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Understanding Governance Decisions in a Partially Integrated Channel: A Contingent Alignment Framework
Journal of Marketing Research 48(3): 603-616 Abstract This article examines governance decisions within an emerging and increasingly common form of channel: the partially integrated channel (PIC). The PIC is defined as a single vertical channel in which both market governance and hierarchical governance exist (i.e., the employees of one channel member work on a full-time basis at an exchange partner's facilities, performing functions that the exchange partner traditionally performs). Building on the transaction cost analysis and governance value analysis literature streams, the authors examine ongoing governance decisions within the PIC. Data were collected in the fashion apparel market of South Korea using multisource, reciprocally matched data in which a manufacturer's directly employed sales force is deployed at department store retailers as the sole frontline employees for their brand. The authors find that brand reputation, downstream market uncertainty, and sales force performance ambiguity influence manufacturer control over sales operations and manufacturer flexibility with retailers in unique ways. The authors discuss implications of this work for theory and practice.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/gsojo1wKksY" height="1" width="1"/>
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Choice as an End Versus a Means
Journal of Marketing Research 48(3): 544-554 Abstract This article investigates the consequence of the choice process for mental resources and the desire to obtain the selected products. The authors draw a distinction between instrumental choice, which serves preexisting consumption goals, and experiential choice, which serves as its own end. Across four studies, they find that instrumental choice undermines mental resources and experiential choice increases these resources. As a result, although experiential choice is made with no consumption goal in mind, compared with instrumental choice, it increases the desire to obtain the selected product. The authors demonstrate these effects on choice among a variety of consumer products (e.g., vacation packages, novels, flower bouquets).<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/E26Mh7Wn3HY" height="1" width="1"/>
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Gender Identity Salience and Perceived Vulnerability to Breast Cancer
Journal of Marketing Research 48(3): 413-424 Abstract Breast cancer communications that make women's gender identity salient can trigger defense mechanisms and thereby interfere with key objectives of breast cancer campaigns. In a series of experiments, the authors demonstrate that increased gender identity salience lowered women's perceived vulnerability to breast cancer (Experiments 1a, 3a, and 3b), reduced their donations to ovarian cancer research (Experiment 1b), made breast cancer advertisements more difficult to process (Experiment 2a), and decreased ad memory (Experiment 2b). These results are contrary to the predictions of several prominent theoretical perspectives and a convenience sample of practitioners. The reduction in perceived vulnerability to breast cancer following gender identity primes can be eliminated by self-affirmation (Experiment 3a) and fear voicing (Experiment 3b), corroborating the hypothesis that these effects are driven by unconscious defense mechanisms.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/YE48tLUig2k" height="1" width="1"/>
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Estimating the Value of Brand-Image Associations: The Role of General and Specific Brand Image
Journal of Marketing Research 48(3): 518-531 Abstract The authors present a Bayesian simultaneous choice factor model that measures consumers' willingness to pay for brand-image associations. Previous research has found that general brand effects influence a brand's scores on specific image dimensions. To investigate the value of general versus specific brand image, the authors specify a higher-order factor model in which a set of correlated factor scores arise from a general brand factor and a set of orthogonal residual scores that measure the specific dimensions of brand image. The general brand factor is consistent with the concept of a halo effect, which theory ascribes to either an overall evaluative effect or errors in cognition. The authors apply the model to stated preference data on branded midsized sedans accompanied by data on consumer brand-image associations. The authors find that there is substantial value for the specific dimensions of brand image, but only after controlling for the general brand effect with the higher-order factor decomposition.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/cjOZ0_Vdh3M" height="1" width="1"/>
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Network Effects and Personal Influences: The Diffusion of an Online Social Network
Journal of Marketing Research 48(3): 425-443 Abstract This article discusses the diffusion process in an online social network given the individual connections between members. The authors model the adoption decision of individuals as a binary choice affected by three factors: (1) the local network structure formed by already adopted neighbors, (2) the average characteristics of adopted neighbors (influencers), and (3) the characteristics of the potential adopters. Focusing on the first factor, the authors find two marked effects. First, an individual who is connected to many adopters has a greater adoption probability (degree effect). Second, the density of connections in a group of already adopted consumers has a strong positive effect on the adoption of individuals connected to this group (clustering effect). The article also records significant effects for influencer and adopter characteristics. For adopters, specifically, the authors find that position in the entire network and some demographic variables are good predictors of adoption. Similarly, in the case of already adopted individuals, average demographics and global network position can predict their influential power on their neighbors. An interesting counterintuitive finding is that the average influential power of individuals decreases with the total number of their contacts. These results have practical implications for viral marketing, a context in which a variety of technology platforms are increasingly considering leveraging their consumers' revealed connection patterns. The model performs particularly well in predicting the next set of adopters.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/GwK_EwAv-Ak" height="1" width="1"/>
