The paper shows that the form in which the external environment of a firm is
represented influences the marketing strategy.
A product differentiation strategy is more likely to be adopted when market
representations are indicative and stable; this contrasts to a service focus strategy,
which is more likely to be chosen when market representations are destabilizing and
dynamic.
Managers benefit from understanding how representations affect the way they
understand their markets, and how these market representations influence their
decisions.
The study shows how quasi experiments can support case study research and replicate
findings in marketing research.
A key methodological contribution is the use of representations as treatments in quasi
experiments.