Word of mouth is thought to help consumers make better choices. But could the way different types of consumers endorse products sometimes lead word of mouth recipients to make worse choices than they would have otherwise? Five studies, including textual analysis of almost 1,000 online reviews, demonstrate that the language more and less knowledgeable consumers tend to use when endorsing products shapes word of mouth’s impact. Because novices are less aware that others have heterogeneous product preferences, they tend to use more explicit “I recommend” language when endorsing products. Compared to more implicit endorsements (e.g., “I liked it” or “I enjoyed it”), explicit recommendations are more persuasive and increase purchase intent. Because novices also tend to choose inferior products, word of mouth recipients may unintentionally tend to follow the advice of novices, and make sub-optimal choices as a result.
{"title":"Following the Blind: How Expertise and Endorsement Style Impact Word of Mouth Persuasion","authors":"Grant Packard, Jonah A. Berger","doi":"10.2139/SSRN.2615023","DOIUrl":"https://doi.org/10.2139/SSRN.2615023","url":null,"abstract":"Word of mouth is thought to help consumers make better choices. But could the way different types of consumers endorse products sometimes lead word of mouth recipients to make worse choices than they would have otherwise? Five studies, including textual analysis of almost 1,000 online reviews, demonstrate that the language more and less knowledgeable consumers tend to use when endorsing products shapes word of mouth’s impact. Because novices are less aware that others have heterogeneous product preferences, they tend to use more explicit “I recommend” language when endorsing products. Compared to more implicit endorsements (e.g., “I liked it” or “I enjoyed it”), explicit recommendations are more persuasive and increase purchase intent. Because novices also tend to choose inferior products, word of mouth recipients may unintentionally tend to follow the advice of novices, and make sub-optimal choices as a result.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-06-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123286374","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Prior research examining consumer expectations of equity and price fairness has not addressed wage fairness, as measured by a firm’s pay ratio. Pending legislation will require American public companies to disclose the pay ratio of CEO wage to the average employee’s wage. Our six studies show that pay ratio disclosure affects purchase intention of consumers via perceptions of wage fairness. The disclosure of a retailer’s high pay ratio (e.g., 1000 to 1) reduces purchase intention relative to firms with lower ratios (e.g., 5 to 1 or 60 to 1, Studies 1A, 1B, and 1C). Lower pay ratios improve consumer perceptions across a range of products at different price points (Study 2A and 2B), increase consumer ratings of both firm warmth and firm competence (Study 3), and enhance perceptions of Democrats and Independents without alienating Republican consumers (Study 4). A firm with a high ratio must offer a 50% price discount to garner as favorable consumer impressions as a firm that charges full price but features a lower ratio (Study 5).
{"title":"Paying Up for Fair Pay: Consumers Prefer Firms with Lower CEO-to-Worker Pay Ratios","authors":"Bhavya Mohan, M. Norton, Rohit Deshpandé","doi":"10.2139/SSRN.2611289","DOIUrl":"https://doi.org/10.2139/SSRN.2611289","url":null,"abstract":"Prior research examining consumer expectations of equity and price fairness has not addressed wage fairness, as measured by a firm’s pay ratio. Pending legislation will require American public companies to disclose the pay ratio of CEO wage to the average employee’s wage. Our six studies show that pay ratio disclosure affects purchase intention of consumers via perceptions of wage fairness. The disclosure of a retailer’s high pay ratio (e.g., 1000 to 1) reduces purchase intention relative to firms with lower ratios (e.g., 5 to 1 or 60 to 1, Studies 1A, 1B, and 1C). Lower pay ratios improve consumer perceptions across a range of products at different price points (Study 2A and 2B), increase consumer ratings of both firm warmth and firm competence (Study 3), and enhance perceptions of Democrats and Independents without alienating Republican consumers (Study 4). A firm with a high ratio must offer a 50% price discount to garner as favorable consumer impressions as a firm that charges full price but features a lower ratio (Study 5).","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131212257","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Virginia Weber, Sarah G. Moore, R. MacDonnell, Jennifer J. Argo
{"title":"The Public Heart: the Impact of Sharing Emotions on Social Media","authors":"Virginia Weber, Sarah G. Moore, R. MacDonnell, Jennifer J. Argo","doi":"10.7939/R34X54Q2B","DOIUrl":"https://doi.org/10.7939/R34X54Q2B","url":null,"abstract":"","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125543222","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
How much is the plating and presentation of a food worth? A lab study and a cafeteria study investigate two different perspectives on how visual cues bias taste evaluations and willingness to pay. In general, it is found that a “What is beautiful tastes good” perspective provides a better explanation of how visual cues bias the taste evaluation of familiar, favorable foods than does the conventionally used “confirmation bias” perspective. These visual cues of plating and presentation influence taste and willingness to pay by a range of 14-121 percent. Although there is effort and cost associated with plating and presentation, these results suggest it is effective both for ratings of a food’s taste and how much someone is willing to pay for it.
