Template-Type: ReDIF-Paper 1.0
Author-Name: Althuizen, N.A.P.
Author-Name-Last: Althuizen
Author-Name-First: Niek
Author-Name: Wierenga, B.
Author-Name-Last: Wierenga
Author-Name-First: Berend
Title: The Effectiveness of Case-Based Reasoning: An Application in Sales Promotions
Abstract: This 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.
Creation-Date: 2003-06-20
File-URL: https://repub.eur.nl/pub/436/ERS-2003-053-MKT.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2003-053-MKT
Classification-JEL: C44, M, M31
Keywords: case-based reasoning, marketing management support systems, sales promotions, weakly-structured decision making
Handle: RePEc:ems:eureri:436