Research traditions in marketing INTERNATIONAL SERIES IN QUANTITATIVE MARKETING Editor: Jehoshua Eliashberg The Wharton School University of Pennsylvania Philadelphia, Pennsylvania, U.S.A. Other books in the series: Cooper, L. and Nakanishi, M: Market Share Analysis Hanssens, D., Parsons, L., and Schultz, R.: Market Response Models: Econometric and Time Series Analysis McCann, J. and Gallagher, J.: Expert Systems for Scanner Data Environments Erickson, G.: Dynamic Models of Advertising Competition Research traditions in marketing Edited by Gilles Laurent Groupe HEC Gary L. Lilien Pennsylvania State University Bernard Pras University of Paris Dauphine and ESSEC ~. " Springer Science+Business Media, LLC Co-sponsor European Institute for Advanced Studies in Management (EIASM) Ubrary ot Congreaa Cataloglng-In-Publlcatlon Date Research tradHions in marketing I edited by Gilles Laurent, Gary L. Ulien, Bemard Pres. p. cm.-(Intemational series in quantitative marketing) ISBN 978-94-010-4615-2 ISBN 978-94-011-1402-8 (eBook) DOI 10.1007/978-94-011-1402-8 ,. Marketing research-Congresses. 2. Marketing research Europe-Congresses. 3. Marketing research-UnHed States Congresses. I. Laurent, Gilles. 11. Lilien, Gary L., 1946-a-. 111. Pres, Bemard. IV. Series. HF5415.2. R44 1993 658.8'3-dc20 93-14432 CIP Copyright © 1994 by Springer Scienc:e+Business Media New York Originally published by Kluwer Academic Publishers in 1994 Softcover reprint of the hardcover 1s t edition 1994 All rights reserved. No part ot this publication may be reproduced, stored in aretrieval system or lransmitted in any form or by any means, mechanical, photo-copylng, recording, or otherwise, without Ihe prior written parmission of Ihe publisher, Springer Scienc:e+Business Media, LLC. Prin/ed on acid-frse paper. Contents Foreword ix Divergence: A Source of Creative Thinking Alain Bultez Preface xiii The Conference and the Genesis of this Book Gilles Laurent, Gary L. Lilien, and Bernard Pras Quantitative Papers 1 Marketing Models: Past, Present and Future Gary L. Lilien Commentary by Donald G. Morrison 21 Commentary by A. S. C. Ehrenberg 24 Author's Reply by Gary L. Lilien 26 2 Marketing Science's Pilgrimage to the Ivory Tower 27 Hermann Simon Commentary by John D. C. Little, Leonard M. Lodish, John R. Hauser, 44 and Glen L. Urban Commentary by Leonard J. Parsons, Els Gijsbrechts, Peter S. H. Leeflang, 52 and Dick R. Wittink Marketing Science, Econometrics, and Managerial Contributions 3 Theory or Well-Based Results: Which Comes First? 79 A. S. C. Ehrenberg v vi CONTENTS Commentary by Albert C. Bemmaor 109 Commentary by John R. Rossiter 116 Commentary by David C. Schmittlein 123 Marketing Science and Marketing Engineering 128 Author's Reply by A. S. C. Ehrenberg 4 Diagnosing Competition: Developments and Findings 133 Peter S. H. Leeflang and Dick R. Wittink Commentary by Piet Vanden Abeele 157 Commentary by Robin Wensley 163 On a Clear Day You Can See the Market 5 Productivity Versus Relative Efficiency in Marketing: Past and Future? 169 Leonard J. Parsons Commentary by A. Roy Thurik 197 Applied Econometrics and Productivity Analysis in Marketing 6 Modeling the Diffusion of New Durable Goods: Word-ot-Mouth Effect 201 Versus Consumer Heterogeneity Albert C. Bemmaor Commentary by Frank M. Bass 224 Heterogeneity in Purchase Intention, Diffusion, and Exogenous Influence Commentary by Vijay Mahajan 227 New Product Diffusion Models: Some Reflections on Their Practical Utility and Applications 7 Research on Modeling Industrial Markets 231 Maryse J. Brand and Peter S. H. Leetlang Commentary by Gary L. Lilien 262 Qualitative Papers 8 Scholarly Traditions and European Roots ot American Consumer Research 265 Harold H. Kassarjian Commentary by Christian Derbaix 280 Commentary by Sidney J. Levy 283 CONTENTS vii 9 Cross-National Consumer Research Traditions 289 Susan P. Douglas, Maureen A. Morrin, and C. Samuel Craig Commentary by David Midgley 307 Commentary by Joseph C. Miller 314 10 The Markets-as-Networks Tradition in Sweden 321 Jan Johanson and Lars-Gunnar Mattsson Commentary by David T. Wilson 343 11 Interorganizational Marketing Exchange: Metatheoretical Analysis of 347 Current Research Approaches K. E. Kristian Moller Commentary by Geoff Easton 373 Commentary by Gary L. Frazier 378 A Perspective on Interorganizational Exchange in Channels of Distribution 12 The Emerging Tradition of Historical Research in Marketing: History of 383 Marketing and Marketing of History Franck Cochoy Commentary by Terence Nevett 398 Author's Reply Understanding the Marketing of History in Marketing 402 Discipline by Franck Cochoy 13 Metaphor at Work 405 Christophe Van den Bulte Commentary by Shelby D. Hunt and Ani! Menon 426 Is it "Metaphor at Work" or Is it "Metaphors, Theories, and Models at Work"? Author's Reply by Christophe Van den Bulte 433 Can Literal Truth Safeguard Models and Theories from Metaphor? Contributing Authors 435 Foreword Divergence: A Source of Creative Thinking The outstanding job accomplished by Bernard, Gary, and Gilles is really praiseworthy: not only did they succeed in completing within a remark ably short span of time the editing of the contributions to the conference that marked the 20th Anniversary of the European Institute for Ad vanced Studies in Management; they have also managed to elicit numerous insightful comments from a host of dashing young scholars as well as from the fortunate few established authorities whose findings have long be come leading articles in the best academic journals, who now chair those journals' editorial boards, and after whom great scientific awards have been named. In so doing, our dedicated triumvirate has blended together pieces of diverse research traditions-some of them quite puzzling-and mixed significantly differentiated styles of expression. The controversial display of self-confidence by some distinguished colleagues, the amazingly emo tional "good old" memories revived by their peers, the scapegoat-finding and moralizing confessions