Annotated Bibliography: Marketing Assignment. 1.1 Effects of privacy regulation on customer value creation ( please see the attachment ) ANNOTATED BIBLIOGRAPHY ASSIGNMENT INSTRUCTIONS OVERVIEW In pr

For example, firms invested in sales force automation and online channels or partnered with aggregators to manage home delivery of products. They may have shifted advertising dollars from traditional media to “influencers.” How can firms leverage their past in vestments in customer data and analytics models after these “regime changes?” Are there methods for optimally blending data pre and post regime change when navigating in the new business models? 6 2. M EASUREMENT AND A NALYTICS MSI is perennially interested in work to better measure returns to marketing.

M ember firms and insights teams are questioning conventional wisdom about best ways to measure the effects of firm actions on customers. 2.1. Measuring ROI on investment in analytics with greater ability to support causal claims . Firms use an array of methods to measure effects of marketing actions. For example, to assess advertising sales lift from digital advertising, tools range from simple descriptive methods like click attribution to correlational marketing mix models using aggregate time series data to quasi - experiments to true randomized experiments. Derived measures of sales lift from advertising are then used as inputs to future resource allocation decisions. Current practice assumes there is some ordering of methods in their ability to forecast the causal effects of future marketing spending on future sales and that randomized experiments are the "gold standard." Current practice also assumes that results from rando mized experiments reflect "ground truth" – not just what happened in the past but what will happen in the future when results are used for resource allocation. What do we know about the reproducibility of results from randomized experiments at time 1 to so me similar situation at time 2? Do (more costly) method s supporting more confident causal conclusions at time 1 lead to demonstrably greater profitability of future actions at time 2 ? 2.2. Analytics for short - term versus long - term effects . Experimental methods that have stronger internal validity than correlational methods measure only short - term effect s . There is a rich literature in marketing about the long - term versus short - term effects on profitability of marketing actions such as adver tising, price promotion, innovation, etc. Some m arketing actions that build profitability in the long run can have small effects in the short run, and some marketing actions that do not build long - run profitability can have large and measurable short - run effects. How should firms balance strength of causal inference about short - term effects against desire to measure long - term effects and allocate resources to marketing actions that build long - run profitability? Are experimental methods driving firms to ov er - allocate resources to actions that are good in the short run but not in the long run? 2.3. Brand measurement . Current survey - based brand tracking measures move slowly over time and are insensitive to short term marketing actions. What brand tracking method s exist for tying marketing actions to changes in real time key perceptions about brands and to changes in granular sales or other business outcomes? Current brand measurement focusses on individual customers as the units of analysis. How can brand 7 measurement capture the socially constructed nature of b rands and the social networks affecting brand perceptions? 2.4. Attention, engagement, and customer experience . Member firms are interested in improved measurement of psychological mediators of the effects of marketing actions on business KPIs. Does use of att ention metrics lead to improved ad creative compared to more traditional ad pretesting or cheaper AI alternatives ? Do attention metrics lead to better match ing of media to audience segments ? Can attention metrics improve package design and increase consid eration of c onsumer packaged goods at point of purchase ? Will s ales results improve when e - commerce page layouts are refine d by attention metrics? Member firms also use the term “engagement” in several different ways : sometimes for momentary attention or longer - term involvement in a brand or a category , or for mental availability or ability to generate emotional responses . How can firms increase engagement with “good for you” categories where involvement is low such as saving for ret irement or taking prescription drugs? What is the best way to measure customer experiences? What general principles exist for improving customer experience , particularly by use of technology ? How can use of technology improve or detract from customer expe rience, balancing desires for authentic human connection with desires for frictionless and immediate service response ? 