Department of Marketing & Entrepreneurship

Time: Friday 10:30 a.m. - 12:00 Noon
Location: 365A Melcher Hall
Open to Public: No reservation or registration required.

Note: Topics and Abstracts will be added to this page throughout the semester

Date Speaker Topic Faculty Host
11/18/2016 Mitch Lovett
Rochester
    To be announced
Kitty Wang
11/11/2016 Rosalina Ferraro
Maryland
    To be announced
Kitty Wang
10/21/2016 Raj Raghunathan
UT Austin
    To be announced
Ye Hu
10/14/2016 Sanjay Jain
UT Dallas
    To be announced
Ye Hu
9/30/2016 Rajdeep Grewal
UNC-Chapel Hill
    Intellectual Capital and New Drug Pricing
  • Click to read Abstract

    The authors focus on the effect of intellectual capital of prescription drugs on the drugs' launch prices. With data on 365 new prescription drug launches between 1984 and 2003 in 38 different therapeutic product categories, the authors conceptualize intellectual capital for the drugs as the effective patent life (measured as the remaining exclusivity period of the patent before expiry) and the strength of the patent portfolio (assessed as the number of patents attached to the molecules of the drug). Building on the extant empirical literature on pharma pricing that focuses largely on competition and quality measures of the drug as the key determinants of launch pricing, the authors develop a hedonic pricing model that investigates the impact of intellectual capital as – (1) consumer utility bearing characteristic to influence demand and (2) as a market power tool to garner monopoly rents. The findings suggest that at the launch stage, the intellectual capital influences pricing as consumer utility bearing characteristic and not at a market power tool. Much against the conventional wisdom regarding intellectual capital and drug pricing, a drug’s ability to charge premium price at the launch stage compared to the other prescription drug substitutes is significantly influenced by the order of its entry in the category and not by intellectual capital. Authors also examine the moderating effect of promotion spending and manufacturer’s innovation strength in the category for the impact of intellectual capital on launch pricing. Higher the direct to consumer advertising (focused towards market expansion) lower is the launch price of drug and intellectual capital elasticity of launch price. Higher the detailing to physicians (focused towards increasing market share) higher is the launch price and intellectual capital elasticity of launch price. Regarding the innovation strength of the manufacturer, higher innovation strength of a manufacturer is associated with higher launch price of a new drug by the same manufacturer in the category and lower intellectual capital elasticity of launch price.

Ye Hu
9/23/2016 Jeff Inman
Pitt
    Digital Distraction: Consumer Mobile Device Use and Decision Making
  • Click to read Abstract

    The rapid growth of mobile devices has provided firms with an unprecedented opportunity to engage consumers. However, firms are struggling to adapt to and understand the impact of mobile devices on consumer outcomes. One common but understudied area is the role that mobile devices play in consumer decisions. Building upon prior research investigating consumer technology use during decision situations, the authors classify mobile device use into two defining categories (task-related and task-unrelated) and examine the impact these differing usage types have on consumer decision quality. Across an in-store field study and two experiments, the authors demonstrate that depending on use, mobile devices can act as a double-edged sword with either positive or negative implications for consumers and marketers. The authors find support for their predictions that task-unrelated mobile device use degrades consumer decision making and is associated with an increase in unplanned purchasing, forgetting planned items, and a reliance on heuristics during the decision making process. Conversely, task-related mobile device use can help consumers make better decisions, including purchasing fewer unplanned items and selecting more efficient alternatives. Implications for research and practice are discussed.

Sam Hui
9/16/2016 Neil Morgan
Indiana
    When and How Does Market Share Drive Profits?
  • Click to read Abstract

    Most managers believe that market share is valuable and many firms use it to both set goals and assess marketing performance. Market share is also one of the most widely used dependent variables in studies of the performance impact of marketing. Yet, the existence, scale, and nature of any economic performance impact of firms’ market share remains unclear. In fact, while many managers assume a positive relationship between market share and firm profit, the past empirical literature has mostly indicated a non-significant relationship—with indications that the relationship can even be negative. In this study we examine the market share-economic performance relationship over a long time period in a large sample of U.S. markets using both different measures of market share and a number of different econometric analysis approaches. We show that market share is both an indicator of product-market performance in the marketing-performance outcome with ''chain'' and also a valuable market-based asset. In addition, we find that market share’s relationship with market power and quality signaling explain most of the variance. We also find that counter to assumptions in economic theory, the value of market share is contingent on the business strategy the firm adopts and the firm’s marketing capability.