produced by some of their disciples together with the detached systematic rigidity of some others all combine to pro duce a multivarious patchwork that may well prove the existence of a marketing scholar lifecycle. This cartoon-like four-class typology might even make it worth the reader's while to indulge in some guesswork to discover the sequence of the four stages as an exercise and then partition the author population accordingly. Such heterogeneity is bound to fuel this book with bold reflections on our profession. On the face of it, some authors might sound overly self confident or complacent or seem overinspired by their own (naturally) successful experience without due regard to fellow-academics' ap proaches. But even the most sharply biased judgments have their ix x FOREWORD merits: at least, they shake up readers' potential inelasticity (a substitute for indifference) with respect to issues of relevance to other yet bordering circles, a side-benefit that the editors will no doubt value in view of their concern for exchange of ideas (albeit resulting from conflicting opinions) and cross-fertilization between areas. We should beware, however, of a potential direct impact that would lead us, in some instances, to idolize self-appointed figureheads; visits to celebrity museums hold the risk of shaping our traditions. As pointed out by Laurent, Lilien, and Pras, some chapters are no more than elaborated softened versions of far more radical stances taken during the conference. For those who missed the excitement of the event, I hope it will take just a little bit of imagination to extrapolate from those readings the liveliness of our discussions. As the director of the European Institute for Advanced Studies in Management, I greatly enjoyed the rare privilege of acting as a trainee taking lessons for the future. The prevailing tone was reminiscent of the happy days when I joined EIASM as a doctoral student, one who already did not care a great deal about academic precedence. I could not stand just sitting quietly listening to some of my workmates' parables or ser mons. Despite the fact that I had the opportunity to voice my opinions - as biased and subjective as others-during the course of this unique celebration, the editors urged me to write a few lines to put the event into its proper perspective. Two options were open to me: to present a historical review, unavoid ably praising EIASM's role in fostering European management research and spinning networks of management scholars (which would mean focus ing on the European Marketing Academy and its International Journal for Research in Marketing); or alternatively, to describe the conference itself in a way that would complement the editors' preface. I chose the latter, because I felt an irrepressible need to compliment our trio on their hard and relentless work, which has ultimately resulted in the publication of a book that is certain to become a household name, if not the ultimate stan dard, for some time to come. I wish I had been able to revise my own manuscript and make it part of this advertising vehicle. Having the privilege of being associated with their undertaking, I should like to back their pleas for broader interaction between research areas and traditions. Some comments on the econometric school, my own field, will be a case in point. The econometric school has focused on the relative effec tiveness of the marketing-mix variables. Typically, researchers obtain FOREWORD Xl estimates of elasticity-related parameters reflecting the response of sales or market shares to marketing tools; then they assess the reliability and face validity of those measures. Sometimes they subject the best-fitting models to a test of predictive ability or bring them to bear on the question of whether sensible normative recommendations can be derived by ana lyzing their implications as to resource allocation. At the outset, we were chiefly concerned with methodological break through, and as a consequence, we experienced increased sophistication in the specification of response functions (for example, by incorporating dynamics and advocating more con sistent mathematical formulations); continual refining of evaluation procedures (such as relying on joint GLS and FIML techniques, looking for robust estimators); widespread use of ever more complex numerical optimization algorithms, heuristics, or routines (for example, discrete and geo metric programming, and stochastic control). Partly because we ignored the appropriate economic literature, but perhaps equally because economic theory seemed remote from our marketing concerns, we invested little research into integrating our ad vanced empirical analyses into any kind of solid theoretical framework. Yet during the '80s, integrative approaches explicitly linking data with prior theoretical constructs or norms were widely released. What used to be rather blind, fact-finding fishing expeditions or pure decision-centered numerical formalizations mimicking or supporting managerial expertise now tend to become systematized theory-driven explorations of the real world. Clearly the editors are convinced that much is to be gained from harmonious combinations of tools and talents from all horizons. Such mixing is possible, provided open-mindedness and communication pull down the barriers that now separate research domains and doctoral research programs. The EIASM's aims to facilitate such interfacing. For this reason, we have fostered such interfacing in Europe through a series of EDEN seminars. EDEN (EIASM's Doctoral Education Network) calls to mind the garden of delights described in the Book of Genesis, evoking the attractive and creative environment that EIASM offers to young promising doctorandi. Between June 1988 (when it was introduced) and December 1992, 354 students from all over Europe have become EDEN fellows, and 61 professors have acted as EDEN faculty members. Whether they believe that theoretical models may add to reality or