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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-728-5

Book part
Publication date: 19 August 2015

Mark J. Zbaracki and Mark Bergen

We return to the problem that motivated the original behavioral theory of the firm, price adjustment, but from the standpoint of post-Carnegie School perspectives on cognition…

Abstract

We return to the problem that motivated the original behavioral theory of the firm, price adjustment, but from the standpoint of post-Carnegie School perspectives on cognition, attention, and routines. Whereas work in the Carnegie School tradition has tended to develop models of firms in opposition to economic theory, we seek to understand how economic ideas are used to shape decision processes. Using a combination of interview, observational, and archival data gathered at a large manufacturing firm that produced parts to maintain machinery, we develop a behaviorally plausible story of how organizations shape price adjustment. We follow three successive waves of managers seeking to improve the pricing routines through shifting attentional perspective, managing attentional engagement, and structuring attentional execution. We demonstrate how managers redesign routines to shape cognition and attention, thereby developing greater coherence in the market representations of the sales force. Our findings show how reshaping cognition and attention in pricing routines can improve organizational intelligence in pricing decisions. Economists treat markets as the ideal – the best that can be imagined – and organizations as second-best options – the best that can be achieved, but our findings invert the story, suggesting that in modern market economies, organizations and routines are essential to making the price system work.

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Cognition and Strategy
Type: Book
ISBN: 978-1-78441-946-2

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-728-5

Book part
Publication date: 1 January 2006

Donald R. Lehmann

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Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1305-9

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Review of Marketing Research
Type: Book
ISBN: 978-0-85724-723-0

Book part
Publication date: 1 August 2017

Abstract

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Qualitative Consumer Research
Type: Book
ISBN: 978-1-78714-491-0

Book part
Publication date: 2 September 2014

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Shopper Marketing and the Role of In-Store Marketing
Type: Book
ISBN: 978-1-78441-001-8

Book part
Publication date: 13 June 2013

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Review of Marketing Research
Type: Book
ISBN: 978-1-78190-761-0

Book part
Publication date: 3 July 2018

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Innovation and Strategy
Type: Book
ISBN: 978-1-78754-828-2

Book part
Publication date: 27 June 2016

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Marketing in and for a Sustainable Society
Type: Book
ISBN: 978-1-78635-282-8

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Book part (14)
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