Pub Date : 2024-11-16DOI: 10.1007/s11747-024-01061-6
Hai-Anh Tran, Yuliya Strizhakova, Bach Nguyen, Samuel G. B. Johnson
When faced with service failures, customers tend to ruminate, i.e., engage in repetitive negative thoughts about service failures and their causes/consequences. Some customers express these ruminative thoughts in online posts, making the internal cognitive process of rumination publicly visible to prospective customers who read the posts. This research proposes a novel conceptualization and operationalization of customer expressions of rumination as the repetitive use of words related to (a) service failure aspects and (b) service failure causes/consequences. Across two field studies, one survey, and two experiments, this research demonstrates that rumination expressions in online posts about service failures are linked to lower sales, weaker prospective customers’ purchase intention, and more “likes” of the post. Responses expressing empathetic apologies are more effective in handling rumination expressions about service failure aspects, whereas responses mentioning compensation are more effective in handling rumination expressions about service failure causes/consequences. We urge managers to recognize the visibility and harmfulness of rumination expressions in digital outlets and provide solutions to minimize their damage.
{"title":"Expressions of customer rumination in online posts and firm responses","authors":"Hai-Anh Tran, Yuliya Strizhakova, Bach Nguyen, Samuel G. B. Johnson","doi":"10.1007/s11747-024-01061-6","DOIUrl":"https://doi.org/10.1007/s11747-024-01061-6","url":null,"abstract":"<p>When faced with service failures, customers tend to <i>ruminate</i>, i.e., engage in repetitive negative thoughts about service failures and their causes/consequences. Some customers express these ruminative thoughts in online posts, making the internal cognitive process of rumination publicly visible to prospective customers who read the posts. This research proposes a novel conceptualization and operationalization of customer expressions of rumination as the repetitive use of words related to (a) service failure aspects and (b) service failure causes/consequences. Across two field studies, one survey, and two experiments, this research demonstrates that rumination expressions in online posts about service failures are linked to lower sales, weaker prospective customers’ purchase intention, and more “likes” of the post. Responses expressing empathetic apologies are more effective in handling rumination expressions about service failure aspects, whereas responses mentioning compensation are more effective in handling rumination expressions about service failure causes/consequences. We urge managers to recognize the visibility and harmfulness of rumination expressions in digital outlets and provide solutions to minimize their damage.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"13 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142642996","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 : 2024-11-13DOI: 10.1007/s11747-024-01060-7
Surya Pathak, P. V. Sundar Balakrishnan
Product shortages are known to slow down the diffusion process. However, we counterintuitively theorize and empirically demonstrate that under specific conditions of social influence, the diffusion process may be accelerated by early product scarcity. Using an Agent-Based framework and Genetic Algorithm-based estimation, we analyzed 20 product categories to identify the critical trade-off influencing diffusion: the interplay of the social influence ratio of waiting customers to adopters, the external influence, and level of product scarcity. Strategic managerial actions can accelerate the adoption of products. For example, in the case of fitness trackers, we were able to simulate speed-up by up to two years compared to the standard Bass model. Importantly, we introduce a novel framework to study competition dynamics, analyzing how the timing of market entry and the production capacity of competitors, along with the initial installed capacity of the pioneering firm affect diffusion speed. This acceleration, whether due to managerial foresight or serendipity, necessitates careful orchestration to harness the enthusiasm of waiting customers and strategically allocate marketing spending on social media platforms, thereby differentially amplifying the influence of adopters and potential customers.
