EXPRESS: Bad News? Send an AI. Good News? Send a Human

The present research demonstrates how consumer responses to negative and positive offers are influenced by whether the administering marketing agent is an Artificial Intelligence (AI) or a human. In the case of a product or service offer that is worse than expected, consumers respond better when dealing with an AI agent in the form of increased purchase likelihood and satisfaction. In contrast, for a better than expected offer, consumers respond more positively to a human agent. We demonstrate that AI agents, in comparison to human agents, are perceived to have weaker intentions when administering offers, which accounts for this effect. That is, consumers infer that AI agents lack selfish intentions in the case of an offer that favors the agent and lack benevolent intentions in the case of an offer that favors the customer, thereby dampening the extremity of consumer responses. Moreover, we demonstrate a moderating effect such that marketers may anthropomorphize AI agents to strengthen perceived intentions, providing an avenue to receive due credit from consumers when providing a better offer and mitigate blame when providing a worse offer. Potential ethical concerns with the use of AI to bypass consumer resistance to negative offers are discussed.

Determining the Factors That Influence Electric Vehicle Adoption: A Stated Preference Survey Study in Beijing, China

The transition from conventional vehicles (CVs) to electric vehicles (EVs) could be promising in tackling environmental challenges in China. Using a sample of 1216 respondents in Beijing, China, our study intends to understand the underlying factors that drive the decision to purchase an EV among potential Chinese vehicle purchasers. We built two choice models to estimate vehicle purchase behavior and fuel choice. We found that males and having higher household income are associated with greater intention to purchase EVs (both plug-in and battery electric vehicles). However, a previous inclination to choose CV negatively impacted willingness to buy EVs. Between specific EV types, we found that Plug-in Hybrid EV (PHEV) purchase was negatively associated with plans to obtain a driver’s license within three years and longer durations of having owned a motorized vehicle first. Yet, the number of electric bicycles in the household was positively associated with PHEV-purchase likelihood. For Battery EVs (BEV), we found that respondents who had previous experience with an EV (either as a driver or passenger) were more likely to purchase a BEV while existing ownership of a driver’s license and a higher purchase budget reduced such possibility. Based on our findings, we recommend authorities continue to, or increasingly, provide direct monetary incentives to purchase EVs, and to provide EV driving and riding experience to customers, especially who are in the middle- and low-income vehicle purchasing groups, to improve the Chinese EV market relative to CVs.

The interactive effect of insight and cuteness in driving purchase likelihood: a lay belief of creativity

PurposeWhile new product introductions can potentially promote growth and benefit for brands, it remains unclear how marketers can develop effective communication strategies to increase the chance of success for new products. The present research investigates the role of cuteness in leveraging the effectiveness of a narrative emphasizing an insight versus an effort in this regard.Design/methodology/approachThis research presents two experimental studies. Study 1 examines the moderating role of cuteness on the likelihood of purchasing a new product featuring an insight-based (vs effort-based) narrative. Study 2 extends the findings of Study 1 using different stimuli and establishes the underlying mechanism.FindingsResults show that when a cuteness appeal is present, an insight-based (vs effort-based) narrative will lead to a higher purchase likelihood. However, these differences do not emerge when a cuteness appeal is absent (a control condition). Further, perceived brand creativeness will mediate this effect.Originality/valueThe findings of this research contribute to the literature on lay belief of creativity, cuteness, and product narrative, as well as managerial implications on how to promote new products.

The organizational framing effect on consumer evaluations of corporate donations

Purpose This paperaims to investigate a novel expectation by examining how framing a company as its constituent members (members frame) versus an organization (organization frame) can influence consumer evaluations of a product or service from this company. Design/methodology/approach Four studies were conducted examining the effectiveness of an organization (vs members) frame in a between-subjects experimental design (a pilot study, Studies 1a, 1b and 2). Study 2 also tested the moderating role of donation strategies (amount-focused vs frequency-focused). Findings Results show a members (vs organization) frame leads to a higher purchase likelihood of a product from a company engaging in corporate donations. Further, this framing effect is mediated by increased levels of consumers’ perceptions about how committed the company is to the cause and the emotion of moral elevation in response to the company’s corporate donations. Moreover, this effect is moderated when the company uses a frequency-based (vs amount-based) donation strategy. Research limitations/implications This research contributes to the literature on message framing by demonstrating how the same information about a company may lead to differential effects on consumer evaluations, depending on whether the company is framed as its constituent members versus an organization. Practical implications This paper presents significant managerial implications for small companies, in which the owner is the company, about how they can effectively communicate corporate donations to the consumers. Originality/value This research provides a novel perspective on how the same information about a company may lead to differential effects on consumer evaluations, particularly in the context of corporate donations.

