Drivers of Metric Use in Marketing Mix Decisions: An Investigation across the G7, BRIC, and MIST Countries

Ofer Mintz, Jan-Benedict E.M. Steenkamp, Martijn de Jong, and Imran S. Currim, 2017, 17-113-06

Global competition is increasing, U.S. firms have an increasing global presence, and many of the world’s largest firms are based abroad. Although research on metrics is consistently designated a priority by academics and practitioners, little is known about what drives metric use in a global setting.

In this report, Ofer Mintz, Jan-Benedict E.M. Steenkamp, Martijn de Jong, and Imran Currim address this knowledge gap by developing a conceptual model based on culture, resources, and institutional theories that combines micro-firm, meso-industry, and macro-national characteristics.

To test their model, they analyze over 4,000 marketing-mix decisions from 16 countries obtained via primary survey data collection, including all G7 countries (Canada, France, Germany, Italy, Japan, U.S., and U.K.), all BRIC countries (Brazil, Russia, India, and China), and all MIST countries (Mexico, Indonesia, South Korea, and Turkey), which account for 80% of the world’s GDP.

Among their findings about important drivers of metric use:

  • Of macro-national characteristics, uncertainty avoidance is positively associated with metric use. Collectivism, assertiveness, power distance, and future orientation are negatively associated with metric use.
  • Micro-firm characteristics such as internal maintenance, organic processes, market orientation, marketing’s influence in the firm, CMO presence in the firm, and firm size are positively associated with metric use.
  • Meso-industry characteristics (life cycle stage, concentration, growth, and turbulence) are less impactful as drivers of metric use.

A subsequent analysis compared high income countries with emerging markets, and revealed that micro-firm characteristics such as internal maintenance, organic processes, and CMO presence drive metric use in high income countries but not emerging markets. Further, industry characteristics such as concentration, growth, and turbulence drive metric use in emerging markets but not high income countries.

These results enable top executives of multinationals to better understand and drive downstream managerial metric use across the countries and industry and firm settings in which they operate.

Ofer Mintz is Assistant Professor of Marketing, E. J. Ourso College of Business, Louisiana State University. Jan-Benedict E.M. Steenkamp is C. Knox Massey Distinguished Professor of Marketing and Marketing Area Chair, University of North Carolina at Chapel Hill. Martijn de Jong is Professor of Marketing Research and Tinbergen Research Fellow, Department of Business Economics - Section Marketing, Erasmus School of Economics, Rotterdam, Netherlands. Imran S. Currim is Chancellor’s Professor and Director, Don Beall Center for Innovation and Entrepreneurship at the Paul Merage School of Business, University of California, Irvine.

This research was supported by grants from the Marketing Science Institute, UNC Kenan-Flagler Business School, and the Beall Center for Innovation and Entrepreneurship, Paul Merage School of Business, University of California, Irvine.


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