3. L ONG - T ERM C HANGES IN HOW C USTOMERS AND F IRMS I NTERACT Social distancing and supply chain problems have disrupted conventional interactions with customers, business partners, and coworkers, creating the need and opportunity for virtual and other new forms of mediation. Recent data suggest that remote work and hybrid work has stabilized – by one US estimate, 30% of aggregate days are now worked from home , and it does not appear that the old 100% in - person employment models are coming back at many firms. R emote work trends have major implications for employment practices, business models, virtualization of customer experience, and consumer lifestyle and income allocation. 3.1. Effects of changing patterns of living and working on customer demand . What lifestyle cha nges might ensue when people work from home or have hybrid work arrangements ? How will remote work and technology - mediated consumption affect optimal channel structures ? Will consumer and B2B customer experience with omni - channel shopping affect the balance of physical and virtual channels and sales force deployment? Will D irect - To - Consumer, subscription services and delivery services revert to pre - pandemic usage? Will “tele - medicine” become a model for virtualization of communications and customer ex perience in other service sectors? How will technology (chatbots, voice - activated 8 interfaces , IoT, AR , VR, etc.) augment or replace conventional service delivery and other customer experience? What are consumers’ experiences with these technology substitut es for human interactions with firms? What new markets will work - from - home create? How will remote work and the greater time flexibility of remote work change household “make versus buy” decisions about childcare and outsourcing of domestic household tasks ? C hoices of income versus leisure or family activities? E ntertainment and recreation consumption? How w ill decrease d demand for commercial office space and increase d demand for home office space affect patterns of regional migration and economies ? 3.2. Effects on intra - firm processes . How will remote work affect intra - firm collaboration in the marketing function? How will remote work affect the quality of firm innovation processes and collect ing customer inputs to fuel innovation? How can we design cultu re that promotes adaptability and team interaction in both physical and virtual environments? How will marketing be affected by HR trends affecting employees and employers?

Will employees demand access to work from home and decline to move to larger urban areas for work ? W here will remote work lower costs – e.g., via sales force automation and virtualization of customer service? 4. I NFLATION AND S UPPLY C HAIN D ISRUPTION In July 2022 the OECD report ed a global year - on - year inflation rate of 9.6%. Demand recovered from COVID - 19 disruptions faster than supply. The war in Ukraine and increasing tensions with China have created shortages of key factors for production of finished goods and services . W orldwide support for pop ulist political ideologies has reduced support for free trade. Firms are having to reconfigure supply chains to rely on higher cost but more reliable supply chain partners in nearer geographies with less geopolitical risk. High worldwide inflation is the r esult. 4.1. Effects on reconfigured supply chains. How will digitization of payment methods, inventory, financial systems, and supply chain fulfillment evolve to meet the needs for flexibility and innovation? Supply chain experts call for “super agile” methods to prepare for and respond quickly to random e vents and for supply chain architecture that is readily adaptable to new trade restrictions or new ESG considerations . How should firms change channel strategies to improve supply chain resilience and to a dapt to abrupt shifts in the marketplace and to ma tch certain market characteristics? How should firms evaluate alternative supply chain strategies to minimize geopolitical risk: reshoring, near - shoring, and friend - shoring ? How will these alternatives affect component costs and pricing for finished goods and services ? Will supply chain disruptions reduce the power of brands and raise the weight of product availability in consumer preference? 9 4.2. Coping with inflation. How is inflation likely to affect consumer budget reallocation across categories and the appeal of different brands? What strategies exist for firms to prosper in inflationary times? 5. Corporate Mission Shifts from Shareholder Value to Stakeholder V alue Many firms have adapted their corporate missions from maximizing shareholder returns to m aximizing “stakeholder” value for customers, suppliers, employees, shareholders, and local communities. This creates new challenges when stakeholder priorities conflict. MSI welcomes research on how firms can best navigate these conflicts and deliver value for shareholders but also for society more broadl y. Our priorities specifically focus on how marketing can affect public health; diversity, equity, and inclusion; environmental sustainability; and be responsive to regulatory and ethical considerations . 