{"title":"The paradox of product scarcity: Catalyzing the speed of innovation diffusion","authors":"Surya Pathak, P. V. Sundar Balakrishnan","doi":"10.1007/s11747-024-01060-7","DOIUrl":"https://doi.org/10.1007/s11747-024-01060-7","url":null,"abstract":"<p>Product shortages are known to slow down the diffusion process. However, we counterintuitively theorize and empirically demonstrate that under specific conditions of social influence, the diffusion process may be accelerated by early product scarcity. Using an Agent-Based framework and Genetic Algorithm-based estimation, we analyzed 20 product categories to identify the critical trade-off influencing diffusion: the interplay of the social influence ratio of waiting customers to adopters, the external influence, and level of product scarcity. Strategic managerial actions can accelerate the adoption of products. For example, in the case of fitness trackers, we were able to simulate speed-up by up to two years compared to the standard Bass model. Importantly, we introduce a novel framework to study competition dynamics, analyzing how the timing of market entry and the production capacity of competitors, along with the initial installed capacity of the pioneering firm affect diffusion speed. This acceleration, whether due to managerial foresight or serendipity, necessitates careful orchestration to harness the enthusiasm of waiting customers and strategically allocate marketing spending on social media platforms, thereby differentially amplifying the influence of adopters and potential customers.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"1 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142601925","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 : 2024-11-05DOI: 10.1007/s11747-024-01058-1
Aylin Cakanlar, Megan Hunter, Gergana Y. Nenkov
Plastic pollution represents a grand challenge facing society, yet the amount of plastic being recycled is only about 5%. This recycling crisis has intensified with the growing problem of recycling contamination (i.e., incorrect placement of unrecyclable materials in recycling receptacles). This research investigates the potential for informational point-of-disposal recycling signage to decrease recycling contamination. In a longitudinal field study and three experiments, the authors demonstrate that providing schema-congruent prescriptive information (“Recycle these items”) does not reduce recycling contamination and may inadvertently lead to over-recycling. In contrast, the presence of proscriptive information that is moderately incongruent with established schemas (“Do not recycle these items”) prompts more effortful, piecemeal processing. This encourages individuals to integrate the information into their recycling decisions, diminishing their dependence on pre-existing beliefs and expectations regarding recycling and, consequently, lowering contamination rates. Recycling expertise is found to moderate the effects of point-of-disposal recycling signage. By examining such nuanced recycling communication strategies, this research aims to shift the conversation from “recycle more” to “recycle right.”
{"title":"Recycle right: How to decrease recycling contamination with informational point-of-disposal signage","authors":"Aylin Cakanlar, Megan Hunter, Gergana Y. Nenkov","doi":"10.1007/s11747-024-01058-1","DOIUrl":"https://doi.org/10.1007/s11747-024-01058-1","url":null,"abstract":"<p>Plastic pollution represents a grand challenge facing society, yet the amount of plastic being recycled is only about 5%. This recycling crisis has intensified with the growing problem of recycling contamination (i.e., incorrect placement of unrecyclable materials in recycling receptacles). This research investigates the potential for informational point-of-disposal recycling signage to decrease recycling contamination. In a longitudinal field study and three experiments, the authors demonstrate that providing schema-congruent prescriptive information (“Recycle these items”) does not reduce recycling contamination and may inadvertently lead to over-recycling. In contrast, the presence of proscriptive information that is moderately incongruent with established schemas (“Do not recycle these items”) prompts more effortful, piecemeal processing. This encourages individuals to integrate the information into their recycling decisions, diminishing their dependence on pre-existing beliefs and expectations regarding recycling and, consequently, lowering contamination rates. Recycling expertise is found to moderate the effects of point-of-disposal recycling signage. By examining such nuanced recycling communication strategies, this research aims to shift the conversation from “recycle more” to “recycle right.”</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"153 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142580314","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 : 2024-11-05DOI: 10.1007/s11747-024-01059-0
Jordan W. Moffett, Patrick Fennell, Colleen M. Harmeling, Daniel Sheehan, Alexander Bleier
Current research often relies on narrowly focused experimental methods that address just a few independent variables or correlational designs, despite calls for future research to take big-picture perspectives that offer real-world applicability and causal evidence. This disparity likely reflects the constraints imposed by the need for extensive resources to conduct broad, causal examinations. To bridge this gap, the current article presents the Taguchi approach to large-scale experimental design, which remains notably underutilized in marketing research despite being well-established in other fields. Its effectiveness stems from the robust catalog of experimental design rubrics that can incorporate many different independent variables systematically and efficiently. The causal and efficient experimental option for broad scopes of investigation embraces the embeddedness of independent variables and thus can help build marketing theory and advance practice. This article details the fundamentals of the Taguchi approach, its relative advantages, and a three-step implementation process.
