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Challenges and perspectives in using pims methodology to explain the success of the marketing strategy in businesses

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  • Mosqueda Almanza Rubén Martín

    (Instituto Tecnológico de Estudios Superiores de Monterrey)

  • Montaudon Tomas Cynthia

    (Instituto Tecnológico de Estudios Superiores de Monterrey)

Abstract

It is assumed that an appropriate strategy will positively impact on profits and it will contribute to the growth of the company´s market share. Recent findings suggest that only the adaptation of the strategic plan elements can bring the company’s performance to an optimum standard. The Profit Impact of Market Strategy (PIMS) is an archetype model to achieve that; but, fundamental problems remain that limit the model. This paper shows the evolution of the PIMS methodology that allows to reveal its challenges and its possible development. The adequate definition of the strategy, redesign of the PIMS questionnaire, problems of multicollinearity and the market share effect would be the most relevant problems. The results show the need to accurately define the strategy adopted by the company and the redesign of the PIMS survey when applied to incomplete markets. This way, the findings suggest PIMS econometric studies have to emphasize the Relative Quality Proceeds variable in order to solve the thorny issue of market share effect on ROI.

Suggested Citation

  • Mosqueda Almanza Rubén Martín & Montaudon Tomas Cynthia, 2011. "Challenges and perspectives in using pims methodology to explain the success of the marketing strategy in businesses," Contaduría y Administración, Accounting and Management, vol. 56(2), pages 79-99, mayo - ag.
    • Handle: RePEc:nax:conyad:v:56:y:2011:i:2:p:79-99
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