TY - JOUR
T1 - Performance implications of deploying marketing analytics
AU - Germann, Frank
AU - Lilien, Gary L.
AU - Rangaswamy, Arvind
PY - 2013/6/1
Y1 - 2013/6/1
N2 - A few well-documented cases describe how the deployment of marketing analytics produces positive organizational outcomes. However, the deployment of marketing analytics varies widely across firms, and many C-level executives remain skeptical regarding the benefits that they could gain from their marketing analytics efforts. We draw on upper echelons theory and the resource-based view of the firm to develop a conceptual framework that relates the organizational deployment of marketing analytics to firm performance and that also identifies the key antecedents of that deployment. The analysis of a survey of 212 senior executives of Fortune 1000 firms demonstrates that firms attain favorable and apparently sustainable performance outcomes through greater use of marketing analytics. The analysis also reveals important moderators: more intense industry competition and more rapidly changing customer preferences increase the positive impact of the deployment of marketing analytics on firm performance. The results are robust to the choice of performance measures, and, on average, a one-unit increase in the degree of deployment (moving a firm at the median or the 50th percentile of deployment to the 65th percentile) on a 1-7 scale is associated with an 8% increase in return on assets. The analysis also demonstrates that support from the top management team, a supportive analytics culture, appropriate data, information technology support, and analytics skills are all necessary for the effective deployment of marketing analytics.
AB - A few well-documented cases describe how the deployment of marketing analytics produces positive organizational outcomes. However, the deployment of marketing analytics varies widely across firms, and many C-level executives remain skeptical regarding the benefits that they could gain from their marketing analytics efforts. We draw on upper echelons theory and the resource-based view of the firm to develop a conceptual framework that relates the organizational deployment of marketing analytics to firm performance and that also identifies the key antecedents of that deployment. The analysis of a survey of 212 senior executives of Fortune 1000 firms demonstrates that firms attain favorable and apparently sustainable performance outcomes through greater use of marketing analytics. The analysis also reveals important moderators: more intense industry competition and more rapidly changing customer preferences increase the positive impact of the deployment of marketing analytics on firm performance. The results are robust to the choice of performance measures, and, on average, a one-unit increase in the degree of deployment (moving a firm at the median or the 50th percentile of deployment to the 65th percentile) on a 1-7 scale is associated with an 8% increase in return on assets. The analysis also demonstrates that support from the top management team, a supportive analytics culture, appropriate data, information technology support, and analytics skills are all necessary for the effective deployment of marketing analytics.
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U2 - 10.1016/j.ijresmar.2012.10.001
DO - 10.1016/j.ijresmar.2012.10.001
M3 - Article
AN - SCOPUS:84875462021
VL - 30
SP - 114
EP - 128
JO - International Journal of Research in Marketing
JF - International Journal of Research in Marketing
SN - 0167-8116
IS - 2
ER -