Showing papers in "Journal of Marketing in 2013"

More Than Words: The Influence of Affective Content and Linguistic Style Matches in Online Reviews on Conversion Rates

Abstract: Customers increasingly rely on other consumers' reviews to make purchase decisions online. New insights into the customer review phenomenon can be derived from studying the semantic content and style properties of verbatim customer reviews to examine their influence on online retail sites' conversion rates. The authors employ text mining to extract changes in affective content and linguistic style properties of customer book reviews on Amazon.com. A dynamic panel data model reveals that the influence of positive affective content on conversion rates is asymmetrical, such that greater increases in positive affective content in customer reviews have a smaller effect on subsequent increases in conversion rate. No such tapering-off effect occurs for changes in negative affective content in reviews. Furthermore, positive changes in affective cues and increasing congruence with the product interest group's typical linguistic style directly and conjointly increase conversion rates. These findings suggest that managers should identify and promote the most influential reviews in a given product category, provide instructions to stimulate reviewers to write powerful reviews, and adapt the style of their own editorial reviews to the relevant product category.

The Effects of Positive and Negative Online Customer Reviews: Do Brand Strength and Category Maturity Matter?

Abstract: Research has shown brand equity to moderate the relationship between online customer reviews (OCRs) and sales in both the emerging Blu-ray and mature DVD player categories. Positive (negative) OCRs increase (decrease) the sales of models of weak brands (i.e., brands without significant positive brand equity). In contrast, OCRs have no significant impact on the sales of the models of strong brands, although these models do receive a significant sales boost from their greater brand equity. Higher sales lead to a larger number of positive OCRs, and increased positive OCRs aid a brand's transition from weak to strong. This creates a positive feedback loop between sales and positive OCRs for models of weak brands that not only helps their sales but also increases overall brand equity, benefiting all models of the brand. In contrast to the view that brands matter less in the presence of OCRs, we find that OCRs matter less in the presence of strong brands. Positive OCRs function differently than marketing commun...

Good and Guilt-Free: The Role of Self-Accountability in Influencing Preferences for Products with Ethical Attributes:

Abstract: The market share of brands positioned using ethical attributes typically lags behind brands that promote attributes related to product performance. Across four studies, the authors show that situational factors that heighten consumers' self-accountability (i.e., activation of their desire to live up to their self-standards) lead to increased preferences for products promoted through their ethical attributes. They investigate their predictions regarding self-accountability in multiple ways, including examining the moderating roles of awareness of the discrepancy between a person's internal standards and actual behavior, self-accountability priming, and the presence of others in the decision context. Furthermore, they demonstrate that the subtle activation of self-accountability leads to more positive reactions to ethical appeals than explicit guilt appeals. Finally, they show that preference for a product promoted through ethical appeals is driven by the desire to avoid anticipated guilt, beyond t...

Corporate Social Responsibility in Business-to-Business Markets : How Organizational Customers Account for Supplier Corporate Social Responsibility Engagement

Abstract: Despite the high relevance of corporate social responsibility (CSR) in current business practice and the considerable research on CSR outcomes in consumer markets, investigations of its influence on organizational business relationships are scarce. Relying on instrumental stakeholder theory, the authors develop and empirically test a framework of the influence of a supplier's CSR engagement on organizational customer outcomes. Findings from an examination of 200 cross-industry supplier–customer dyads reveal positive effects of two facets of a supplier's CSR efforts on customer loyalty through distinct mechanisms. Business practice CSR fosters customers' trust, whereas philanthropic CSR strengthens customer–company identification. The authors distinguish a supplier's actual CSR engagement and customers' perception of these CSR activities. In addition, they consider central contingency factors reflecting uncertainty and dependence in business-to-business relationships that determine the effectiveness of CSR.

Are Multichannel Customers Really More Valuable? The Moderating Role of Product Category Characteristics.

Abstract: How does the monetary value of customer purchases vary by customer preference for purchase channels (e.g., traditional, electronic, multichannel) and product category? The authors develop a conceptual model and hypotheses on the moderating effects of two key product category characteristics—the utilitarian versus hedonic nature of the product category and perceived risk—on the channel preference–monetary value relationship. They test the hypotheses on a unique large-scale, empirically generalizable data set in the retailing context. Contrary to conventional wisdom that all multichannel customers are more valuable than single-channel customers, the results show that multichannel customers are the most valuable segment only for hedonic product categories. The findings reveal that traditional channel customers of low-risk categories provide higher monetary value than other customers. Moreover, for utilitarian product categories perceived as high (low) risk, web-only (catalog- or store-only) shoppers constitu...

