Drowning in Metrics: How Managers Select and Trade-Off Metrics for Making Marketing Budgetary Decisions

48 Pages Posted: 1 Jan 2020

See all articles by Ofer Mintz

Ofer Mintz

University of Technology Sydney Business School

Yakov Bart

Northeastern University - D'Amore-McKim School of Business

Peter Lenk

University of Michigan, Stephen M. Ross School of Business

David Reibstein

University of Pennsylvania - Marketing Department

Date Written: October 30, 2019

Abstract

Despite the proliferation of big data and quantitative information available for marketing decisions, surprisingly, we know little about which metrics marketers use for their decisions or how marketers make trade-offs between such metrics. To overcome this gap, we first propose a model based on over 200 interviews conducted and a multi-disciplinary literature review of managerial metric preferences. Second, we obtain responses from 563 managers with authority on over $1 million marketing budgets who selected metrics to include in 1,126 idealized build-your-own (BYO) conjoint choice marketing budget dashboards, and rank-ordered these metrics for 2,252 decision tasks. Finally, we estimate managers’ preferences by proposing a random utility model that combines the BYO choice and ranking tasks to correct for selection effects. We find systematic differences in metric utility based on type of marketing decision and detect substantial heterogeneity in preferences among managers. From this, we develop an understanding of contextual drivers of preferences for metric use, offering several important managerial takeaways.

Keywords: metrics; managerial decision making; menu-based conjoint analysis; dashboards; marketing budget

Suggested Citation

Mintz, Ofer and Bart, Yakov and Lenk, Peter and Reibstein, David, Drowning in Metrics: How Managers Select and Trade-Off Metrics for Making Marketing Budgetary Decisions (October 30, 2019). Available at SSRN: https://ssrn.com/abstract=3502600 or http://dx.doi.org/10.2139/ssrn.3502600

Ofer Mintz

University of Technology Sydney Business School ( email )

P.O. Box 123
Broadway, NSW 2007
Australia
0295143481 (Phone)
2007 (Fax)

Yakov Bart (Contact Author)

Northeastern University - D'Amore-McKim School of Business ( email )

Boston, MA 02115
United States

Peter Lenk

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

David Reibstein

University of Pennsylvania - Marketing Department

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

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