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 Page ii

Marketing
Seventh Edition

Dhruv Grewal, PhD

Babson College

Michael Levy, PhD

Babson College
 Page iv

MARKETING, SEVENTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York,

NY 10121. Copyright ©2020 by McGraw-Hill Education. All
rights reserved. Printed in the United States of America.
Previous editions ©2018, 2016, and 2014. No part of this
publication may be reproduced or distributed in any form or
by any means, or stored in a database or retrieval system,
without the prior written consent of McGraw-Hill Education,
including, but not limited to, in any network or other
electronic storage or transmission, or broadcast for distance
learning.

Some ancillaries, including electronic and print components,

may not be available to customers outside the United
States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 21 20 19

ISBN 978-1-260-08771-0 (bound edition)

MHID 1-260-08771-9 (bound edition)
ISBN 978-1-260-42825-4 (loose-leaf edition) MHID 1-260-
42824-7 (loose-leaf edition)

Executive Portfolio Manager: Meredith Fossel

Product Developer: Kelsey Darin
Senior Marketing Manager: Nicole Young
Lead Content Project Manager: Christine Vaughan
Senior Content Project Manager: Danielle Clement
Senior Buyer: Laura Fuller
Senior Designer: Matt Diamond
Senior Content Licensing Specialist: Ann Marie Jannette
Cover images: (granola bars) © Roman Samokhin/Getty
Images;
(packaging) © BUTENKOV ALEKSE/Shutterstock
Compositor: Aptara®, Inc.

All credits appearing on page or at the end of the book are

considered to be an extension of the copyright page.
Library of Congress Cataloging-in-Publication Data
Names: Grewal, Dhruv, author. | Levy, Michael, 1950-
author.
Title: Marketing / Dhruv Grewal, PhD, Babson College,
Michael Levy, PhD, Babson College.
Description: Seventh edition. | New York, NY : McGraw-Hill
Education, [2020]
Identifiers: LCCN 2018043778 | ISBN 9781260087710 (alk.
paper) | ISBN 1260087719 (alk. paper) Subjects: LCSH:
Marketing.
Classification: LCC HF5415 .G675 2020 | DDC 658.8—dc23
LC record
available at https://lccn.loc.gov/2018043778

The Internet addresses listed in the text were accurate at

the time of publication. The inclusion of a website does not
indicate an endorsement by the authors or McGraw-Hill
Education, and McGraw-Hill Education does not guarantee
the accuracy of the information presented at these sites.
mheducation.com/highered
 Page v

To our families for their never-ending

support. To my wife, Diana, my daughter,
Lauren, my son-in-law, Chet, and my son,
Alex.
—Dhruv Grewal

To my wife, Marcia, my daughter, Eva, and

my son-in-law, Alex.
—Michael Levy
About the Authors Page vii

Dhruv Grewal

Dhruv Grewal (PhD, Virginia Tech) is the Toyota Chair in

Commerce and Electronic Business and a professor of
marketing at Babson College. His research and teaching
interests focus on direct marketing and e-commerce,
marketing research, the broad areas of value-based
marketing strategies, services and retailing, and pricing. He
is listed in Thomson Reuters’ 2014 World’s Most Influential
Scientific Minds list (only 8 from the marketing field and 95
from economics and business are listed). He is an Honorary
Distinguished Visiting Professor of Retailing and Marketing,
Center for Retailing, Stockholm School of Economics; an
Honorary Distinguished Visiting Professor of Retailing and
Marketing, Tecnológico de Monterrey; a GSBE Extramural
Fellow, Maastricht University; a Global Chair in Marketing at
University of Bath; and has been a Visiting Scholar at
Dartmouth. He has also served as a faculty member at the
University of Miami, where he was a department chair.
Professor Grewal was ranked first in the marketing field in
terms of publications in the top-six marketing journals
during the 1991–1998 period and again for the 2000–2007
period, and ranked eighth in terms of publications in Journal
of Marketing and Journal of Marketing Research during the
2009–2013 period. He was also ranked first in terms of
publications and third in citations for pricing research for the
time period
1980–2010 in 20 marketing and business publications. He
has published over 150 articles in Journal of Marketing,
Journal of Consumer Research, Journal of Marketing
Research, Journal of Retailing, Journal of Consumer
Psychology, Journal of Applied Psychology, and Journal of the
Academy of Marketing Science, as well as many other
journals. He has over 45,000 citations based on Google
Scholar. He currently serves on numerous editorial review
boards, such as Journal of Marketing (area editor), Journal of
the Academy of Marketing Science (area editor), Journal of
Marketing Research, Academy of Marketing Science Review,
Journal of Interactive Marketing, Journal of Business
Research, Journal of Public Policy & Marketing, and the
advisory board for Journal of Retailing. He has also served
on the boards of Journal of Consumer Psychology and
Journal of World Business. He also received Best Reviewer
Awards (Journal of Retailing, 2008, Journal of Marketing,
2014), Outstanding Area Editor (Journal of Marketing, 2017,
Journal of the Academy of Marketing Science, 2016), and a
Distinguished Service Award (Journal of Retailing, 2009).
Professor Grewal was awarded the 2017 Robert B. Clarke
Outstanding Educator Award (Marketing Edge, formerly
DMEF), 2013 university-wide Distinguished Graduate
Alumnus from his alma mater Virginia Tech, the 2012
Lifetime Achievement Award in Pricing (American Marketing
Association Retailing & Pricing SIG), the 2010 Lifetime
Achievement Award in Retailing (American Marketing
Association Retailing SIG), the 2005 Lifetime Achievement in
Behavioral Pricing Award (Fordham University, November
2005), and the Academy of Marketing Science Cutco/Vector
Distinguished Educator Award in May 2010. He is a
Distinguished Fellow of the Academy of Marketing Science.
He has served as VP Research and Conferences, American
Marketing Association Academic Council (1999–2001) and as
VP Development for the Academy of Marketing Science
(2000–2002). He was coeditor of Journal of Retailing (2001–
2007).
He has won a number of awards for his research: 2018
William R. Davidson Journal of Retailing Best Paper Award
(for paper published in 2016); 2017 Journal of Interactive
Marketing Best Paper Award (for paper published in 2016);
2016 Journal of Marketing Sheth Award; 2016 William R.
Davidson Journal of Retailing Best Paper Award (for paper
published in 2014); 2015 Louis W. Stern Award (American
Marketing Association Interorganizational Sig); Babson
College Faculty Scholarship Award (2015); William R.
Davidson Journal of Retailing Best Paper Award 2012 (for
paper published in 2010); 2011 Best Paper Award (La Londe
Conference for Marketing Communications and Consumer
Behavior); 2011 Louis W. Stern Award (American Marketing
Association Interorganizational Sig); William R. Davidson
Journal of Retailing Honorable Mention Award 2011 (for
paper published in 2009); Babson College Faculty
Scholarship Award (2010); William R. Davidson Journal of
Retailing Best Paper Award 2010 (for paper published in
2008); William R. Davidson Journal of Retailing Honorable
Mention Award 2010 (for paper published in 2008); 2017
Best Paper Award, Connecting for Good Track, Winter AMA
Conference; Stanley C. Hollander Best Retailing Paper,
Academy of Marketing Science Conference 2002, 2008, and
2016; M. Wayne DeLozier Best Conference Paper, Academy
of Marketing Science 2002 and 2008; Best Paper, CB Track,
Winter AMA 2009; Best Paper, Technology & e-Business
Track, AMA Summer 2007; Best Paper Award, Pricing Track,
Best Services Paper Award (2002), from the American
Marketing Association Services SIG presented at the Service
Frontier Conference, October 2003; Winter American
Marketing Association Conference 2001; Best Paper Award,
Technology Track, Summer American Marketing Association
Educators’ Conference 2000; and University of Miami School
of Business Research Excellence Award for 1991, 1995,
1996, and 1998. He has also been a finalist for the 2014
Journal of Marketing Harold H. Maynard Award, the 2012
Paul D. Converse Award, and the 2005 Best Services Paper
Award from the Services SIG. Page viii
Professor Grewal has coedited a number of special issues
including Journal of Public Policy & Marketing “Pricing &
Public Policy” (Spring 1999); Journal of the Academy of
Marketing Science, “Serving Customers and Consumers
Effectively in the 21st Century: Emerging Issues and
Solutions” (Winter 2000); Journal of Retailing, “Creating and
Delivering Value through Supply-Chain Management”
(2000); Journal of Retailing, “Branding and Customer
Loyalty” (2004); Journal of Retailing, “Service Excellence”
(2007); Journal of Retailing, “Customer Experience
Management” (2009); and Journal of Retailing, “Pricing in a
Global Arena” (2012).
He cochaired the 1993 Academy of Marketing Science
Conference; the 1998 Winter American Marketing
Association Conference “Reflections & Future Directions for
Marketing”; Marketing Science Institute Conference
(December 1998) “Serving Customers and Consumers
Effectively in the 21st Century: Emerging Issues and
Solutions”; the 2001 AMA doctoral consortium; the
American Marketing Association 2006 Summer Educator’s
Conference; the 2008 Customer Experience Management
Conference; the 2010 Pricing Conference; the 2011 DMEF
research summit; the 2012 AMA/ACRA First Triennial
Retailing Conference; the 2013 Pricing & Retailing
Conferences; the 2014 Shopper Marketing conference at
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SSE; and the 2015 AMA/ACRA Second Triennial Retailing
Conference.
Professor Grewal has also coauthored Marketing (publisher
McGraw-Hill, 1e 2008; 2e 2010—Awarded Revision of the
Year, McGraw-Hill Corporate Achievement Award with
ConnectMarketing in the category of Content and Analytical
Excellence; 3e 2012; 4e 2014; 5e 2016; 6e 2018); M Series:
Marketing (publisher McGraw-Hill, 1e 2009, 2e 2011, 3e
2013, 4e 2015, 5e 2017, 6e 2019); Retailing Management
(publisher McGraw-Hill, 9e 2014, 10e 2018—is the leading
textbook in the field); and Marketing Research (publisher
Houghton Mifflin Co., 1e 2004, 2e 2007). He was ranked #86
for Books in Business and Investing by Amazon in 2013.
Professor Grewal has won many awards for his teaching:
2005 Sherwin-Williams Distinguished Teaching Award,
Society for Marketing Advances; 2003 American Marketing
Association, Award for Innovative Excellence in Marketing
Education; 1999 Academy of Marketing Science Great
Teachers in Marketing Award; Executive MBA Teaching
Excellence Award (1998); School of Business Teaching
Excellence Awards (1993, 1999); and Virginia Tech
Certificate of Recognition for Outstanding Teaching (1989).
He has taught executive seminars/courses and/or worked
on research projects with numerous firms such as Dell,
ExxonMobil, IRI, RadioShack, Telcordia, Khimetrics Profit-
Logic, McKinsey, Ericsson, Motorola, Nextel, FP&L, Lucent,
Sabre, Goodyear Tire & Rubber Company, Sherwin-Williams,
and Asahi. He has delivered seminars in the United States,
Europe, Latin America, and Asia. He has served as an expert
witness or worked as a consultant on numerous legal cases.
He serves on the Board of Directors of Babson Global, and
on the Board of Trustees of Marketing Edge.