The Effect of In-Store Travel Distance on Unplanned Spending: Applications to Mobile Promotion Strategies

Abstract: Typically, shoppers' paths only cover less than half of the areas in a grocery store. Given that shoppers often use physical products in the store as external memory cues, encouraging shoppers to travel more of the store may increase unplanned spending. Estimating the direct effect of in-store travel distance on unplanned spending, however, is complicated by the difficulty of collecting in-store path data and the endogeneity of in-store travel distance. To address both issues, the authors collect a novel data set using in-store radio frequency identification tracking and develop an instrumental variable approach to account for endogeneity. Their analysis reveals that the elasticity of unplanned spending on travel distance is 57% higher than the uncorrected ordinary least squares estimate. Simulations based on the authors' estimates suggest that strategically promoting three product categories through mobile promotion could increase unplanned spending by 16.1%, compared with the estimated effect o...

When Do (and Don't) Normative Appeals Influence Sustainable Consumer Behaviors?

Abstract: The authors explore how injunctive appeals (ie, highlighting what others think one should do), descriptive appeals (ie, highlighting what others are doing), and benefit appeals (ie, highlighting the benefits of the action) can encourage consumers to engage in relatively unfamiliar sustainable behaviors such as “grasscycling” and composting Across one field study and three laboratory studies, the authors demonstrate that the effectiveness of the appeal type depends on whether the individual or collective level of the self is activated When the collective level of self is activated, injunctive and descriptive normative appeals are most effective, whereas benefit appeals are less effective in encouraging sustainable behaviors When the individual level of self is activated, self-benefit and descriptive appeals are particularly effective The positive effects of descriptive appeals for the individual self are related to the informational benefits that such appeals can provide The authors pro

Relationship Velocity: Toward a Theory of Relationship Dynamics:

Abstract: The dynamic components of relational constructs should play an important role in driving performance. To take an initial step toward a theory of relationship dynamics, the authors introduce the construct of commitment velocity— or the rate and direction of change in commitment—and articulate its important role in understanding relationships. In two studies, the authors demonstrate that commitment velocity has a strong impact on performance, beyond the impact of the level of commitment. In Study 1, modeling six years of longitudinal data in a latent growth curve analysis, the authors empirically demonstrate the significance of commitment velocity as a predictor of performance. In Study 2, the authors use matched multiple-source data to investigate the drivers of commitment velocity. Both customer trust and dynamic capabilities for creating value through exchange relationships (i.e., communication capabilities for exploring and investment capabilities for exploiting opportunities) affect commitment...

Branded Service Encounters: Strategically Aligning Employee Behavior with the Brand Positioning

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

When Humanizing Brands Goes Wrong: The Detrimental Effect of Brand Anthropomorphization amid Product Wrongdoings:

Abstract: The brand relationship literature shows that the humanizing of brands and products generates more favorable consumer attitudes and thus enhances brand performance. However, the authors propose negative downstream consequences of brand humanization; that is, the anthropomorphization of a brand can negatively affect consumers' brand evaluations when the brand faces negative publicity caused by product wrongdoings. They find that consumers who believe in personality stability (i.e., entity theorists) view anthropomorphized brands that undergo negative publicity less favorably than nonanthropomorphized brands. In contrast, consumers who advocate personality malleability (i.e., incremental theorists) are less likely to devalue an anthropomorphized brand from a single instance of negative publicity. Finally, the authors explore three firm response strategies (i.e., denial, apology, and compensation) that can affect the evaluations of anthropomorphized brands for consumers with different implicit theory...

Rising from the Ashes: How Brands and Categories Can Overcome Product-Harm Crises

Abstract: Product-harm crises are omnipresent in today's marketplace. Such crises can cause major revenue and market-share losses, lead to costly product recalls, and destroy carefully nurtured brand equity. Moreover, some of these effects may spill over to nonaffected competitors in the category when they are perceived to be guilty by association. The extant literature lacks generalizable knowledge on the effectiveness of different marketing adjustments that managers often consider to mitigate the consequences of such events. To fill this gap, the authors use large household-scanner panels to analyze 60 fast-moving consumer good product crises that occurred in the United Kingdom and the Netherlands and resulted in the full recall of an entire variety. The authors assess the effects of postcrisis advertising and price adjustments on the change in consumers' brand share and category purchases. In addition, they consider the extent to which the effects are moderated by two key crisis characteristics: the ext...