{"title":"The Taguchi approach to large-scale experimental designs: A powerful and efficient tool for advancing marketing theory and practice","authors":"Jordan W. Moffett, Patrick Fennell, Colleen M. Harmeling, Daniel Sheehan, Alexander Bleier","doi":"10.1007/s11747-024-01059-0","DOIUrl":"https://doi.org/10.1007/s11747-024-01059-0","url":null,"abstract":"<p>Current research often relies on narrowly focused experimental methods that address just a few independent variables or correlational designs, despite calls for future research to take big-picture perspectives that offer real-world applicability and causal evidence. This disparity likely reflects the constraints imposed by the need for extensive resources to conduct broad, causal examinations. To bridge this gap, the current article presents the Taguchi approach to large-scale experimental design, which remains notably underutilized in marketing research despite being well-established in other fields. Its effectiveness stems from the robust catalog of experimental design rubrics that can incorporate many different independent variables systematically and efficiently. The causal and efficient experimental option for broad scopes of investigation embraces the embeddedness of independent variables and thus can help build marketing theory and advance practice. This article details the fundamentals of the Taguchi approach, its relative advantages, and a three-step implementation process.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"88 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142580317","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 : 2024-10-31DOI: 10.1007/s11747-024-01063-4
Alexander Tevi, John Parker, Scott Koslow, Lawrence Ang
To develop more creative advertising, scholars advocate ideation techniques and one of the most strongly supported is the Templates method. This research explores the efficacy of Templates, and evaluates its effectiveness compared to other creative ideation approaches. Two studies are presented. One directly asks professional advertising creatives to use specific Templates to develop advertisements. The other determines if the mere knowledge of the Templates method improves creative ideation. In both studies, industry-based judges assess the quality of respondents’ work. The Templates approach improves the originality of advertising, with no detrimental influence on strategy. Two alternative approaches to enhancing creativity were compared against Templates: 1) providing better domain knowledge through consumer insight and 2) improving the intrinsic motivation of creatives. The research shows these two alternatives both improve originality yet reduce how “on strategy” the advertising is—a trade-off effect. However, the Templates method does not suffer from this trade-off and performs well, by improving originality without any detriment on strategic focus.
{"title":"Creative performance in professional advertising development: The role of ideation templates, consumer insight, and intrinsic motivation","authors":"Alexander Tevi, John Parker, Scott Koslow, Lawrence Ang","doi":"10.1007/s11747-024-01063-4","DOIUrl":"https://doi.org/10.1007/s11747-024-01063-4","url":null,"abstract":"<p>To develop more creative advertising, scholars advocate ideation techniques and one of the most strongly supported is the Templates method. This research explores the efficacy of Templates, and evaluates its effectiveness compared to other creative ideation approaches. Two studies are presented. One directly asks professional advertising creatives to use specific Templates to develop advertisements. The other determines if the mere knowledge of the Templates method improves creative ideation. In both studies, industry-based judges assess the quality of respondents’ work. The Templates approach improves the originality of advertising, with no detrimental influence on strategy. Two alternative approaches to enhancing creativity were compared against Templates: 1) providing better domain knowledge through consumer insight and 2) improving the intrinsic motivation of creatives. The research shows these two alternatives both improve originality yet reduce how “on strategy” the advertising is—a trade-off effect. However, the Templates method does not suffer from this trade-off and performs well, by improving originality without any detriment on strategic focus.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"4 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142556186","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 : 2024-10-31DOI: 10.1007/s11747-024-01062-5
Samantha N. N. Cross, Akon E. Ekpo
This paper examines the challenges permeating the experiences and strategies of market challenged consumers (MCCs). We employ a multi-method approach, combining discourse analysis of personal reflection essays with grounded theory analysis of interview data in the context of consumers with disabilities. Findings reveal that MCCs experience both material and social marketplace challenges that shape three distinct yet interrelated tensions: desiring normality while needing accommodation, managing visibility while needing acknowledgement, and negotiating privacy while needing to participate. We demonstrate that MCCs enact coping strategies (reconciling and (re)positioning identity, counterbalancing (in)visibility, and armoring themselves) which subsequently both mitigate and reinforce inner tensions. This study argues that the marketplace must intervene, given the incessant nature of the challenges, inner tensions and resulting coping strategies, thus shifting the onus of coping from the MCC to the marketplace. We provide theoretical and managerial implications to better understand how marketplaces can alleviate MCCs’ marketplace challenges.
