THE MATHEMATICS OF DESIRE
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
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
17. Harvey, F. Keeping In Shape For An Upturn. The
Future Of Marketing Supplement Financial Times. May 6th 2003. p3
19. London, S. Messages That Never Miss The Mark. Financial Times. Aug 08, 2001.
20. Zuboff & Maxim. op cit. p261
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.
29. Quoted in: London, S. op cit.
30. IBM advert. Daily Telegraph. July 23rd 2003. p5.
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
Sij = Xij/N*100%’
>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.
37. Shabi, R. The Card Up Their Sleeve. The
Guardian Weekend Magazine.19th July 2003. p14.
41. Customer Relationship Management Survey. Chartered Institute Of Marketing. London 2000.
42. Zuboff & Maxim. op cit. p264.
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.
Getting Value from Enterprise Initiatives: A Survey of Initiatives. Boston
Consulting Group Report. March 2000.
Boslet. op cit. pp. 61-65.
53 Ibid p14 for a good illustration of bundling.
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
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.