THE MATHEMATICS OF DESIRE

ENDNOTES

1. South, G. The Turn Around Merchant. Drapers Record.June 28th 2003. p49

2. Store, The. The Store Of The Future - Consumer Relationship Strategies and Evolving Formats. October 2001. Cocoa Cola Retailing Research Group. Project IX. p29

3. See: Editorial. The Future Of Marketing Supplement. Financial Times. May 6th 2003

4. McKendrick, N. The Consumer Revolution in Eighteenth Century England in Ed. Neil McKendrick, John Brewer, JH Plumb The Birth of a Consumer Society: The Commercialisation of Eighteenth Century England. London. Europa. 1982. P26

5. Ibid. pp24

6. Smith, A. The Wealth Of Nations. Harmandsworth. Penguin edition. 1970

7. Beringer, James. The Control Revolution - The Technological and Economic Origins of the Information Society. Cambridge Harvard University Press. 1986. pp265-268

8. Marx, K. Selected Works. V. Adortasky (ed.) Vol.2. London. 1942. p428.

9. Brecht, B. Einbeutung. XVII, p169. 1967. German edition. Quoted in MacCabe , C. Theoretical Essays: Film, linguistics, literature. Manchester. M.U.P. 1985. p48. The term ‘im-ploitation’ can be understood as the reproduction of the modes of production, and therefore ‘exploitation’, by encouraging workers to passively enjoy culture that they have not created (modelling the enjoyment of the surplus of labour by capitalists), therefore engendering an alienation from the means of sustaining life, but carried out through thought and desire.

10. Thompson, E.P. The Making of the English Working Class. Harmondsworth. Penguin. 1968

11. For a brief account of Lipietz’s account of Fordism and Post- Fordism see: Lipietz, A. The post-Fordist world: labour relations, international hierarchy and global ecology. Review of International Political Economy 4:1 Spring 1997.

12. Harvey, F. Going, Going, Gone to Pieces. The Future Of Marketing Supplement Financial Times. May 6th 2003. p8

13. Figure cited in: Bonello, D. Sexier Than Ever. Financial Times. May 27th. 2004.

14. Figure cited in: Carter, Meg. Rich Pickings. The Guardian. May 24th. 2004

15. Gibson, O. Internet Advertising. The Guardian. April 17th. 2003

16. Consumers' use of Internet - Oftel residential survey. London. Oftel. 31 July 2003. Available at:
http://www.ofcom.org.uk/legacyregulators/oftel/oftel_internet_broadband_brief/?a=87101#7

17. Harvey, F. Keeping In Shape For An Upturn. The Future Of Marketing Supplement Financial Times. May 6th 2003. p3

18. What is CRM? Article on DestinationCRM. Available at: http://www.destinationcrm.com/articles/default.asp?ArticleID=1747

19. London, S. Messages That Never Miss The Mark. Financial Times. Aug 08, 2001.

20. Zuboff & Maxim. op cit. p261

21. Ibid. pp261-262

22. Ibid. p262

23. What is CRM? op cit.

24. Lowenstein, M. Balancing Customer Loyalty Programs With Customer Advocacy. Customer Retention Associates. 26 Sep 2001. Available at:
http://searchcrm.techtarget.com/originalContent/0%2C289142%2Csid11_gci772692%2C00.html

25. Data Mining from CRM databases is used with standard market research to identify trends and customers. See Elliott, K &Scionti, R. The Confluence of Data Mining and Market Research for Smarter CRM. Kenning Research Inc, SPSS. Available at http://www.spss.com/downloads/Papers.cfm?List=all&Name=all

26. Enterprise Capitalism: Value is created within the firm, and is lodged within the products and services the firm offers to customers. Value is realised within the transaction between firm and customer. Value is maximised by the achievement of the most favourable terms possible by the firm from the customer.

27. Kudyba, S. Hoptroff, R. Data Mining and Business Intelligence: A Guide to Productivity. London. Idea Group. 2001. p56. This model was originally developed to help manufacturers achieve quality goals by minimising variance to (+/- 3) deviance around a sample mean. For marketing, this means ensuring that customers on the whole, consume a constant number of tins of baked beans, for instance, with minimal variance.

