Does Multi-stage Marketing Pay?: Creating Competitive Advantages Through Multi-stage Marketing

297 Pages·2014·9.14 MB·English

by  Alejandro-Marcel Schönhoff (auth.)

Business-to-Business-Marketing
Herausgegeben von
K. Backhaus, Münster, Deutschland
J. Büschken, Ingolstadt, Deutschland
W. H. Engelhardt, Bochum, Deutschland
S. Fließ, Hagen, Deutschland
J. Freiling, Bremen, Deutschland
M. Gersch, Berlin, Deutschland
B. Günter, Düsseldorf, Deutschland
F. Jacob, Berlin, Deutschland
M. Kleinaltenkamp, Berlin, Deutschland
W. Plinke, Berlin, Deutschland
M. Reckenfelderbäumer, Lahr/Schwarzwald, Deutschland
M. Rese (†), Bochum, Deutschland
A. Söllner, Frankfurt/Oder, Deutschland
M. Voeth (schriftführend), Hohenheim, Deutschland
R. Weiber, Trier, Deutschland
Das Business-to-Business-Marketing ist ein noch relativ junger Forschungszweig,
der in Wissenschaft und Praxis ständig an Bedeutung gewinnt. Die Schriftenreihe
möchte dieser Entwicklung Rechnung tragen und ein Forum für wissenschaftliche
Beiträge aus dem Business-to-Business-Bereich schaffen. In der Reihe sollen aktuelle
Forschungsergebnisse präsentiert und zur Diskussion gestellt werden.
Herausgegeben von
Professor Dr. Dr. h. c. Klaus Backhaus Professor Dr. Michael Kleinaltenkamp
Universität Münster Freie Universität Berlin
Professor Dr. Joachim Büschken Professor Dr. Wulff Plinke
Katholische Universität Humboldt-Universität zu Berlin
Eichstätt-Ingolstadt
Professor Dr. Martin Reckenfelderbäumer
Professor Dr. Dr. h.c. Wissenschaftliche Hochschule Lahr/
Werner Hans Engelhardt AKAD Hochschule für Berufstätige,
Ruhr-Universität Bochum Lahr/Schwarzwald
Professorin Dr. Sabine Fließ Professor Dr. Mario Rese (†)
FernUniversität in Hagen Ruhr-Universität Bochum
Professor Dr. Jörg Freiling Professor Dr. Albrecht Söllner
Universität Bremen Europa-Universität Viadrina
Frankfurt/Oder
Professor Dr. Martin Gersch
Freie Universität Berlin Professor Dr. Markus Voeth
Universität Hohenheim
Professor Dr. Bernd Günter (schriftführend)
Universität Düsseldorf
Professor Dr. Rolf Weiber
Professor Dr. Frank Jacob Universität Trier
ESCP-EAP
Europäische Wirtschaft shochschule
Berlin
Alejandro-Marcel Schönhoff
Does Multi-stage
Marketing Pay?
Creating Competitive Advantages
Through Multi-stage Marketing
Alejandro-Marcel Schönhoff
Berlin, Germany
Dissertation Freie Universität Berlin, 2013
D 188
ISBN 978-3-658-05558-5 ISBN 978-3-658-05559-2 (eBook)
DOI 10.1007/978-3-658-05559-2
Th e Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografi e;
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Foreword
Customers in business-to-business markets also operate as suppliers for their own markets.
Products or services demanded by direct customers get purchased to support the creation and
distribution of other products or services. As a result, demand in business-to-business markets
depends on purchasing decisions made on subsequent market stages of processing and/or
trade, which ultimately reaches back to the original source of the demand—namely, the
end user or consumer. With this in mind, it stands to reason that companies operating in
business-to-business markets would employ various marketing activities to try to influence
the purchasing behavior of their customers’ customers, so that the purchasing decisions of
their direct customers are in turn influenced in their favor. All such activities are covered by
the term “multi-stage marketing.” The main objective is to trigger a demand pull that more or
less “nudges” direct customers to demand the products in question. This pull in turn results in
a stabilization of or increase in the quantity demanded and/or the prices of an upstream
supplier’s products. A well known example that extends into the sector of consumer goods is
the “Intel Inside” campaign run by Intel, which manufactures computer processors.
Despite its practical significance, little attention has been paid to multi-stage marketing in
academic literature so far. Very little is known about how its mechanisms work or whether it
achieves its intended objectives. In this thesis, Alejandro Schönhoff focuses on the possible
price effects of multi-stage marketing and examines whether, how, and in which conditions
multi-stage marketing affects direct customers’ willingness-to-pay and other outcome
variables. To this end, he has performed an elaborate and extensive experiment, involving
more than 100 purchasing managers responsible for sourcing industrial adhesives.
Mr. Schönhoff’s main findings show that multi-stage marketing translates into higher
willingness-to-pay among a supplier’s direct customers. This is especially true for
collaborative multi-stage marketing, when suppliers and direct customers work together
across several market levels. In addition, his findings make clear that direct customers’
market power toward their own customers has significant influence on the price effects of
multi-stage marketing.
VI Foreword
Considering that the present study examines a problem that is relevant and important in both
academic and practical senses, and because its findings reveal many starting points for
practical implementation, I am hopeful that the work will be met with great responses, across
both research and practice.

