The goal of this article is to ascertain the factors that govern consumers’ willingness to pirate a digital product, such as a digital music track. The authors assess the tendency to pirate with both indirect measures (e.g., willingness to pay for the legal alternative) and direct measures (e.g., piracy preference). Whether measured indirectly or directly, the tendency to pirate depends, to different extents, on three key factors: positive incentives (e.g., improved functionality of the legal Web site), negative incentives (e.g., perceived risk of piracy), and consumer characteristics. Based on three studies, the results suggest that negative incentives are a strong deterrent for certain consumers but can actually increase piracy tendencies for others. Conversely, positive incentives, such as improved functionality, can significantly reduce the tendency to pirate among all the consumer segments studied. The authors conclude by discussing prescriptive recommendations for the recording industry.

The goal of this article is to ascertain the factors that govern consumers’ willingness to pirate a digital product, such as a digital music track. The authors assess the tendency to pirate with both indirect measures (e.g., willingness to pay for the legal alternative) and direct measures (e.g., piracy preference). Whether measured indirectly or directly, the tendency to pirate depends, to different extents, on three key factors: positive incentives (e.g., improved functionality of the legal Web site), negative incentives (e.g., perceived risk of piracy), and consumer characteristics. Based on three studies, the results suggest that negative incentives are a strong deterrent for certain consumers but can actually increase piracy tendencies for others. Conversely, positive incentives, such as improved functionality, can significantly reduce the tendency to pirate among all the consumer segments studied. The authors conclude by discussing prescriptive recommendations for the recording industry.

This research examines how branded service encounters, in which frontline service employee behavior is aligned with a firm's brand positioning, may positively affect customer responses to brands. Across two brand personality contexts, Study 1 demonstrates that employee–brand alignment increases overall brand evaluations and customer-based brand equity, with more pronounced results for unfamiliar brands. Study 2 shows that conceptual fluency underlies the effect of employee–brand alignment on overall brand evaluations for unfamiliar brands. Study 3 reveals that employee authenticity enhances the effectiveness of employee–brand alignment. Finally, a critical incident study (Study 4) extends the generalizability of these findings to a wider variety of service contexts. This research is the first to demonstrate how firms can leverage employee behavior as a brand-building advantage, particularly for new or unfamiliar brands as they establish their positioning with customers.