{"title":"When marketplaces fail: How market challenged consumers navigate the marketplace","authors":"Samantha N. N. Cross, Akon E. Ekpo","doi":"10.1007/s11747-024-01062-5","DOIUrl":"https://doi.org/10.1007/s11747-024-01062-5","url":null,"abstract":"<p>This paper examines the challenges permeating the experiences and strategies of market challenged consumers (MCCs). We employ a multi-method approach, combining discourse analysis of personal reflection essays with grounded theory analysis of interview data in the context of consumers with disabilities. Findings reveal that MCCs experience both material and social marketplace challenges that shape three distinct yet interrelated tensions: desiring normality while needing accommodation, managing visibility while needing acknowledgement, and negotiating privacy while needing to participate. We demonstrate that MCCs enact coping strategies (reconciling and (re)positioning identity, counterbalancing (in)visibility, and armoring themselves) which subsequently both mitigate and reinforce inner tensions. This study argues that the marketplace must intervene, given the incessant nature of the challenges, inner tensions and resulting coping strategies, thus shifting the onus of coping from the MCC to the marketplace. We provide theoretical and managerial implications to better understand how marketplaces can alleviate MCCs’ marketplace challenges.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"7 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142556187","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 : 2024-10-30DOI: 10.1007/s11747-024-01055-4
Benjamin D. Liengaard, Jan-Michael Becker, Mikkel Bennedsen, Phillip Heiler, Luke N. Taylor, Christian M. Ringle
Endogeneity in regression models is a key marketing research concern. The Gaussian copula approach offers an instrumental variable (IV)-free technique to mitigate endogeneity bias in regression models. Previous research revealed substantial finite sample bias when applying this method to regression models with an intercept. This is particularly problematic as models in marketing studies almost always require an intercept. To resolve this limitation, our research determines the bias’s sources, making several methodological advances in the process. First, we show that the cumulative distribution function estimation’s quality strongly affects the Gaussian copula approach’s performance. Second, we use this insight to develop an adjusted estimator that improves the Gaussian copula approach’s finite sample performance in regression models with (and without) an intercept. Third, as a broader contribution, we extend the framework for copula estimation to models with multiple endogenous variables on continuous scales and exogenous variables on discrete and continuous scales, and non-linearities such as interaction terms. Fourth, simulation studies confirm that the new adjusted estimator outperforms the established ones. Further simulations also underscore that our extended framework allows researchers to validly deal with multiple endogenous and exogenous regressors, and the interactions between them. Fifth, we demonstrate the adjusted estimator and the general framework’s systematic application, using an empirical marketing example with real-world data. These contributions enable researchers in marketing and other disciplines to effectively address endogeneity problems in their models by using the improved Gaussian copula approach.
{"title":"Dealing with regression models’ endogeneity by means of an adjusted estimator for the Gaussian copula approach","authors":"Benjamin D. Liengaard, Jan-Michael Becker, Mikkel Bennedsen, Phillip Heiler, Luke N. Taylor, Christian M. Ringle","doi":"10.1007/s11747-024-01055-4","DOIUrl":"https://doi.org/10.1007/s11747-024-01055-4","url":null,"abstract":"<p>Endogeneity in regression models is a key marketing research concern. The Gaussian copula approach offers an instrumental variable (IV)-free technique to mitigate endogeneity bias in regression models. Previous research revealed substantial finite sample bias when applying this method to regression models with an intercept. This is particularly problematic as models in marketing studies almost always require an intercept. To resolve this limitation, our research determines the bias’s sources, making several methodological advances in the process. <i>First</i>, we show that the cumulative distribution function estimation’s quality strongly affects the Gaussian copula approach’s performance. <i>Second</i>, we use this insight to develop an adjusted estimator that improves the Gaussian copula approach’s finite sample performance in regression models with (and without) an intercept. <i>Third</i>, as a broader contribution, we extend the framework for copula estimation to models with multiple endogenous variables on continuous scales and exogenous variables on discrete and continuous scales, and non-linearities such as interaction terms. <i>Fourth</i>, simulation studies confirm that the new adjusted estimator outperforms the established ones. Further simulations also underscore that our extended framework allows researchers to validly deal with multiple endogenous and exogenous regressors, and the interactions between them. <i>Fifth</i>, we demonstrate the adjusted estimator and the general framework’s systematic application, using an empirical marketing example with real-world data. These contributions enable researchers in marketing and other disciplines to effectively address endogeneity problems in their models by using the improved Gaussian copula approach.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"238 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142541562","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 : 2024-10-21DOI: 10.1007/s11747-024-01054-5
Alexa B. Burmester, Michel Clement, Jan U. Becker, Cord Otten
The success of entertainment products such as movies or books varies tremendously, and managers strive to increase the odds by deciding on the right marketing input. Aiming to improve managerial decision making, we suggest and test a quantile regression framework to detect outcome heterogeneity effects of marketing inputs in the entertainment industry. By analyzing the spread of the .9 and the .1 conditioned quantile to the .5 (median) conditioned quantile, we study how much an increase (decrease) of an input factor (star power and quality) changes the spread of the expected outcome (revenues and sales). The spread serves as an indicator for the heterogeneity effect of the input factor regarding the outcome. In two empirical studies, we show how marketing instruments increase (or decrease) outcome heterogeneity by estimating quantile regressions and provide generalizable findings regarding the outcome heterogeneity effects of star power (increases outcome heterogeneity) and quality evaluations (reduces outcome heterogeneity) in the entertainment industry.
