|09/11/15||9:00 AM-11:15 AM||Grainger 3070||Dr. Michael Trusov||Robert H. Smith School of Business, University of Maryland||See Synopsis||The Path to Click: Are You on It?|
|10/09/15||9:00 AM-11:15 AM||Grainger 4151||Dr. Stephanie Carpenter||Department of Psychology, University of Wisconsin-Madison||See Synopsis||Unavaliable|
|11/13/15||1:15 PM - 3:30 PM||Grainger 3180||Dr. Michelle Weinberger||Medill School of Journalism, Media, Integrated Marketing Communications, Northwestern University||See Synopsis||Unavaliable|
|11/20/15||9:00 AM-11:15 AM||Grainger 4151||Dr. Jiwoong Shin|
Yale School of Management, Yale University
|See Synopsis||A Model of Two-Sided Costly Communication for Building New Product Category Demand|
|12/04/15||9:00 AM-11:15 AM||Grainger 4151||Dr. Rajkumar Venkatesan||Darden School of Business, University of Virginia||See Synopsis||French Roast: Consumer Response to International Conflict - Evidence From Supermarket Scanner Data|
|12/11/15||9:00 AM-11:15 AM||Grainger 4151||Dr. Nancy Wong||School of Human Ecology, University of Wisconsin-Madison||See Synopsis||The Rainbow and the Pot of Gold: Consumers' Beliefs about Economic Mobility, Economic Striving and Financial Risk Taking|
|9:00 AM-11:15 AM||Grainger 4151||Dr. Aner Sela||Warrington College of Business Administration, University of Florida||See Synopsis||Unavaliable|
|03/04/16||9:00 AM-11:15 AM||Grainger 4151||Dr. Blake McShane||Kellogg School of Management, Northwestern University||Unavailable|
|03/11/16||9:00 AM-11:15 AM||Grainger 3070||Dr. Ayelet Gneezy||Rady School of Management, University of California, San Diego||See Synopsis||Avoiding Overhead Aversion in Charity|
|04/01/16||9:00 AM-11:15 AM||Grainger 3070||Lydia Ashton||Wisconsin Institute for Discovery, University of Wisconsin-Madison||See Synopsis||Unavaliable|
|04/08/16||9:00 AM-11:15 AM||Grainger 4151||Dr. Ayelet Fishbach||Booth School of Business, University of Chicago||See Synopsis||The Friendly Taking Effect: How Interpersonal Closeness Leads to Seemingly Selfish Yet Jointly Maximizing Choice|
|04/22/16||9:00 AM-11:15 AM||Grainger 3180||Dr. Soren Askegaard||Syddansk Universitet||Unavailable|
|05/06/16||9:00 AM-11:15 AM||Grainger 4151||Dr. Doug Chung||Harvard Business School||See Synopsis||The Air War Versus the Ground Game|
The Path to Click: Are You on It?
|Michael Trusov, Associate Professor, Robert H. Smith School of Business, University of Maryland|
The authors investigate the information search process that consumers engage in when visually inspecting search engine result pages (SERPs). Eye-tracking data are collected and matched with the textual content of the SERPs (i.e., listings presented on the page). A hidden Markov model of listing inspection choice and gaze duration is developed to capture the latent information processing states during the dynamic inspection process. Consumers switch between two hidden states, namely, the global-exploration state and the local-evaluation state. Eye fixation location, percentage of listing viewed and cumulative duration on the current screen drive the scrolling decision more in the former state compared to the latter state. The impact exerted by section preference, low-level stimuli, and transactional (price, promotion, store) and descriptive (attribute, quality) information also differs across these latent states. Two sets of simulations demonstrate the influence of semantic environment on the inspection probabilities of a target listing. The paper offers insights into the content design and optimal rank selection on SERPs with respect to the content and location of listings from competitors.
Constructing Value From Unrelated Experience: Activating Previous Tradeoffs Involving Time Dynamically Shifts Future, Unrelated Decisions
|Stephanie Carpenter, Postdoctoral Fellow, Department of Psychology University of Wisconsin-Madison|
Extant decision scholarship typically takes into account only the current context when attempting to explain value construction. Our research proposes a dynamic valuation procedure, complementary value carryover, whereby making tradeoffs on the time dimension in one context influences later tradeoffs in new, remote decision contexts. Across five studies, we found that recalling a prior tradeoff situation involving time reliably reminded decision makers that one side of that tradeoff entailed both the satisfaction of one value and the frustration of another value. This tradeoff recall activated the time values, which then carried over to decisions in contexts that were unrelated to the recalled tradeoff situations. These carryover effects were enhanced by greater knowledge of the choice domain, increased choice tradeoff processing, and value satiation when the recall and choice tasks were perceived to be similar to each other. An internal meta-analysis revealed that the effects were robust across studies and medium in size. Our results demonstrate previously undocumented influences of prior time-related value experiences on current decision behavior.