Michael Levy
Michael Levy, PhD (Ohio State University), is the Charles
Clarke Reynolds Professor of Marketing Emeritus at Babson
College and CEO of RetailProf LLC. He received his PhD in
business administration from The Ohio State University and
his undergraduate and MS degrees in business
administration from the University of Colorado at Boulder.
He taught at Southern Methodist University before joining
the faculty as professor and chair of the marketing
department at the University of Miami.
Professor Levy received the inaugural ACRA Academic
Lifetime Achievement Award presented at the 2015
AMA/ACRA (American Marketing Association/American
Collegiate Retailing Association) Triennial Conference; and
was recognized for 25 years of dedicated service to the
editorial review board of the Journal of Retailing in 2011. He
won the McGraw-Hill Corporate Achievement Award for
Grewal–Levy Marketing 2e with Connect in the category of
excellence in content and analytics (2010); Revision of the
Year for Marketing 2e (Grewal–Levy) from McGraw-Hill/Irwin
(2010); the 2009 Lifetime Achievement Award, American
Marketing Association, Retailing Special Interest Group
(SIG); the Babson Faculty Scholarship Award (2009); and the
Distinguished Service Award, Journal of Retailing (2009) (at
winter AMA).
He was rated as one of the best researchers in marketing
in a survey published in Marketing Educator (Summer
1997). He has developed a strong stream of research in
retailing, business logistics, financial retailing strategy,
pricing, and sales management. He has published over 50
articles in leading marketing and logistics journals, including
the Journal of Retailing, Journal of Marketing, Journal of the
Academy of Marketing Science, and Journal of Marketing
Research. He has served on the editorial review boards of
the Journal of Retailing, Journal of the Academy of Marketing
Science, International Journal of Physical Distribution and
Materials Management, International Journal of Business
Logistics, ECR Journal, and European Business Review, and
has been on the editorial advisory boards of European Retail
Research and the European Business Review. He is coauthor
of Retailing Management, 10e (2019), the best-selling
college-level retailing text in the world. Professor Levy was
coeditor of the Journal of Retailing from 2001 to 2007. He
cochaired the 1993 Academy of Marketing Science
conference and the 2006 summer AMA conference.
Professor Levy has worked in retailing and related
disciplines throughout his professional life. Prior to his
academic career, he worked for several retailers and a
housewares distributor in Colorado. He has performed
research projects with many retailers and retail technology
firms, including Accenture, Federated Department Stores,
Khimetrics (SAP), Mervyn’s, Neiman Marcus, ProfitLogic
(Oracle), Zale Corporation, and numerous law firms.
 Page ix

