EXPRESS: The Context (In)Dependence of Low Fit Brand Extensions

Low fit brand extensions, while often presenting profitable opportunities for existing brands, are known to meet with varying levels of consumer acceptance. This research identifies conditions under which low fit extensions can succeed. Specifically, the authors show that the extent to which consumers consider the context in forming judgments (i.e., are context dependent) determines the acceptance of low fit extensions. In four studies, the authors examine the combined effects of context (in)dependence and type of information, and show that context dependent individuals form their evaluations on the basis of the type of brand extension information provided. For context dependent individuals, providing benefit-based information enhances the evaluations of low fit extensions, whereas providing attribute-based information leads to a reliance on extension fit and subsequent unfavorable evaluation of low fit extensions. In contrast, context independent individuals are more likely to base their judgments on extension fit regardless of whether attribute- or benefit-based information is provided. The acceptance of high fit extension is unaffected by context (in)dependence and type of information. Our findings provide a two-step strategy (i.e., sensitizing consumers to context and providing them benefit-based extension information) for managers to successfully launch low fit extensions and leverage existing parent brand equity.

EXPRESS: Onboarding Salespeople: Socialization Approaches

The effective training of salespeople is crucial to a firm’s success; there is arguably no more critical type of training than a salesperson’s onboarding. In this study, the authors leverage a natural field experiment in which a firm’s newly hired salespeople can undergo onboarding through either a decentralized program or a centralized program to examine the relative impact of each program. Drawing on organizational socialization theory, the authors consider whether an onboarding program that incorporates both individualized and institutionalized socialization tactics (the decentralized program) can develop salespeople into higher performers by encouraging them to take a more innovative and adaptive approach to different facets of the sales role. The findings reveal that salespeople who underwent the decentralized program achieved approximately 23.5% higher sales performance than those who underwent the centralized program. The performance benefits of the decentralized program were amplified for salespeople whose managers had a narrower span of control. In addition, these performance benefits were appreciable for those salespeople transitioning from another job but negligible for those transitioning from school. A scenario-based experiment enriches the field experiment’s findings by showing evidence of the theorized mechanism underlying the sales performance benefits observed: the fostering of an innovative role orientation.

EXPRESS: The Impact of Advertising Creative Strategy on Advertising Elasticity

This study provides a comprehensive assessment of the impact of Advertising Creative Strategy (ACS) on advertising elasticity, founded on an integrative framework which distinguishes between the Function (content) and the Form (execution) of an advertising creative. Function is evaluated using a three-dimensional representation of content (Experience, Affect, Cognition), whereas the representation of Form accounts for both executional elements and the use of creative templates. The distinction between Function and Form allows for the investigation of potential synergies between content and execution, previously unaccounted for in the literature. The ACS framework also facilitates the calculation of composite metrics that capture holistic aspects of the creative strategy, such as Focus, or the extent of the emphasis on a specific content dimension, and Variation i.e., changes in content and execution over time. The empirical application focuses on a Dynamic Linear Model analysis of 2251 television advertising creatives from 91 brands in 16 consumer packaged goods categories. The findings suggest that in terms of Function, experiential content has the biggest effect on elasticity, followed by cognitive and affective content. Function and Form produce synergies that can be leveraged by advertisers to increase returns. Finally, Focus, Variation and the use of templates increase advertising elasticity.

EXPRESS: The Upside of Negative: Social Distance in Online Reviews of Identity-Relevant Brands

Conventional wisdom in marketing emphasizes the detrimental effects of negative online reviews for brands. An important question is whether some firms could more effectively manage negative reviews to improve brand preference and outcomes. To address this question, our research examines how customers respond to online reviews of identity-relevant brands in particular, which have been overlooked in the online reviews literature. Eight studies (field data and experiments featuring consequential and hypothetical behaviors) show that negative online reviews may not be so detrimental for identity-relevant brands, especially when those reviews originate from socially distant (but not socially close) reviewers. This occurs because a negative review of an identity-relevant brand can pose a threat to a customer’s identity, prompting the customer to strengthen their relationship with the identity-relevant brand. To document the underlying process, we show that this effect does not emerge when the review is positive or the brand is identity-irrelevant. Importantly, we identify circumstances when negative reviews can actually produce positive outcomes (higher preference) for identity-relevant brands over no reviews or even positive reviews. By demonstrating the upside of negative reviews for identity-relevant brands, our findings have important implications for marketing theory and practice.