{"title":"What is Beautiful Tastes Good: Visual Cues, Taste, and Willingness to Pay","authors":"B. Wansink, C. Payne, J. Painter","doi":"10.2139/SSRN.2473603","DOIUrl":"https://doi.org/10.2139/SSRN.2473603","url":null,"abstract":"How much is the plating and presentation of a food worth? A lab study and a cafeteria study investigate two different perspectives on how visual cues bias taste evaluations and willingness to pay. In general, it is found that a “What is beautiful tastes good” perspective provides a better explanation of how visual cues bias the taste evaluation of familiar, favorable foods than does the conventionally used “confirmation bias” perspective. These visual cues of plating and presentation influence taste and willingness to pay by a range of 14-121 percent. Although there is effort and cost associated with plating and presentation, these results suggest it is effective both for ratings of a food’s taste and how much someone is willing to pay for it.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125631645","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Firms collecting product ratings are able to choose the scale design (e.g., 2-pt vs. 5-pt scales) for consumers to provide rating scores. While previous research on survey methodology has studied the impact of scale design on measurement reliability and validity, there has been little work documenting the potential impact of this choice following the rating event. The present research argues that the rating scale may affect a rater's likelihood of engaging in subsequent word-of-mouth (WOM) behavior. Specifically, conducting four experiments, we show that participants' WOM intentions are higher after evaluating their consumption experience on a 5-point rating scale than on a 2-point rating scale. We introduce a new construct – “rating certainty” – which reflects a rater's certainty belief regarding her chosen rating score and which mediates the relationship between rating scale and WOM intentions.
{"title":"Rating with Confidence: How Rating Scales Affect Future WOM Behavior","authors":"Yu-Jen Chen, D. Godes","doi":"10.2139/SSRN.2326985","DOIUrl":"https://doi.org/10.2139/SSRN.2326985","url":null,"abstract":"Firms collecting product ratings are able to choose the scale design (e.g., 2-pt vs. 5-pt scales) for consumers to provide rating scores. While previous research on survey methodology has studied the impact of scale design on measurement reliability and validity, there has been little work documenting the potential impact of this choice following the rating event. The present research argues that the rating scale may affect a rater's likelihood of engaging in subsequent word-of-mouth (WOM) behavior. Specifically, conducting four experiments, we show that participants' WOM intentions are higher after evaluating their consumption experience on a 5-point rating scale than on a 2-point rating scale. We introduce a new construct – “rating certainty” – which reflects a rater's certainty belief regarding her chosen rating score and which mediates the relationship between rating scale and WOM intentions.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126447099","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
To date, academic research has uniformly discussed the positive consequences that a reputation for innovativeness can have for brands and/or firms. We extend this work by demonstrating that a reputation for innovativeness can have negative consequences in certain contexts. Specifically, we show evidence that when a brand has a reputation for innovativeness (vs. the absence of this reputation), consumers perceive products from that brand as being more likely to malfunction in contexts where functional risk concerns are relevant. We demonstrate that this shift in anticipated malfunction negatively affects both product quality perceptions and purchase likelihood. Further, we demonstrate four theoretically grounded conditions under which this counter-intuitive effect occurs, and in doing so offer implications for both theory and practice. In addition, we discuss several explanations to reconcile our findings with prior literature.
{"title":"When a Reputation for Innovativeness Confers Negative Consequences for Brands","authors":"Jeffrey S Larson, Kelly Goldsmith, B. J. Allen","doi":"10.2139/SSRN.2313407","DOIUrl":"https://doi.org/10.2139/SSRN.2313407","url":null,"abstract":"To date, academic research has uniformly discussed the positive consequences that a reputation for innovativeness can have for brands and/or firms. We extend this work by demonstrating that a reputation for innovativeness can have negative consequences in certain contexts. Specifically, we show evidence that when a brand has a reputation for innovativeness (vs. the absence of this reputation), consumers perceive products from that brand as being more likely to malfunction in contexts where functional risk concerns are relevant. We demonstrate that this shift in anticipated malfunction negatively affects both product quality perceptions and purchase likelihood. Further, we demonstrate four theoretically grounded conditions under which this counter-intuitive effect occurs, and in doing so offer implications for both theory and practice. In addition, we discuss several explanations to reconcile our findings with prior literature.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"125 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-08-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122063558","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A variety of empirical findings reviewed in this research support the general thesis that the affective system of judgment and decision making is inherently anchored in the present. Building on this thesis, this research advances the specific hypothesis that affective feelings are relied on more (weighted more heavily) in judgments whose outcomes and targets are closer to the present than in those whose outcomes and targets are temporally more distant. Results from five experiments show that temporal proximity (a) amplifies the relative preference for options that are affectively superior and (b) increases the effects of incidental affect on evaluations. These effects are observed when compared to a more distant future as well as to a more distant past, and (c) they appear to be linked to a greater perceived information value of affective feelings in judgments whose outcomes and targets are closer to the present. Theoretical implications are discussed.
