,” Journal of Marketing Research, 27, May, 150-62.
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Class 3. CUSTOMER RESPONSE TO NEW PRODUCTS

Assigned Readings

Carpenter, Gregory S., Rashi Glazer, and Kent Nakamoto (1994) “Meaningful Brands from
Meaningless Differentiation: The Dependence on Irrelevant Attributes,” Journal of Marketing
Research, 31, August, 339-50.

Carpenter, Gregory and Kent Nakamota (1989) “Consumer Preference Formation and
Pioneering Advantage,” Journal of Marketing Research, 26, August, 285-99.

Golder, Peter N. and Gerard J. Tellis (1993) “Pioneer Advantage: Marketing Logic or
Marketing Legend?” Journal of Marketing Research, 30, May, 158-70.

Kalayanaram, Gurumurthy, William Robinson, and Glen Urban (1995) “Order of Market
Entry: Established Empirical Generalizations, Emerging Empirical Generalization, and
Future Research,” Marketing Science, 14, 3, 212-21.

Moreau, C. Page, Donald R. Lehmann, and Arthur P. Markman (2001) “Entrenched

Knowledge Structures and Consumer Responses to New Products,” Journal of Consumer
Research, 38, February, 14-29.

Moreau, C. Page, Arthur B. Markman, and Donald R. Lehmann (2001) “What is it?
Categorization Flexibility and Consumers’ Responses to Really New Products,” Journal of
Consumer Research, 27, March, 489-98.

Background

Kardes, Frank R., Gurumurthy Kalyanaram, Murali Chandrashekaran, and Ronald J. Dornoff
(1993) “Brand Retrieval, Consideration Set Composition, Consumer Choice, and the
Pioneering Advantage,” Journal of Consumer Research, 20, June, 62-75.

Lehmann, Donald R., Jennifer Ames-Stuart, and Gita Johar (2004) “The Role of
Visualization in the Response to New Products”, Columbia University, working paper.

Lehmann, Donald R. and Yigang Pan (1994) "Context Effects, New Brand Entry, and
Consideration Sets," Journal of Marketing Research, 31, August, 364-74.

Rogers, Everett M. (1995) The Diffusion of Innovation. 4th Edition. New York, Free Press.
B9610 -5-

Class 4. DIFFUSION MODELING: DESCRIPTIVE AND NORMATIVE

Everyone Reads
Mahajan, Vijay, Eitan Muller, and Frank M. Bass (1995) “Diffusion of New Products: Empirical
Generalizations and Managerial Uses,” Marketing Science, 14, 3, G79-88.

Assigned Readings
Garber, Tal, Jacob Goldenberg, Barak Libai, and Eitan Muller (2002) “From Density to
Destiny: Using Spatial Analysis for Early Prediction of New Product Success,” MSI working
paper 02-105.

Gatignon, Hubert, Jeoshua Eliashberg, and Thomas Robertson (1989) “Modeling

Multinational Diffusion Patterns: An Efficient Methodology,” Marketing Science, 8:3, 231-47.

Goldenberg, Jacob, Donald R. Lehmann, and David Mazursky (2001) “The Idea Itself and
the Circumstances of Its Emergence as Predictors of New Product Success,” Management
Science, 47:1, January, 69-84.

Henard, David H. And David M. Szymanski (2001) “Why Some New Products are More
Successful than Others,” Journal of Marketing Research, 38, August, 362-75.

Kopalle, Praveen and Donald R. Lehmann (2004) “Setting Quality Expectations When
Entering Markets,” working paper.

Lehmann, Donald R. and Charles B. Weinberg (2000) “Sales Through Sequential

Distribution Channels: An Application to Movies and Videos,” Journal of Marketing, 64,
July, 18-33.

Montoya -Weiss, M. Mitzi and Roger Calantone (1994) “Determinantnts of New Product
Performance: A Review and Meta -Analysis,” Journal of Product Innovation Management,
11, 397-417.

Norton, John A. and Frank M. Bass (1987) “A Diffusion Theory Model of Adoption and
Substitution for Successive Generations of High Technology Produc ts,” Management
Science, 33, September, 1069-86.

Sultan, Fareena, John U. Farley, and Donald R. Lehmann (1990) "A Meta-Analysis of
Applications of Diffusion Models," Journal of Marketing Research, 27, February, 70-77.