Sam Hui
4/15/2016 Cait Lamberton
Pitt
    Men and the Middle: Understanding Context Effects in Dyads
  • Click to read Abstract

    The compromise effect has been shown to be robust among individual decision-makers. But what happens when consumers make these choices with someone else? In the present paper, we explore compromise effects in joint decision contexts. Findings reveal that the compromise effect replicates in mixed-gender and female-female dyads, but is attenuated when two males make a choice together. Furthermore, when males make joint decisions, their tendency to choose a compromise option decreases not only relative to other pairs but also to individual decision-makers. The authors argue that this happens because dyadic contexts lead to reliance on social norms as a primary decision determinant. Because men believe that expressing a preference for the compromise option in front of another man is non-normative, male-male dyads do not exhibit the compromise effect. Support for this mechanism is provided in two studies showing that (1) males are judged more harshly by males when they exhibit preference for the compromise option in the presence of a male but not a female and (2) we can generate compromise effects when male-male dyads engage in double-blinded joint decision-making, which involves no preference sharing. These findings have important implications for theory, consumer well-being, and marketing strategies.

4/1/2016 Seshadri Tirunillai
UH
    How Governance Structure Affects Customer Engagement in Social Media? Findings from a Randomized Controlled Online Experiment
3/25/2016 Shyam Gopinath
Utah
    Preaching to the Choir: The Chasm Between Top Ranked Reviewers, Mainstream Opinion, and Product Sales
  • Click to read Abstract

    Online opinion leaders have a role to play in disseminating information and driving product sales. In this research we investigate the differential impact of top ranked reviewers and bottom ranked reviewers on both product sales and the review valence generation process. We use a panel data based on all reviews and product sales information covering the first two months of release for 182 new music albums on Amazon.com. From the model estimation we find that the impact of reviews by the two groups on sales varies by product type (mainstream vs. niche) and by the variance of reviews for the product. Top ranked reviewers are comparatively more influential for mainstream product releases and for products that lack a strong consensus among existing reviews. In contrast, non-highly-ranked reviewers are relatively more influential for niche products and for products with low review variance. The findings of the study are in-line with theory based on reviewer similarity (homophily). Overall, we find that top ranked reviewers act as opinion leaders for newly released products, but their influence is largely limited to other top ranked reviewers as evidenced by subsequent reviews. In contrast, the reviews of non-highly- ranked reviewers have a far greater influence on the opinions of other non-highly-ranked reviewers and on product sales.

3/11/2016 Leigh McAlister
UT Austin
    Marketing's Role in China's Move to a "Market-Based Economy"
2/12/2016 Michael Trusov
Maryland
    The Path to Click – Are You On It?
  • Click to read Abstract

    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 two-state 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. The impact exerted by section preference, low-level stimuli, and transactional (price, promotion, store) and descriptive (attribute, quality) information differs across 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 target rank selection on SERPs with respect to the content and location of search results from competitors.

2/5/2016 Brent McFerran
Simon Fraser
    How Can "I" Help "You"?: The Impact of Personal Pronoun Use in Customer-Firm Agent Interactions
  • Click to read Abstract

    In responding to customer questions or complaints, should firm agents indeed “put the customer first”? We address this question from a linguistic perspective, focusing on firm agents’ use of personal pronouns (e.g., “I”, “you”, “we”) in customer interactions. Customer-orientation theory suggests that firms will benefit if firm agents emphasize how “you” (the customer) is served by “us” (or “we” the firm) in customer-firm interactions. Lab and field data from over 40 firms demonstrate that firm agents do show this linguistic manifestation of a customer orientation. However, we demonstrate that this recommended pronoun emphasis is not beneficial: we find null effects on customer satisfaction, purchase intentions, and actual purchase volume when firm agents increase their use of “you” and “we” pronouns. Instead, we show positive effects on these variables when firm agents increase their use of “I” pronouns. This effect is robust to multiple covariates and is mediated by customer perceptions of firm agent empathy and agency. These findings offer valuable implications for marketers and enhance our conceptual understanding of how subtle language variations impact consumers.

12/4/2015 Gal Zauberman
Yale
    Does Taking Photos Get in the Way? The Effect of Photo-taking on the Enjoyment of Experiences
  • Click to read Abstract

    Experiences are vital to the lives and well-being of people hence, understanding the factors that amplify or dampen enjoyment of experiences is important. One such factor is photo-taking, which has become ubiquitous and an integral part of people's experiences. Prior research has not examined the effects of photo-taking on enjoyment of experiences but has identified relevant processes. These processes suggest that taking photos could either enhance or degrade experiences, depending on whether photo-taking will increase or decrease engagement with the experience. Across both field and lab experiments, we find that taking photos improves evaluations of positive experiences, both immediately following the experience as well as after a delay, which is due to photo-taking enhancing engagement in the experience. However, these benefits only occur when capturing an experience in photos does not overly interfere with the experience itself. In addition, for negative experiences, the enhanced engagement due to photo-taking results in worse evaluations of the experience.

