Pub Date : 2023-08-08DOI: 10.1177/00222429231196576
Anna Tari, Remi Trudel
A circular economy is a “closed-loop” system designed so that products flow back into the production cycle after use. With many companies implementing take-back programs as part of their sustainability strategy, a fundamental shift in consumption has occurred, with consumers considering disposal during and even before making a purchase decision. Eight experiments reveal that consumers indicate a greater willingness to pay for circular program products. An increase in psychological ownership underlies the difference in product valuation. Specifically, the additional disposal control uniquely afforded by circular products increases the capacity of circular take-back program products to evoke psychological ownership. The process explanation is directly tested through mediation. Experimentally manipulating antecedents of psychological ownership (i.e., disposal control and psychological ownership) provides further support for the conceptual framework.
{"title":"EXPRESS: Affording Disposal Control: The Effect of Circular Take-Back Programs on Psychological Ownership and Valuation","authors":"Anna Tari, Remi Trudel","doi":"10.1177/00222429231196576","DOIUrl":"https://doi.org/10.1177/00222429231196576","url":null,"abstract":"A circular economy is a “closed-loop” system designed so that products flow back into the production cycle after use. With many companies implementing take-back programs as part of their sustainability strategy, a fundamental shift in consumption has occurred, with consumers considering disposal during and even before making a purchase decision. Eight experiments reveal that consumers indicate a greater willingness to pay for circular program products. An increase in psychological ownership underlies the difference in product valuation. Specifically, the additional disposal control uniquely afforded by circular products increases the capacity of circular take-back program products to evoke psychological ownership. The process explanation is directly tested through mediation. Experimentally manipulating antecedents of psychological ownership (i.e., disposal control and psychological ownership) provides further support for the conceptual framework.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"6 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87563197","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-08DOI: 10.1177/00222429231196575
Yu Ma, Kusum L. Ailawadi, Mercedes Martos-Partal, Ó. González-Benito
This paper is the first generalizable empirical analysis of dual branding, i.e., supply of private label (PL) by national brand (NB) manufacturers. The authors compile a unique dataset combining the identity of PL suppliers in over 260 packaged good categories with multiple years of scanner data in the Spanish grocery market to offer several contributions. First, they provide new descriptive insights, e.g., on the prevalence of dual branding in categories where the manufacturer does and does not have NBs, the longevity of PL supply arrangements, and the differences in PL sourcing across retailers. Second, they integrate the literature on motivators and dissuaders of dual branding and test the impact of relevant manufacturer, retailer, and dyad characteristics on PL supply in NB and non-NB categories. The results reveal a more nuanced empirical reality than is evident from prior research regarding the role of multi-category scope, fighter brands, NB differentiation, and size and positioning of the retailer’s PL. Third, they examine the outcomes of PL supply for the NBs of dual branders and find that starting (terminating) PL supply to a retailer significantly benefits (hurts) the relative distribution depth but not the relative share of the dual brander’s NBs at that retailer.
{"title":"EXPRESS: Dual Branding by National Brand Manufacturers: Drivers and Outcomes","authors":"Yu Ma, Kusum L. Ailawadi, Mercedes Martos-Partal, Ó. González-Benito","doi":"10.1177/00222429231196575","DOIUrl":"https://doi.org/10.1177/00222429231196575","url":null,"abstract":"This paper is the first generalizable empirical analysis of dual branding, i.e., supply of private label (PL) by national brand (NB) manufacturers. The authors compile a unique dataset combining the identity of PL suppliers in over 260 packaged good categories with multiple years of scanner data in the Spanish grocery market to offer several contributions. First, they provide new descriptive insights, e.g., on the prevalence of dual branding in categories where the manufacturer does and does not have NBs, the longevity of PL supply arrangements, and the differences in PL sourcing across retailers. Second, they integrate the literature on motivators and dissuaders of dual branding and test the impact of relevant manufacturer, retailer, and dyad characteristics on PL supply in NB and non-NB categories. The results reveal a more nuanced empirical reality than is evident from prior research regarding the role of multi-category scope, fighter brands, NB differentiation, and size and positioning of the retailer’s PL. Third, they examine the outcomes of PL supply for the NBs of dual branders and find that starting (terminating) PL supply to a retailer significantly benefits (hurts) the relative distribution depth but not the relative share of the dual brander’s NBs at that retailer.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"64 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73690619","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-07DOI: 10.1177/00222429231196122
Bastian Kindermann, D. Wentzel, David Antons, T. Salge
This article analyzes the nature and temporal change of conceptual contributions in marketing scholarship with two complementary studies. First, based on a computer-aided text analysis of 5,922 articles published in the four major marketing journals between 1990 and 2021, we analyze how conceptual contributions have changed over time using the MacInnis (2011) framework. Results indicate that over the past three decades, theorizing efforts have strongly favored “envisioning” and “explicating” at the expense of “relating” and “debating,” with this imbalance increasing over time. Second, drawing on 48 in-depth interviews with editors, department heads, and authors, we seek to validate these patterns and uncover their underlying mechanisms. Our findings indicate that a prevalent thought style has developed in the field—defined by the research ideals of novelty, clarity, and quantification—that shapes the collective view of how marketing scholars, in their roles as authors, reviewers, and mentors, can make a valuable contribution to marketing scholarship. This thought style favors envisioning and explicating contributions and disfavors relating and debating contributions. Jointly, the two studies point to several rebalancing options that can reinvigorate relating and debating contributions while preserving the current strengths of the marketing field.
