Browsing by Author "Hanssens, D. M."

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Open Access
Consumer attitude metrics for guiding marketing mix decisions
(Informs, 2014-08) Hanssens, D. M.; Pauwels, Koen Hendrik; Srinivasan, S.; Vanhuele, M.; Yildirim, G.; Business Administration; PAUWELS, Koen Hendrik
Marketing managers often use consumer attitude metrics such as awareness, consideration, and preference as performance indicators because they represent their brand's health and are readily connected to marketing activity. However, this does not mean that financially focused executives know how such metrics translate into sales performance, which would allow them to make beneficial marketing mix decisions. We propose four criteria-potential, responsiveness, stickiness, and sales conversion-that determine the connection between marketing actions, attitudinal metrics, and sales outcomes. We test our approach with a rich data set of four-weekly marketing actions, attitude metrics, and sales for several consumer brands in four categories over a seven-year period. The results quantify how marketing actions affect sales performance through their differential impact on attitudinal metrics, as captured by our proposed criteria. We find that marketing-attitude and attitude-sales relationships are predominantly stable over time but differ substantially across brands and product categories. We also establish that combining marketing and attitudinal metrics criteria improves the prediction of brand sales performance, often substantially so. Based on these insights, we provide specific recommendations on improving the marketing mix for different brands, and we validate them in a holdout sample. For managers and researchers alike, our criteria offer a verifiable explanation for differences in marketing elasticities and an actionable connection between marketing and financial performance metrics.
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Demonstrating the value of marketing
(2016-11) Hanssens, D. M.; Pauwels, Koen Hendrik; Business Administration; PAUWELS, Koen Hendrik
Marketing departments are under increased pressure to demonstrate their economic value to the firm. This challenge is exacerbated by the fact that marketing uses attitudinal (e.g., brand awareness), behavioral (e.g., brand loyalty), and financial (e.g., sales revenue) performance metrics, which do not correlate highly with each other. Thus, one metric could view marketing initiatives as successful, whereas another could interpret them as a waste of resources. The resulting ambiguity has several consequences for marketing practice. Among these are that the scope and objectives of marketing differ widely across organizations. There is confusion about the difference between marketing effectiveness and efficiency. Hard and soft metrics and offline and online metrics are typically not integrated. The two dominant tools for marketing impact assessment, response models and experiments, are rarely combined. Risk in marketing planning and execution receives little consideration, and analytic insights are not communicated effectively to drive decisions. The authors first examine how these factors affect both research and practice. They then discuss how the use of marketing analytics can improve marketing decision making at different levels of the organization. The authors identify gaps in marketing’s knowledge base that set the stage for further research and enhanced practice in demonstrating marketing’s value.
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Time-series models of pricing the impact of marketing on firm value
(Edward Edgar Publishing, 2012-05) Luo, X.; Pauwels, Koen Hendrik; Hanssens, D. M.; Business Administration; PAUWELS, Koen Hendrik
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