Necessary condition analysis in marketing research

Abstract

Necessary condition analysis (NCA) is a new approach and analysis technique for identifying necessary conditions. Necessary conditions represent constraints, bottlenecks, or critical factors that cannot be compensated by other factors. This logic differs from additive logic implied in conventional methods (e.g. regression, or structural equation modelling) where contributing factors add up to produce an outcome. In contrast to these methods, NCA does not try to predict the presence of an outcome, but the absence of an outcome instead. Therewith, NCA provides a different view on theory, methodology and practical relevance. We introduce NCA and discuss its applications into marketing management. For example, we highlight how NCA can help the research on developing marketing strategies, planning, advertising, and sales by exploring conditions without which these outcomes cannot occur. In particular, we will elaborate on the underlying logic of necessary conditions, describe the basics of NCA and show how it can be applied to identify necessary conditions of relevant marketing phenomena.