{"title":"EXPRESS: Conceptual Contributions in Marketing Scholarship: Patterns, Mechanisms, and Rebalancing Options","authors":"Bastian Kindermann, D. Wentzel, David Antons, T. Salge","doi":"10.1177/00222429231196122","DOIUrl":"https://doi.org/10.1177/00222429231196122","url":null,"abstract":"This article analyzes the nature and temporal change of conceptual contributions in marketing scholarship with two complementary studies. First, based on a computer-aided text analysis of 5,922 articles published in the four major marketing journals between 1990 and 2021, we analyze how conceptual contributions have changed over time using the MacInnis (2011) framework. Results indicate that over the past three decades, theorizing efforts have strongly favored “envisioning” and “explicating” at the expense of “relating” and “debating,” with this imbalance increasing over time. Second, drawing on 48 in-depth interviews with editors, department heads, and authors, we seek to validate these patterns and uncover their underlying mechanisms. Our findings indicate that a prevalent thought style has developed in the field—defined by the research ideals of novelty, clarity, and quantification—that shapes the collective view of how marketing scholars, in their roles as authors, reviewers, and mentors, can make a valuable contribution to marketing scholarship. This thought style favors envisioning and explicating contributions and disfavors relating and debating contributions. Jointly, the two studies point to several rebalancing options that can reinvigorate relating and debating contributions while preserving the current strengths of the marketing field.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"1 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79833181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-03DOI: 10.1177/00222429231195564
Sharlene He, Eric T. Anderson, Derek D. Rucker
Willingness to pay (WTP) is a metric that is widely valued and utilized among both practitioners and academics. However, the conceptualization of WTP is ambiguous, and this ambiguity is reflected across existing methods of measuring WTP. This paper first presents a formal mathematical framework that clarifies WTP as a distributional concept—rather than a single number—constructed as a function of customers, comparisons, and situations. The framework further reveals the operation of two comparative mechanisms, direct and indirect, by which situational factors affect WTP. This paper then introduces a new method to measure WTP—Comparative Method of Valuation (CMV)—that, unlike existing methods, is designed to account for the inherently comparative and situational nature of WTP. Across nine studies reported in the paper and four additional studies in the Web Appendix, the authors a) examine differences in results between CMV and choice-based conjoint as well as between CMV and the classic Becker-DeGroot-Marschak (BDM) methodology, b) demonstrate that CMV is a valid and reliable measure of WTP, and c) illustrate applications of CMV to managerial problems. In total, this paper offers both conceptual clarity and methodological advances to understanding the construction and measurement of WTP for practitioners and academics alike.
