The unobserved signaling ability of marketing accountability: can suppliers’ marketing accountability enhance business customers’ value perceptions?

Abstract

Purpose

Marketing accountability is currently receiving increased attention from scholars and practitioners alike, with its usage mostly being linked to the improved position of marketing within the firm and to better firm performance. The purpose of this study is to assess whether a supplier’s marketing accountability also has an unobserved signaling effect on customer perceived value.

Design/methodology/approach

Based on a survey of advertising agency-client dyads, the authors develop and test a multilevel model that assesses the relationship between the supplier’s marketing accountability and perceived value of the client.

Findings

Empirical results indicate that marketing accountability of the agency is positively related to client-firm perceived value, that is marketing accountability also has a positive signaling effect on customers’ value perceptions.

Originality/value

This study provides novel insights on how perceptions of customer value are created in business relationships. More specifically, it highlights that marketing accountability of a supplier positively contributes to shaping clients’ value perceptions. Implications for marketing theory and practice, focused on the need for building, improving and sustaining marketing accountability within the firm and its relevance for value, are discussed and future research directions are identified.

Citation

Arslanagic-Kalajdzic, M., Žabkar, V. and Diamantopoulos, A. (2019), "The unobserved signaling ability of marketing accountability: can suppliers’ marketing accountability enhance business customers’ value perceptions?", Journal of Business & Industrial Marketing, Vol. 34 No. 1, pp. 166-175. https://doi.org/10.1108/JBIM-05-2018-0156