Marketing renaissance : Opportunities and imperatives for improving marketing thought, practice, and infrastructure

Abstract: My three-year term as editor of Journal of Marketing concludes with the October 2005 issue. On the basis of my interactions with various people in the marketing community, I believe that marketing science and practice are in transition, bringing change to the content and boundaries of the discipline. Thus, I invited some distinguished scholars to contribute short essays on the current challenges, opportunities, and imperatives for improving marketing thought and practice. Each author chose his or her topic and themes. However, in a collegial process, the authors read and commented on one another's essays, after which each author had an opportunity to revise his or her essay. The result is a thoughtful and constructive set of essays that are related to one another in interesting ways and that should be read together. I have grouped the essays as follows: •What is the domain of marketing? This question is addressed in four essays by Stephen W. Brown, Frederick E. Webster Jr., Jan-Benedict E.M. Steenkamp, and William L. Wilkie. •How has the marketing landscape (i.e., content) changed? This question is addressed in two essays, one coauthored by Jagdish N. Sheth and Rajendra S. Sisodia and the other by Roger A. Kerin. •How should marketing academics engage in research, teaching, and professional activities? This question is addressed in five essays by Debbie MacInnis; Leigh McAlister; Jagmohan S. Raju; Ronald J. Bauerly, Don T. Johnson, and Mandeep Singh; and Richard Staelin. Another interesting way to think about the essays, as Jan-Benedict E.M. Steenkamp suggests, is to group the essays according to whether they address issues of content, publishing, or impact (see Table 1). These 11 essays strike a common theme: They urge marketers—both scientists and practitioners—to expand their horizontal vision. What do I mean by horizontal vision? In The Great Influenza, Barry (2004) describes the enormous strides that were made in medical science early in the twentieth century. His depiction of William Welch, an extremely influential scientist who did not (as a laboratory researcher) generate important findings, includes a characterization of the “genius” that produces major scientific achievements. The research he did was first-rate. But it was only first-rate—thorough, rounded, and even irrefutable, but not deep enough or provocative enough or profound enough to set himself or others down new paths, to show the world in a new way, to make sense out of great mysteries…. To do this requires a certain kind of genius, one that probes vertically and sees horizontally. Horizontal vision allows someone to assimilate and weave together seemingly unconnected bits of information. It allows an investigator to see what others do not see and to make leaps of connectivity and creativity. Probing vertically, going deeper and deeper into something, creates new information. (p. 60) At my request, each author has provided thoughtful and concrete suggestions for how marketing academics and practitioners, both individually and collectively (through our institutions), can work to improve our field. Many of their suggestions urge people and institutions to expand their horizontal vision and make connections, thereby fulfilling their potential to advance the science and practice of marketing. In his essay, Richard Staelin writes (p. 22), “I believe that it is possible to influence directly the generation and adoption of new ideas.” I agree. I ask the reader to think about the ideas in these essays and to act on them. Through our actions, we shape our future. —Ruth N. Bolton

Reexamining the Market Share–Customer Satisfaction Relationship:

Abstract: Market share and customer satisfaction are often used to assess marketing performance. Despite the widespread assumption of a positive relationship between these two variables, the limited extant empirical literature on the subject indicates either a negative or a nonsignificant relationship. The authors reexamine this relationship over a longer time period than has previously been possible in a representative sample of U.S. consumer markets and find a consistently significant negative market share–customer satisfaction relationship. This is because customer satisfaction is generally not predictive of firms' future market share, but market share is a strong negative predictor of firms' future customer satisfaction. In follow-up analyses, the authors find that a firm's customer satisfaction can predict its future market share when it is benchmarked against that of its nearest rival and customer switching costs are low. In examining why the market share–future customer satisfaction relationship is generally...

When Does Recognition Increase Charitable Behavior? Toward a Moral Identity-Based Model

Abstract: Each year, people in the United States donate more than $200 billion to charitable causes. Despite the lack of understanding of whether and how recognition increases charitable behavior, charities often offer it to motivate donor action. This research focuses on how the effectiveness of recognition on charitable behavior is dependent on the joint influence of two distinct dimensions of moral identity: internalization and symbolization. Three studies examining both monetary donations and volunteering behavior show that recognition increases charitable behavior among those characterized by high moral identity symbolization and low moral identity internalization. Notably, those who show high levels of moral identity internalization are uninfluenced by recognition, regardless of their symbolization. By understanding correlates of the two dimensions of moral identity among donors, nonprofits can strategically recognize potential donors to maximize donation and volunteering behavior.