Brand implications of advertising products with their reflections

Purpose The purpose of this study is to investigate the impact of advertising products with their reflections on some important brand outcomes such as brand purchase likelihood, brand trust and consumer willingness to pay for the advertised product. Design/methodology/approach This research uses four experiments to assess the effects of advertising products with (vs without) reflections on the focal brand outcomes. Findings Results evidence a robust negative effect of advertising products with their reflections on the investigated brand outcomes across multiple product categories. Following Signaling Theory, product reflections are found to act as negative signaling devices in brand advertising contexts given that these inverted, false object reproductions are processed with a sense of confusion, ambiguity and uncertainty. Further in line with Signaling Theory, increased product quality uncertainty is determined as the underlying process and brand confidence signaling is tested as a relevant moderator to the proposed effects. Originality/value This inquiry is the first to systemically investigate brand implications of advertising products with their reflections. Counter to marketers’ aesthetic intuitions, the current research finds that this common advertising practice can actually hurt critical brand outcomes such as brand trust.

Designing Promotional Incentives to Embrace Social Sharing: Evidence from Field and Online Experiments

Despite the increasing connectivity between consumers and the large volume of social shares supported by digital technologies, there is an absence of research systematically investigating how firms can design promotional incentives that jointly consider their consumers as both purchasers and sharers. In this study, we examine whether and how firms can leverage consumers’ social connections and engage consumers to share promotional incentives. In collaboration with a leading online deal platform, we report a large-scale randomized field experiment to test the effectiveness of different incentive designs (varying in the shareability and scarcity of promotion codes) in driving social sharing senders’ purchases and successful referrals. We find that the different incentive designs have distinct impacts on the purchase and referral outcomes. Specifically, providing senders with one non-shareable promo code significantly increases their own purchase likelihood, compared to the other experimental groups. In contrast, senders who receive one shareable promo code are less likely to purchase themselves yet are more likely to make successful referrals. Surprisingly, the incentive design with two promo codes containing one non-shareable code and one shareable code increases neither the senders’ purchases nor their successful referrals. Managerially, we estimate that although the one non-shareable promo code group derives the highest net revenue for the experimental period, the one shareable promo code group derives the highest customer lifetime value for the firm from the new customers acquired through the successful referrals. We further conducted two online experiments on Amazon Mechanical Turk that replicate the field experiment’s findings and explore the underlying mechanisms of the observed relationships. We find that exclusivity perception and social motives triggered by the incentive designs with one promo code mediate their effects on senders’ self-purchases and successful referrals, respectively, and explain the ineffectiveness of two promo codes. Our study contributes to the bodies of literature on IT-enabled social sharing and social promotions, providing implications for firms on how to design promotional incentives that accommodate the dual role of consumers as purchasers and sharers.

Positive effects of negative reviews: an eye-tracking perspective

PurposeA counterintuitive finding of existing research is that negative reviews can produce positive effects; for example, they can increase purchase likelihood and sales by increasing product awareness. It is important to continue highlighting this fact and to develop further insights into this positive effect, as a more thorough analysis can provide online retailers with a more comprehensive understanding of how to effectively manage and use negative reviews. Thus, by using an eye-tracking method, this paper attempts to provide a further thorough analysis of positive effects of negative reviews from a cognitive perspective.Design/methodology/approachAn eye-tracking experiment with two tests over a time delay was performed to examine whether negative reviews have some positive effects. Review valence (positive vs. negative), brand popularity (popular vs. unpopular) and advertising exposure (no repetition vs. repetition) were considered in the experiment.FindingsThe results show that a cognitive process of attention allocation happens when consumers deal with brand popularity cues and that arousal evoking and attention allocation occur when handling review valence. Allocation of more attention to unpopular brands helps improve brand awareness and enhance brand memory, and larger arousal from negative reviews narrows attention and leads to a better memory of products and brands. However, with the passage of time, the memory of review valence can dissociate and fade, and the remaining awareness of and familiarity with unpopular brands with negative reviews contribute to a positive reversion, which leads to the production of positive effects from negative reviews.Originality/valueThis paper contributes to the literature on online reviews by examining the visual processing of review valence and brand popularity with an eye-tracking method and by revealing the cognitive mechanism of positive effects of negative reviews from a visual attention perspective.

Exploring the Factors Affecting the Purchase Likelihood of e-Tailer Private Labels.

<p><b>In today’s extremely competitive retail marketplace environment, developing and managing profitable private label offerings has become significant for most retailing companies. The purpose of this paper is to understand the influence of e-tailer reputation, product manufacturing country favourability, and online consumer rating on the purchase likelihood of e-tailer private labels. We find that product online consumer ratings positively impact the purchase intention of the private labels. E-tailer reputation has shown a positive impact on the future purchase intentions whereas, country favourability’s effect is found at the time of actual purchase of e-tailer private labels. Being the first research to study the impact of country favourability, e-tailer reputation on e-tailer private labels, this paper offers some insights to the e-tailers. </b></p>

Exploring the Factors Affecting the Purchase Likelihood of e-Tailer Private Labels.

<p><b>In today’s extremely competitive retail marketplace environment, developing and managing profitable private label offerings has become significant for most retailing companies. The purpose of this paper is to understand the influence of e-tailer reputation, product manufacturing country favourability, and online consumer rating on the purchase likelihood of e-tailer private labels. We find that product online consumer ratings positively impact the purchase intention of the private labels. E-tailer reputation has shown a positive impact on the future purchase intentions whereas, country favourability’s effect is found at the time of actual purchase of e-tailer private labels. Being the first research to study the impact of country favourability, e-tailer reputation on e-tailer private labels, this paper offers some insights to the e-tailers. </b></p>