{"title":"Privacy and Marketing Externalities: Evidence from Do Not Call","authors":"K. Goh, K. Hui, I. Png","doi":"10.2139/ssrn.1908495","DOIUrl":"https://doi.org/10.2139/ssrn.1908495","url":null,"abstract":"If not well targeted, advertising and direct marketing inflict nuisance and inconvenience on consumers. Theoretical analyses predict that consumer actions to avoid advertising impose externalities on other consumers. We investigate the extent of such externalities in the context of the U.S. Do Not Call (DNC) registry by exploiting the exogenous timing of the enforcement of the registry. Supported by multiple robustness tests, and validation and falsification exercises, we conclude that consumer DNC registrations imposed externalities on other consumers. An increase in the first wave of registrations by 1% was associated with a 3.1% increase in subsequent registrations. This effect was stronger in larger and more educationally or racially heterogeneous markets. The externality was possibly due to unregistered consumers being more receptive to telemarketing and telemarketers increasing calls to them. Our results suggest that managers should facilitate consumer opt-out, especially in larger and more educationally or racially heterogeneous markets.Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2014.2051 . This paper was accepted by J. Miguel Villas-Boas, marketing .","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-02-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125500271","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"You Need to Recognize Ambiguity to Avoid it","authors":"S. Chew, M. Ratchford, Jacob S. Sagi","doi":"10.2139/ssrn.2340543","DOIUrl":"https://doi.org/10.2139/ssrn.2340543","url":null,"abstract":"We study the influence of attention and comprehension on ambiguity attitudes. Subjects are presented with screening questions before choosing between two alternatives represented by payoff-matrices which are essentially equivalent to those in Ellsberg’s (1961) two-urn problem. The observed rate of ambiguity aversion for the standard two-urn problem is similar to what is reported in the literature regardless of the level of comprehension. When facing the essentially equivalent yet more complex matrix-based choice task, high-comprehension subjects continue to exhibit ambiguity aversion typical of the standard two-urn problem while low-comprehension subjects appear to behave randomly. We also classify subjects as “probability minded” or “ambiguity minded” based on whether they assign probabilities to draws from a deck of cards with unknown composition during the screening phase. High-comprehension subjects who are ambiguity-minded are far more likely to be ambiguity averse than those who are probability-minded. Significantly, subject “mindedness” appears to explain ambiguity attitudes an order of magnitude more than all other demographic characteristics combined. Contrary to intuition about subjects’ sophistication, ambiguity-minded high-comprehension subjects are younger, more educated, more analytic, and more reflective about their choices compared with their probability-minded counterparts.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"76 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-10-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127236139","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Examining the Impact of Ranking on Consumer Behavior and Search Engine Revenue","authors":"A. Ghose, Panagiotis G. Ipeirotis, Beibei Li","doi":"10.1287/MNSC.2013.1828","DOIUrl":"https://doi.org/10.1287/MNSC.2013.1828","url":null,"abstract":"In this paper, we study the effects of three different kinds of search engine rankings on consumer behavior and search engine revenues: direct ranking effect, interaction effect between ranking and product ratings, and personalized ranking effect. We combine a hierarchical Bayesian model estimated on approximately one million online sessions from Travelocity, together with randomized experiments using a real-world hotel search engine application. Our archival data analysis and randomized experiments are consistent in demonstrating the following: 1 A consumer-utility-based ranking mechanism can lead to a significant increase in overall search engine revenue. 2 Significant interplay occurs between search engine ranking and product ratings. An inferior position on the search engine affects “higher-class” hotels more adversely. On the other hand, hotels with a lower customer rating are more likely to benefit from being placed on the top of the screen. These findings illustrate that product search engines could benefit from directly incorporating signals from social media into their ranking algorithms. 3 Our randomized experiments also reveal that an “active” personalized ranking system wherein users can interact with and customize the ranking algorithm leads to higher clicks but lower purchase propensities and lower search engine revenue compared with a “passive” personalized ranking system wherein users cannot interact with the ranking algorithm. This result suggests that providing more information during the decision-making process may lead to fewer consumer purchases because of information overload. Therefore, product search engines should not adopt personalized ranking systems by default. Overall, our study unravels the economic impact of ranking and its interaction with social media on product search engines. \u0000 \u0000This paper was accepted by Lorin Hitt, information systems.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127619528","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Consumer Complex Buying Behavior","authors":"M. Murali","doi":"10.2139/ssrn.2275391","DOIUrl":"https://doi.org/10.2139/ssrn.2275391","url":null,"abstract":"Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans. Consumers often buy products not because of their attributes per se but rather because of the ultimate benefits that these attributes provide, in turn leading to the satisfaction of ultimate values. The important thing in a means-end chain is to start with an attribute, a concrete characteristic of the product, and then logically progress to a series of consequences (which tend to become progressively more abstract) that end with a value being satisfied. Thus, each chain must start with an attribute and end with a value. An important implication of means-end chains is that it is usually most effective in advertising to focus on higher level items. A market comes into existence because it fulfills the needs of the consumer. Consumer behavior is a complex, dynamic, multidimensional process, and all marketing decisions are based on assumptions about consumer behavior. Models of consumer behavior play a key role in modern empirical Industrial Organization.