What Drives Managerial Use of Marketing and Financial Metrics and Does Metric Use Affect Performance of Marketing-Mix Activities?

Abstract: To increase marketing's accountability, Journal of Marketing, Marketing Science Institute, and the Institute for the Study of Business Markets have advocated development of marketing metrics and linking marketing-mix activities with financial metrics. Although the marketing field has made progress, researchers have paid less attention to what drives managerial use of marketing and financial metrics and whether metric use is associated with marketing-mix performance. The authors propose a conceptual model that links firm strategy, metric orientation, type of marketing-mix activity, and managerial, firm, and environmental characteristics to marketing and financial metric use, which in turn are linked to performance of marketing-mix activities. An analysis of 1287 marketing-mix activities reported by 439 U.S. managers reveals that firm strategy, metric orientation, type of marketing-mix activity, and firm and environmental characteristics are more useful than managerial characteristics in explaining...

Low Prices are Just the Beginning: Price Image in Retail Management:

Abstract: Recent managerial evidence and academic research has suggested that consumer decisions are influenced not only by the prices of individual items but also by a retailer's price image, which reflects a consumer's impression of the overall price level of a retailer. Despite the increasing importance of price image in marketing theory and practice, existing research has not provided a clear picture of how price images are formed and how they influence consumer behavior. This article addresses this discrepancy by offering a comprehensive framework delineating the key drivers of price image formation and their consequences for consumer behavior. Contrary to conventional wisdom that assumes price image is mainly a function of a retailer's average price level, this research identifies several price-related and nonprice factors that contribute to price image formation. The authors further identify conditions in which these factors can overcome the impact of the average level of prices, resulting in a low price ima...

Consumer-Generated Ads: Does Awareness of Advertising Co-Creation Help or Hurt Persuasion?:

Abstract: Companies increasingly involve consumers in the process of developing advertising and other marketing actions. An important question that has not been explored is whether brands benefit from communicating to consumers who had not been involved in the co-creation process that a target ad was developed by a fellow consumer. The authors propose a skepticism–identification model of ad creator influence, which hypothesizes that disclosing to an audience that an ad was created by a consumer triggers two opposing effects: skepticism about the competence of the ad creator and identification with the ad creator. Four studies demonstrate that the effectiveness of disclosing advertising co-creation depends on factors that hinder skepticism and heighten identification with the ad creator. Specifically, attributing the ad to a consumer is shown to increase persuasion when the audience (1) has limited cognitive resources to scrutinize the message, (2) is given background information about the ad creator that e...

What Is Special About Marketing Organic Products? How Organic Assortment, Price, and Promotions Drive Retailer Performance

Abstract: Higher sales and margins are key goals for retailers promoting emerging products, such as organics, but little is known about their marketing effectiveness and their cross-effects on conventional product sales. Extant research reports conflicting results about price and promotional sensitivity for organic products and does not address the impact of organic assortment. This article calculates long-term own- and cross-elasticities of organic and conventional product sales in response to changes in assortment, price, and promotions. Using a rich data set of 56 categories, the authors test hypotheses on how different costs and benefits of organic products affect these elasticities. They find that enduring actions, such as assortment and regular price changes, have a higher elasticity for organics than for conventional products. In contrast with common wisdom, even “core” organic consumers are sensitive to these actions. Increasing organic assortment and promotion breadth yields higher profits for the...

All That Is Users Might Not Be Gold: How Labeling Products as User Designed Backfires in the Context of Luxury Fashion Brands

Abstract: An emerging literature stream posits that drawing on users rather than internal designers in new product creation may benefit firms because the resulting products effectively satisfy consumer needs. Four studies conducted in the context of the luxury fashion industry uncover an important conceptual boundary condition of this positive user-design effect. Contrary to extant research, the results show that being “close” to users does not help but rather harms luxury fashion brands. Specifically, the authors find that user design backfires because consumer demand for a given luxury fashion brand collection is reduced if the collection is labeled as user (vs. company) designed. The results further reveal the underlying rationale for this reversal: user-designed luxury products are perceived to be lower in quality and fail to signal high status, which results in a loss of agentic feelings for the consumer. The authors explore several strategies luxury brands can pursue to overcome this negative user-design effe...

