Building and Leveraging Market-Based Assets to Drive Marketplace Performance and Value







Professor Rajendra K Srivastava,
Visiting Faculty, ISB

PhD, University of Pittsburgh, 1979; MBA, University of Pittsburgh, 1978; MS, University of Rhode Island, 1974; BS, Indian Institute of Technology, Kanpur, India, 1972.

Professor Srivastava holds the Jack R Crosby Regents Chair in Business Administration. He is a Professor of Marketing and Management Science and Infomation Systems at the University of Texas, Austin. He is the member of the Editorial Board, Journal of Marketing Research; member of the Editorial Board, Journal of Academy of Marketing Science; and member of the Editorial Board, Journal of Business and Industrial Marketing. Professor Srivastava's main areas of research are B-2-B, Brand Management, E-Commerce, Manufacturing, and Marketing Strategy.

Professor Srivastava's current research projects include Impact of e-Business on Business Processes and Corporate Financial Performance, ROI on Marketing Investments and Valuation of Market-based Assets and Brands. Some of his publications include Marketing, Business Processes and Shareholder Value, with Tasadduq Shervani and Liam Fahey; Marketing Orientation and Organizational Performance: Is Innovation a Missing Link? with Jin K. Han and Namwoon Kim, and Market-Based Assets and Shareholder Value: A Framework for Analysis, with Tasadduq A Shervani and Liam Fahey. Professional awards conferred on Professor Srivastava include Maynard Award, AMA, MSI/Paul Root Award, AMA, and Marketing Science Institute (MSI) Best Paper Award, CBA Foundation Award for Outstanding Research Contributions, 1995 and 1993, Alpha Kappa Psi Award, AMA. He was also the recipient of a teaching award, Co-Chair for Best University-wide Doctoral Dissertation at The University of Texas.

Managers must understand that marketing initiatives generate market-based assets - which have considerable value in and of themselves. These assets also have enduring value-in-use. They can be leveraged to provide marketplace results that fit with company strategy. Positive market performance, in turn, positively impacts cash flow dynamics and shareholder value. Companies must invest time, money, and energy in developing valuable market-based assets-a perspective that is often at odds with the accounting classification of most marketing activities as "expenses." It is important to recognize that what is considered "expense" is rarely nurtured. Therefore, senior managers must maintain internal books and metrics that recognize and catalog these assets as well as their benefits. Failure to do so will result in sub-optimal market performance, destruction of these assets, and reduced shareholder value.

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Research seminars

The faculty at the ISB conduct research seminars for the academic community. The permanent and the visiting faculty share the areas in which they are doing research, their findings, and methodology. Four such seminars are held every term.

At each seminar, a professor presents a paper. To give the participants a background about the research subject, he / she sends out an abstract. At the seminar, after the professor has presented the paper, the participants discuss the subject, and share their viewpoints.

The seminars conducted over the past few months are listed below:

"Product Variety and Manufacturing Flexibility: Some Lessons from the Auto Industry"
--Professor Anjani Jain, July 7, 2001

"Ex-post Accountability for Mergers & Acquisitions"
--Professor Bala Balachandran, Dec 18 2001

"Customer Profitability and Electronic Value Added in the Value Hub"
--Professor Bala Balachandran, Dec 2001

"Using Reformulations to Solve Hard OR Problems"
--Professor Trilochan Sastry, Jan 9, 2002

"Bringing E to Corporate America: The Drivers of the Intensity of E-Business Adoption and its Impact on Firm Performance"
--Professor Vijay Mahajan, Jan 21, 2002

"The Importance of Components of Customer Satisfaction on Performance Evaluation"
--Professor Rajiv Banker, Jan 24, 2002

"How to identify Entrepreneurial Opportunities?"
--Professor K Ramachandran, Jan 28, 2002

"The Measurement, Analysis, and Prediction of Brand Equity and its Sources"
--Professor Seenu Srinivasan, Jan 31, 2002

"Marketing and Value Creation: How NOT to Keep CFOs Awake All Night"
--Professor Rajendra Shrivstava, March 6, 2002 <abstract>

"Power Lost, Power Gained: Egocentric Action and Inconsistent Perceptions"
--Professor Madan Pillutla, March 7, 2002 <abstract>

"Imperfect Contract Enforcement"
--Professor James E Anderson and Leslie Young, March 13, 2002 <abstract>

"Marketing and Value Creation: How NOT to Keep CFOs Awake All Night"

Rajendra Srivastava, University of Texas at Austin
Jack R Crosby Regent's Chair in Business
Professor of Marketing and Management Science & Information Systems (MSIS)
McCombs School of Business, The University of Texas at Austin

Abstract
What do CFOs want? Consistent, predictable growth would be nice. Sustainability and scalability would be nice as well. Knowing where massive markets and sizeable profit pools exist would be still better. Capturing these opportunities and protecting them from competitors to ensure future cash flows would be icing on the cake. Professor Srivastava will examine marketing's role in shaping and implementing business models and thereby creating customer and shareholder value. He will highlight concepts such as customer platforms, lifetime value of customers, and market-facing investments as options that are suitable for communicating value created by marketing activities.

Power Lost, Power Gained: Egocentric Action and Inconsistent Perceptions

Madan Pillutla, London Business School
Associate Professor of Organisational Behaviour
London Business School

Abstract
Several models suggest that power reduces the accuracy of individuals' social perceptions. More pointedly, a recent model of disinhibition predicts that people are likely to acknowledge and act on a gain in power more than a comparable loss in power. We tested this hypothesis (and others) in two-person interactions that augmented or decreased one party's strong position and the other party's weak position by investigating the effects of moves from ultimatum to dictatorship games, or vice versa, on officers' allocations, respondents' demands, and their evaluations of their power. Although the results supported some portion of several models' predictions, they were most comprehensively explained by egocentrism: increases in power led to larger behavioural effects than decreases in power but judgments about the effects of increases and decreases in power were similar. The discussion explores the effects of changes in power.

James E Anderson and Leslie Young
Economics Department, Boston College and NBER; Finance Department and the Asia Pacific Institute of Business, The Chinese University of Hong Kong

Abstract
We model imperfect contract enforcement when repudiators and their victims default to sport trading. The interaction between the contract and spot markets under improved enforcement can exacerbate repudiation and reduce contract execution, harming all traders. Improved contract execution benefits traders on the excess side of the spot market by attracting potential counter-parties, but harms them by impeding their exit from contracts found to be unfavourable. Multiple equilibria and multiple optima are possible, with anarchy a local optimum, perfect enforcement a local minimum and imperfect enforcement a global optimum. LDCs exhibit parameter combinations such that imperfect enforcement is optional.