Updating the theory of industrial marketing: Industrial marketing as a Bayesian process of belief-updating

Carsten Lund Pedersen, Thomas Ritter

    Publikation: Artikel i tidsskrift og konference artikel i tidsskriftTidsskriftartikelForskningpeer review

    Abstract

    While industrial marketing often comprises a process that, at least in principle, mirrors Bayesian reasoning, the notion of Bayesian inference has predominantly been utilized in the marketing field as a methodological tool. This article suggests that the practice of industrial marketing itself should be (re)conceptualized as a Bayesian process of belief-updating that entails a continuous cognitive cycle of formulation of hypotheses (i.e., beliefs about the market) and the subsequent updating of those hypotheses through exposure to market evidence (e.g., data from the market). A Bayesian perspective on industrial marketing enables a synthesis of a broad body of extant research as well as a focus on the interconnection between executives' market beliefs (theories-in-use) and belief-updating (assessing the validity of those beliefs in view of market evidence). A view of industrial marketing as a Bayesian process not only enhances our understanding in general but also fosters insights into market learning in uncertain and volatile situations. A Bayesian conceptualization suggests a new understanding of industrial marketing that also informs a typology of marketing approaches. We outline opportunities for developing a better understanding of the Bayesian foundation of industrial marketing.
    OriginalsprogEngelsk
    TidsskriftIndustrial Marketing Management
    Vol/bind102
    Sider (fra-til)403-420
    Antal sider17
    ISSN0019-8501
    DOI
    StatusUdgivet - 1 mar. 2022

    Emneord

    • Bayesian inference
    • Theories-in-use
    • Industrial marketing
    • Market responsiveness
    • Market orientation
    • Analytics
    • Learning

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