New to the Seventh

Edition
Some exciting new additions to the
Seventh Edition!
The seventh edition of Marketing sees significant
changes. As always, every example, fact, and key
term has been checked, updated, and/or replaced.
What follows are major changes in the text, chapter-
by-chapter.
Chapter 1: Overview of Marketing starts with a
discussion of how different brands are marketing
meal replacement bars, such as protein, whole food,
and snack bars, to emphasize the text’s cover—how
marketing adds value to the meal replacement bar
market. Examples using these bars are placed
throughout the chapter. There are three new Adding
Value boxes: the product line extension of Baby
Dove, kids recycling and selling products on e-
commerce platforms, and Amazon’s new cashless
stores. A new Ethical & Societal Dilemma box
discusses gender inequality in the coffee market. At
the end of the chapter is a new section that sets up
the rationale for each of the special boxes included in
the text. Finally, we conclude with a new case study
highlighting KIND Bars’ marketing strategy, a nice
tie-back to the opener and the cover concept.
Chapter 2: Developing Marketing Strategies
and a Marketing Plan begins with a discussion of
PepsiCo’s Frito-Lay snack brand, and this product line
is used in examples throughout the chapter. We also
introduce a new Adding Value box highlighting Sally
Beauty’s updated loyalty program.
Chapter 3: Digital Marketing: Online, Social,
and Mobile has seen a line-by-line revision to reflect
the rapid changes in digital marketing. We have
added a new section that discusses the 7C
framework for online marketing: core goals, context
elements (design and navigation), content,
community, communication, commerce, and
connection. The chapter starts by highlighting the
success that L’Oréal has experienced with its
innovative digital marketing efforts. There are two
new Ethical & Societal Dilemma boxes: Facebook’s
emphasis on personal posts over public content, and
how Google and YouTube are helping advertisers
avoid controversy. A new Adding Value box on
Amazon’s marketing universe appears. There is also
a new Social & Mobile Marketing box that discusses
P&G’s responsibility in the “Tide Pod Challenge.”
Chapter 4: Conscious Marketing, Corporate
Social Responsibility, and Ethics begins by
highlighting how sustainability is at the core of
Unilever’s development of its Love Beauty and Planet
line. We showcase how firms must consider pertinent
issues when implementing their marketing strategy
using TOMS shoes. There are two new Adding Value
boxes, one about a philanthropic partnership
between Elbi and David Yurman, and another about
Patagonia’s challenge to keep conscious marketing a
guiding principle in the face of growing its business.
A new Ethical & Societal Dilemma box describes how
Google has banned the advertising of financial
products that may do more harm than good. We end
the chapter with a new case study on Daily Table, a
nonprofit, membership-based grocery store that
serves lower-income areas.
Chapter 5: Analyzing the Marketing
Environment has gone through a major revision.
There is an entirely new section that describes how
the physical environment of the store affects the
immediate marketing environment. The Social Trends
section includes new subsections about sustainability
and the utilization and distribution of food. There is
also a new section on technological advances and
how they influence the marketing environment. The
chapter begins with a discussion of a how Tesla is
responding to customer needs by introducing the
Model 3, its first affordable electric car. A new
example using Verizon and Sprint shows how
competitors affect the marketing environment. There
are two new Ethical & Societal Dilemma boxes: The
first examines how the electric car is leading to shifts
in the auto industry. The second discusses the
backlash General Mills faced when it introduced its
all-natural Trix cereal. A new Social & Mobile
Marketing box describes Pokémon Go. We also
include a new example highlighting how women
might be the next big market for the gaming Page x
industry. A new example examines the
response of many companies to the United States
leaving the Paris Accord, and highlights how
companies are responding to the environment.
Finally, the chapter ends with a new case study on
the rise of the electric car.
Chapter 6: Consumer Behavior has also
undergone a significant revision. The
Noncompensatory section now discusses choice
architecture, nudges, defaults, and opt out and opt
in. The Learning and Memory section now discusses
the information encoding stage, information storage
stage, and retrieval stage. The Situational Factors
section now includes information on the sensory
situation, which discusses how the five senses
(visual, auditory, olfactory, tactile, and taste) affect
marketing. The opener ties in the openers for
Chapters 3 and 4 to discuss how consumer behavior
influenced L’Oréal’s new vegan hair dyes. There are
two new Ethical & Societal Dilemma boxes: The first
is on CVS’ focus on customer health, while the
second is about how “certified” may not mean safe.
There are also three new Adding Value boxes: The
first is about Pirch’s functional showrooms. The
second focuses on how La Croix has entered
customers’ evoked set using social media, and the
third highlights how brands are meeting customer
demands for healthy snacks with salty alternatives.
Finally, the fourth is about Taco Bell’s vile deep-fried
taco that everyone seems to love. There is also a
new Social & Mobile Marketing box about the
partnership between Snapchat and Rent the Runway.
The chapter ends with a new case study on
Amazon’s, Google’s, and Apple’s connected home
devices.
Chapter 7: Business-to-Business Marketing
starts with an interesting discussion on LinkedIn and
its new “native video” feature. A new Marketing
Analytics box about the artificial intelligence chip
being manufactured by Intel with Facebook’s help is
included. A new Ethical & Societal Dilemma box
concerns whether Facebook should be able to block
competing advertisers. There is also a new Adding
Value box about how Intel is prompting problem
recognition with a new advertising campaign
featuring Lady Gaga. Finally, a new Social & Mobile
Marketing box examines Snapchat’s use of
advertising.
Chapter 8: Global Marketing has a new opener
highlighting Apple’s global strategy. There is a new
Social & Mobile Marketing box about how a social
media campaign helped save Nigeria’s national
currency. There are two new Adding Value boxes: The
first explains why Whirlpool is raising prices in foreign
markets, while the second describes Starbucks’ foray
into Italy. There are also two new Ethical & Societal
Dilemma boxes. The first examines how fast-food
chains are entering no-beef markets, while the
second examines how advertising and privacy
regulations are causing concern for Google in France.
A new example featuring Uber and Spotify is used to
highlight strategic alliances.
Chapter 9: Segmentation, Targeting, and
Positioning opens with how lululemon is targeting
male customers. There are two new Adding Value
boxes: The first highlights how Nintendo is targeting
a more mature market with its Nintendo Switch, while
the second examines Under Armour’s advertising
campaign for extreme runners. There is a new Social
& Mobile Marketing box about how teens love to
share on social media. A new Ethical & Societal
Dilemma box examines how Sanderson Farms targets
a market that doesn’t mind antibiotics in its poultry. A
new example uses the NFL to highlight how brands
can use differentiated targeting strategies. A P&G
example is used to showcase micromarketing.
Chapter 10: Marketing Research begins with a
discussion of how American Express uses analytics to
better serve customers and businesses. There are
two new Adding Value boxes: The first examines the
use of data analytics in the restaurant industry, while
the second is about how universities are using
research to determine what students want to see in
their fitness centers. There are also two new
Marketing Analytics boxes: The first highlights Under
Armour’s “connected fitness” program, while the
second discusses how big data are used to predict
box office revenues. Finally, a new Ethical & Societal
Dilemma box discusses the ethical concerns of
Roomba’s collecting personal data.
Chapter 11: Product, Branding, and Packaging
Decisions begins with a new opener on Aston
Martin’s branding strategy. There is also a new
Adding Value box about how B&G Foods is bringing
back the Jolly Green Giant mascot. New examples
include how Häagen-Dazs ice cream has increased its
product depth and P&G’s use of sustainable
packaging.
Chapter 12: Developing New Products begins
with a discussion of GE’s FirstBuild independent
innovation arm. A new Adding Value box discusses
Mars’ Goodness Knows brand’s marketing campaign,
which films people trying to do something new. There
is also a new Ethical & Societal Dilemma box on
privacy concerns surrounding smart toys. The shape
of the product life cycle is highlighted with a Page xi
new example featuring Microsoft’s Xbox
Kinect. The chapter ends with a new case study on
how Mattel is reinventing itself.
Chapter 13: Services: The Intangible Product
includes an opening vignette that describes how Lyft
is innovating the ride-sharing industry by partnering
with Taco Bell for its new “Taco Mode.” Three new
Adding Value boxes appear: The first discusses how a
start-up company, Cabin, is delivering a service
innovation with its hotels on wheels, the second
outlines how virtual reality is enabling travelers to
virtually test drive their next vacation; and the third
examines how luxury resorts are teaming up with
auto manufacturers. A new Social & Mobile Marketing
box looks at customer responses to Starbucks’
mobile app—while efficient, some customers prefer
the old days when baristas wrote misspelled names
on the cups, followed by a smiley face. A new
example showcases the tech company Motley Fool’s
peer-to-peer employee recognition system. A new
section is outlined in Exhibit 13.6 that discusses the
various ways in which technology is augmenting the
human effort. A new case study examining artificial
intelligence in customer service closes the chapter.
Chapter 14: Pricing Concepts for Capturing
Value describes new pricing strategies at Kroger in
the opening vignette, including the pricing of its
different private brands, digital pricing shelf tags, the
use of dynamic pricing, and in-store mobile
applications. An Adding Value box examines the
trade-off that Taco Bell customers apparently do not
make with regard to trading off price and value. How
dynamic pricing is used to price tickets for Major
League Baseball is examined in a new Marketing
Analytics box.
Chapter 15: Strategic Pricing Methods and
Tactics opens with an examination of Tiffany & Co.’s
unsuccessful product line expansion. A new Adding
Value box describes the price drop at Whole Foods
following its acquisition by Amazon. The chapter also
includes new examples featuring UberXL and Apple.
Chapter 16: Supply Chain and Channel
Management opens with a new vignette
highlighting Nike’s supply chain. There is a new
Adding Value box about how grocers are developing
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now to explore a diverse
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in formats like PDF, EPUB, and
MOBI, compatible with all
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quickly download high-quality
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their own dairy farms, forming a vertically integrated
marketing channel. There are two new Ethical &
Societal Dilemma boxes: The first examines the pros
and cons associated with driverless trucking, while
the second discusses how technology advances
adversely affect retail workers. The importance of
supply chain management is highlighted in a new
example about Brown Betty Dessert Boutique.
Chapter 17: Retailing and Omnichannel
Marketing begins with a discussion of the
implications of Amazon’s acquisition of Whole Foods.
The 4Ps of retailing have been expanded to the 6Ps
with the addition of presentation and personnel.
Target’s private-label expansion is examined in a new
Adding Value box. A Social & Mobile Marketing box
examines Sephora’s clever and risqué tactics. The
chapter ends with a new case study about how
Ashley Stewart, a once-struggling apparel brand
catering to African American women, became the
largest plus-size retailer in the United States.
Chapter 18: Integrated Marketing
Communications opens with a description of how
Toyota is creating ads to spice up the Camry’s image
and appeal to different demographic groups. There is
a new Social & Mobile Marketing box on how
BuzzFeed’s Tasty, the division responsible for
producing the site’s vastly popular and widely viewed
videos, is revolutionizing marketing. A new Adding
Value box appears highlighting how Eggo has
leveraged its role in the TV show Stranger Things.
Chapter 19: Advertising, Public Relations, and
Sales Promotions starts with examinations of
Volkswagen’s nostalgic campaign. Exhibit 19.2
showcases new examples of emotional appeals in
advertising. There are two new Ethical & Societal
Dilemma boxes. The first examines some old
advertising campaigns that would shock today’s
viewers, like the one that attempts to get mothers to
give chewing gum to their toddlers. The second
describes how Volkswagen is trying to put its
emissions standards scandal behind it with its new
“Think New” advertising campaign. A new example
compares the advertising campaigns of the new
Hyundai Kona and the Subaru Outback. The
Mastercard end-of-chapter case study has been
updated to include its most recent “Start Something
Priceless” campaign.
Chapter 20: Personal Selling and Sales
Management includes a new Marketing Analytics
box on how technology and data are changing sales
management. A new Adding Value box describes how
Tupperware is empowering Indonesian women.
 Page xii

a letter from the authors

We are pleased to welcome you to the seventh
edition of Marketing! Since the first edition, we have
been committed to emphasizing a basic, yet
essential, theme: Marketing adds value. This
theme comes through not only in our instructional
features but also in our covers. With each edition’s
cover, we have featured a product that, because of
marketing, has become more valuable in the eyes of
consumers than it might have otherwise become.
Last edition we featured chocolate; in previous
editions we featured coffee, water, and jeans. For this
seventh edition, we feature energy bars. These are
all familiar products that started out as commodities
but became high-value branded products because of
marketing.

How We Show That Marketing

Adds Value
As with previous editions of Marketing, we continue
to emphasize how marketing has evolved into its
present-day, integral business function of creating
value. We also focus on how firms maintain value and
rely on value for establishing lasting relationships
with their customers.
To keep students engaged with this theme, we offer
the following features:

Adding Value—illustrate how companies add

value not only in providing products and services
 but also in making contributions to society.
Ethical & Societal Dilemmas—emphasize the
role of marketing in society.
Marketing Analytics—feature companies that
rely on sophisticated data analytics to define and
refine their approaches to their customers and
their markets.
Marketing Digitally—illustrate how marketers
successfully use digital media in their marketing
campaigns and efforts.
Social & Mobile Marketing—discuss how social
media are used in marketing products.

How We Teach the Basics of

Marketing
We understand that for students to appreciate
discussions of how marketing adds value, they must
first develop a basic understanding of key marketing
principles and core concepts. In this effort, we
believe students learn best when they see how a
subject relates to them. Throughout this edition and
all those prior, we provide numerous examples of
how students engage in marketing activities every
day of their lives—either as consumers or sellers of a
product or service. In addition to providing the
traditional study and reinforcement tools of most
principles of marketing products, we also offer ways
to help students think critically about and apply core
concepts: Page xiii
Chapter-Opening Vignettes focus on some of the
marketplace challenges faced by such well-known
companies as KIND and Kashi bars, L’Oréal, Kroger,
PepsiCo, and others.
Marketing Applications encourage students to
apply what they have learned to marketing scenarios
that are relevant to their lives.
End-of-Chapter Cases help students develop
analytical, critical-thinking, and technology skills.
Progress Checks throughout each chapter give
students the opportunity to stop and consider
whether their understanding of key concepts is
progressing as it should.
Auto-Graded Application Exercises in Connect
(such as video cases, case analyses, and click and
drags) challenge students to apply marketing
concepts to real-life marketing scenarios, which
fosters their critical-thinking skills in lecture and
beyond.