Not All Repeat Customers Are the Same: Designing Effective Cross-Selling Promotion on the Basis of Attitudinal Loyalty and Habit.

Abstract: Not all repeat purchases are created equal. They can be driven by both positive reaction toward a brand (i.e., attitudinal loyalty) and automaticity triggered by non-brand-related contextual cues (i.e., habit). Combining the loyalty literature with recent habit research, the authors suggest ways to distinguish the two drivers of repeat purchase and examine how they affect consumer response to cross-selling promotions. In Study 1, the authors propose a method to derive individual-level habit strength from consumer transaction records and demonstrate the influence of both attitudinal loyalty and habit on repeat purchase. Studies 2a and 2b then show that attitudinal loyalty facilitates cross-selling, whereas habit has the opposite effect. Finally, in Study 3, the authors suggest a specific promotional design that works better for habitual consumers than for those with attitudinal loyalty and demonstrate that ignoring these two underlying drivers can lead to unintended negative consequences on consumer behavi...

Does Knowledge Base Compatibility Help or Hurt Knowledge Sharing Between Suppliers in Coopetition? The Role of Customer Participation

Abstract: Competing suppliers that collaborate to serve downstream original equipment manufacturer customers often encounter partners with overlapping and compatible knowledge bases. Such knowledge base compatibility provides supplier partners the opportunity to exchange knowledge efficiently, leading to greater knowledge sharing. However, the ease of misappropriation of the shared knowledge can offset this beneficial effect. This research proposes that the effect of knowledge base compatibility on supplier partners' knowledge sharing is moderated by the customer's participation in the collaborative effort and by the customer value such effort creates. The results of two empirical studies show that when levels of both customer participation and customer value are high, knowledge base compatibility between supplier partners leads to greater knowledge sharing. In contrast, when customer participation is high but customer value is low, knowledge base compatibility leads to lower levels of supplier knowledge sharing. T...

Growing Existing Customers' Revenue Streams Through Customer Referral Programs

Abstract: Customer referral programs are an effective means of customer acquisition. By assessing a large-scale customer data set from a global cellular telecommunications provider, the authors show that participation in a referral program also increases existing customers' loyalty. In a field experiment, recommenders' defection rates fell from 19% to 7% within a year, and their average monthly revenue grew by 11.4% compared with a matched control group. A negative interaction between referral program participation and customer tenure reveals that the loyalty effect of voicing a recommendation is particularly pronounced for newer customer–firm relationships. A laboratory experiment further demonstrates that referral programs with larger rewards strengthen attitudinal and behavioral loyalty, whereas smaller rewards affect only the behavioral dimension. This article contributes to our theoretical understanding of the roles played by the commitment–consistency principle and positive reinforcement theory as mechanisms ...

When Do Transparent Packages Increase (or Decrease) Food Consumption

Abstract: Transparent packages are pervasive in food consumption environments. Yet prior research has not systematically examined whether and how transparent packaging affects food consumption. The authors propose that transparent packaging has two opposing effects on food consumption: it enhances food salience, which increases consumption (salience effect), and it facilitates consumption monitoring, which decreases consumption (monitoring effect). They argue that the net effect of transparent packaging on food consumption is moderated by food characteristics (e.g., unit size, appearance). For small, visually attractive foods, the monitoring effect is low, so the salience effect dominates, and people eat more from a transparent package than from an opaque package. For large foods, the monitoring effect dominates the salience effect, decreasing consumption. For vegetables, which are primarily consumed for their health benefits, consumption monitoring is not activated, so the salience effect dominates, which ironical...

Product Design for the Long Run: Consumer Responses to Typical and Atypical Designs at Different Stages of Exposure

Abstract: Extant research on product design has suggested that a design's typicality is an important determinant of consumers' aesthetic liking. Yet most studies to date have measured consumers' reactions to designs of varied typicality after a single exposure. In reality, however, consumers usually have multiple opportunities to observe a product before making a decision. Against this background, the authors perform three studies in the automobile domain that examine whether the positive effect of design typicality is moderated by the level of exposure. Study 1 indicates that aesthetic liking of typical car designs is greater at lower exposure levels, whereas people like atypical car designs better at higher exposure levels. Study 2 uses real sales data and indicates that the interaction between design typicality and exposure also affects sales, suggesting that atypical cars may be more successful in the long run. Using experimental manipulations of the key constructs, Study 3 provides evidence for the underlying ...

Ethnographic Stories for Market Learning.

