Knowledge that Transforms

Despite growing concerns regarding the increasing consumerism related to promotions, this research documents a positive effect of price promotions on consumers’ donation behavior. Specifically, the authors propose that price promotions increase consumers’ perceived resources, which in turn increase consumers’ donation behavior. A series of seven studies, combining field and experimental data, provide converging support for this proposition and its underlying mechanism of perceived resources. Furthermore, the authors show that the positive effect of price promotions on consumers’ donation behavior is attenuated when consumers focus on the amount of money spent (rather than saved), when consumers feel they have overspent their budget, and when the monetary savings cannot be realized immediately. Finally, the authors show that this effect is stronger when donation solicitation occurs immediately after the price promotion (vs. after a delay). This research documents a novel behavioral consequence of price promotions and uncovers a mechanism by which price promotions can lead to positive social consequences and contribute to a better world.

Nonprofit organizations (NPOs) play a central role in many economies in the form of private entities serving a public purpose. Strengthening the fundraising capabilities of NPOs can have a large impact on their survival and effective functioning. NPOs typically elicit financial contributions through multiple forms of giving, such as donation and membership. These options enable individuals to express their altruism by giving in one or multiple forms. The authors develop a utility-based multiple discrete-continuous model that provides insights into potentially large differences in individuals’ giving behaviors. Through Bayesian Gaussian processes, the model also incorporates changes in givers’ preferences for forms of giving. The authors apply their model to five years of individual giving data. They find that the effects of lifetime, recency, seasonality, and appeals on donation and membership options change nonmonotonically over time and in distinctive ways. The authors demonstrate that the model estimates help predict who will give in more than one form in the future as well as build appeal targeting strategies. The model also shows that fundraising attempts should emphasize participation rather than amount, and that long-lapsed members are still worth pursuing for renewal, whereas long-lapsed donors are less productive for repeat giving.

The literature is filled with numerous idiosyncratic definitions of what it means for consumption to be authentic. The authors address the resulting conceptual ambiguity by reconceptualizing authenticity, defining it as a holistic consumer assessment determined by six component judgments (accuracy, connectedness, integrity, legitimacy, originality, and proficiency) whereby the role of each component can change according to the consumption context. This definition emerges from a two-stage, multimethod concept reconstruction process leveraging data from more than 3,000 consumers across no fewer than 17 types of consumption experiences. In stage one, the authors take a qualitative approach employing both in-depth interviews and surveys (one conducted on a nationally representative sample) to identify authenticity’s six constituent components. The final components are based on themes emerging from consumer data that were integrated and reconciled with existing definitions in the literature. In stage two, quantitative analyses empirically estimate the six components and support the composite formative nature of the construct. The authors document how certain components contribute to assessments of authenticity differently across contexts; in addition, they show that authenticity has consumer-relevant downstream consequences while being conceptually distinct from consumer attitudes. Their findings offer practitioners direction regarding what to emphasize to convey authenticity to consumers.

The authors argue that appreciation of the biological underpinnings of human behavior can alter the beliefs and actions of multiple marketing stakeholders in ways that have immense welfare implications. However, a biological perspective often deviates from the lay perspective. The realization of improved welfare depends in part on narrowing this gap. The authors review biological evidence on self-control and report ten empirical studies that examine lay response to biological characterizations of self-control. The authors contrast lay response with scientific understanding and then offer implications of biology—as well as the gap between the scientific and lay perspectives—for policy makers, firms, consumers, marketing educators, and scholars. The authors also identify opportunities for future research. They conclude that marketing scholars can and should play an active role in narrowing the gap between the scientific and lay perspectives in the service of both theory development and human welfare.

Participative pricing strategies may influence consumer purchase decisions; this research proposes specifically that firms’ delegation of pricing decisions to consumers can create a control–effort trade-off. Consumers favor greater pricing control but are deterred by the effort involved in deciding what to pay. Strategies such as pay what you want in turn might reduce purchase intentions due to the effort involved. In contrast, strategies that increase feelings of control but not perceived effort, such as pick your price options that let consumers choose from a limited set of prices, could enhance pricing outcomes. A field study and four laboratory experiments confirm these propositions. The findings demonstrate the mixed effects of participative pricing, identify mediating mechanisms that explain these effects, and specify common moderating conditions that shape the outcomes of participative pricing. These results have notable implications for pricing theory and practice.