Why We Believe in the Value of

Marketing
Beyond teaching a principles of marketing course
and developing a product to be taught, we also want
to impress upon our students why marketing in and
of itself is valuable. Marketing creates enduring and
mutually valuable relationships between companies
and their consumers. Marketing identifies what
customers value at the local level in order to make it
possible for firms to expand at the global level.
Without marketing, it would be difficult for any of us
to learn about new products and services. In fact, an
understanding of marketing can help students find
jobs after they finish school. If we can inspire this
understanding of the value of marketing in our
students, then we will have succeeded in
demonstrating how marketing adds value … to their
education, their careers, and their lives.
Dhruv Grewal,
Babson College
Michael Levy,
Babson College
Page xiv

Page xv
 Page xvi

Asset Alignment
with Bloom’s Taxonomy
Principles of Marketing

We Take Students Higher

As a learning science company we create content that
supports higher order thinking skills. Interactive learning
tools within McGraw-Hill Connect are tagged accordingly, so
you can filter, search, assign, and receive reports on your
students’ level of learning. The result—increased
pedagogical insights and learning process efficiency that
facilitate a stronger connection between the course material
and the student.
The chart below shows a few of the key assignable
marketing assets with McGraw-Hill Connect aligned with
Bloom’s Taxonomy. Take your students higher by assigning a
variety of applications, moving them from simple
memorization to concept application.
Page xvii
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others, in one phylum, the Arthropoda. So also with the rest of the
animal kingdom, and similar methods may be extended to the
classification of the plants. A few small groups in each of the
kingdoms are difficult to classify, but it has been possible to arrange
most living organisms in a small number of sub-kingdoms or phyla,
and even to attempt to trace relationships between these various
categories.
The mere systematic description of the organic world would have
resulted in such a reasoned classification apart altogether from any
notions of an evolutionary process. But the classification, originally a
conventional way of making a list of organisms, would at once
suggest morphological similarities. It would suggest that all the Cats
were Carnivores, that all the Carnivores were Mammals, and that all
the Mammals were Chordates. It would suggest that all Wasps were
Hymenoptera, that all Hymenoptera were Insects, and that all
Insects were Arthropods. It would establish a host of logical relations
between animals of all kinds.
It would show us a number of groups of animals separated from
each other by morphological dissimilarities. But let us also consider
all those animals which lived in the past of the earth, and the
remains of which are found in the rocks as fossils. Including all the
forms of life known to Palæontology, we should find that the
dissimilarities between the various groups would tend to disappear.
The gaps between existing Birds and Reptiles, for instance, would
become partially bridged. Palæontology would also supplement
morphology in another way. The study of the structure of animals
leads us to describe them as “higher” and “lower”—higher in the
sense of a greater complexity of structure. Thus the body of a
Carnivore is more complex than that of a Fish, inasmuch as it
possesses the homologues of the truly piscine gills, but it also
possesses a four-chambered heart instead of a two-chambered one;
and it possesses the mammalian lungs, diaphragm, and placenta,
structures which are not present in the Fish. Now, so far as its
imperfect materials go, palæontology shows us that the higher forms
of life appeared on the earth at a later date than did the lower
forms. The remains of Mammals, for instance, are first found in
rocks which are younger than (that is, they are superposed upon)
those rocks in which Reptiles first appear; and so also Reptiles
appear later in the rock series than do Fishes. Palæontology thus
adds to the logical order suggested by morphology a chronological
order of this nature: higher, or more complex forms of life appeared
at a later date in the history of the earth than did lower or less
complex ones.
A parallel chronological sequence would also be suggested by the
results of embryology. This branch of biology shows us that all
animals pass through a series of stages in their individual
development, or ontogeny. The earlier stages represent a simple
type of structure, usually a hollow ball of cells, but as development
proceeds, the structure of the embryo becomes more and more
complex. The process of development is continuous in many
animals, but in others (perhaps in most) larval stages appear, that is,
development is interrupted, and the animal may lead for a time an
independent existence similar to that of the fully developed form.
Often these larval stages suggest types of structure lower than that
of the fully developed animal into which they transform. Even if
larval stages may not appear in the ontogeny, it is very often the
case that the developing embryo exhibits traces, or at least
reminiscences, of the types of morphology characteristic of the
animals which are lower or less complex than itself; thus the piscine
gills appear during the development of the tailed Amphibian, and
even in that of the Mammal, and then vanish, or are converted into
organs of another kind. The individual thus passes through a series
of developmental stages of increasing complexity: it repeats, in its
ontogeny, the palæontological sequence in a distorted and
abbreviated form.
It is true that the evidence afforded by palæontology is very meagre.
The preservation of the remains of organisms in the stratified rocks
is a very haphazard process, and it depends for its success on a
series of conditions that are not always present. As the surface of
the earth becomes better known, our knowledge of the life of the
past will become fuller, but there can be little doubt that whole
series of organisms must have existed in the past, and that no
recognisable traces of these are known to us. There is also no doubt
that the sequences indicated by palæontology are very incomplete:
they are obscured and shortened by many conditions. The earlier
embryologists entertained hopes that the study of embryology would
reveal the direction of the evolutionary process in many groups of
animals: if the organism repeats in its ontogeny the series of stages
through which it passed in its phylogenetic development, then a
close study of the embryological process ought to disclose these
stages. Although these hopes have not been realised, there is yet
sufficient truth in the doctrine of recapitulation to enable us to state
that there is a rough parallelism between the palæontological and
embryological sequences.
We therefore state a plausible hypothesis when we assert that
different species may be related to each other in the same way that
the individuals of the same species are related, that is, by a tie of
blood-relationship; and that different genera, families, orders, and so
on are also so related. Morphological studies enable us to arrange
numbers of species in such a way that series, in each of which there
is an increasing specialisation of structure, are formed. Both
palæontology and embryology show, to some extent at least, that
these stages of ever-increasing specialisation of structure occurred
one after the other. Now, stated briefly and baldly as we have put it,
this argument may not appear to the general reader to possess
much force, but it is almost impossible to over-state the strength of
the appeal which it makes to the student of biology. To such a one a
belief in a process of transformism will appear to be inseparable
from a reasoned description of the facts of the science.
But it would be no more than a belief, not even a hypothesis, if we
did not attempt to verify it experimentally. It is merely logical
relationships that we establish, and the chronological succession of
forms of life, higher forms succeeding lower ones, does not itself do
more than suggest an evolutionary process. All that we have said is
compatible with a belief in a process of special creation. But if we
cling to such a belief, if we suppose that the organisms inhabiting
the earth, now and in the past, are the manifestations of a Creative
Thought, we must still accept the notion of logical and chronological
relationships between all these forms of life. If we permit ourselves
to speculate on the working of the Creative Thought, we seem to
recognise that the ideas of the different species must have
generated each other, and that the genesis of living things must
have occurred in some such order as is indicated by a scientific
hypothesis of transformism. An evolutionary process must have
occurred somewhere, but the kinships so established between
organisms would be logical and not material ones.
Science must not, of course, describe the mode of origin of species
in this way. So long as it investigates living things by the same
methods which it uses in the investigation of inorganic things, it
must hold that the concepts of physical science are also adequate
for the description of organic nature. It must assume that matter
and energy and natural law are given; and that, even in the
conditions of our world, life must have originated from lifeless
matter; must have shaped itself, and undergone the transformations
that are suggested by the results of biology. It must assume, in spite
of the formidable difficulties that the assumption encounters, that
cosmic physical processes are reversible and cyclical; and that
worlds and solar systems are born, evolve, and decay again. Every
stage in such a cosmic process, as well as every stage in the
evolution of living things, must have been inevitably determined by
the stages preceding it. Such a mechanistic explanation must
assume that a superhuman intellect, but still a finite intellect like our
own, such a calculator as that imagined by Laplace or Du Bois-
Reymond, would be able to deduce any state of the world, or
universal system, from any other state, by means of an immense
system of differential equations. It would be able, as Huxley says, to
calculate the fauna of Great Britain from a knowledge of the
properties of the primitive nebulosity with as much certainty as we
can say what will be the fate of a man’s breath on a frosty day. Such
a fine notion as that of an universal mathematics must ever remain
as the ideal towards which science strives to approximate.
Or we may suppose that a plan or design has been superposed on
nature, is immanent in matter and energy, and works itself out, so to
speak. Such a teleological explanation of inorganic and organic
evolution inevitably forces itself upon us if we reject the notion of
radical mechanism. We think of an universal system of matter and
energies as consisting of elements which, when assembled together,
interact in a certain way, and with results which are definite and