{"title":"Differential Reliance on Feelings in the Present vs. the Future (or Past): Affect as a Decision Making System of the Present","authors":"Hanwen Chang, Michel Tuan Pham","doi":"10.1086/668644","DOIUrl":"https://doi.org/10.1086/668644","url":null,"abstract":"A variety of empirical findings reviewed in this research support the general thesis that the affective system of judgment and decision making is inherently anchored in the present. Building on this thesis, this research advances the specific hypothesis that affective feelings are relied on more (weighted more heavily) in judgments whose outcomes and targets are closer to the present than in those whose outcomes and targets are temporally more distant. Results from five experiments show that temporal proximity (a) amplifies the relative preference for options that are affectively superior and (b) increases the effects of incidental affect on evaluations. These effects are observed when compared to a more distant future as well as to a more distant past, and (c) they appear to be linked to a greater perceived information value of affective feelings in judgments whose outcomes and targets are closer to the present. Theoretical implications are discussed.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"115 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117299102","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Why do people use online social networking sites (e.g., Facebook) and what are the implications of this behavior for well-being? While emotionally unstable individuals experience emotions more intensely, they are less adept at regulation. Consequently, we suggest they may rely on others more to help them deal with their emotions. Further, given they tend to be socially apprehensive they may be particularly likely to rely on online expression because it is less threatening. Consistent with this perspective, we find that emotional unstable individuals are more likely to post self-relevant information online and write about their emotions when doing so – a tendency not observed offline. Further, such emotional writing, paired with the potential to receive social support helps them repair well-being after negative experiences. These results shed light on a motivator for, and benefit of, online social networking, while also demonstrating how the social sharing of emotion can boost well-being.
{"title":"Facebook Therapy? Why Do People Share Self-Relevant Content Online?","authors":"Jonah A. Berger, Eva C. Buechel","doi":"10.2139/SSRN.2013148","DOIUrl":"https://doi.org/10.2139/SSRN.2013148","url":null,"abstract":"Why do people use online social networking sites (e.g., Facebook) and what are the implications of this behavior for well-being? While emotionally unstable individuals experience emotions more intensely, they are less adept at regulation. Consequently, we suggest they may rely on others more to help them deal with their emotions. Further, given they tend to be socially apprehensive they may be particularly likely to rely on online expression because it is less threatening. Consistent with this perspective, we find that emotional unstable individuals are more likely to post self-relevant information online and write about their emotions when doing so – a tendency not observed offline. Further, such emotional writing, paired with the potential to receive social support helps them repair well-being after negative experiences. These results shed light on a motivator for, and benefit of, online social networking, while also demonstrating how the social sharing of emotion can boost well-being.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128826731","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The dread of future losses weighs more heavily than the pleasure of anticipating future gains, even after controlling for loss aversion. This happens because waiting for a gain is a mixed emotional experience that is both pleasurable (due to savoring) and painful (due to impatience), whereas waiting for a loss is a more unidimensional painful experience (dread). Anticipation predicts time preference, such that the more people enjoy anticipating [dread] an event, the more they prefer to delay it [get it over with]. In combination, these findings explain and mediate the "sign effect" in discounting, i.e., the fact that losses are discounted less than gains. Furthermore, this pattern of results remains robust even after controlling for loss aversion.
{"title":"The Bright Side of Dread: Anticipation Asymmetries Explain Why Losses are Discounted Less than Gains","authors":"David J. Hardisty, S. Frederick, E. Weber","doi":"10.2139/SSRN.1961370","DOIUrl":"https://doi.org/10.2139/SSRN.1961370","url":null,"abstract":"The dread of future losses weighs more heavily than the pleasure of anticipating future gains, even after controlling for loss aversion. This happens because waiting for a gain is a mixed emotional experience that is both pleasurable (due to savoring) and painful (due to impatience), whereas waiting for a loss is a more unidimensional painful experience (dread). Anticipation predicts time preference, such that the more people enjoy anticipating [dread] an event, the more they prefer to delay it [get it over with]. In combination, these findings explain and mediate the \"sign effect\" in discounting, i.e., the fact that losses are discounted less than gains. Furthermore, this pattern of results remains robust even after controlling for loss aversion.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"69 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114723236","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This research investigates changes in brand loyalty as households pass from one stage of the household life cycle to another. Analysing 45 brands in three consumer product categories in the UK, we find that the changes follow a U shape pattern. Brand loyalty declines sharply as households shift from the pre-family stage to the young family stage, remains relatively lower through the older family stage, and then increases sharply at the post family and older single stages.
{"title":"The Relationship between Household Lifecycle and Brand Loyalty","authors":"G. Trinh, Malcolm J. Wright","doi":"10.2139/SSRN.1842083","DOIUrl":"https://doi.org/10.2139/SSRN.1842083","url":null,"abstract":"This research investigates changes in brand loyalty as households pass from one stage of the household life cycle to another. Analysing 45 brands in three consumer product categories in the UK, we find that the changes follow a U shape pattern. Brand loyalty declines sharply as households shift from the pre-family stage to the young family stage, remains relatively lower through the older family stage, and then increases sharply at the post family and older single stages.","PeriodicalId":268180,"journal":{"name":"ACR North American Advances","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-04-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114471388","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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