Articles

Beyond the Target Customer: Social Effects of CRM Campaigns

E. ASCARZA, P. EBBES, O. NEDZER, M. DANIELSON

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

http://journals.ama.org/doi/10.1509/jmr.15.0442


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

V. STOURM, Eric BAX

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

http://www.sciencedirect.com/science/article/pii/S0167811617300071


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

S. M. BAXTER, M. ILICIC, A. KULCZYNSKI, T. LOWREY

Marketing Letters

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

Départements : Marketing, GREGHEC (CNRS)

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

https://link.springer.com/article/10.1007/s11002-017-9430-9


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

Y. YANG, Y. GU, J. GALAK

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

E. GENTINA, L. SHRUM, T. LOWREY

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

Data Descriptor: Data from a pre-publication independent replication initiative examining ten moral judgement effects

W TIERNEY, M SCHWEINSBERG, A.-L. SELLIER, ET AL.

Nature: Scientific Data

2016, vol. 3, n°160082

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Decision making, Ethics, Psychology, Research management

http://www.nature.com/articles/sdata201682


We present the data from a crowdsourced project seeking to replicate findings in independent laboratories before (rather than after) they are published. In this Pre-Publication Independent Replication (PPIR) initiative, 25 research groups attempted to replicate 10 moral judgment effects from a single laboratory’s research pipeline of unpublished findings. The 10 effects were investigated using online/lab surveys containing psychological manipulations (vignettes) followed by questionnaires. Results revealed a mix of reliable, unreliable, and culturally moderated findings. Unlike any previous replication project, this dataset includes the data from not only the replications but also from the original studies, creating a unique corpus that researchers can use to better understand reproducibility and irreproducibility in science

Marketing as a Means to Transformative Social Conflict Resolution: Lessons from Transitioning War Economies and the Colombian Coffee Marketing System

A. BARRIOS, K. DE VALCK, C. SCHULTZ, O. SIBAI, K. HUSEMANN, M. MAXWELL-SMITH, M. K. LUEDICKE

Journal of Public Policy & Marketing

automne 2016, vol. 35, n°2, pp.185-197

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Colombia, peace/war economy, social conflict, systemic analysis, transformation

http://journals.ama.org/doi/abs/10.1509/jppm.15.151


Social conflicts are ubiquitous to the human condition and occur throughout markets, marketing processes, and marketing systems. When unchecked or unmitigated, social conflict can have devastating consequences for consumers, marketers, and societies, especially when conflict escalates to war. In this article, the authors offer a systemic analysis of the Colombian war economy, with its conflicted shadow and coping markets, to show how a growing network of fair-trade coffee actors has played a key role in transitioning the country’s war economy into a peace economy. They particularly draw attention to the sources of conflict in this market and highlight four transition mechanisms—i.e., empowerment, communication, community building and regulation—through which marketers can contribute to peacemaking and thus produce mutually beneficial outcomes for consumers and society. The article concludes with a discussion of implications for marketing theory, practice, and public policy

Sampling Designs for Recovering Local and Global Characteristics of Social Networks

P. EBBES, Z. HUANG, A. RANGASWAMY

International Journal of Research in Marketing

septembre 2016, vol. 33, n°3, pp.578-599

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Social networks, Sampling, Subgraph sampling, Social network structure

http://dx.doi.org/10.2139/ssrn.1580074


The trajectories of social processes (e.g., peer pressure, imitation, and assimilation) that take place on social networks depend on the structure of those networks. Thus, to understand a social process or to predict the associated outcomes accurately, marketers would need good knowledge of the social network structure. However, many social networks of relevance to marketers are large, complex, or hidden, making it prohibitively expensive to map out an entire social network. Instead, marketers often need to work with a sample (i.e., a subgraph) of a social network. In this paper we evaluate the efficacy of nine different sampling methods for generating subgraphs that recover four structural characteristics of importance to marketers, namely, the distributions of degree, clustering coefficient, betweenness centrality, and closeness centrality, which are important for understanding how social network structure influences outcomes of processes that take place on the network.Via extensive simulations, we find that sampling methods differ substantially in their ability to recover network characteristics. Traditional sampling procedures, such as random node sampling, result in poor subgraphs. When the focus is on understanding local network effects (e.g., peer influence) then forest fire sampling with a medium burn rate performs the best, i.e., it is most effective for recovering the distributions of degree and clustering coefficient. When the focus is on global network effects (e.g., speed of diffusion, identifying influential nodes, or the “multiplier” effects of network seeding), then random-walk sampling (i.e., forest-fire sampling with a low burn rate) performs the best, and it is most effective for recovering the distributions of betweenness and closeness centrality. Further, we show that accurate recovery of social network structure in a sample is important for inferring the properties of a network process, when one observes only the process in the sampled network. We validate our findings on four different real-world networks, including a Facebook network and a co-authorship network, and conclude with recommendations for practice.

Tastlé-Nestlé, Toogle-Google: The effects of similarity to familiar brand names in brand name innovation

A. KRONROD, T. LOWREY

Journal of Business Research

mars 2016, vol. 69, n°3, pp.1182–1189

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Brand name, Branding, Brand attitudes, Similarity, Familiarity, Innovation

http://ssrn.com/abstract=2694525


When developing new brand names, marketers face the dilemma of how similar their new brand name is or should be to familiar brand names in the market. The current research tests the complete range of conditions exploring how the degree of similarity of a new brand name to an existing one may affect attitudes toward the new brand name. The authors first replicate an inverted-U pattern suggested by congruency theories. However, this result holds only in the case of positive pre-existing attitudes toward familiar brand names. Additional tests demonstrate a U-shaped pattern in the case of negative attitudes toward familiar brand names, and a linear relation between similarity and attitudes in the case of no pre-existing attitudes toward familiar brand names. A field study replicates these findings, testing actual choice of products that bear different levels of resemblance to real positive and negative brand names (Oreo and Spam).

Teen attitudes toward luxury fashion brands from a social identity perspective: A cross-cultural study of French and U.S. teenagers

E. GENTINA, L. SHRUM, T. LOWREY

Journal of Business Research

décembre 2016, vol. 69, n°12, pp.5785-5792

Départements : Marketing, GREGHEC (CNRS)

Mots clés : Adolescence, Luxury retailing, Cross-cultural consumer behavior, Fashion innovativeness, Need for uniqueness, Susceptibility to peer influence

http://www.sciencedirect.com/science/article/pii/S014829631630426X


The global teen market has significant spending power and is an important factor in the world economy. However, little is known about the social motivations underlying attitudes toward luxury fashion brands during adolescence. This research investigates the social mechanisms underlying teenage attitudes toward luxury fashion brands in a cross-cultural context. In a study of 570 French and American adolescents, this research shows that both need for uniqueness and susceptibility to influence relate positively to attitudes toward luxury brands, and that fashion innovativeness mediates these relations. This research also shows that culture moderates these relations. Specifically, the mediated relations between need for uniqueness and luxury brand attitudes are stronger for American adolescents than for French adolescents. In contrast, the mediated relations between susceptibility to influence and luxury brand attitudes are stronger for French adolescents than for American adolescents. The results have implications for strategies luxury retailers develop for appealing to adolescents in different cultures


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