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.

EXPRESS: GMO Labeling Policy and Consumer Choice

Most scientists claim that genetically modified organisms (GMOs) in foods are safe for human consumption and offer societal benefits such as better nutritional content. In contrast, many consumers remain skeptical about their safety. Against this backdrop of diverging views, the authors investigate the impact of different GMO labeling policy regimes on products consumers choose. Guided by the literature on negativity bias, structural alignment theory, and message presentation, and based on findings from four experiments, authors show that consumer demand for GM foods depends on the labeling regime policymakers adopt. Both absence-focused (“non-GMO”) and presence-focused (“contains GMO”) labeling regimes reduce the market share of GM foods, with the reduction being greater in the latter case. GMO labels reduce the importance consumers place on price and enhance their willingness-to-pay for non-GM products. Results indicate that specific label design choices policymakers implement (in the form of color and style) also affect consumer responses to GM labeling. Consumer attitudes toward GMOs moderate this effect – consumers with neutral attitudes toward GMOs are influenced most significantly by the label design.

EXPRESS: Sales and Self: The Non-Economic Value of Selling the Fruits of One’s Labor

A core assumption across many disciplines is that producers enter market exchange relationships for economic reasons. This research examines an overlooked factor, namely the socio-emotional benefits of selling the fruits of one’s labor. Specifically, the authors find that individuals selling their products interpret sales as a signal from the market, which serves as a source of self-validation, thus increasing their happiness above and beyond any monetary rewards from those sales. This effect highlights an information asymmetry that is opposite to that in traditional signaling theory. That is, the authors find that customers have information about the quality of products that they signal to the producer, validating the producer’s skill level. Further, the sales-as-signal effect is moderated by characteristics of the purchase transaction that determine the signal strength of sales: the effect is attenuated when product choice does not reflect a deliberate decision and is amplified when buyers incur higher monetary costs. In addition, sales have a stronger effect on happiness than alternative, non-monetary forms of market signals such as Likes. Finally, the sales-as-signal effect is more pronounced when individuals sell their self-made (vs. other-made) products and affects individuals’ happiness beyond the happiness gained from producing.

EXPRESS: When the Honeymoon is Over: A Theory of Relationship Liabilities and Evolutionary Processes

We draw on the sociological theories of the “liability of newness” and the “liability of adolescence” to generate new insights into relationship evolution. First, we show how a new relationship during its “honeymoon” exhibits a unique constellation of two conditions, namely information asymmetry and forbearance. Next, we explain how a relationship evolves along two processes that involve passive learning and decay, respectively. In themselves, these processes will move a relationship towards a long-term “transactional” state and possibly termination, but the processes can also be actively shaped using governance mechanisms of various kinds. The latter, however, requires a nuanced account of types of governance mechanisms and the particular conditions they are intended to induce. We consider how the general mechanisms of (1) incentives and (2) information sharing can be deployed in standardized or customized fashions, respectively. Next, we suggest how different manifestation of governance mechanisms impact a relationship’s underlying evolutionary processes and evolved relationship states. In general, our framework represents a new perspective on relationship evolution; one that involves the purposeful management of initial conditions and their related evolutionary processes.

EXPRESS: Getting a Handle on Sales: Shopping Carts Affect Purchasing by Activating Arm Muscles

This research demonstrates that the physical properties of shopping carts influence purchasing and spending. Prior research on ergonomics indicates that standard shopping carts, which are pushed via a horizontal handlebar, are likely to activate arm extensor muscles. Prior research on arm muscle activation, in turn, suggests that arm extensor activation may elicit less purchasing than arm flexor activation. The authors thus deduce that standard shopping carts may be suboptimal for stimulating purchases. The authors predicted that shopping carts with parallel handles (i.e., like a wheelbarrow or “walker”) would instead activate the flexor muscles and thus increase purchasing. An electromyography (EMG) study revealed that both horizontal and vertical handles more strongly activate the extensor muscles of the upper arm (triceps), whereas parallel handles more strongly activate the flexor muscles (biceps). In a field experiment, parallel-handle shopping carts significantly and substantially increased sales across a broad range of categories, including both vice and virtue products. Finally, in a simulated shopping experiment, parallel handles increased purchasing and spending beyond both horizontal and vertical handles. These results were not attributable to the novelty of the shopping cart itself, participants’ mood, or purely ergonomic factors.