calculable. The assembling together of the elements of the system
would be the result of the previous phases of the system. That is
radical mechanism. But let us think of the elements of the system as
being differently assembled—thus involving the idea of an agency,
external to the system, which rearranges them—then the same
energies inherent in this system, as in that previously imagined, will
also work out by themselves. But the result will be different, and will
depend on the manner in which the elements were originally
arranged. That would be radical finalism.
Science must reject this notion as it rejects that of special creation,
since it introduces indeterminism into the evolutionary process. It
must regard the organism and its environment as a physico-chemical
system studied from without. It must avoid all attempts to acquire
an intuitive knowledge of the actions of the organism, for the latter,
and the things which environ it, are only bodies moving in nature. In
the systems studied by it time must be the independent variable,
and there must be a strict functionality between the parts of the
organism and the parts of the reacting environment, so that any
change in the one must necessarily be dependent on a change in the
other. Such a system and series of interactions is that which is
described in a mechanistic hypothesis of transformism.
All this is indeed suggested to ordinary and aided methods of
observation. The plant or animal acts upon, and is acted on by, the
environment, though it is usually the modification of the organism to
which we attend. A man’s face becomes reddened by wind and sun
and rain; manual labour roughens his hands and develops callosities;
in the summer he sweats and loses heat; in the winter the blood-
vessels of his skin contract and heat is economised. In the winter
months the fur of many animals becomes more luxuriant and may
change in colour. Fishes which inhabit lightly coloured sand are
lightly pigmented, but their skins become dark when they move on
to darkly coloured sea-bottoms; prawns which are brown when they
live on brown weed, become green when they are placed on green
weed. Birds migrate into warmer countries, and vice versa, when the
seasons change. Such are instances of the adaptations of the
morphology and functioning of organisms consequent on changes of
environment.
What is an adaptation? The term plays a great part in biological
speculation, but it is often used in a loose and inaccurate manner,
and not always in the same sense. It suggests that the organism is
contained by the environment, and that its form becomes adapted to
that of the latter, just as the metal which the ironfounder pours into
the mould takes the form of the cavity in the sand. “We see once
more how plastic is the organism in the grasp of its environment”—
such a quotation from morphological literature is perhaps a typical
one. Over and over again this passive change in the organism as the
result of the action of something rigid which presses upon it is what
is understood by an adaptation. No doubt the organism may be so
affected, and often the change which it experiences is of the same
order as the environmental change. In the winter many animals
become sluggish and may hibernate; their heart-beats slow down;
their respiratory movements become less frequent, and generally the
rate of metabolism, that is the rapidity with which chemical reactions
proceed in their tissues, becomes lessened. All these changes
become reversed in sign when the temperature again rises. The time
of year at which a fish spawns depends on the nature of the
previous season. The rate of development of the egg of a cold-
blooded animal varies with the temperature. The quantity of starch
formed in a green leaf depends on certain variables—the intensity of
light, the temperature, and the quantity of carbonic acid contained in
the medium in which it is placed. In all these cases the rate at which
certain metabolic processes go on in the body of an organism varies
according to the conditions of the environment. In general they are
cases of van’t Hoff’s law, that is, the rapidity at which a chemical
reaction proceeds varies according to the temperature.
They are changes of functioning passively experienced by the
organism as the result of environmental changes, and we must
clearly distinguish between them and such changes as are the result
of some activity or effort on the part of the organism. A flounder
which lives in a river migrates out to sea when the first of the winter
snows melt and flood the estuary with ice-cold water. Brown or
striped prawns living on brown or striped weeds become green when
they are placed on green weed, changing their pigmentation to
match that of the alga. A kitten brought up in a cold-storage
warehouse develops a sleeker and more luxuriant coat than does its
sister reared in a well-warmed house. An animal which recovers
from diphtheria forms an antitoxin which enables it to resist, for a
time at least, repeated infection. A man who goes exploring in polar
seas puts on warmer clothing than he wears in the tropics.
It is not necessary that an environmental change should occur in
order that an adaptation should be evoked, for the organism may
react actively and purposefully to a change in itself. The athlete
acquires by running or rowing a more powerful heart; the blacksmith
develops more muscular shoulders and arms; and the professional
pianist more supple wrists and fingers. If one kidney is removed by
operation, or if one lung becomes diseased, the organ on the other
side of the body becomes hypertrophied. Aphasia, which is due to a
lesion in the unilateral speech-centre, may pass away if the
previously unused centre on the other side of the brain should
become functionally active. In general, the continued use of an
organ leads to its increase in size and efficiency, and conversely
disuse leads to a decrease of size and even to atrophy.
The essence of an adaptation is that it is an active, purposeful
change of behaviour, or functioning, or morphology, by which the
organism responds to some change in its physical environment, or to
some other change in its own behaviour, or functioning, or
morphology. It is also a change which remains as a permanent
character in the organisation of the animal exhibiting it. It does not
matter even if the change of behaviour is one which is willed in
response to some change of environment actually experienced, or
whether it anticipates some change that is foreseen. A changed
mode of behaviour adapted intelligently leaves, at the least, a
memory which becomes a permanent part of the consciousness of
the animal, and may influence its future actions; or if it is evoked by
a process of education it must involve the establishment of a “motor
habit.” The education of a singer sets up, in the cortex and lower
centres of the brain, a nervous mechanism which controls and co-
ordinates the muscles of the chest and larynx, and which did not
exist prior to the process of education. Adaptations are therefore
acquired changes of some kind or other by means of which the
organism is able to exert a greater degree of mastery over its
environment, including in the latter both the inert matter of
inorganic nature and the other organisms with which the animal
competes.
They are acquirements because of which the organism deviates from
the morphological structure characteristic of the species to which it
belongs. Do they affect the entire organisation of the animal
exhibiting them, that is, may an acquired change of structure be so
fundamental that it affects not only the body of the animal in which
it occurs but also the progeny of this animal? Let us suppose that
this is the case; let us suppose that quite a large proportion of all
the individuals of a species inhabiting a restricted part of the earth’s
surface acquire the same change of character simultaneously and
that they transmit this deviation of structure to their progeny. Then
we should have an adequate means whereby the specific type
becomes modified—a means of transformism.
This is the hypothesis which is associated with the name of Lamarck,
and its essential postulate is that characters which are acquired by
an organism during its own lifetime are transmitted to its offspring.
It seems reasonable to suppose that this transmission of acquired
characters should occur—how reasonable we should note when we
see that de Vries tacitly assumes that fluctuating variations due to
the action of the environment may be inherited by the offspring of
organisms which exhibit them. That transmutation of species might
occur in this way was a popular and widespread belief in England
and Germany throughout the greater part of the nineteenth century;
and it was a belief entertained by Darwin himself, and confidently,
and even dogmatically affirmed at one time by the majority of
biologists in both countries.
How was it, then, that a very general change of opinion with regard
to this question occurred both in England and Germany during the
last two decades of the last century? Certainly many botanists and
zoologists continued to adhere to the older hypothesis, and most
physiologists still do not appear to make any clear distinction
between morphological characters which are inherited and those
which are acquired; but the majority of biologists did not hesitate to
conclude that not only was the transmission of acquired characters
an unproved conjecture, but that it was even theoretically
inconceivable. At the beginning of the nineteenth century this belief
had almost become a doctrine dogmatically asserted, and one
cannot fail to notice a tone of irritation and impatience on the part of
the spokesmen of zoology when the contrary opinions are
expressed. “Nature,” says Sir E. Ray Lankester, “(and there’s an end
of it) does not use acquired characters in the making and sustaining
of species for the very simple reason that she cannot do so.”
There can be little doubt that the interrogation of nature with regard
to this question was not a very thorough process. The dogmatic
denial of the transmission of acquired characters was not the result
of exhaustive experiment and observation, but was due rather to the
very general acceptance in England and Germany of Darwin’s
hypothesis of the transmutation of species by means of natural
selection, and of Weismann’s hypothesis of the continuity of the
germ-plasm.
The newer hypothesis of transmutation was one which seemed
adequate to account for the diversity of forms of life, so that it was
unnecessary to invoke the older one; though Darwin himself
admitted that the individual acquirement of structural modifications
might be a factor in the evolutionary process; and for more than
twenty years after the publication of the “Origin of Species”
Lamarck’s hypothesis was not strenuously denied by naturalists.
Early in the ’eighties, however, Weismann published his book on the
germ-plasm, and the brilliancy and constructive ability of the
speculations contained in this remarkable work, as well as the
analogies which they suggested between organic and inorganic
phenomena, compelled the attention of biologists. The essential