Consuming for an Imagined Future: Middle-Class Consumer Lifestyle and Exploratory Experiences in the Transition to Adulthood
|Michelle Weinberger, Assistant Professor, Medill School of Journalism, Media, Integrated Marketing Communications Northwestern University|
This study examines middle-class consumption and lifestyle during the transition to adulthood in the United States. Based on analysis of qualitative data from interviews with “emerging adults” between adolescence and settled adulthood, in this paper we argue that middle-class emerging adulthood is uniquely marked by a focus on “exploratory experience” consumption: novel experiences with cultural capital potential. This embodied orientation is rooted in a habitus developed during entitled childhoods but is also shaped by an anticipated shortage of opportunities for exploration after they marry and have children. Accordingly, middle-class emerging adults voraciously consume exploratory experiences now with their imagined future selves in mind. The class basis for this orientation is confirmed by our analysis of interviews with working-class emerging adults whose lifestyles are focused not on experiential consumption, but on a desire for the familiar, a fear of the unknown, and a longing for stability. The discussion focuses on how this consumer orientation toward exploratory experiences reinforces class (dis)advantage, life trajectories, and inequality.
A Model of Two-Sided Costly Communication for Building New Product Category Demand
|Jiwoong Shin, Professor, School of Management, Yale University|
When a firm introduces a radical innovation, consumers are unaware of the product's uses and benefits. Moreover, consumers are unsure whether they even need the product. In this context, we model the marketing communication process as a two-sided process that involves both firms' and consumers' costly efforts to transmit and assimilate the novel product concept. Its success endogenously generates consumers' need recognition and thereby market demand for a novel product. We study a firm's different information disclosure strategies for a radical innovation. We find that sharing an innovative idea, instead of extracting a higher rent by keeping the idea secret, can be optimal. A firm may benefit from the presence of competitors and their communication efforts. The innovator can share an innovation so that competitors can also profit and thus have incentives to create and expand the market.
French Roast: Consumer Response to International Conflict - Evidence from Supermarket Scanner Data
|Rajkumar Venkatesan, Professor, Darden School of Business, University of Virginia|
Do consumers boycott in response to international conflict? We show that during the 2003 US-France dispute over the Iraq War the market share of French-sounding, US supermarket brands have declined. The dispute was a negative shock to US consumers' associations with France. French-sounding brands, which consumers perceive to be French imports but are not, allow us to isolate the dispute's effect on economic behavior, as these brands' only link to France is through consumers' associations. Our estimates, derived from a nationwide sample of weekly supermarket sales for over 8,000 brands, are robust to a variety of alternate explanations. Additionally, we show that supermarkets with a higher proportion of customers who are US citizens (i.e. who more strongly identify with the US national identity) exhibited sharper boycotts.
The Rainbow and the Pot of Gold: Consumers' Beliefs about Economic Mobility, Economic Striving and Financial Risk Taking
|Nancy Wong, Professor, School of Human Ecology, University of Wisconsin-Madison|
This research conceptualizes and develops the Perceived Economic Mobility Scale (PEMS), which measures the degree to which individuals perceive a society as mobile in the way that it allows people to move up the economic ladder in relative standing. A series of six studies provided evidence that PEMS possesses a replicable unidimensional factor structure, reasonable internal consistency, nomological and discriminant validity, known-group validity, and predictive validity. Following that, two empirical studies revealed that PEMS predicts financial risk-taking such that people take more financial risks when they perceive society as economically mobile.
Comparison Neglect in Upgrade Decisions
|Aner Sela, Assistant Professor of Marketing & John I. Williams, Jr. Professor, Warrington College of Business Administration, University of Florida|
To properly evaluate a potential product upgrade, consumers should compare the upgrade option with the product they already own in order to assess the upgrade’s added utility. However, although consumers explicitly and spontaneously acknowledge the importance of comparing the upgrade option to the status quo, they often fail to do so. Consequently, they often buy product upgrades that they would not have bought had they followed their own advice. Five experiments, involving both real and hypothetical upgrade decisions, show that even when the status quo option is represented in the decision context, if consumers are not explicitly prompted to reflect on it or compare it to the upgrade option, they often do not compare it to the upgrade and consequently show an elevated likelihood of upgrading. The experiments suggest that this “comparison neglect” persists even when deliberation effort is high, and that it increases upgrade likelihood by making people overlook the similarities between the upgrade and status quo options. The findings have important implications for theory, marketing practice, and consumer welfare.