{"title":"EXPRESS: Measuring Willingness to Pay: A Comparative Method of Valuation","authors":"Sharlene He, Eric T. Anderson, Derek D. Rucker","doi":"10.1177/00222429231195564","DOIUrl":"https://doi.org/10.1177/00222429231195564","url":null,"abstract":"Willingness to pay (WTP) is a metric that is widely valued and utilized among both practitioners and academics. However, the conceptualization of WTP is ambiguous, and this ambiguity is reflected across existing methods of measuring WTP. This paper first presents a formal mathematical framework that clarifies WTP as a distributional concept—rather than a single number—constructed as a function of customers, comparisons, and situations. The framework further reveals the operation of two comparative mechanisms, direct and indirect, by which situational factors affect WTP. This paper then introduces a new method to measure WTP—Comparative Method of Valuation (CMV)—that, unlike existing methods, is designed to account for the inherently comparative and situational nature of WTP. Across nine studies reported in the paper and four additional studies in the Web Appendix, the authors a) examine differences in results between CMV and choice-based conjoint as well as between CMV and the classic Becker-DeGroot-Marschak (BDM) methodology, b) demonstrate that CMV is a valid and reliable measure of WTP, and c) illustrate applications of CMV to managerial problems. In total, this paper offers both conceptual clarity and methodological advances to understanding the construction and measurement of WTP for practitioners and academics alike.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"11 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88703905","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-27DOI: 10.1177/00222429231193994
Sudha Mani, Vivek Astvansh, K. Antia
A bankrupt buyer firm's interactions with its suppliers during bankruptcy have critical implications for both parties and for the broader economy, yet these interactions remain poorly understood. The authors build on research on buyer–supplier relationship dynamics to demonstrate that accommodative and exploitative velocities—the rate and direction of change in the corresponding acts—serve as signals affecting bankruptcy survival. They show how signal characteristics (i.e., the variability in accommodative and exploitative acts) and signaler characteristics (i.e., whether the party undertaking the acts is the buyer or its suppliers) moderate the impact of accommodative and exploitative velocities on bankruptcy survival. Study 1 examines the bankruptcy survival outcome of 310 U.S. bankruptcies over 14 years and finds that a 1% increase in accommodative (exploitative) velocity increases (decreases) the buyer's survival by 39% (33%). Further, variability in accommodative acts weakens their effect, and suppliers' (vs. the buyer's) accommodative and exploitative velocities are less deterministic of the buyer's bankruptcy survival. Study 2 uses a scenario-based experiment to shed light on the mechanism underlying the impact of the two velocities on bankruptcy survival. The findings from both studies demonstrate the key role played by buyer–supplier interactions in a buyer's bankruptcy survival.
{"title":"EXPRESS: Buyer–Supplier Relationship Dynamics in Buyers’ Bankruptcy Survival","authors":"Sudha Mani, Vivek Astvansh, K. Antia","doi":"10.1177/00222429231193994","DOIUrl":"https://doi.org/10.1177/00222429231193994","url":null,"abstract":"A bankrupt buyer firm's interactions with its suppliers during bankruptcy have critical implications for both parties and for the broader economy, yet these interactions remain poorly understood. The authors build on research on buyer–supplier relationship dynamics to demonstrate that accommodative and exploitative velocities—the rate and direction of change in the corresponding acts—serve as signals affecting bankruptcy survival. They show how signal characteristics (i.e., the variability in accommodative and exploitative acts) and signaler characteristics (i.e., whether the party undertaking the acts is the buyer or its suppliers) moderate the impact of accommodative and exploitative velocities on bankruptcy survival. Study 1 examines the bankruptcy survival outcome of 310 U.S. bankruptcies over 14 years and finds that a 1% increase in accommodative (exploitative) velocity increases (decreases) the buyer's survival by 39% (33%). Further, variability in accommodative acts weakens their effect, and suppliers' (vs. the buyer's) accommodative and exploitative velocities are less deterministic of the buyer's bankruptcy survival. Study 2 uses a scenario-based experiment to shed light on the mechanism underlying the impact of the two velocities on bankruptcy survival. The findings from both studies demonstrate the key role played by buyer–supplier interactions in a buyer's bankruptcy survival.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"50 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85424455","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-26DOI: 10.1177/00222429231193371
Michiel Van Crombrugge, E. Breugelmans, Florian Breiner, Christian W. Scheiner
For digital-native, fast-moving consumer goods (FMCG) manufacturers that sell through their own online channel and have made headway into supermarkets, brand stores can represent the next step in a multichannel distribution strategy. In this research, the authors investigate the impact of introducing a brand store on a digital-native brand’s sales in its existing company-owned online channel and independent supermarkets, as well as on the brand’s supermarket distribution. By incorporating brand store sales and operational costs, this research also specifies the entry effects on the brand’s top-line total brand sales and bottom-line operating profit. Based on before-and-after-with-control-group analyses of the entry of 10 brand stores by a digital-native FMCG brand, the authors show that brand store entry boosts supermarket sales, partially driven by a brand store’s positive effect on the number of supermarkets listing the brand. Although they cannibalize company-owned online sales, brand store entries generate an influx of own brand store sales that offset online channel losses. Still, accounting for brand stores’ operational costs reveals top-line growth is not always enough to preserve the bottom line.