Talukdar, Debabinta, K. Sudhir, and Andrew Ainslie (2002) “Investigating New Product
Diffusion Across Products and Countries,” Marketing Science, 21:1, 97-114.

Tellis, Gerard J., Steven Stemersch, and E. Yin (2003) “The International Takeoff of New
Products: Economics, Culture, and Country Innovativeness,” Marketing Science, 22:2, 188-
203.
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(Class 4 readings continued on next page)

Background (Class 4)

Bass, Frank M. (1969) “A New Product Growth Model for Consumer Durables,”
Management Science, 15, January, 215-27.

Bass, Frank M., Trichy V. Krishnan, and Deepak C. Jain (1994) “Why the Bass Model Fits
without Decision Variables,” Marketing Science, 13, Summer, 203-23.

Fisher, J.C. and R.H. Pry (1972) “A Simple Substitution Model of Technological Change,”
Technological Forecasting and Social Change, 3, 75-88.

Steenkamp, Jan-Benedict E.M. and Katrin Gieleus (2003) “Consumer and Market Drivers
of the Trial Probability of New Consumer Packaged Goods,” Journal of Consumer
Research, 30, December, 368-____.
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Class 5. SATISFACTION AND POST PURCHASE BEHAVIOR; PRESENTATION OF

RESEARCH IDEAS

Everyone Reads

Oliver, Richard L. (1980) “A Cognitive Model of the Antecedents and Consequences of Satisfaction
Decisions,” Journal of Marketing Research, 17, November, 460-69.

Parasuraman, A., Valerie A. Zeithaml, and Leonard L. Berry (1985) “A Conceptual Model of
Service Quality and Its Implications for Future Research,” Journal of Marketing, 49, Fall, 41-50.

Assigned Readings

Anderson, Eugene and Mary W. Sullivan (1993) "Antecedents and Consequences of

Customer Satisfaction," Marketing Science, 12, Spring, 125-43.

Boulding, William, Ajay Kalra, Richard Staelin, and Valerie H. Zaethaml (1993) "A Dynamic
Process Model of Service Quality: From Expectations to Behavioral Intentions," Journal of
Marketing Research, 30, February, 7-27.

Kopalle, Praveen and Donald R. Lehmann (1995) "The Effects of Advertised and Observed
Quality on Expectations About New Product Quality," Journal of Marketing Research, 32,
August, 280-90.

Background

Kopalle, Praveen and Donald R. Lehmann (2001) “Strategic Management of Expectations:

The Role of Disconfirmation Sensitivity and Perfectionism,” Journal of Marketing Research,
38, August, 386-94.
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Class 6. DECISIONS IN GROUPS

Assigned Readings

Corfman, Kim P. and Donald R. Lehmann (1993) "The Importance of Others' Welfare in Evaluating
Bargaining Outcomes," Journal of Consumer Research, 20, June, 124-37.

Corfman, Kim P. and Donald R. Lehmann (1987) "Models of Cooperative Group Decision-Making
and Relative Influence: An Experimental Investigation of Family Purchase Decisions," Journal of
Consumer Research, 14, June, 1-13.

Gupta, Sunil and Zvi Livne (1990) “Testing the Emergence and Effect of the Reference
Outcome in an Integrative Bargaining Situation,” Marketing Letters, 1, June, 103-12.

Lehmann, Donald R. (2001) “The Impact of Altruism and Envy on Competitive Behavior
and Satisfaction,” International Journal of Research in Marketing, 18, 5-17.

Neslin, Scott A. and Leonard Greenhalgh (1983) “Nash’s Theory of Cooperative Games as
a Predictor of the Outcome of Buyer-Seller Negotiations,” Journal of Marketing Research,
20, November, 368-79.

Urbany, Joel E., Thomas J. Madden, and Peter R. Dickson (1989) “All’s Not Fair in Pricing:
An Initial Look at the Dual Entitlement Principle,” Marketing Letters, 1, December, 17-26.

Background
Axelrod, Robert and William D. Hamilton (1981) “The Evolution of Cooperation,” Science,
211, March, 1390-96.
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Class 7. BRAND EQUITY

Everyone Reads

Aaker, David A. and Kevin L. Keller (1990) “Consumer Evaluations of Brand Extensions,”
Journal of Marketing Research, 27, February, 27-41.

Assigned Readings

Aaker, Jennifer (1997) “Dimensions of Brand Personality,” Journal of Marketing Research,

34, August, 347-56.

