Knowledge that Transforms

Abstract Augmented reality (AR) technology has generated enormous industry investment and buzz, with the food and beverage sector quickly embracing this technology in an effort to enhance the customer experience. However, academic research has only just begun to empirically explore how and why this technology might influence consumer judgements and behaviors in such contexts. Across two field studies involving consequential behavior and two controlled laboratory studies, we find that AR’s unique ability to visually superimpose objects onto a real-time environment increases consumers’ ability to mentally simulate consuming a pictured food, which in turn increases their desire and purchase likelihood of the food item. Further, we find the increased mental simulation produced by AR is itself preceded and driven by an increased sense of personal relevance of the food items.

AbstractVoice-based interfaces provide new opportunities for firms to interact with consumers along the customer journey. The current work demonstrates across four studies that voice-based (as opposed to text-based) interfaces promote more flow-like user experiences, resulting in more positively-valenced service experiences, and ultimately more favorable behavioral firm outcomes (i.e., contract renewal, conversion rates, and consumer sentiment). Moreover, we also provide evidence for two important boundary conditions that reduce such flow-like user experiences in voice-based interfaces (i.e., semantic disfluency and the amount of conversational turns). The findings of this research highlight how fundamental theories of human communication can be harnessed to create more experiential service experiences with positive downstream consequences for consumers and firms. These findings have important practical implications for firms that aim at leveraging the potential of voice-based interfaces to improve consumers’ service experiences and the theory-driven “conversational design” of voice-based interfaces.

AbstractNowadays, platforms in many industries offer content for a (monthly) flat rate (e.g., music streaming). While flat rates are efficient in reducing transaction costs for administering customers, platforms’ rules for remunerating content right holders are crucial for royalty allocation and, as a result, heavily discussed in several industries. The music industry’s business practices could be on the verge of their next disruption. There is an ongoing heated debate with respect to how the income of flat rates through streaming services should be allocated to right holders (labels and artists). This research investigates aspects of the supply and demand side effects as well as the resulting monetary consequences of changing the currently applied proportional-to-usage remuneration policy (pro rata) to a user-centric policy. Using individual-level data from 3,326 participants and data from Spotify’s API, we empirically quantify the monetary consequences of this change for the music industry. Depending on the remuneration system, we find a substantial reallocation of nearly 170 million € per year at Spotify. We discuss demand and supply-side consequences that may change the way music is currently produced and consumed. We conclude with a research agenda on the impact of business conventions for users, platforms, and artists in the music streaming industry.

Abstract Business-to-business (B2B) practitioners are increasingly interested in capabilities to holistically manage touchpoints along B2B customer journeys (CJs) to remain competitive. Research in the B2B context, however, has investigated neither what constitutes such a customer journey management capability (CJMC) nor how, whether, or when it creates value. Taking a mixed-methods approach, we conceptualize and operationalize B2B CJMC as a supplier's ability to achieve superior customer value along the B2B CJ by strategically creating value-anchored customer touchpoints characterized through the implementation of consistent resource usage across internal organizational boundaries and by continuously monitoring value creation toward the individual members of the buying center. Analyzing a multisource dataset, we provide evidence that B2B CJMC has an indirect effect on firm performance (i.e., return on sales) through two opposing mechanisms (i.e., customer loyalty and customer-related coordination costs). Importantly, using survey and archival data, we show that, overall, B2B CJMC has a significant and positive impact on firm performance through the two mechanisms. Finally, these underlying mechanisms are also prevalent when testing for the moderating factors switching costs, number of touchpoints, and product versus service.

AbstractReal-time multisensory social interactions (RMSIs) between people are at the center of the metaverse, a new computer-mediated environment consisting of virtual “worlds” in which people act and communicate with each other in real-time via avatars. This research investigates whether RMSIs in the metaverse, when accessed through virtual-reality headsets, can generate more value for interactants in terms of interaction outcomes (interaction performance, evaluation, and emotional responses) than those on the two-dimensional (2D) internet (e.g., Zoom meetings). We combine theoretical logic with extensive field-experimental probes (which support the value-creation potential of the virtual-reality metaverse, but contradict itsgeneralsuperiority) to develop and refine a framework of how RMSIs in the metaverse versus on the 2D internet affect interaction outcomes through interactants’ intermediate conditions. The refined framework serves as foundation for a research roadmap on RMSIs in the metaverse, in which we highlight the critical roles of specific mediating and moderating forces along with interactional formats for future investigations of the metaverse and also name key business areas and societal challenges that deserve scholarly attention.

AbstractPhysical products (e.g., cars, smartphones) increasingly evolve into dynamic service platforms that allow for customization through fee-based activation of restricted add-on features throughout their lifecycle. The authors refer to this emerging phenomenon as “internal product upgrades”. Drawing on normative expectations literature, this research examines pitfalls of internal product upgrades that marketers need to understand. Six experimental studies in two different contexts (consumer-electronics, automotive) reveal that consumers respond less favorably to internal (vs. external) product upgrades. The analyses show that customer-perceived betrayal, which results from increased feature ownership perceptions, drives the effects. Moreover, this research identifies three boundary conditions: it shows that the negative effects are attenuated when (1) the company (vs. consumer) executes the upgrading, and (2) consumers upgrade an intangible (vs. tangible) feature. Finally, consumers react less negatively when (3) the base product is less relevant to their self-identity.