11/20/2015 Nidhi Agrawal
U of Washington
    Emotions and Health Decisions
  • Click to read Abstract

    I will present a series of studies that help us understand how specific emotions, in particular self-conscious emotions such as guilt and shame, affect decision-making. I use contexts such as public health messages and binge drinking, to shed light on the way emotions systematically influence our judgments and behavior. We find that negative emotions defend against overloading of the same negative emotion, prefer information framed in a way that is consistent with the emotion, shape whether we construe information at higher or lower levels, and determine how open we are to changing our opinions.

11/13/2015 Mingyu Joo
Ohio State
    Temporal Distance and Price Elasticity
  • Click to read Abstract

    Conventional wisdom holds that, in industries with advance sales and perishable capacity, demand becomes less price-elastic as the advance sales period proceeds. However, this conventional wisdom is based solely on evidence from the airline industry, and is commonly motivated by air travel’s traditional consumer segmentation. We investigate a large dataset from the cruise industry and estimate the responsiveness of demand to price using a flexible choice model. Unlike airlines, cruise demand becomes more price elastic as the advance sales period proceeds. The price elasticity of cruise demand increases (in absolute value) from –0.5 twenty weeks prior to cruise departure to –1.4 in the final week of ticket availability. Further analyses suggest that this change in price elasticity comes from different groups of consumers entering the market at points in the time. Consequently, we suggest that the airline-based conventional wisdom should not be applied to all industries that use advance sales, especially those with hedonic benefits.

11/6/2015 Mike Norton
Harvard
    How Much (More) Should CEOs Make? A Universal Desire for More Equal Pay
  • Click to read Abstract

    Do people from different countries and different backgrounds have similar preferences for how much more the rich should earn than the poor? Using survey data from 40 countries (N = 55,238), we compare respondents' estimates of the wages of people in different occupations — chief executive officers, cabinet ministers, and unskilled workers — to their ideals for what those wages should be. We show that ideal pay gaps between skilled and unskilled workers are significantly smaller than estimated pay gaps and that there is consensus across countries, socioeconomic status, and political beliefs. Moreover, data from 16 countries reveals that people dramatically underestimate actual pay inequality. In the United States — where underestimation was particularly pronounced — the actual pay ratio of CEOs to unskilled workers (354:1) far exceeded the estimated ratio (30:1), which in turn far exceeded the ideal ratio (7:1). In sum, respondents underestimate actual pay gaps, and their ideal pay gaps are even further from reality than those underestimates.

10/23/2015 Keisha Cutright
Wharton
    How Reminders of God Dampen the Effectiveness of Fear Appeals
  • Click to read Abstract

    The current research focuses on understanding how reminders of God might affect consumer compliance with fear-based advertising. Results across six studies demonstrate that when the concept of God is salient, consumer compliance and persuasion in response to fear appeals is dampened. Importantly, the results suggest that one reason for this persuasion-dampening effect of God salience is the fact that consumers associate the concept of God with the idea of support, which then leads them to feel more capable of coping with the consequences of noncompliance.

10/16/2015 Oliver Rutz
U of Washington
    A New Method to Aid Copy Testing of Paid Search Text Advertisements
10/9/2015 Liye Ma
Maryland
    "Only the Interested Learn" – A Model of Proactive Learning of Product Reviews
  • Click to read Abstract

    We develop a sequential learning model to analyze how consumers proactively acquire product quality information through reading online product reviews. While a rich literature exists on the effect of Internet word-of-mouth, product reviews are often treated as exogenous quality signals in these studies. Review reading, however, is a costly activity that is undertaken in a deliberate manner. Our model casts this information acquisition process in a rational framework. In our model, whether a consumer reads additional reviews, and of which products, depend on both the consumer’s current information set and her future expectations. We apply our model to a rich dataset of online product reviews, which contains consumer browsing and purchase information. We find strong evidence of consumers rationally seeking product review information to refine their quality understanding. Parameter estimates reveal distinct types of information acquisition behaviors. Comparison with alternative models also shows that taking product reviews as exogenous quality signals leads to biased estimates on both quality levels and signal precisions. Counterfactual analysis further shows that the product reviews a consumer sees earlier is more consequential due partly to their impact on subsequent search actions, and that sorting reviews from lowest to highest ratings leads to higher differentiation across products of different qualities than do other sorting criteria. Our study is the first to analyze consumer’s review reading process and to analyze the effect of reviews in this dynamic and endogenous context.