Platform Service Offering to Business Customers: Strategic Considerations in Engendering Seller Use of Marketing Tools

Strategic consideration of competitor and consumer reactions in third-party sellers’ use of marketing tools on e-commerce platforms.

EXPRESS: Thumbs Up or Down: Consumer Reactions to Decisions by Algorithms versus Humans

Although companies increasingly are adopting algorithms for consumer-facing tasks (e.g., application evaluations), little research has compared consumers’ reactions to favorable decisions (e.g., acceptances) versus unfavorable decisions (e.g., rejections) about themselves that are made by an algorithm versus a human. Ten studies reveal that, in contrast to managers’ predictions, consumers react less positively when a favorable decision is made by an algorithmic (vs. a human) decision maker, whereas this difference is mitigated for an unfavorable decision. The effect is driven by distinct attribution processes: It is easier for consumers to internalize a favorable decision outcome that is rendered by a human (vs. an algorithm), while it is easy to externalize an unfavorable decision outcome regardless of the decision maker type. The authors conclude by advising managers on how to limit the likelihood of less positive reactions toward algorithmic (vs. human) acceptances.

Whose pay should be cut in economic crises? Consumers prefer firms that prioritize paying employees over CEOs

Four experiments examine the impact of a firm deciding to no longer pay salaries for executives versus employees on consumer behavior, particularly in the context of the COVID-19 pandemic. Study 1 explores the effect of announcing either pay cessations or continued pay for either CEO or employees, and shows that firms’ commitment to maintaining employee pay leads to the most positive consumer reactions. Study 2 examines the effects of simultaneously announcing employee and CEO pay cessations: consumers respond most positively to firms prioritizing employee pay, regardless of their strategy for CEO pay. Moreover, these positive perceptions are mediated by perceptions of financial pain to employees, more than perceptions of CEO-to-worker pay ratio fairness. Study 3, using an incentive-compatible design, shows that firms’ commitment to paying employees their full wages matters more to consumers than cuts to executive pay, even when those executive pay cuts lead to a lower CEO-to-worker pay ratio. Study 4 tests our account in a non-COVID-19 context, and shows that consumers continue to react favorably to firms that maintain employee pay, but when loss is less salient, consumers prioritize cutting CEO pay and lowering the CEO-to-worker pay ratio. We discuss the implications of our results for firms and policymakers during economic crises.

Building a Mini-Parthenon

Playful representations of history are quite widespread in various types of modern toys and games. The author of this essay focused specifically on commercially available construction sets inspired by Greek antiquity. In order to acquire an understanding of user behaviour vis à vis such playthings, she employed as sources consumer reactions published on on line marketplaces. User generated feedback that is available on the Internet clearly offers an extremely rich and relatively untapped resource for researchers of user experiences. The on line exploration was complemented by a self study of using one of these sets to construct a mini Parthenon; it was a pleasurable and rewarding activity The combined consideration of consumer comments and self study suggest that the experience of making miniature replicas of ancient buildings is mostly positive for a wide range of users, as it successfully combines entertainment with learning. At the same time, such play activities offer sufficient scope for improvisation and creativity.