parts of Weismann’s hypothesis, as it was first presented to the
world, are as follows: very early in the evolution of living from non-
living matter many kinds of life-substance came into existence.
These were chemical compounds of great complexity, able to
accumulate and expend energy, and capable of indefinite growth
and reproduction. They were able to exist in an environment which
was hostile to them and which tended always to their dissolution,
and which was able to modify their nature and their manner of
reacting, though it could not destroy them. These elementary life-
substances were very different from those which we know in the
world of to-day. They were naked protoplasmic aggregates,
undifferentiated into cellular or nuclear plasmata, much less into
somatic and germinal tissues. All of their parts were similar, or rather
their substance was homogeneous. But even with the evolution of
the unicellular organism a profound change was initiated, for
henceforth one part of the living entity, the nucleus, became
charged with the function of reproduction, although it still continued
to exercise general control over the functions of the extra-nuclear
part of the cell. When the multi-cellular plant and animal became
evolved, the heterogeneity of the parts of the organism became
greater still. All the cells of the metazoan animal do indeed contain
nuclei, but these structures are only the functional centres of the
cells: some of the latter are sensory, others motor, others
assimilatory, others excretory, and so on. Only in the nuclei which
form the essential parts of the reproductive organs does the
reproductive function persist in all its entire potentiality: there only
does the protoplasm retain all the properties which were possessed
by the primitive life-substance before it became heterogeneous, that
is, before nucleus and cytoplasm evolved. When part of the primitive
life-substance became secluded in a nuclear envelope, it became, to
that extent, shielded from the action of the physical environment,
and when the organism became composed of multicellular tissues
this seclusion became more complete. Clothed in the garments of
the flesh, it was henceforth protected from the shocks of the
environment, and it became the immutable germ-plasm. But for a
very long time before this evolution of tissues the naked life-
substance had been exposed to the action of external physical
agencies, and it had been modified by these into very numerous
forms of protoplasmic matter. When multicellular plants and animals
had been evolved there were, therefore, not one, but many kinds of
life-substance in existence, and these have persisted until to-day as
the unchanging germ-plasmata of the existing organisms.
The Weismannian hypothesis of to-day, supported and amplified, as
it is, by subsidiary hypotheses, does not make the same appeal to
the student as did the pristine and altogether attractive speculation
of thirty years ago. The analogy which it then presented with the
matured chemical theory of matter must have been almost
irresistible. Just as the indefinitely numerous compounds of
chemistry are only the permutations and combinations of some of
eighty-odd different kinds of matter, so all the forms of life are
combinations and permutations of some of the many different kinds
of life-substance which came into existence before the evolution of
the multicellular organism. And just as the chemical elements were
regarded (in 1883) as immutable things, preserving their
individuality even when they were associated together as
compounds, so Weismann and his followers looked upon the
different kinds of life-substance contained in the chromatic matter of
the nucleus as immutable and immortal living entities. Associated
together in indefinitely numerous ways by sexual conjugation, they
may build up indefinitely variable living structures, but they remain
individualised and lying side by side in the germ-plasmata of
organisms, just as the atoms were supposed to lie side by side in the
chemical molecule of the inorganic compound. 31
If these speculations were true, a change of morphology or
functioning, acquired by the body, or somatoplasm, could not
possibly be transmitted to the progeny of the organism, for by
hypothesis the germ-plasm cannot be affected by external changes,
and it is only the germ-plasm contained in the spermatozoon of the
male parent, or in the ovum of the female, that shapes and builds
the body of the offspring. As if this were not enough, Weismann and
his followers argued that the transmissibility of a somatic change to
the germ was inconceivable. Why? Because the germ-cells are
apparently simple: they are only semi-fluid protoplasmic cell bodies
and nuclei, not differing appreciably from the cell bodies and nuclei
of the somatoplasm (by hypothesis, it should be noted, the
difference is profound). There are no structural connections—no
nerves, for instance—which join together the cells of the bodily
tissues with the parts of the germ and transmit changes in the
former to the latter. How, then, could a somatic change affect the
germ so that when the latter developed into an organism this
particular change became reproduced? Now this may have seemed a
conclusive argument in 1883, but is it so conclusive to-day? We
know that the cells and tissues are not isolated particles, but that all
are connected together by protoplasmic filaments. We know that
specialised nervous tissues are not necessary for the transmission of
an impulse from a sensory to a motor surface, but that such an
impulse may be transmitted by undifferentiated protoplasm. We
know that nerve-cells and nerve-fibres are not structurally
continuous with each other but that the impulse leaps across gaps,
so to speak. We know that events that occur in one part of the body
of the mammal may affect other parts by means of the liberation of
a chemical substance, or hormone, into the blood stream. It would
be strange indeed if a logical hypothesis capable of accounting for
the transmission of a particular change from the soma to the germ
could not be elaborated.
But acquired characters were not really transmitted after all. So
those who clung to Weismannism argued—an unnecessary task
surely if this transmissibility were inconceivable. We cannot discuss
the evidence here, and it is unnecessary that we should do so, since
it is all considered in the popular books on heredity. There is an
apparent consensus of opinion in these books which should not
influence the reader unfamiliar with zoological literature, nor obscure
the fact that many zoologists and botanists accept the opposite
conclusion. The discussion is all very tiresome, but we may glean
some results of positive value from it. It is unquestionable that very
few conclusive and adequate investigations have been made: one
cannot help noticing that the literature contains an amount of
controversy out of all proportion to the amount of sound
experimental and observational work actually carried out. Most of
the experiments deal with the consideration of traumatic lesions or
mutilations, and it seems to be proved that such defects are not
transmitted, or at least are very rarely transmitted. The tails of
kittens have been cut off; the ears of terrier-dogs have been lopped;
and the feet and waists of Chinese and European ladies have been
compressed, and all throughout very numerous generations, yet
these defects are not transmitted from parent to offspring. This kind
of evidence forms the bulk of that which orthodox zoological opinion
has adduced in favour of the belief in the non-inheritability of
acquired characters, but does it all really matter? What might be
transmitted is a useful, purposeful modification of morphology, or
functioning, or behaviour, induced by the environment throughout a
number of generations—an adaptation rather than a harmful lesion.
There is little conclusive evidence that such adaptations are
inherited, though anyone who carefully studies the evidence in
existence will not be likely to say that they are certainly not
transmitted. Does, for instance, the blacksmith transmit his muscular
shoulders and arms to his sons, or the pianiste her supple wrists and
fingers to her daughters? There are no observations and
experiments in the literature worthy of the importance attaching to
the question at issue.
It should be noted also that the germ-plasm is certainly not the
immutable substance that the hypothesis originally postulated.
Changes in the outer physical environment may certainly affect it;
thus the larvæ bred from animals which live in abnormal physical
conditions (temperature, moisture, etc.) may differ morphologically
from the larvæ bred from animals belonging to the same species but
living in a normal environment. The latter must therefore react on
the germ-plasm, but the environment formed by the bodily tissues
which surround the germ-cells may also so react: thus the germ-
cells may be affected by such bodily changes as differences in the
supply of nutritive matter, for instance. The offspring may deviate
from the parental structure as the result of structural modifications
acquired by the parent during its own lifetime, and, even if the filial
deviation were not of the same nature as the parental modification,
its inheritance would be an adequate cause of some degree of
transmutation.
It is, however, certainly difficult to prove that organisms transmit to
their progeny the same kinds of deviation from the specific structure
that they themselves acquire as the result of the action of the
environment. Even if they did transmit such acquired deviations, it
does not seem clear that this kind of inheritance alone would be a
sufficient cause of the diversity of forms of life that we do actually
observe in nature. Change of morphology would indeed occur, but
we should expect to find insensible gradations of form and not
individualised species. Let us suppose that Lamarckian inheritance
acts for a considerable time on two or three originally distinct
species inhabiting an isolated tract of land, and let us suppose that
we investigate the variations occurring among all the organisms
which are accessible to our observation with respect to some one
variable character.
The diagram A represents what would seem to be the result of this
process of transmutation. The numbers along the horizontal line are
proportional to their distance from o, the origin, and represent the
magnitude of the variation considered; and the height of the vertical
lines represents the number of organisms exhibiting each degree of
variation. We should expect to find that all the variations were
equally frequent in their occurrence, but this is not what a study of
variability in such a case as we have supposed—that of the animals
inhabiting an isolated part of land—does actually indicate. What we
should find would be the conditions represented by the diagram B.
There would be two or more modes, that is, values of the variable
character which are represented by a greater number of individuals
than any other value of the variation. The environmental conditions
favour the individuals displaying this variation to a greater extent
than they favour the rest.