Avoiding Overhead Aversion in Charity
|Ayeley Gneezy, Associate Professor of Behavioral Sciences and Marketing, Rady School of Management UC San Diego|
Donors tend to avoid charities that dedicate a high percentage of expenses to administrative and fundraising costs, limiting the ability of nonprofits to be effective. We propose a solution to this problem: Use donations from major philanthropists to cover overhead expenses and offer potential donors an overhead-free donation opportunity. A laboratory experiment testing this solution confirms that donations decrease when overhead increases, but only when donors pay for overhead themselves. In a field experiment with 40,000 potential donors, we compared the overhead-free solution with other common uses of initial donations. Consistent with prior research, informing donors that seed money has already been raised increases donations, as does a $1:$1 matching campaign. Our main result, however, clearly shows that informing potential donors that overhead costs are covered by an initial donation significantly increases the donation rate by 80% (or 94%) and total donations by 75% (or 89%) compared with the seed (or matching) approach.
Hunger Games: Does Hunger Affect Time Preferences?
|Lydia Ashton, Ph.D. Postdoctoral Fellow, Wisconsin Institute for Discovery, University of Wisconsin-Madison|
The poor often make shortsighted monetary choices, however many laboratory experiments fail to detect present bias over monetary outcomes. Could physiological factors associated with poverty, such as hunger, be important triggers of present bias? I investigate this in a novel laboratory experiment by manipulating hunger and eliciting time preferences using Andreoni and Sprenger’s (2012)'s convex-time-budget (CTB) methodology. In the control condition, I find monetary impatience consistent with previous studies, including no present bias. However, hunger activates present bias. Together these findings suggest that hunger may play an important role in behavioral poverty-traps.
The Friendly Taking Effect: How Interpersonal Closeness Leads to Seemingly Selfish Yet Jointly Maximizing Choice
|Ayelet Fishbach, Jeffrey Breakenridge Keller Professor of Behavioral Science and Marketing, Booth School of Business, The University of Chicago|
This research documents “the friendly taking effect” in choosing consumption packages for the self and others, interpersonal closeness leads to a preference for a self-benefiting package when this package also offers greater total benefit to the self-other collective (studies 1 and 2). We propose that a friendly intention (i.e., concern for the total benefit) underlies the friendly taking effect; therefore, people both take more from and give more to a close (vs. distant) other when doing so offers greater benefits in total (study 3), and people are cognitively tuned in to (e.g., acquire, remember) information about the total benefit more when choosing a package for themselves and a close (vs. distant) other (study 4). Moreover, the importance people place on the total benefit mediates the impact of closeness on people’s preference for self-benefiting packages (study 5). We explore boundary conditions (study 6) and implications for marketers of consumption packages (study 7).
The Air War Versus the Ground Game
|Doug J. Chung, Assistant Professor of Business Administration Harvard Business School|
Firms increasingly use both mass-media advertising and targeted personal selling to promote products and brands. In this study, we jointly examine the effects of advertising and personal selling in the context of U.S. presidential elections, where the former is referred to as the “air war” and the latter as the “ground game.” Specifically, we look at how different types of advertising— the candidate's own advertising versus outside advertising—and personal selling—in the form of field office operations—affect voter preference. Furthermore, we ask how these campaign activities affect voting decisions through their diverse effects on various types of people. We compiled a unique and comprehensive dataset from multiple sources that record vote outcomes and campaign activities for the 2004-2012 U.S. presidential elections. Individuals' voting preference is modeled via a random-coefficient aggregate discrete-choice model, in which we incorporate individual heterogeneity and use instrumental variables to account for the endogeneity concern associated with campaign resource allocation. Among the many results, we find that personal selling has a stronger effect on partisan voters than on nonpartisans, while a candidate's own advertising is better received by nonpartisans. We also find that outside ads behave very differently from candidate’s own ads by mainly affecting partisan voters. Our findings may help candidates decide how to design effective campaigning by allocating resources both across multiple channels and within each channel, especially if the support from particular types of voters is weak.