Ailawadi, Kusum L., Donald R. Lehmann, and Scott A. Neslin (2003) “Revenue Premium as an
Outcome Measure of Brand Equity,” Journal of Marketing, 67:4, October, 1-17.

Broniarczyk, Susan M. and Joseph W. Alba (1994) “The Importance of Brand in Brand
Extensions,” Journal of Marketing Research, 31, May, 214-28.

John, Deborah Rhoedder and Barbara Lake (1993) “Diluting Brand Beliefs: When Do Brand
Extensions Have a Negative Impact?” Journal of Marketing, 51, July, 71-84.

Park, C.W., Sandra Milberg, a nd R. Lawson (1991) “Evaluation of Brand Extensions: The
Role of Product Level Similarity and Brand Concept Consistency,” Journal of Consumer
Research, 18, September, 175-93.

Park, Chin So and V. Srinivasan (1994) “A Survey-Based Method for Measuring and
Understanding Brand Equity and Its Extendability,” Journal of Marketing Research, 31,
May, 271-88.

Simon, Carol J. and Mary W. Sullivan (1993) “The Measurement and Determinants of
Brand Equity: A Financial Approach,” Marketing Science, 12, Winter, 28-52.

Background

Batra, Rajeev, Donald R. Lehmann, and Dipinder Singh (1993) "The Brand Personality
Component of Brand Goodwill: Some Antecedents and Consequences," in David A. Aaker
and Alexander L. Biel, eds., Brand Equity and Advertising: Advertising's Role in Building
Strong Brands, Hillsdale, NJ, Lawrence Erlbaum Associates, Inc., 83-96.

Keller, Kevin L. (2002) Branding and Brand Equity. Cambridge, MA: Marketing Science
Institute, 27-49.
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Class 8. THE VALUE OF CUSTOMERS; PRESENTATION OF RESEARCH IDEAS

Assigned Readings

Gupta, Sunil, Jennifer Stuart, and Donald R. Lehmann (2004) “Valuing Customers,” Journal
of Marketing Research, 41, February, 7-18.

Hogan, John E., Donald R. Lehmann, Maria Merino, Rajendra K. Srivastava, Jacquelyn S.
Thomas, and Peter C. Verhoef (2002) “Linking Customer Assets to Financial Performance,”
Journal of Service Research, 5:1, August, 26-38.

Hogan, John E., Katherine M. Lemon, and Barak Labai (2003) “What is the True Value of a
Lost Customer?” Journal of Service Research, 5:3, 196-208.

Reinartz, Werner J. and V. Kumar (2000) “On the Profitability of Long -Life Customers in a
Non-Contractual Setting: An Empirical Investigation and Implications for Marketing,”
Journal of Marketing, 64, November, 17-35.

Rust, Roland T., Katherine N. Lemon, and Valerie A. Zeithamhl (2001) “Return Marketing:;
Using Equity to Focus Marketing Strategy,” Journal of Marketing, 68, January, 109-27.

Thomas, Jacquelyn S., Robert C. Blattberg, and Edward J. Fox (2004) “Recapturing Lost
Customers,” Journal of Marketing Research, 41, January, 31-45.

Background

Blattberg, Robert and John Deighton (1996) “Manage Marketing by the Customer Equity
Test,” Harvard Business Review, July-August, 136-44.

Blattberg, Robert, Gary Getz, and Jacqueline S. Thomas (2001) Customer Equity: Building
and Managing Relationships as Assets. Boston, MA, Harvard Business School Press.

Rust, Roland T., Valerie A. Zeithamhl, and Katherine N. Lemon (2001) Driving Customer
Equity: How Customer Lifetime Value is Reshaping Corporate Strategy. New York: Free
Press.
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Class 9. ASSESSING THE IMPACT OF STRATEGY

Everyone Reads

Srivastava, Rajendra K., Tasadduq A. Shervani, and Liam Fahey (1998) “Market-Based
Assets and Shareholder Value: A Framework for Analysis,” Journal of Marketing, 62,
January, 2-18.

Assigned Readings

Aaker, David A. and Robert Jacobson (2001) “The Value Relevance of Brand Attitude in
High-Technology Markets,” Journal of Marketing Research, 38, November 485-93.