{"title":"EXPRESS: Assessing the Multichannel Impact of Brand Store Entry by a Digital-Native Grocery Brand","authors":"Michiel Van Crombrugge, E. Breugelmans, Florian Breiner, Christian W. Scheiner","doi":"10.1177/00222429231193371","DOIUrl":"https://doi.org/10.1177/00222429231193371","url":null,"abstract":"For digital-native, fast-moving consumer goods (FMCG) manufacturers that sell through their own online channel and have made headway into supermarkets, brand stores can represent the next step in a multichannel distribution strategy. In this research, the authors investigate the impact of introducing a brand store on a digital-native brand’s sales in its existing company-owned online channel and independent supermarkets, as well as on the brand’s supermarket distribution. By incorporating brand store sales and operational costs, this research also specifies the entry effects on the brand’s top-line total brand sales and bottom-line operating profit. Based on before-and-after-with-control-group analyses of the entry of 10 brand stores by a digital-native FMCG brand, the authors show that brand store entry boosts supermarket sales, partially driven by a brand store’s positive effect on the number of supermarkets listing the brand. Although they cannibalize company-owned online sales, brand store entries generate an influx of own brand store sales that offset online channel losses. Still, accounting for brand stores’ operational costs reveals top-line growth is not always enough to preserve the bottom line.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"35 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82237448","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-22DOI: 10.1177/00222429231192049
L. A. Ton, Rosanna K. Smith, Julio Sevilla
Although consumers often value minimalist aesthetics, little work has examined why and when simple packaging designs of consumable products enhance consumer outcomes. We theorize that simple packaging evokes a symbolic association where minimizing design complexity signals that the product contains few ingredients, which increases perceived product purity and willingness to pay (WTP). A field study examining a supermarket chain’s product packages ( N = 1353) provided preliminary support for this increase in WTP and two boundary conditions. Six preregistered studies replicated these effects and tested the underlying process. Studies 1a-b found that the increase in WTP for simple packaging is driven by few-ingredients inferences increasing perceived product purity. Study 2 demonstrated the increase in WTP using an incentive-compatible design. Study 3 reinforced the proposed process via moderated mediation. Lastly, studies 4-5 tested the boundary conditions in the field study, finding that WTP for simple packaging decreases when the product is from a store (vs. non-store) brand and when consumers have an indulgence (vs. health) goal. These findings offer theoretical and managerial insight into minimalist aesthetics.
{"title":"EXPRESS: Symbolically Simple: How Simple Packaging Design Influences Willingness to Pay for Consumable Products","authors":"L. A. Ton, Rosanna K. Smith, Julio Sevilla","doi":"10.1177/00222429231192049","DOIUrl":"https://doi.org/10.1177/00222429231192049","url":null,"abstract":"Although consumers often value minimalist aesthetics, little work has examined why and when simple packaging designs of consumable products enhance consumer outcomes. We theorize that simple packaging evokes a symbolic association where minimizing design complexity signals that the product contains few ingredients, which increases perceived product purity and willingness to pay (WTP). A field study examining a supermarket chain’s product packages ( N = 1353) provided preliminary support for this increase in WTP and two boundary conditions. Six preregistered studies replicated these effects and tested the underlying process. Studies 1a-b found that the increase in WTP for simple packaging is driven by few-ingredients inferences increasing perceived product purity. Study 2 demonstrated the increase in WTP using an incentive-compatible design. Study 3 reinforced the proposed process via moderated mediation. Lastly, studies 4-5 tested the boundary conditions in the field study, finding that WTP for simple packaging decreases when the product is from a store (vs. non-store) brand and when consumers have an indulgence (vs. health) goal. These findings offer theoretical and managerial insight into minimalist aesthetics.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"46 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90790059","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-18DOI: 10.1177/00222429231191449
Sanghoon Cho, Pelin Pekgün, R. Janakiraman, Jian Wang
The authors examine the effects of a firm’s and its competitors’ online reviews on its demand within the hotel industry. The authors leverage a unique dataset of actual bookings from properties of a major hotel chain in six different markets in the United States, supplemented with online reviews garnered from a popular social media platform. The findings indicate that not only a hotel’s own reviews but also its competitors’ reviews have a significant impact on the hotel’s booking performance. The impact of review sentiment amplifies if the focal hotel also charges higher prices or when the volume of reviews is high. The authors establish heterogeneous effects across consumer segments (business vs. leisure travelers) and by the type of review content (objective vs. subjective attributes to assess quality). Specifically, both own and competitor reviews have a larger impact on bookings for business travelers as compared to leisure travelers, and for reviews that mainly discuss subjective attributes, when consumers need to rely on the experiences of others to assess the quality of a hotel prior to their stay. The study provides a set of comprehensive insights on the impact of both own and competitors’ online reviews on a focal hotel.
