Articles scientifiques

Beyond the Target Customer: Social Effects of CRM Campaigns


Journal of Marketing Research

juin 2017, vol. 54, n°3, pp.347-363

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Customer Relationship Management (CRM), Field experiments, Targeting, Churn, Retention, Mobile

Customer Relationship Management (CRM) campaigns have traditionally focused on maximizing the profitability of the targeted customers. We demonstrate that, in business settings that are characterized by network externalities, a CRM campaign that is aimed at changing the behavior of specific customers propagates through the social network, thereby also affecting the behavior of non-targeted customers. Using a randomized field experiment involving nearly 6,000 customers of a mobile telecommunications provider, we find that the social connections of targeted customers increase their consumption and are less likely to churn due to a campaign that was neither targeted at them nor offered them any direct incentives. We estimate a social multiplier of 1.28. That is, the effect of the campaign on first-degree connections of targeted customers is 28% of the effect of the campaign on the targeted customers. By further leveraging the randomized experimental design we show that, consistent with a network externality account, the increase in activity among the non-targeted but connected customers is driven by the increase in communication between the targeted customers and their connections, making the local network of the non-targeted customers more valuable. Our findings suggest that in targeting CRM marketing campaigns, firms should consider not only the profitability of the targeted customer, but also the potential spillover of the campaign to non-targeted but connected customers

Incorporating hidden costs of annoying ads in display auctions


International Journal of Research in Marketing

septembre 2017, vol. 34, n°3, pp.622-640

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Online advertising, Pricing, Mechanism design

Media publisher platforms often face an effectiveness-nuisance tradeoff: more annoying ads can be more effective for some advertisers because of their ability to attract attention, but after attracting viewers’ attention, their nuisance to viewers can decrease engagement with the platform over time. With the rise of mobile technology and ad blockers, many platforms are becoming increasingly concerned about how to improve monetization through digital ads while improving viewer experience.We study an online ad auction mechanism that incorporates a charge for ad impact on user experience as a criterion for ad selection and pricing. Like a Pigovian tax, the charge causes advertisers to internalize the hidden cost of foregone future platform revenue due to ad impact on user experience. Over time, the mechanism provides an incentive for advertisers to develop ads that are effective while offering viewers a more pleasant experience. We show that adopting the mechanism can simultaneously benefit the publisher, advertisers, and viewers, even in the short term.Incorporating a charge for ad impact can increase expected advertiser profits if enough advertisers compete. A stronger effectiveness-nuisance tradeoff, meaning that ad effectiveness is more strongly associated with negative impact on user experience, increases the amount of competition required for the mechanism to benefit advertisers. The findings suggest that the mechanism can benefit the marketplace for ad slots that consistently attract many advertisers

Using sublexical priming to enhance brand name phonetic symbolism effects in young children


Marketing Letters

décembre 2017, vol. 28, n°4, pp.565–577

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Phonetic symbolism . Children . Phonological awareness. Priming . Sublexical

We examine whether phonetic symbolism effects are conditional on the development of phonological awareness (an ability to recognize sounds in words). Further, we introduce sublexical priming as a means to enhance phonetic symbolism effects. Across four experiments, we demonstrate that product evaluations, consistent with phonetic symbolism theory, are more (less) likely when a child is older (younger). Specifically, older children who can recognize sounds in words perceive back vowel brand names (e.g., Vopoz) as slower, heavier, larger, smoother, creamier, chewier, and thicker than brand names with front vowel sounds (e.g., Vipiz). In addition, we show that phonetic symbolism effects manifest when younger children (low in phonological awareness) are primed to focus on parts of a word/s, which we term sublexical priming. We present embedded tasks and chunking of brand names as strategic communication techniques that can be implemented as sublexical primes to enhance phonetic symbolism effects in younger children

When It Could Have Been Worse, It Gets Better: How Favorable Uncertainty Resolution Slows Hedonic Adaptation


Journal of Consumer Research

février 2017, vol. 43, n°5, pp.747–768

Départements : Marketing, GREGHEC (CNRS)

Mots clés : hedonic adaptation, happiness, uncertainty, favorable uncertainty resolution

Thankfully, most product consumption experiences are positive. Unfortunately, however, those positive experiences are not always guaranteed to occur, and defects creep into the consumer experience. Though its assertion runs counter to most prescriptions, the current research proposes that exposing consumers to the mere possibility of these negative experiences, occurring in a consumption sequence increases consumers’ happiness with those experiences overtime. Six studies demonstrate this effect and further show that this effect is driven by hedonic responses as a result of favorable uncertainty resolution. That is, with the mere possibility of a negative experience, a consumer, who actually experiences a positive outcome, is likely to feel relief or pleasantness from not having to experience the negative experience. This research enriches existing literature on hedonic adaptation and uncertainty and has significant implications for consumer behavior

Coping with Loneliness through Materialism: Strategies Matter for Adolescent Development of Unethical Behaviors


Journal of Business Ethics

2016, pp.1-20

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Loneliness, Coping strategies, Unethical behaviors, Adolescent consumers, Materialism, Sharing, Age cohort

Engaging in unethical consumption behaviors is an acute societal problem that can have severe consequences for adolescents, and businesses in particular have been accused of making such consumption particularly appealing and accessible. However, the causes of unethical behaviors are not well understood and research on the causes has been mixed. In this research, we investigate the effects of coping strategies for loneliness on adolescents' adoption of unethical behaviors, a topic that business ethics research has not explored. In a large-scale study (n = 409) of adolescents (ages 13-17), we show that whether loneliness leads to the adoption of unethical behaviors depends on the strategies adolescents use to cope with their loneliness: active coping strategies are associated with fewer unethical behaviors, whereas passive coping strategies are associated with more unethical behaviors. In addition, we show that active and passive coping strategies can be executed through consumption practices. We show that the relation between active coping and fewer unethical behaviors is mediated by sharing of possessions, whereas the relation between passive coping strategies and more unethical behaviors is mediated by product acquisition. Finally, we also show that these mediated relations differ as a function of age cohort (grade level). The indirect effect of active coping on fewer unethical behaviors via sharing holds only for middle school adolescents, whereas the indirect effect of passive coping on more unethical behaviors via product acquisition holds only for high school adolescents. We shed new light on both the bright and dark sides of materialism and unethical behaviors, and provide practical implications for research on loneliness, business ethics, and unethical behaviors