Is your industrial marketing work working? Developing a composite index of market change

Suvi Nenonen*, Kaj Storbacka, Catherine Frethey-Bentham

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

12 Citations (Scopus)

Abstract

We define market work as purposeful efforts by a focal actor to perform and transform markets and focus on the connection between market work and market change. To enable an evaluation of the effectiveness of market work, we delineate the domain of market change and provide an operational definition of its elements and develop a composite index of market change. Our research process consisted of four steps: (1) Specification of the elements of market change; (2) Specification of indicators for the identified elements; (3) Reliability and validity assessments; and (4) Validating the market change index. We identified six elements of market change. Markets can be changed by changes in Products & Price, Customers & Use, Channels, Supply-side Network, Representations and Norms. In the qualitative phase of the study we identified at total of 22 facets of these elements, which were later developed into 25 indicators. The overall model was operationalized as a formative first-order, formative second-order model, where first-order elements are formatively measured latent constructs that form a more abstract general (second-order) latent construct - market change. The research process involved testing the reliability and validity of the model and the final market change index.
Original languageEnglish
Peer-reviewed scientific journalIndustrial Marketing Management
Volume80
Pages (from-to)251-265
ISSN0019-8501
DOIs
Publication statusPublished - 18.06.2018
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • market
  • market work
  • market change
  • composite index
  • formative measurement model

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