5.1. Health care pricing for access by lower income consumers . MSI health care and life sciences companies create innovations that dramatically improve health and quality of life. Globally, however, people with highest incidence of certain health problems have lowest ability to pay. Firms have responded with a patchwork of tools including direct donation and licensing of generics in less wealthy countries. What are pricing models for improved access to healthcar e that maximize public health values whil e deliveri ng business results? What kinds of novel initiatives will affect the types of government regulation encountered? 5.2. Telemedicine. How can advances in telemedicine – videoconferencing physician appointments , store - and - forward imaging, streaming media, and we arable technologies – be used to reduce health disparities by income , between urban and rural consumers , and between wealthier and less wealthy countries? 5.3. Responsible production and consumption and the role of n ew food technologies . New food technologies such as genetically engineered plants , plant - based meats , and bio - engineered proteins offer potential benefits to reduce both world hunger and carbon consumption. However, they encounter resistance based on lay ideologies about “naturalness ” and risk perceptions that conflict with scientific consensus. How can firms innovate in this space in ways that address consumer lay beliefs that traditional methods are more “natural” and therefore desirable? 5.4. ESG i nfluence on marketing bu dget allocation. How will calls for social justice, sustainability, and other forms of corporate social responsibility affect marketing decisions and budgets? How can we measure the effects of such re - allocation on both business KPIs and on social KPIs? 10 5.5. B rand purpose, p olitical ideology, and consumption behavior. The pandemic coincided with a time of increasing political polarization that bled into marketing activities. How will calls for social justice, sustainability and other forms of corporate social responsibility affect marketing decisions and budgets? When firms define “brand purpose” in relation to sociopolitical issues, h ow can brands avoid alienating consumers who may stop buying brands that they perceive do not align with their values and political views? 5.6. Firm externally focused activism versus internally focused action . Initial research on the effect of corporate sociopolitical activism on stock prices shows negative average effects of activism. Effects are positive, however, when corpor ate stands align with their customers, employees, and state legislatures. What is the role of employee groups in promoting corporate sociopolitical activism that potentially decreases shareholder value? Is backlash by those who disagree with a corporate stand on a social issue less when the action is internally f ocused (e.g., paying for employee abortion access in states with restrictive abortion policies) than when externally focused (e.g., lobbying on a particular legislative bill) ? 5.7. Diversity and i nclusion . Member f irms can support diversity and inclusion by a variety of means: inclusive advertising; inclusive new products and services; or changing channel structures to serve a broader and more inclusive set of customers. What do we know about the relative power of these strategies to deliver business results? What are evidence - based methods for develop ing profitable new products that create value for under - represented consumer segments? Some firms have attempted to make advertising more inclus ive by re - directing advertising dollars from brand advertising to messages of corporate support for diversity and inclusion . Others use traditional ads that feature under - represented minorities as cast members or in narratives touching on human universals or widely popular elements of culture. What evidence exists of the greater effectiveness of these approaches to broaden brands and increase firm profitability or to provide measurable and important societal benefits? 5.8. Achieving growth and profitability in ways that are consistent with United Nations SDGs. All United Nations member states approved the 2030 Agenda for Sustainable Development, identifying 17 Sustainable Development Goals (SDGs) “ They recognize that ending poverty and other deprivations must go hand - in - hand with strategies that improve health and education, reduce inequality, and spur economic growth – all whi le tackling climate change and working to preserve our oceans and forests.” MSI is interested in work showing how firms can profitably advance these five SDGs : Increasing Health and Well Being; Responsible Production and Consumption; Reducing Poverty and I mproving Financial Decision Making; Reducing Inequalities; and Climate Action. 11 6. R EGULATORY AND P UBLIC P OLICY I SSUES A FFECTING M EMBER C OMPANIES We noted in Priority #1 how member firms have been affected by regulatory changes in privacy policies and policies by Apple and Google. Arguably, many companies have been playing catch up after these changes rather than anticipating what was to come. MSI w elcomes new research on unintended consequences of regulatory policies. 