{"title":"Marketing inputs and outcome heterogeneity: Using a quantile regression framework in the entertainment industry","authors":"Alexa B. Burmester, Michel Clement, Jan U. Becker, Cord Otten","doi":"10.1007/s11747-024-01054-5","DOIUrl":"https://doi.org/10.1007/s11747-024-01054-5","url":null,"abstract":"<p>The success of entertainment products such as movies or books varies tremendously, and managers strive to increase the odds by deciding on the right marketing input. Aiming to improve managerial decision making, we suggest and test a quantile regression framework to detect outcome heterogeneity effects of marketing inputs in the entertainment industry. By analyzing the spread of the .9 and the .1 conditioned quantile to the .5 (median) conditioned quantile, we study how much an increase (decrease) of an input factor (star power and quality) changes the spread of the expected outcome (revenues and sales). The spread serves as an indicator for the heterogeneity effect of the input factor regarding the outcome. In two empirical studies, we show how marketing instruments increase (or decrease) outcome heterogeneity by estimating quantile regressions and provide generalizable findings regarding the outcome heterogeneity effects of star power (increases outcome heterogeneity) and quality evaluations (reduces outcome heterogeneity) in the entertainment industry.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"8 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142487793","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 : 2024-10-15DOI: 10.1007/s11747-024-01056-3
Hui Feng, Kimberly A. Whitler, Michael A. Wiles
The chief marketing officer (CMO) is typically held accountable for generating firm revenue growth, but it is unclear whether current top management team (TMT) compensation practices, focused on an external benchmarking process, best align CMO behavior with this outcome. Drawing on equity theory, we explore how CMO pay (i.e., salary), relative to external and internal referents, impacts revenue growth. Using over 20 years of data for 457 public U. S. firms, we find that CMO-CFO relative pay (i.e., the Chief Finance Officer) positively relates to firm revenue growth, but CMO pay relative to the industry median does not. Further examination reveals an asymmetry in the effect for CMO-CFO relative pay—when CMOs are paid above the CFO, there is no impact on revenue growth, but when CMOs are paid below the CFO, there is a strong association to revenue growth (i.e., hampering growth), as such pay inequity can be particularly demotivating. Moderation analysis using CMO tenure provides support for this mechanistic pathway. Weaker evidence is found for the effect between CMO-highest paid TMT member relative pay and revenue growth, and no relationship between CMO-CEO relative pay and revenue growth is observed. Findings support the CFO as a key CMO pay referent and indicate that the common practice of using predominantly external benchmarks to determine CMO pay is not optimal, providing valuable insight and guidance to better align CMO pay and firm growth.
