engleski

ENHANCING CUSTOMER PURCHASE LIKELIHOOD THROUGH MARKET DRIVING STRATEGIES

Market driving is an important strategy for achieving competitive advantage, complementing existing predominant view that firms should be driven by markets, i.e. understanding and responding to preferences and behaviors of market players within a given market structure (Jaworski, Kohli, & Sahay, 2000 ; Carpenter & Nakamoto, 1994). Jaworski et al. (2000, p. 45) define market driving in a broad manner as “influencing the structure of the market and/or the behaviors(s) of market players in a direction that enhances the competitive position of the business”. On the other hand, Carpenter and Nakamoto (1994, p. 572) focus on product attributes and define market driving as “shaping consumer tastes”. Our work contributes to current literature on market driving in three main ways. First, we define market driving from the perspective of customer decision-making process thus distinguishing between three different levels at which market driving can be done: need, category, and attribute level. Second, this contribution distinguishes between market driving efforts, i.e. orientation of an organization to drive markets, and market driving outcomes, i.e. the actual change induced in customer decision-making process which makes focal product perceived as providing greater utility. As an outcome, market driving is analyzed in much the same way as innovation (with the components of change and its meaningfulness, as in e.g. Chandy and Tellis, 1998), and thus can even be referred to as market innovation. The third contribution is that we relate components of market driving outcomes (i.e. the actual change) to customer purchase likelihood increase, which is closely related to revenue increase (DeKinder & Kohli, 2008). In that sense, we provide propositions about possible differential effectiveness of market driving components under specific consumer-, product-, and environment- related contingencies.

market driving; strategy; purchase likelihood

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