6.1. Effects of privacy policies on competition. Privacy regulation s and cookie deprecation are leading firms to prioritize first party data. What are the unintended consequences of such regulation s for competition? Do these regulations implicitly advantage large firms with the most first party data? 6.2. What aspects of pri vacy matter to consumers? GDPR identified three fundamental privacy rights: (i) right to explicit consent (data opt - in), (ii) right to be forgotten (data erasure), and (iii) right to data portability (switch data to competitor). Will consumers be any happ ier with targeting based on non - cookie, first party data? Will firms inundate consumers with new forms of first party communications ? If targeting gets worse, will this increase demand for ad - blockers? Who is working on the right to portability? Can value be created for consumers by facilitating personal data ownership and easy, occasion - based selective sharing? How much of lay consumer concern about privacy is about “creepy” retargeting versus fears of uninformed exchange, e.g., where a consumer asked to d isclose personal information for superior service might fear a security breach or the firm reselling d ata that could be used to discriminate against them on pricing or offers ? Is there more sensitivity around algorithmic discrimination related to protected class status than similar discrimination based on loyalty or some behavioral basis? 6.3. Ethical forms of exchange to induce consumers to opt in to share data. How can firms induce consumers to consider data sharing in ways that a) are not deceptively relying on consumer inattention and b) allow consumers to fairly judge the value they will get from sharing? Are there forms of bundled consent or cybersecurity assurance initiatives that would produce increased value for both consumer s and firms ? 6.4. Regulatory barriers to innovation to improve health and well - being. State licens ing laws deter offering of tele - health care across state lines, with temporary COVID waivers expiring. How will these revived regulatory constraints diminish hea lth care or efforts to reduce inequalities in access? How do HIPPA constraints on sharing medical records reduce the ability of health care providers to have a complete picture of a patient’s medical history? Can patients “own” their medical records with 12 p rotocols for sharing all of them with select providers, with GDPR - like provisions about (i) right to explicit consent (data opt - in), (ii) right to be forgotten (data erasure), and (iii) right to portability (switch data to competitor)? When do regulations inhibit improvements in consumer well - being via innovations in food, health technology, or financial technology? 7. T HE I NFLUENCE OF M ARKETING IN THE F IRM Member firms report decreasing influence of marketing in the C - Suite and increasing tendency for da ta science to supplant marketing. MSI supports research that allows CMOs to measure and communicate to CFOs the contribution all forms of marketing make to the firm’s success. 7.1. Organizational structure and the influence of marketing . Is the influence of marketing in the C - suite less when marketing is a staff function focused mostly on marketing communication versus a line function with responsibility for pricing, innovation, channel and go to market strategy, and all aspects of promotion ? How is the influence of marketing tied to the depth of organizational proficiency in the use of analytics? Is the rise of computer science applications, rapid A/B testing, etc. leading to a focus on very short - term tactical decisions that diminish the s trategic importance of marketing to the firm ? 7.2. Customer v alue v ersus b rand v alue . Brand management and customer management models are two ways to show the value of intangible marketing assets on the balance sheet. Brand management creates willingness to pay more for a firm’s product or services because the product or service comes from the brand rather than some generic source. Customer management seeks to increase the value of the firm’s customer base by identifying the customers that the firm can serve most profitably and tailoring offerings to those customers. The CMO and CFO can also roll up the value of individual customers to a measure of overall firm value. Does marketing have more influence in the C - suite with finance and ac counting when following a customer management model? What Customer Value metrics allow firms to properly evaluate different kinds of marketing programs (e.g., loyalty programs, customer experience, referral programs, premium services, etc.) ? How can CV be used to improve customer acquisition processes to acquire the right (high CV) customer s , and to develop and retain existing customers ? What do we know about methods to develop and increase the CV of existing customers? Other than pure subscription models, are there others for rolling up individual customer value metrics to a customer - based corporate valuation model ? How should marketers summarize and communicate customer value to external audiences ?