The Effectiveness of Case-Based Reasoning: An Application in Sales Promotions
AbstractThis paper deals with Case-based Reasoning (CBR) as a support technology for sales promotion (SP) decisions. CBR-systems try to mimic analogical reasoning, a form of human reasoning that is likely to occur in weakly-structured problem solving, such as the design of sales promotions. In an empirical study, we find evidence that use of the CBR-system improves the quality of SP-campaign proposals. In terms of the creativity of the proposals, decision-makers who think highly divergent (i.e., who tend to generate many, and diverse ideas in response to a problem) benefit most from prolonged system usage. Creativity, in turn, is positively related to the (practical) usability of a proposal. These results suggest that the CBR-system is most effective when it is used as an idea-generation tool that reinforces the strength of divergent (creative) thinkers. A convergent thinking style, in which case the CBR-system has a compensating role, even has a negative impact on CBR-system usage. Increasing the decision-maker's personal belief in the usefulness of the system, e.g., by training or education, may help to alleviate this reluctance to use the CBR-system.
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Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2003-053-MKT.
Date of creation: 20 Jun 2003
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Web page: http://www.erim.eur.nl/
marketing management support systems; sales promotions; case-based reasoning; weakly-structured decision making;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-12-07 (All new papers)
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