Prof. Dr. Dr. h.c. Michael Kleinaltenkamp
Acknowledgements
While completing this thesis, I was employed as sales manager at Henkel AG & Co. KGaA in
Düsseldorf; the School of Business & Economics of Freie Universität Berlin accepted it in
successful completion of my doctorate in July 2013. During this process, multiple people
contributed to enable me to finish it. I thus am deeply grateful to and wish to thank the
following:
Prof. Dr. Dr. h.c. Michael Kleinaltenkamp, for the opportunity and means to undertake my
doctoral work as an external student of the Marketing Department of Freie Universität Berlin;
for being a reliable, inspirational doctoral adviser; and for participating in a vast number of
helpful, guiding discussions in Berlin and the Rhineland.
Prof. Dr. Ingmar Geiger, for providing a second-opinion assessment, as well as continuous
encouragement and a professional foundation for my scientific work. Without his challenging,
supportive advice, it would have been difficult to complete my dissertation.
Prof. Dr. Henning Kreis and Prof. Dr. Jörg Sydow, for being members of the examination
committee and for engaging me in demanding but fair discussions during my thesis defense.
Dr. Torsten and Birgit Bahke, for their everlasting personal support.
Dr. Ioana Minculescu, for her generous data collection support.
Dipl.-Vw. Holger Herz, PhD, for his profound statistical expertise and knowledgeable support
during the data analysis stage.
Dipl.-Vw. Max Flötotto, PhD, for his precious advice and insightful input regarding the
structure of my thesis and intensive revisions to my manuscript.
Dipl.-Psy. Flora Spannagel, M.Sc., for various conceptual discussions and motivating advice.
VIII Acknowledgements
Dr. Stefan Strenger, Business Director Graphic Arts and Paper Converting Adhesives Europe,
for his commitment and for making it possible to realize my doctoral project while
performing my work at Henkel.
Ralf Grauel, Vice President Packaging, Consumer Goods and Construction Adhesives Europe
and my direct line managers at Henkel, for their trust and understanding.
Antoine Philippe, Marketing Director Branding and Customer Experience, for his valuable
mentoring and various helpful discussions at Henkel.
Elisabeth Nevins Caswell, for editing my thesis.
My colleagues at the Marketing Department of Freie Universität Berlin, for their support and
for letting me be a part of the team.
My colleagues at Henkel, for participating in my empirical survey.
My friends, for their patience, understanding, and sharing joyful moments of distraction.
Finally and most important, my parents and family, for their love and trust, which have
always enabled me to pursue my dreams and endeavors.

I dedicate this work to my godmother, Birgit Bahke.

Alejandro Schönhoff
Contents
List of figures ....................................................................................................................... XIII
List of tables .......................................................................................................................... XV
List of abbreviations .......................................................................................................... XVII
1 Introduction ...................................................................................................................... 1
1.1 Relevance ................................................................................................................... 1

1.2 Research deficit and research question ..................................................................... 3

1.3 Structure of the study .................................................................................................. 3

2 M SM and its consequences .............................................................................................. 5
2.1 MSM as an object of investigation ............................................................................. 5

2.1.1 MSM perspectives in existing literature ................................................................. 5
2.1.1.1 Market orientation .......................................................................................... 6
2.1 .1.2 Ingredient branding ........................................................................................ 8
2.1.1.3 Vertical marketing ........................................................................................ 12
2.1.1.4 Pull strategy .................................................................................................. 13
2.1.1.5 Multi-stage marketing .................................................................................. 14
2.1.1.6 Assessment of MSM literature ..................................................................... 18
2.1.1 .6.1 Assessment of MSM effects ................................................................... 20
2.1.1 .6.2 Assessment of MSM concepts ................................................................ 22
2.1.2 MSM understanding of this study ........................................................................ 24
2.1.2.1 C onceptualization of MSM .......................................................................... 24
2.1 .2.2 Definition of MSM ....................................................................................... 28

2.2 Dimensions of MSM effects ...................................................................................... 30

2.2.1 Willingness-to-pay ............................................................................................... 31
2 .2.2 Additional effects ................................................................................................. 36
2.2 .2.1 Customer satisfaction ................................................................................... 36
2.2 .2.2 Customer loyalty .......................................................................................... 38

2.3 Interim conclusion and implications for further study ............................................. 39

3 E ffect mechanisms of MSM ........................................................................................... 41
3.1 Generic types and instruments of MSM ................................................................... 41

3.1.1 Non-collaborative MSM ...................................................................................... 43
3 .1.2 Collaborative MSM .............................................................................................. 44
3.1.3 MSM in a wider sense .......................................................................................... 45
3.1.4 MSM instruments ................................................................................................. 46

3.2 MSM and WTP ......................................................................................................... 50

3.2.1 Effects of MSM on WTP through the concept of value ....................................... 51
3.2.1.1 MSM related constructs creating value ........................................................ 51
3.2 .1.2 MSM creating relationship value ................................................................. 54