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When does metric use matter less? (Firm (Performance (Financial…
When does metric use matter less?
Firm
Strategy
Market Orientation (H2). Organizational Involvement (H3)
less market orientation
rely more on metrics to achieve better marketing mix performance
data enable reduction of uncertainty
benchmarking and monitoring
. Metric Orientation
Marketing
Financial
General
Specific
managerial characteristics
Functional Area (H6), Level in the Organization (H7)
non-marketing use metrics to reduce the uncertainty
monitor performance
lower-level managers have a greater knowledge of which information or metrics are
most valuable
organizational involvement
common
language
Characteristics
Recent Business Performance (H4), Firm Size (H5)
larger firms have less uncertainty
Performance
Relative to Objective
Compared to Past
Financial
profitability, sales and ROI
Marketing
customer satisfaction, loyalty and
market share
Overall
Marketing Mix
Constructive choice theory
expend more effort
will improve their marketing mix decisions
managers who use additional metrics
information overload problems
lower performing decisions
improved
marketing performance
increasing use of metrics
firm’s
strategy, other firm characteristics and the characteristics of the manager
Theories
Homophily theory
metric use on performance is lower for firms with stronger market orientation and
less organizational involvement in marketing mix decisions
Resource-based theory of the firm
mpact of metric use on performance is lower for
larger firms with worse business performance
Decision-maker-based theory
impact of metric use on performance is lower for
marketing and higher-level managers