When does metric use matter less? How firm and managerial characteristics moderate the relationship between metric use and marketing mix performance

Abstract

Purpose

This paper aims to develop a conceptual framework, in an effort toward building a contingent theory of drivers and consequences of managerial metric use in marketing mix decisions, this paper develops a conceptual framework to test whether the relationship between metric use and marketing mix performance is moderated by firm and managerial characteristics.

Design/methodology/approach

Based on reviews of the marketing, finance, management and accounting literatures, and homophily, firm resource- and decision-maker-based theories and 22 managerial interviews, a conceptual model is proposed. It is tested via generalized least squares – seemingly unrelated regression estimation of 1,287 managerial decisions.

Findings

Results suggest that the impact of metric use on marketing mix performance is lower in firms which are more market oriented, larger and with worse recent business performance and for marketing and higher-level managers, while organizational involvement has a lesser nuanced effect.

Research limitations/implications

While much is written on the importance of metric use to improve performance, this work is a first step toward understanding which settings are more difficult than others to accomplish this.

Practical implications

Results allow identification of several conditional managerial strategies to improve marketing mix performance based on metric use.

Originality/value

This paper contributes to the metric literature, as prior research has generally focused on the development of metrics or the linking of marketing efforts with performance metrics, but paid little attention to understanding the relationship between managerial metric use and performance of the marketing mix decision and has not considered how the relationship is moderated by firm and managerial characteristics.

Citation

Mintz, O. and Currim, I.S. (2015), "When does metric use matter less? How firm and managerial characteristics moderate the relationship between metric use and marketing mix performance", European Journal of Marketing, Vol. 49 No. 11/12, pp. 1809-1856. https://doi.org/10.1108/EJM-08-2014-0488