Abstract: Although ethnography has become a popular research approach in many organizations, major gaps exist in the field's understanding of the way it operates in the corporate world, particularly in how ethnography facilitates market learning. Drawing from extensive fieldwork in the world of commercial ethnography, the authors describe how ethnographic stories give executives a unique means of understanding market realities. By working through the rich details of ethnographic stories infused with the tensions, contradictions, and emotions of people's everyday lives, executives are better able to grasp the complexity of consumer cultures. Overall, this research should help managers leverage the catalytic effects of ethnographic storytelling in their efforts to learn about and understand market contexts.

Targeting Revenue Leaders for a New Product.

Abstract: Historically, when targeting potential adopters of a new product, firms have tended to focus first on people with disproportional effect on others, often labeled “opinion leaders.” The authors highlight the benefit of targeting customers with high lifetime value (CLV), or “revenue leaders.” The authors argue that targeting revenue leaders can create high value both by accelerating adoption among these customers and because of the higher-than-average value that revenue leaders generate by affecting other customers with similarly high CLV. The latter phenomenon is driven by network assortativity, whereby people's social networks tend to be composed of others who are similar to themselves. Analyzing an agent-based model of a seeding program for a new product, the authors contrast revenue leader seeding with opinion leader seeding and compare the factors that influence the effectiveness of each. They show that the distribution of CLV in the population and the seed size play a major role in determinin...

An Investigation of the Effectiveness of Uncertainty in Marketing Promotions Involving Free Gifts

Abstract: The authors provide a framework to predict when uncertainty will have a beneficial or detrimental impact on marketing promotions involving free gifts. Whereas uncertainty (i.e., not knowing which free gift will be offered) decreases purchase likelihood when the decision is cognitive, it increases purchase likelihood when the decision is affective. Using field and laboratory studies, the authors demonstrate that when the decision involves affect, people like to be surprised and appreciate uncertainty in the purchase process. When the decision is cognitive, consumers appreciate having information about the product offer. This research has both theoretical implications for research on affect and uncertainty and practical implications for marketing managers designing and implementing promotional campaigns.

Passive and Active Opportunism in Interorganizational Exchange.

Abstract: This article examines how firms in interorganizational relationships respond differently to active and passive opportunism and observes how these opportunism forms erode satisfaction with the performance of these relationships. The multimethod approach of two experiments and one longitudinal field study demonstrate that firms tolerate more passive opportunism than active opportunism (Study 1) and that transaction costs play a mediating role between opportunism form and satisfaction with performance of the relationship (Study 2). Finally, the field study reveals that, over time, passive opportunism has a more corrosive impact on satisfaction with performance than active opportunism (Study 3). Together, the findings underscore the importance of distinguishing passive and active opportunism and the need to develop a better understanding of its management and consequences.

Can Brands Move In from the Outside? How Moral Identity Enhances Out-Group Brand Attitudes

Abstract: Consumers tend to have more favorable attitudes for their in-group brands than their out-group brands. However, little is known regarding how brand managers can overcome consumers' negative attitudes toward out-group brands. Drawing on the moral identity literature, the authors theorize that moral identity may enhance out-group (but not in-group) brand attitudes through decreased psychological distance. Four studies demonstrate that moral identity increases out-group brand attitudes. The authors also identify two important boundary conditions of this moral identity effect. These findings suggest that brand managers who want to overcome the less-than-favorable perceptions associated with out-group brands may benefit from drawing on consumers' moral identity in marketing communications. Theoretically, this research establishes that moral identity extends beyond prosocial behaviors to influence marketplace judgments (i.e., brand attitudes and categorization).

The Impact of Product Recalls on Future Product Reliability and Future Accidents: Evidence from the Automobile Industry

Abstract: Although the goal of a product recall program is to enhance safety, little is known about whether firms learn from product recalls. This study tests the direct effect of product recalls on future accidents and future recall frequency and their indirect effect through future product reliability in the automobile industry. The authors test the hypotheses on 459 make/year observations involving 27 automobile makers between 1995 and 2011. The findings suggest that increases in recall magnitude lead to decreases in future number of injuries and recalls. This effect, in turn, is partially mediated by future changes in product reliability. The results also suggest that the positive relationship between recall magnitude and future product reliability is (1) stronger for firms with higher shared product assets and (2) weaker for brands of higher prior quality. The findings are robust across alternate measures and alternate model specifications and offer valuable insights for managerial practice and public...