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Price Competition and Endogenous Valuation in Search Advertising
Journal of Marketing Research 48(3): 566-586 Abstract This article studies how to endogenously assess the value of a superior advertising position in the price competition and examines the resulting location competition outcomes and price dispersion patterns. The authors consider a game-theoretic model in which firms compete for advertising positions and then compete in price for customers in a product market. Firms differ in their competence, and positions are differentiated in their prominence, which reflects consumers' online search behavior. They find that when endogenously evaluated within the product market competition, a prominent advertising position might not always be desirable for a firm with competitive advantage, even if it is cost-free. The profitability of a prominent advertising position depends on the trade-off between the extra demand from winning the position and the higher equilibrium prices when the weaker competitor wins it. Furthermore, the authors show that the bidding outcome might not align with the relative competitive strength, and an advantaged firm might not be able to win the prominent position even when it values that position. They derive two-dimensional equilibrium price dispersion with the realized prices at the same position varying and the expected prices differing across different positions. They find that the expected price in the prominent position might not always be higher, implying that an expensive location does not necessarily lead to expensive products.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/_aSkDrSRdkw" height="1" width="1"/>
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The Value of Social Dynamics in Online Product Ratings Forums
Journal of Marketing Research 48(3): 444-456 Abstract Research has shown that consumer online product ratings reflect both the customers' experience with the product and the influence of others' ratings. In this article, the authors measure the impact of social dynamics in the ratings environment on both subsequent rating behavior and product sales. First, they model the arrival of product ratings and separate the effects of social influences from the underlying (or baseline) ratings behavior. Second, the authors model product sales as a function of posted product ratings while decomposing ratings into a baseline rating, the contribution of social influence, and idiosyncratic error. This enables them to quantify the sales impact of observed social dynamics. The authors consider both the direct effects on sales and the indirect effects that result from the influence of dynamics on future ratings (and thus future sales). The results show that although ratings behavior is significantly influenced by previously posted ratings and can directly improve sales, the effects are relatively short lived once indirect effects are considered.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/McFw6k9GCLk" height="1" width="1"/>
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Journal of Marketing Research
Journal of Marketing Research 48(3): i-ii<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/8gYUV4XorLE" height="1" width="1"/>
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How Well Does Advertising Work? Generalizations from Meta-Analysis of Brand Advertising Elasticities
Journal of Marketing Research 48(3): 457-471 Abstract The authors conduct a meta-analysis of 751 short-term and 402 long-term direct-to-consumer brand advertising elasticities estimated in 56 studies published between 1960 and 2008. The study finds several new empirical generalizations about advertising elasticity. The most important are as follows: The average short-term advertising elasticity is .12, which is substantially lower than the prior meta-analytic mean of .22; there has been a decline in the advertising elasticity over time; and advertising elasticity is higher (1) for durable goods than nondurable goods, (2) in the early stage than the mature stage of the life cycle, (3) for yearly data than quarterly data, and (4) when advertising is measured in gross rating points than monetary terms. The mean long-term advertising elasticity is .24, which is much lower than the implied mean in the prior meta-analysis (.41). Many of the results for short-term elasticity hold for long-term elasticity, with some notable exceptions. The authors discuss the implications of these findings.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/MQg7Xa_g3Qg" height="1" width="1"/>
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Positive Affect, Intertemporal Choice, and Levels of Thinking: Increasing Consumers' Willingness to Wait
Journal of Marketing Research 48(3): 532-543 Abstract Six studies examine the influence of positive affect on self-control in intertemporal choice (consumers' willingness to wait for desired rewards) and the cognitive processes underlying this effect. Two studies measure participants' levels of thinking in two different ways, showing that positive affect can promote forward-looking, high-level thinking. Two studies using a delay-of-gratification paradigm demonstrate this forward-looking thinking and show it to be a mindful process. Participants in positive (vs. neutral) affect were more likely to choose a larger mail-in rebate over a smaller instant rebate when the reward differences were moderate (but not when they were small). Two studies demonstrate the impact of positive affect on intertemporal preference in another way, showing that participants in positive affect do not discount the value of delayed outcomes as much as people in neutral affect do (decreased present bias). Together, the results indicate that positive affect promotes cognitive flexibility and fosters a higher level of thinking and a more future-oriented time perspective, without obscuring practical considerations and other needed detail, including context and opportunity costs, when evaluating intertemporal options.<img src="http://feeds.feedburner.com/~r/marketingpower/JournalOfMarketingResearchArticles/~4/RkDVbPa_TuM" height="1" width="1"/>
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How come some of the people shown on the left don't look Hispanic?Hispanic or Latino is not a race. There are Latinos of many different races and physical characteristics. For more information see our FAQ article, Why doesn't the census include Hispanic as a race?, and the Latino Blog post Let's Stop Segmenting People by Race!