28. CRM Spend Continues on Falling, The Register. 7th February 2003. Available at: http://www.theregister.co.uk/content/archive/29238.html

29. Quoted in: London, S. op cit.

30. IBM advert. Daily Telegraph. July 23rd 2003. p5.

31. See: Cameron, A. Dissimulations. Hypermedia Research Center, University of Westminster. London. Available at: http://www.hrc.wmin.ac.uk/theory-dissimulations.html

32. See: Kudyba & Hoptroff. op cit. p27 This describes a number analytic techniques that, combined, drive the marketing offerings given. I illustrate them here to indicate how segmentation is crucial to many data mining techniques:

‘N the total number of orders.
ni the number of orders in which product i is bought.
Xy the number of orders in which both products i & j are bought.
Support Sijmeasures the percentage of customers who buy both products i & j and is calculated as:
Sij = Xij/N*100%’

Confidence Ci >j measures the percentage of buyers of product i who also buy product j and is calculated as:
Ci >j = Xij/ni * 100%’

In practice, a combination of analytic procedures would be used to asses the economics of the marketing action. See also the section on price discrimination in section: Loyalty, Privacy and Economics

33. Hand, D. J. Principles of Data Mining. Cambridge, Mass. MIT Press. 2001. p7.

34. Ibid. p2.

35. Schaffer, S. OK Computer, in Michael Hagner (ed.), Ecce Cortex: Beitraege zur Geschichte des modernen Gehirns, Wallstein Verlag, 1999, pp. 254-85. English trans. available at http://www.hrc.wmin.ac.uk/theory-okcomputer.html

36. Ibid.

37. Shabi, R. The Card Up Their Sleeve. The Guardian Weekend Magazine.19th July 2003. p14.

38. Ibid. p14.

39. Loyalty Marketing: A Retailer's Perspective. An Interview with Lavonne Kipp, Loyalty Marketing Manager, SUPERVALU. Consumer Insight Magazine. Available at:http://acnielsen.com/pubs/ci/2000/q3/features/loyalty.htm

40. Shabi. op cit. p19.

41. Customer Relationship Management Survey. Chartered Institute Of Marketing. London 2000.

42. Zuboff & Maxim. op cit. p264.

43. Lowenstein. Op cit.

44. Vanderlippe , J. Everyday high prices: A comparison of standard supermarket prices. CASPIAN. Available at: http://www.nocards.org/savings/regular_price_study.shtml

45. Store op cit. p10.

46. The recent closure of a number high street outlets by UK electronic goods retailer Dixon’s was blamed in part on internet commerce. The other factor was the advance of large format supermarket retailers into new markets. See: ‘Ryle, S. ‘Specialists all over the shop as Big Two bite’ The Guardian May 2nd 2004. Available at: http://observer.guardian.co.uk/business/story/0,6903,1207742,00.html

47. The Store. op cit. p 95.

48. Zuboff & Maxim. op cit. p264. Quoting: Boslet, M. CRM: The Promise, the Peril, the Eye Popping Price. Industry Standard. August 6th 2001.

49. CRM 'recovery' predicted for 2003. ComputerWire. December 17th 2002. Available at The Register: http://www.theregister.co.uk/content/archive/28591.html

50. Getting Value from Enterprise Initiatives: A Survey of Initiatives. Boston Consulting Group Report. March 2000.

51. Boslet. op cit. pp. 61-65.

52. Odlyzko, A. ‘Privacy, Economics, and Price Discrimination on the Internet.’ Digital Technology Center, University Minneapolis. 2003. Available at http://www.dtc.umn.edu/~odlyzko/doc/privacy.economics.pdf

53 Ibid p14 for a good illustration of bundling.

54. Interestingly, the rate of decline of costs has diminished considerably over the last 4 years. Strategic Review of Telecommunications Phase 1 Consultation. Annex H. Ofcom. 28th April 2004. Available at: http://www.ofcom.org.uk/consultations/current/telecoms_review/annexh/?a=87101

55 Although in the case of telephony costs in the UK the role of the state regulator has been crucial in reducing costs to the consumer.

56 Zuboff and Maxim. op cit. p93-117.

57. Coughlan, S. Easy Money. The Guardian. October 26th 2002. ‘Last month, re-mortgages were at their highest level this year, with 7.6bn representing 39% of mortgage lending. If you wound the clock back to 1997, re-mortgaging was only 17% of lending. And in 1999, it was still less than a quarter.’

58. Carvel, J. 7 Year High For Divorce Rates. The Guardian. 29th August 2003. ‘But in 2002 the number of divorces increased by 2.7% to 147,735 - the highest annual total since 1996. This took the divorce rate from 13 divorcing people per 1,000 married people in 2001 to 13.3 in 2002.’

59. Painter, A. The Observer. Jan 27th 2002. ‘Robin Cook, the reformist Leader of the House, has proposed internet voting as one way to raise the turnout amongst 18-24 year olds from just 40%’.

60. Papworth, J. Credit boom, then going bust. The Guardian. May 24th 2003. ‘Citizens Advice Bureaux advisers have seen an alarming 47% increase in new consumer credit debt problems over the last five years.’

61. Ridderstralle, J. Nordstrom, K. Funky Business. 2nd Ed. London. Prentice Hall 2002.

62. Putnam, R.D. Bowling Alone. London. Simon & Schuster. 2000.

63. Lefebvre, H. Everyday Life In the Modern World. p72.New Brunswick. N.J. Transaction Books. 1984.

64. Ibid. p68.

65. Ibid. p90.