Firms are exploiting artificial intelligence (AI) coaches to provide training to sales agents and improve their job skills. The authors present several caveats associated with such practices based on a series of randomized field experiments. Experiment 1 shows that the incremental benefit of the AI coach over human managers is heterogeneous across agents in an inverted-U shape: whereas middle-ranked agents improve their performance by the largest amount, both bottom- and top-ranked agents show limited incremental gains. This pattern is driven by a learning-based mechanism in which bottom-ranked agents encounter the most severe information overload problem with the AI versus human coach, while top-ranked agents hold the strongest aversion to the AI relative to a human coach. To alleviate the challenge faced by bottom-ranked agents, Experiment 2 redesigns the AI coach by restricting the training feedback level and shows a significant improvement in agent performance. Experiment 3 reveals that the AI–human coach assemblage outperforms either the AI or human coach alone. This assemblage can harness the hard data skills of the AI coach and soft interpersonal skills of human managers, solving both problems faced by bottom- and top-ranked agents. These findings offer novel insights into AI coaches for researchers and managers alike.

How can we know what stakeholders think and feel about brands in real time and over time? Most brand reputation measures are at the aggregate level (e.g., the Interbrand “Best Global Brands” list) or rely on customer brand perception surveys on a periodical basis (e.g., the Y&R Brand Asset Valuator). To answer this question, brand reputation measures must capture the voice of the stakeholders (not just ratings on brand attributes), reflect important brand events in real time, and connect to a brand’s financial value to the firm. This article develops a new social media–based brand reputation tracker by mining Twitter comments for the world’s top 100 brands using Rust–Zeithaml–Lemon’s value–brand–relationship framework, on a weekly, monthly, and quarterly basis. The article demonstrates that brand reputation can be monitored in real time and longitudinally, managed by leveraging the reciprocal and virtuous relationships between the drivers, and connected to firm financial performance. The resulting measures are housed in an online longitudinal database and may be accessed by brand reputation researchers.

Consumers often abandon e-commerce carts, so companies are shifting their online advertising budgets to immediate e-commerce cart retargeting (ECR). They presume that early reminder ads, relative to late ones, generate more click-throughs and web revisits. The authors develop a conceptual framework of the double-edged effects of ECR ads and empirically support it with a multistudy, multisetting design. Study 1 involves two field experiments on over 40,500 customers who are randomized to either receive an ECR ad via email and app channels (treatment) or not receive it (control) across different hourly blocks after cart abandonment. The authors find that customers who received an early ECR ad within 30 minutes to one hour after cart abandonment are less likely to make a purchase compared with the control. These findings reveal a causal negative incremental impact of immediate retargeting. In other words, delivering ECR ads too early can engender worse purchase rates than without delivering them, thus wasting online advertising budgets. By contrast, a late ECR ad received one to three days after cart abandonment has a positive incremental impact on customer purchases. In Study 2, another field experiment on 23,900 customers not only replicates the double-edged impact of ECR ads delivered by mobile short message service but also explores cart characteristics that amplify both the negative impact of early ECR ads and positive impact of late ECR ads. These findings offer novel insights into customer responses to online retargeted ads for researchers and managers alike.

Food producers and retailers throw away large amounts of perfectly edible produce that fails to meet appearance standards, contributing to the environmental issue of food waste. The authors examine why consumers discard aesthetically unattractive produce, and they test a low-cost, easy-to-implement solution: emphasizing the produce’s aesthetic flaw through “ugly” labeling (e.g., labeling cucumbers with cosmetic defects “Ugly Cucumbers” on store displays or advertising). Seven experiments, including two conducted in the field, demonstrate that “ugly” labeling corrects for consumers’ biased expectations regarding key attributes of unattractive produce—particularly tastiness—and thus increases purchase likelihood. “Ugly” labeling is most effective when associated with moderate (rather than steep) price discounts. Against managers’ intuition, it is also more effective than alternative labeling that does not exclusively point out the aesthetic flaw, such as “imperfect” labeling. This research provides clear managerial recommendations on the labeling and the pricing of unattractive produce while addressing the issue of food waste.

Understanding consumers’ associations with brands is at the core of brand management. However, measuring associations is challenging because consumers can associate a brand with many objects, emotions, activities, sceneries, and concepts. This article presents an elicitation platform, analysis methodology, and results on consumer associations of U.S. national brands. The elicitation is direct, unaided, scalable, and quantitative and uses the power of visuals to depict a detailed representation of respondents’ relationships with a brand. The proposed brand visual elicitation platform allows firms to collect online brand collages created by respondents and analyze them quantitatively to elicit brand associations. The authors use the platform to collect 4,743 collages from 1,851 respondents for 303 large U.S. brands. Using unsupervised machine-learning and image-processing approaches, they analyze the collages and obtain a detailed set of associations for each brand, including objects (e.g., animals, food, people), constructs (e.g., abstract art, horror, delicious, famous, fantasy), occupations (e.g., musician, bodybuilder, baker), nature (e.g., beach, misty, snowscape, wildlife), and institutions (e.g., corporate, army, school). The authors demonstrate the following applications for brand management: obtaining prototypical brand visuals, relating associations to brand personality and equity, identifying favorable associations per category, exploring brand uniqueness through differentiating associations, and identifying commonalities between brands across categories for potential collaborations.