{"title":"Chief marketing officer pay: The revenue growth consequences of employing internal and external benchmarks","authors":"Hui Feng, Kimberly A. Whitler, Michael A. Wiles","doi":"10.1007/s11747-024-01056-3","DOIUrl":"https://doi.org/10.1007/s11747-024-01056-3","url":null,"abstract":"<p>The chief marketing officer (CMO) is typically held accountable for generating firm revenue growth, but it is unclear whether current top management team (TMT) compensation practices, focused on an external benchmarking process, best align CMO behavior with this outcome. Drawing on equity theory, we explore how CMO pay (i.e., salary), relative to external and internal referents, impacts revenue growth. Using over 20 years of data for 457 public U. S. firms, we find that CMO-CFO relative pay (i.e., the Chief Finance Officer) positively relates to firm revenue growth, but CMO pay relative to the industry median does not. Further examination reveals an asymmetry in the effect for CMO-CFO relative pay—when CMOs are paid above the CFO, there is no impact on revenue growth, but when CMOs are paid <i>below</i> the CFO, there is a strong association to revenue growth (i.e., hampering growth), as such pay inequity can be particularly demotivating. Moderation analysis using CMO tenure provides support for this mechanistic pathway. Weaker evidence is found for the effect between CMO-highest paid TMT member relative pay and revenue growth, and no relationship between CMO-CEO relative pay and revenue growth is observed. Findings support the CFO as a key CMO pay referent and indicate that the common practice of using predominantly external benchmarks to determine CMO pay is not optimal, providing valuable insight and guidance to better align CMO pay and firm growth.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"8 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-10-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142440160","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 : 2024-10-12DOI: 10.1007/s11747-024-01052-7
Meizhi Pan, Markus Blut, Arezou Ghiassaleh, Zach W. Y. Lee
Influencer marketing significantly impacts consumer behavior and decision-making. However, identifying the drivers of influencer marketing effectiveness and conditions that enhance their impact remains challenging. This meta-analysis, which synthesizes 1,531 effect sizes from 251 papers, assesses influencer marketing effectiveness by examining its antecedents, mediators, and moderators. Building on the persuasion knowledge model to develop and test a framework, we identify post, follower, and influencer characteristics as key antecedents impacting both non-transactional (i.e., attitude, behavioral engagement, and purchase intention) and transactional (i.e., purchase behavior and sales) marketing outcomes. For non-transactional outcomes, follower characteristics (social identity) have the strongest effects on consumer attitudes and behavioral engagement, while post characteristics (informational value and hedonic value) exert stronger effects on purchase intention. For transactional outcomes, influencer characteristics (influencer communication) have the strongest effects on purchase behavior. These antecedents also affect marketing outcomes indirectly through persuasion knowledge and source credibility. Moderation results indicate that direct and indirect effects of antecedents depend on social media types (i.e., nature of connection and usage) and product types (i.e., information availability and status-signaling capability). These results consolidate and advance the literature and offer insights into enhancing the effectiveness of influencer marketing.
{"title":"Influencer marketing effectiveness: A meta-analytic review","authors":"Meizhi Pan, Markus Blut, Arezou Ghiassaleh, Zach W. Y. Lee","doi":"10.1007/s11747-024-01052-7","DOIUrl":"https://doi.org/10.1007/s11747-024-01052-7","url":null,"abstract":"<p>Influencer marketing significantly impacts consumer behavior and decision-making. However, identifying the drivers of influencer marketing effectiveness and conditions that enhance their impact remains challenging. This meta-analysis, which synthesizes 1,531 effect sizes from 251 papers, assesses influencer marketing effectiveness by examining its antecedents, mediators, and moderators. Building on the persuasion knowledge model to develop and test a framework, we identify post, follower, and influencer characteristics as key antecedents impacting both non-transactional (i.e., attitude, behavioral engagement, and purchase intention) and transactional (i.e., purchase behavior and sales) marketing outcomes. For non-transactional outcomes, follower characteristics (social identity) have the strongest effects on consumer attitudes and behavioral engagement, while post characteristics (informational value and hedonic value) exert stronger effects on purchase intention. For transactional outcomes, influencer characteristics (influencer communication) have the strongest effects on purchase behavior. These antecedents also affect marketing outcomes indirectly through persuasion knowledge and source credibility. Moderation results indicate that direct and indirect effects of antecedents depend on social media types (i.e., nature of connection and usage) and product types (i.e., information availability and status-signaling capability). These results consolidate and advance the literature and offer insights into enhancing the effectiveness of influencer marketing.</p>","PeriodicalId":17194,"journal":{"name":"Journal of the Academy of Marketing Science","volume":"2 1","pages":""},"PeriodicalIF":18.2,"publicationDate":"2024-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142415775","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}