Ailawadi, Kusum L., Donald R. Lehmann, and Scott A. Neslin (2001) “Market Response to
a Major Policy Change in the Marketing Mix: Learning from Procter & Gamble’s Value
Pricing Strategy,” Journal of Marketing, 65, January, 44-61.

Anderson, Eugene, Claes Fornell, and Donald R. Lehmann (1994) "Customer Satisfaction,
Market Share, and Profitability," Journal of Marketing, 58, July, 53-66.

Mizik, Natalie and Robert Jacobson (2003) “Trading Off Between Value Creation and Value
Appropriation: The Financial Implications of Shifts in Strategic Emphasis,” Journal of
Marketing, 67, January, 63-76.

Rao, Vithala R., Manoj K. Agarwal, and Denise Dahloft (2003) “How Manifested Brand
Strategy is Related to the Intangible Value of a Corporation,” Journal of Marketing,
forthcoming.

Background

Amir, Eli and Baruch Lev (1996) “Value-Relevance of Nonfinancial Information: The
Wireless Communication Industry,” Journal of Accounting and Economics, 22, August-
December, 3-30.

Moorman, Christine and Donald R. Lehmann (2004) Cool Tools for Strategy Research,
Cambridge, MA. Marketing Science Institute.

Trueman, Brett, M.H. Franco Wone, and Xiao-Jun Zhang (2000) “The Eyeballs Have It:
Searching for the Value in Internet Stocks,” Review of Accounting Studies, 38
(Supplement), 137-62.
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Class 10. OTHER HOT TOPICS

Assigned Readings

Horth-Anderson, C. (1984) “The Concept of Quality and Efficiency of Markets for Consumer
Products,” Journal of Consumer Research, 11, September, 708-18.

Class 11. QUALITATIVE RESEARCH

Assigned Readings

Fournier, Susan (1998) “Consumers and Their Brands: Developing Relationship Theory in
Consumer Research,” Journal of Consumer Research, 24, November, 343-73.

McCracken, Grant (1986) "Culture and Consumption," Journal of Consumer Research, 13,
June, 71-84.

O'Guinn, Thomas C. and Ronald J. Fader (1989) "Compulsive Buying: A

Phenomenological Explanation," Journal of Consumer Research, 16, September, 147-57.

Rook, Dennis W. (1985) "The Ritual Dimensions of Consumer Behavior," Journal of

Consumer Research, 12, December, 251-64.

Wallendorf, Melanie and Eric J. Arnould (1991) "We Gather Together: The Consumption
Rituals of Thanksgiving Day," Journal of Consumer Research, 19, June, 13-31.

Zaltman, Gerald (1997) “Rethinking Marketing Research: Putting People Back In,” Journal
of Marketing Research, 34, November, 424-37.

Class 12. PRESENTATIONS

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METHODOLOGICAL ISSUES

Beckwith, Neil E. and Donald R. Lehmann (1975) "The Importance of Halo Effects in Multi-
Attribute Attitude Models," Journal of Marketing Research, 12, August, 265-75.

Hutchinson, J. Wesley, Wagner A. Kamakura, and John G. Lynch, Jr. (2000) “Unobserved
Heterogeneity as an Alternative Explanation for ‘Reversal’ Effects in Behavioral Research,”
Journal of Consumer Research, 27, December, 324-44.

Kopalle, Praveen K. and Donald R. Lehmann (1997) "Alpha Inflation? The Impact of
Eliminating Scale Items on Cronbach's Alpha," Organizational Behavior and Human
Decision Processes, 70, June, 189-97.

Lehmann, Donald R. (1988) "An Alternative Procedure for Assessing Convergent and
Discriminant Validity," Applied Psychological Measurement, 12, December, 411-23.

Lehmann, Donald R. (1983) "An Approach to Blending Weak Prior Models and Data," in
William R. Darden, Kent B. Monroe, and William R. Dillon, eds., Research Methods and
Causal Modeling in Marketing, Chicago, American Marketing Association, 105-10.

Lehmann, Donald R. and Sunil Gupta (1989) "PACM: A Two-Stage Procedure for
Analyzing Structural Models," Applied Psychological Measurement, 13, September, 301-21.

Lehmann, Donald R., Sunil Gupta, and Joel Steckel (1998) Marketing Research, Boston,
Addison-Wesley:143-52, Ch. 8, Appendix 8-A, 8-B; pp. 448-51, 482-505; Appendix 13E,
13F, 13G.