{"title":"EXPRESS: The Competitive Effects of Online Reviews on Hotel Demand","authors":"Sanghoon Cho, Pelin Pekgün, R. Janakiraman, Jian Wang","doi":"10.1177/00222429231191449","DOIUrl":"https://doi.org/10.1177/00222429231191449","url":null,"abstract":"The authors examine the effects of a firm’s and its competitors’ online reviews on its demand within the hotel industry. The authors leverage a unique dataset of actual bookings from properties of a major hotel chain in six different markets in the United States, supplemented with online reviews garnered from a popular social media platform. The findings indicate that not only a hotel’s own reviews but also its competitors’ reviews have a significant impact on the hotel’s booking performance. The impact of review sentiment amplifies if the focal hotel also charges higher prices or when the volume of reviews is high. The authors establish heterogeneous effects across consumer segments (business vs. leisure travelers) and by the type of review content (objective vs. subjective attributes to assess quality). Specifically, both own and competitor reviews have a larger impact on bookings for business travelers as compared to leisure travelers, and for reviews that mainly discuss subjective attributes, when consumers need to rely on the experiences of others to assess the quality of a hotel prior to their stay. The study provides a set of comprehensive insights on the impact of both own and competitors’ online reviews on a focal hotel.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"93 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88188654","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-07-18DOI: 10.1177/00222429231191446
Zixia Cao, Hui Feng, Michael A. Wiles
Firms often use crowdsourcing contests to develop marketing ideas and solutions. Despite this prevalence—and unique aspects—of marketing ideation crowdsourcing contests (MICC), there has been little examination of these contests’ shareholder wealth implications. Adopting a signaling perspective, we conduct an event study of 508 MICC announcements and find that they are associated with higher returns, but also higher idiosyncratic risk—indicating investors hold a mixed view of such contests. Further, we consider how contest design factors and firm marketing resources may signal the cultivation of intellectual and relational market-based assets to shape their stock market impact—providing firms guidance to better design their MICCs. Specifically, we find returns are enhanced when using professional (vs. general public) contests, specifically scoped contests, contests using crowd judging (vs. expert panels), and for firms with stronger marketing capabilities. However, brand factors have mixed effects on returns with a brand’s relevant stature having a positive effect and its energized differentiation having a negative effect on returns. Product MICCs and generally scoped contests heighten the negative effects on risk while marketing resources have no impact. Results offer implications for practitioners, including the finding that many MICC design choices commonly used in practice (i.e., general public contests and expert panels) are viewed less favorably by investors.
{"title":"EXPRESS: When Do Marketing Ideation Crowdsourcing Contests Create Shareholder Value? The Effect of Contest Design and Marketing Resource Factors","authors":"Zixia Cao, Hui Feng, Michael A. Wiles","doi":"10.1177/00222429231191446","DOIUrl":"https://doi.org/10.1177/00222429231191446","url":null,"abstract":"Firms often use crowdsourcing contests to develop marketing ideas and solutions. Despite this prevalence—and unique aspects—of marketing ideation crowdsourcing contests (MICC), there has been little examination of these contests’ shareholder wealth implications. Adopting a signaling perspective, we conduct an event study of 508 MICC announcements and find that they are associated with higher returns, but also higher idiosyncratic risk—indicating investors hold a mixed view of such contests. Further, we consider how contest design factors and firm marketing resources may signal the cultivation of intellectual and relational market-based assets to shape their stock market impact—providing firms guidance to better design their MICCs. Specifically, we find returns are enhanced when using professional (vs. general public) contests, specifically scoped contests, contests using crowd judging (vs. expert panels), and for firms with stronger marketing capabilities. However, brand factors have mixed effects on returns with a brand’s relevant stature having a positive effect and its energized differentiation having a negative effect on returns. Product MICCs and generally scoped contests heighten the negative effects on risk while marketing resources have no impact. Results offer implications for practitioners, including the finding that many MICC design choices commonly used in practice (i.e., general public contests and expert panels) are viewed less favorably by investors.","PeriodicalId":16152,"journal":{"name":"Journal of Marketing","volume":"699 1","pages":""},"PeriodicalIF":12.9,"publicationDate":"2023-07-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85634557","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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