Fig. 24.

That is to say, the environment selects some kinds of variations

among the many that are exhibited, and this is, of course, the
essential feature of the hypothesis of the transmutation of species
by means of natural selection of variable characters. Organisms
enter the world differently endowed with the power of acting on the
medium in which they live, or on the environment consisting of their
fellow-organisms. Those that are most favourably endowed live
longest and have a more numerous progeny than those that are less
favourably endowed, and they transmit this favourable endowment
to their offspring. Among the progeny of the progeny there may be
some in which the favourable variation is still more favourable than it
was when it first appeared. Thus the variations which are selected
increase in amount. Elimination of the weakest occurs. The idea is
eminently clear and simple, and possesses a great degree of
generality: it is self-evident, says Driesch, meaning that it cannot be
refuted, for it was certainly not clearly obvious to the naturalists
before Darwin and Wallace. But, unless we choose to be dogmatic,
we can hardly claim that it is an all-sufficient cause for the
evolutionary process, and it is useless to attempt to minimise the
difficulties of the hypothesis. It is not easy to make it account for the
origin of instincts or tropisms, or for restitutions and regenerations of
lost parts, or for the appearance of the first non-functional rudiments
of organs which later become functional and useful. It is, indeed,
possible to devise plausible hypotheses accounting for all these
things in terms of natural selection, but each such subsidiary
hypothesis loads the original one and weakens it to that extent.
Natural selection does not, of course, induce or evoke variations;
these are given to its activity, and they are the material on which it
operates. What, then, is the nature of the deviations from the
specific types of morphology that are selected or eliminated? Not
those induced by the environment, and transmitted in their nature
and direction to the progeny of the organisms first displaying them.
It is not unproved that such variations do occur, and it is even
probable that they do occur. But we may conclude that the
frequency of their occurrence is not great enough to afford sufficient
material for natural selection. It is also clear that the ordinarily
occurring variations that we observe in any large group of organisms
collected at random are not alone the material for selection; for we
have seen that experimental breeding from such variations does not
lead to the establishment of a stable race or “variety.” Nevertheless
some effect is produced, and this may be accounted for by
supposing that the observed variations are really of two kinds—
fluctuating variations, which are not inherited, and mutations, which
are inherited. The small observed effect is due to the selection of the
mutations alone: it is a real effect of selection, an undoubted
transmutation of the specific form, but experimental and statistical
investigations seem to show that selection from the variations that
we usually observe is too slow a process to account for the existing
forms of life.
Natural selection acts, therefore, on mutations. Now it seems that
we are forced to recognise the existence of two categories of
mutations, (1) those stable modifications of an “unit-character”
which we term “Mendelian characters,” and (2) those groups of
stable modifications to which de Vries applied the term mutations. It
seems at first difficult to see how permanent modifications of the
specific form can be brought about by the transmission of Mendelian
characters, for these characters are always transmitted in pairs. Let
us take a concrete case—that of a man who has six fingers on his
right hand, and let us suppose that this was a real, spontaneously
appearing character or mutation which had not previously occurred
in the ancestry of the man. Two contrasting characters would then
be transmitted, (1) the normal five-fingered hand, and (2) the six-
fingered hand. Both of these characters are supposed to be present
at the same time in the organisation of the men and women of the
family originating in this individual, but one of them is always latent
or recessive. There would, however, be individuals in which only one
of the characters would be present—either the normal or abnormal
number of digits, but intermarriage with individuals belonging to the
other pure strain would immediately lead again to the transmission
of the contrasting characters, or allelomorphs, although marriage
with an individual belonging to the same pure strain would carry on
the normal or abnormal unmixed character into another generation.
But if the possession of six fingers conveyed an undoubted
advantage, and if natural selection did really act in civilised man as
regards the transmission of morphological characters, then a stable
variety (Homo sapiens hexadactylus, let us say) might be produced
by its agency. The mutations which we consider in the investigation
of the inheritance of alternating characters are therefore just as
much the material for natural selections as the mutations which
occur among the ordinary variations displayed by organisms in
general: but since only one or two characters appear to be subject
to this mode of transmission, the process would be so slow as to be
inadmissible as an exclusive cause of evolution.
If we assume that de Vries’ mutations are the material on which
selection works, this difficulty is immediately removed, for we now
have to deal with groups of stable deviations: not one or two, but all
the characters of the organism appear to share in the mutability. But
another difficulty now arises. A species of plant or animal may have
got along very well with its ordinary structural endowment, and then
a number of individuals begin to mutate. Some of the deviations
from the specific type may be of real advantage, but others may not:
we can, indeed, imagine an in-co-ordination between the mutating
parts or organs which would be fatal to the animal; on the other
hand, there might be complete co-ordination, with the result that
great advantage might be conferred upon the individual. It is easy to
see how co-ordination of mutating parts is absolutely essential. An
animal which preserves its existence by successful avoidance of its
enemies would not be greatly benefited by a more transparent
crystalline lens if the vitreous humour of its eye were slightly
opaque; and even if all the parts of the eye were perfectly co-
ordinated, increased acuity of vision would not greatly help it if its
limbs were not able to respond all the more quickly to the more
acute sensation. Un-co-ordinated mutations would therefore tend to
become eliminated, while co-ordinated ones would become selected
and would become the characters of new species.
We must now ask why some groups of variations are co-ordinated
while others are not, and it is here that we encounter the most
formidable of the difficulties of any hypothesis of transformism which
depends on the concept of natural selection. If we assume that the
environment induces the appearance of variations, it seems to follow
that these variations are likely to be co-ordinated, but we then
invoke the principle of the acquirement of characters and their
transmission by heredity. If, on the other hand, we assume that
variations appear spontaneously, and quite irresponsibly, so to
speak, in the germ-plasm of the organism, the selection, or
elimination, by the environment will not occur until the co-ordinated
or un-co-ordinated variations appear. It is far more likely that a large
number of simultaneously appearing variations will be un-co-
ordinated than that they will be co-ordinated. Merely as a matter of
probability the progressive modification of a species will take place
slowly—too slowly to account for what we see.
Two examples will make it easier to appreciate this difficulty.
Evolution has undoubtedly proceeded in definite directions. There
are two dominant groups of fishes, the Teleosts and the
Elasmobranchs, and both must have originated from a common
stock. All the characters in each kind of fish must have been useful
(since they were selected), and all must have been modifications of
the characters of the common stock. The latter became modified
along two main lines, or directions, which are indicated by the
characters of the existing Teleosts and Elasmobranchs. The whole
skeleton, the gills, the circulatory system, and the brain differ in
certain respects in these groups. Therefore a modification of the
brain in the primitive Elasmobranchs was associated with a
modification of the cranium, and therefore with the jaw-apparatus,
and so with the branchial skeleton and the gills, and therefore also
with the heart, and so on. Suppose that the evolutionary process
included ten useful and co-ordinated variations—not an unlikely
hypothesis—and suppose that each of these ten useful variations
was associated with nineteen useless ones. The chance that any one
of them did occur was therefore one in twenty; and if they all
occurred independently, that is, if the occurrence of any one of them
was compatible with the occurrence of any other one, or of all the
others, then the chance that all the ten variations occurred
simultaneously was 20−10 that is, one in the number 20 followed by
10 cyphers, a rather great improbability.
Most biological students are familiar with the similarity of the so-
called eye of the mollusc Pecten and that of the vertebrate. The
resemblance is one of general structure: in each of these organs
there is a camera obscura, a transparent cornea, and behind that a
crystalline lens. On the posterior wall of the camera there is a
receptor organ, or retina, and this is composed of several layers of
nervous elements. The actual nerve-endings are on the surface of
the retina, which is turned away from the light, that is, the optic
nerve runs towards the anterior surface of the retina, and then its
fibres turn backwards. This “inversion of the retinal layers” occurs in
all vertebrate animals, but it is exceptional in the invertebrates. The
above general description applies equally well to the eye of the
vertebrate and to that of Pecten.
Let us admit that these mantle organs in Pecten are eyes, for there
is no conclusive experimental evidence that they really are visual
organs, and plausible reasoning suggests that they may subserve
other functions. Let us assume that the minute structure of the
Pecten eye is similar to that of the vertebrate, and that its
development is also similar: as a matter of fact both histology and
embryology are different. Then we have to explain, on the principles
of natural selection, the parallel evolution of similar structures along
independent lines of descent; for mollusc and vertebrate have
certainly been evolved from some very remote common ancestor in
which the eye could not have been more than a simple pigment spot
with a special nerve termination behind it. In each case the organ
was formed by a very great number of serially occurring variations,
yet these two sets of variations must have been the same at each
stage in two independently occurring processes. On any reasonable
assumption as to the number of co-ordinated variations required,
and their chances of occurrence, the mathematical improbability that
these two series of variations did occur is so great as to amount to
impossibility so far as our theory of transformism is concerned.
Natural selection could not, therefore, have produced these two
organs.
This argument of Bergson’s fails, of course, in the particular instance
chosen by him, but this is because the case is an unfortunate one.
Probably a morphologist could find a very much better case of
convergent evolution—the parallelism between the teeth of some
Marsupials and some Rodents, for instance. If detailed histological
and embryological investigation should show a similarity of structure
and development, in such compared organs Bergson’s argument
would retain all its force. We should then have to assume that there
was a directing agency, or tendency in the organism, co-ordinating,
or perhaps actually producing, variations.
Mechanistic biology can suggest no means whereby simultaneously
occurring variations are co-ordinated: let us therefore think of these
variations as occurring independently of each other, and let us ignore
the difficulty of the infrequency of occurrence of suitably co-
ordinated variations. Variations are exhibited by the evolving
organism, and the selection of co-ordinated series is the work of the
environment. But the environment is merely a passive agency, and it
has to confer direction on the innumerable variations presented to it
by the organism, rejecting most but selecting some. Let us think of
the environment, says a critic of Bergson, as a blank wall against
which numerous jets of sand are being projected. The jets scatter as
they approach the wall: each of them represents the variations
displayed by some organ or organ-system of an animal. Let us think
of a pattern drawn on the wall in some kind of adhesive substance:
where the wall is blank the sand would strike, but would fall off
again, but it would adhere to the parts covered by the adhesive
paint. The sand grains strike the wall from all sides, that is, their
directions are un-co-ordinated. The wall is passive, yet a pattern is
imprinted upon it. From passivity and un-co-ordination come
symmetry and order.
This argument withstands superficial examination, but to accept it is
truly to be “fooled by a metaphor.” For what is the pattern on the
wall? It is the environment, says the critic. But what is the
environment? Inevitably we think of it as something that makes or
moulds the organism, a way of regarding it that drags after it all the
confusion of thought implied in the above analogy. Clearly the
environment is made by the organism. Its form, that is, space, is
only the mode of motion possible to the organism; it is clear that
whether the space perceived by an organism is one-, two-, or three-
dimensional, space depends upon its mode of motion. Its universe is