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122038264","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Benefits Leader Reversion: How a Once Preferred Product Recaptures its Standing","authors":"K. Carlson, Margaret G. Meloy, Daniel S. Lieb","doi":"10.2139/ssrn.2265042","DOIUrl":"https://doi.org/10.2139/ssrn.2265042","url":null,"abstract":"Consumers generally establish a preference for one product early in a decision process. When this preference does not include consideration of product prices, the currently preferred product is called the benefits leader. This article proposes that consumers who switch to a cheaper product after learning prices retain a trace of their benefits leader. Retention of the benefits leader is evidenced by the distortion of new information to favor the benefits leader, and by greater than normative reversion to it. We also find that reversion does not occur when the initially leading product (that consumers switch from) is based on a cost savings. This suggests that though consumers retain cognitive elements associated with benefits leaders, they do not retain similar elements associated with leaders based on cost savings.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128871674","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Tradeoffs Shrink Attribute Hierarchy","authors":"A. Sela, Jonah A. Berger, Gia Nardini","doi":"10.2139/ssrn.2232077","DOIUrl":"https://doi.org/10.2139/ssrn.2232077","url":null,"abstract":"Why do people sometimes struggle with decisions that once seemed relatively simple? This research suggests that comparing options leads people to lose sight of which decision attributes are important. Although the difference between important and unimportant attributes is often clear in the abstract, the act of making tradeoffs highlights what people must forgo on one attribute in exchange for a gain on another, which increases the perceived importance of trivial attributes in particular. This causes the variance in perceived importance across attributes to shrink, blurring the distinction between important and unimportant attributes. Four experiments demonstrate this phenomenon, explore the underlying mechanism, and show how it leads to increased choice difficulty and dissatisfaction with the choice experience.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131640716","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Prognosis on Consumerism","authors":"Can Uslay, Gokcen Coskuner-Balli","doi":"10.2139/SSRN.3075227","DOIUrl":"https://doi.org/10.2139/SSRN.3075227","url":null,"abstract":"In this article, we examine several emerging consumer trends and anticipate their implications for the future of the consumerism movement. We identify, discuss, and exemplify the reasons why a growing minority of consumers are resenting, and at times opposing current regulation and/or marketing practices regarding their rights to be safe, to be heard, to be informed, and to choose. We posit that consumerism will be transformed dramatically in the coming few decades as first individual consumers, next marketers, and ultimately the governments adapt to this post-modern societal transformation.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"195 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123007041","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Joseph K. Goodman, Susan M. Broniarczyk, Jill G. Griffin, L. McAlister
{"title":"Help or Hinder? When Recommendation Signage Expands Consideration Sets and Heightens Decision Difficulty","authors":"Joseph K. Goodman, Susan M. Broniarczyk, Jill G. Griffin, L. McAlister","doi":"10.2139/ssrn.2034434","DOIUrl":"https://doi.org/10.2139/ssrn.2034434","url":null,"abstract":"This research examines whether recommendation signage helps or hinders the consumer when faced with choosing from large product assortments. In spite of frequent usage and retailer intuition suggesting that providing recommendation signs (e.g., “Best Seller,” “Award Winner”) should help consumers in the choice process, we propose that signs can hinder choice for consumers with more developed preferences by adding to the complexity and difficulty of the decision process. In three experiments using horizontally differentiated products in multiple categories, we provide evidence that recommendation signs create preference conflict for consumers with more developed preferences, leading these consumers to form larger consideration sets and ultimately experience more difficulty from the decision-making process. In addition, we show that these effects are mitigated for consumers with less developed preferences and when the choice is from a small assortment. The results suggest that recommendation signage may not be an effective tool for aiding choice from large assortments; instead signage can exacerbate the difficulties associated with having too many choices, with implications on purchase quantity.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"95 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132249435","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Economics of Sports Marketing","authors":"P. Chakravarti","doi":"10.2139/ssrn.2383126","DOIUrl":"https://doi.org/10.2139/ssrn.2383126","url":null,"abstract":"\"Sport is the only entertainment where, no matter how many times you go back, you never know the ending. This is what makes this segment of marketing so unique.\"Hypothesis: The economic benefits of brands being associated with sports outweigh the costs.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"18 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114579382","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of Marketing Communications On Customer’s Response","authors":"D. Jerman, B. Završnik","doi":"10.2139/ssrn.2237920","DOIUrl":"https://doi.org/10.2139/ssrn.2237920","url":null,"abstract":"The purpose of this paper is to provide additional insight into some of the theoretical and managerial issues of marketing communications in the changing environment. We approach this task from the organizational point of view - primarily from the perspective of how company’s response is affected by different factors of marketing communications. We will classify and analyse four different marketing communications factors influencing the customer response (i.e. factors related to the communication, customer’s knowledge, customer’s goals and situational factors). The links between these constructs are explored and it is argued that marketing communications factors play a critical role in customer’s response. The paper consists of the theoretical framework for the role of marketing communications factors for the customer’s response and the empirical analysis, based on the primary data collected. This paper presents the results of a study that examines factors affecting customer’s response in the sample of Slovenian companies.","PeriodicalId":443127,"journal":{"name":"Behavioral Marketing eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120985334","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}