Marketing analytics: managing incomplete information in consumer markets and the contribution of mathematics to the accountability of marketing decisions

Spais, G. and Veloutsou, C. (2005) Marketing analytics: managing incomplete information in consumer markets and the contribution of mathematics to the accountability of marketing decisions. South European Review of Business Finance and Accounting, 3(1), pp. 127-150.

Abstract

Information risk management in the marketing function will play a significant role in the decision-making process of any modern business. With the development of computer science and technology, innovative ways have been introduced to process information. At the same time, it is realized that the different ways of comprehending information used by humans can be very misleading, since all information contains error or noise and the human reasoning and senses are very limited. Therefore, marketing managers must recognize that mathematical calculations use data as input - not information, as some seem to believe. Information can only be obtained by providing attributes or relevance and purpose to data. Numbers by themselves do not constitute information, which is why information technology (IT) is not really information-oriented by default but data-oriented. Only the human mind can provide purpose and hence relevance to data, which of course can subsequently be built into data systems to provide information systems. For this reason we introduce Marketing Analytics [MA], a new concept that stresses the raising issue of accountability in the marketing literature. We strongly believe that a marketing analytics' philosophy will contribute significantly at the empowerment of the accountability of marketing decisions. But in order this philosophy to be empowered; information risk management systems must be incorporated in the marketing decision-making process. We believe that these systems in order to work effectively, a classification of consumers' informational uncertainties are needed. So, the research scope of this work is to classify consumers' informational uncertainties, in terms of efficient management of incomplete information in consumer markets. In terms of this research try, based on our proposed fundamental formula of "information utility" we will express, mathematically, grey and fuzzy information (relative concepts of "information uncertainty"). We strongly believe that the incorporation of concepts from mathematics in marketing planning will contribute significantly to the accountability of marketing decisions. According to the literature review, accountability in marketing planning is not only a matter of ineffective decision tools, but also a matter of culture.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Veloutsou, Professor Cleopatra
• Authors: Spais, G., and Veloutsou, C.
• Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management; H Social Sciences > HB Economic Theory
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: South European Review of Business Finance and Accounting