whatever it can act upon, actually or in contemplation. Atoms and
molecules, planets and suns are its environment because it can in
some measure act upon these bodies, or at least they can be made
useful to it. Chloroform or saccharine, or methyl-blue and all the
dye-stuffs prepared from coal-tar by the chemists, are part of our
environment because we have made them. They existed only in
potentiality prior to the development of organic chemistry. They
were possible, but man had to assemble their elements before they
became actual. In making them, he conferred direction on inorganic
reactions.
Surely the organism itself selects the variations of structure and
functioning that are exhibited by itself. If we hesitate to say that
these modifications are creations, let us say that they are
permutations of elements of structure, and that they were potential
in the organisation of the creature exhibiting them. They occur in
the latter if we must not say that they are produced. If they are
detrimental, the organism is the less able to live and reproduce, and
if it does reproduce, its progeny are subject to the same disability. If,
as is usual, they simply do not matter, they may or may not affect
the direction of evolution. If they are of advantage, that is, if they
confer increased mastery over the environment, over the inert things
with which the organism comes into contact, the latter enlarges its
universe or environment, lives longer, and transmits to its progeny
its increased powers of action. Indefinite increase of power over
inert matter is potential in living things, and variation converts this
potentiality into actuality.
This discussion is all very formal, but two conclusions emerge from
it: (1) the insufficiency of the mechanistic hypotheses of
transformism to account for all the diversity of life that has appeared
on the earth during the limited period of time which physics allows
for the evolutionary process. There does not appear to be any
possibility of meeting this objection if we continue to adhere to the
hypothesis of transformism already discussed: it faces us at every
turn in our discussion. How great a part is played, for instance, by
“pure chance” in the elimination of individual organisms during the
struggle for existence! Let us think of a shoal of sprats on which sea-
birds are feeding: it is chance which determines whether the birds
prey on one part of the shoal rather than another. Or let us think of
the millions of young fishes that are left stranded on the sea-shore
by the receding tide: it is chance that determines whether an
individual fish will be left stranded in a shallow sandpool which dries
up under the sun’s rays, rather than in a deeper one that retains its
water until the tide next flows over it. It is no use to urge that there
is no such thing as “pure chance,” and that what we so speak of is
only the summation of a multitude of small independent causes. Let
us grant this, and it still follows that the alternative of life or death to
multitudes of organisms depends not upon their adaptability but
upon minute un-co-ordinated causes which have nothing to do with
their morphology or behaviour. These are instances among many
others which will occur to the field naturalist: they shorten still
further the time available for natural selection in the shaping of
species, for they reduce the material on which this factor operates.
The other result of our discussion is to indicate that the problem of
transformism of species is in reality the problem of organic
variability. Let us assume that all the hypotheses of evolution are
true: that the environment may induce changes of morphology and
functioning in animals and plants, and that these changes
themselves—the actual acquirements themselves, that is—are
transmissible by heredity. Let us assume that the germ-cells may be
affected by the environment, either the outer physical environment,
or the inner somatic environment, and that mutations may thus
arise. Let us assume that mutations may be selected in some way,
so that specific discontinuities of structure—“individualised”
categories of organisms, or species—may thus come into existence.
Even then transformism is still as great a problem as ever, for the
question of the mode of origin of these variations or modifications
still presses for solution.
The simplest possible cases that we can think of present the most
formidable difficulties. The muscles of the shoulders and arms of the
blacksmith become bigger and stronger as the result of his activity.
Why? We say that the increased katabolism of the tissues causes a
greater output of carbonic acid and other excretory substances, and
that these stimulate certain cerebral centres, which in turn
accelerate the rate of action of the heart and respiratory organs. An
increased flow of nutritive matter and oxygen then traverses the
blood-vessels in the muscles of the shoulders and arms, and the
latter grow. Probably processes of this kind do occur, but to say that
they do is not to give any real explanation of the hypertrophy of the
musculature of the man’s body, for what essentially occurs is the
division of the nuclei and the formation of new muscle fibres. How
precisely does an increased supply of nutritive matter cause these
nuclei to divide and grow? This is a relatively simple example of the
adaptability of a single tissue-system to a change in the general
bodily activity, that is to say it is a variation of structure induced by
an environmental change.
In most cases, however, the variations of structure that form the
starting-points of transmutation processes cannot clearly be related
to environmental changes. Some fishes produce very great numbers
of ova in single broods—a female ling, for instance, is said to spawn
annually some eighteen millions of eggs. If we examine these ova
we shall find that there is considerable variation in the diameter and
in other measureable characters. We may attempt to correlate these
deviations from the mean characters with environmental differences.
All the eggs “mature,” that is, they absorb water and swell, while
various parts, such as the yolk, undergo chemical changes, during
the month or so before the fish spawns. This process of maturation
takes place in the closed ovarian sac; and the eggs lie practically
free in this sac, and are bathed in a fluid which exudes from the
blood-vessels in its walls. It may indeed be the case that there are
variations in the composition of this fluid in the different parts of the
sac; but these variations cannot be great; the fluid is not really a
nutritive one; and the process of maturation is not hurried. We can
hardly believe that the differences in morphology are due to these
minute environmental differences. We may indeed say that we do
not really study the germ cells when we measure the diameter of
the egg or investigate any other measurable character, for the real
germ-plasm is the chromatic matter of the nucleus. But this
obviously begs the whole question: all the parts of the egg that are
accessible to observation do vary, and ought we to conclude that the
parts which are not accessible do not vary? They must vary: the
germ-plasm of each egg must be different from that of all the
others, for the organisms which develop from these germs show
inheritable differences. Further, can we contend that such minute
environmental differences as we have indicated affect the germ-
plasm? Is it so susceptible to external changes? A high degree of
stability of the germ-plasm is postulated in the mechanistic
hypothesis that we have considered, and indeed everything indicates
that the specific organisation is very stable. Can it then be upset by
such minute differences in the somatic environment?
But the germ-plasm is not really simple, says Weismann; it is a
complex mixture of ancestral germ-plasms. The individual fish that
we were considering arose from an aggregate of determinants, and
half of these determinants were received from the male parent and
half from the female one. But each of these parents also arose from
a similar aggregate of determinants, which again were received from
both parents, and so on throughout the ancestry of the fish. It is
true that the germ-plasms contributed by the ancestors were not
quite different, but they differed to some extent. Then there must
have been as many permutations of determinants in the ovum from
which the fish developed as there were permutations of characters
in the eighteen millions of ova produced by it. Does not the
hypothesis collapse by its own weight?
It could only have been such difficulties as are here suggested that
led Weismann to formulate his hypothesis of germinal selection. All
those eighteen millions of eggs arose from the division of relatively
few germ cells. Each of these original cells contained the specific
assemblage of determinants, and the elements of the latter are of
course the biophors. The biophors, it will be remembered, are either
very complex chemical molecules, or aggregates of such. When the
germ cells of the germinal epithelium divide to form those cells
which are going to become the ova, the biophors must divide and
grow to their former size, and again divide—it is really a chemical
hypothesis that we are stating, though we have to employ language
which seems to do violence to all sound chemical notions! Now while
the biophors were dividing and growing they were “competing” for
the food matter which was in the liquid bathing them, and some got
less, while others got more than the average quantity. In this way
their characters became different, so that the eggs, on the
attainment of maturity, became different from each other. Now,
apart altogether from the impossibility of applying any test as to the
objective reality of this hypothesis, it must be rejected, for it confers
on bodies which belong to the order of molecules properties which
are really those of aggregates of molecules. The typical properties of
a gas, for instance, are not the properties of the molecules of which
the gas is composed, but are statistical properties exhibited by
aggregates of molecules. On the hypothesis of germinal selection
the properties of the animals which develop from the biophors are
extended to the biophors themselves. It was surely a desperate
plight which evoked this notion! It is, as William James said about
Mr Bradley’s intellectualism, mechanism in extremis!
We seem forced to the conclusion—and this is the result to which all
this discussion is intended to approximate—that variations, heritable
variations at least, arise spontaneously. That is, there are organic
differences which have no causes, a conclusion against which all our
habits of reasoning rebel. Yet it may be possible to argue that the
problem of the causes of variations is really a pseudo-problem after
all, and that there is no logical reason why we should be compelled
to postulate such causes. When we think of organic variability, do we
not think, surreptitiously it may be, of something that varies, that is,
something that ought to be immutable but which is compelled to
deviate? But what is given to our observation is simply the variations
among organisms.
Let us think of the crude minting machines of Tudor times which
produced coins which were not very similar in weight and design.
From that time onward minting machines have continually been
improved, each successive engine turning out coins more and more
alike in every respect, so that we now possess machines which
stamp out sovereigns as nearly as possible identical with each other.
Yet they are not quite alike, and this is because the action of the
engine, in all its operations, is not invariably the same. In
imagination, however, we make a minting machine which does work
perfectly, and turns out coins absolutely alike, but this ideal engine is
only the conceptual limit to a series of machines each of which is
more nearly perfect than was the last one. It is unlikely that matter
possesses the rigidity and homogeneity which would enable us to
obtain this perfect identity of result; nevertheless this identity has a
very obvious utility, and we strive after it, so that the result of our
activity is the conception of a perfect mechanism, and of products
which are identical. We assume that the reasons why our early and
cruder machines were imperfect are also the reasons why our later
and more perfect ones do not produce the results that we desire.
We are artisans first of all, and then philosophers, and so we extend
this ingrained mechanism of the intellect into our speculations. To
the biologist the organism is a mechanism which, in reproduction,
ought to turn out perfect replicas of itself. It does not do so. Now, if
biology shows us anything, it shows us that living matter is
essentially “labile,” that is, something fluent, while lifeless matter is
essentially rigid, or nearly so. Yet, ignoring this difference, we expect
from the organism that identity of result and operation that we
conceptualise, but do not actually obtain from the artificial machine.
We regard the organism, not only as a mechanism like the minting
machine, but as the conceptual limit to a series of mechanisms. The
reproductive apparatus of our fish does not turn out ova which are
identical, but which differ from each other. Some of this variation, we
say, is due to the action of the environment; and some of it is due to
the condition that each ovum receives a slightly different legacy of
characters from the multitude of ancestors. The rest we conceive as
due to the imperfect working of the reproductive machinery.
It is useful that science should so regard the working of the
organism, for in the search for the causes of variation our analysis of
the phenomena of life becomes more penetrating. But does any
result of investigation or reasoning justify us in assuming, as a
matter of pure speculation, that deviations from the specific type of
structure are physically determined in all their extent? Have we not
just as much justification for the belief that these deviations are truly
spontaneous, and that they arise de novo? So we approach, from
the point of view of experimental biology, Bergson’s idea of Creative
Evolution.
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