Conference Sessions - Jesse H. Jones Graduate School of ...

and on the transaction utility they derive from the conditional promotion, for
example from rooting for their favorite sports team. We use our model estimates to
simulate market share effects for conditional promotions and rebates. Our results
yield insights on when conditional promotions are successful and why.
2 - Coupon Expiration and Redemption
Joseph Pancras, University of Connecticut, 2100 Hillside Road,
Unit 1041, Storrs, CT, 06269, United States of America,
jpancras@business.uconn.edu, Rajkumar Venkatesan
Coupon redemption has been shown to be bimodal over the coupon validity period,
with modes close to the start and expiration dates. This evidence has utilized
aggregate coupon redemption and validity period dates. Using a new dataset of
individual level coupon redemption, we demonstrate the ‘coupon expiration rate’ at
the individual level. We build an individual level coupon redemption model to
estimate the probability of coupon redemption at both the start and end of the
validity period, and derive posterior probabilities of individual households of
redeeming close to the start date as well as close to the expiration date. We conduct
post-hoc analysis of the households which are more likely to exhibit coupon
expiration redemption behavior by contrasting their categories purchased,
demographics and campaigns from those who are more likely to redeem close to the
start date. We discuss implications of these household level insights for retail store
managers.
3 - Gifts with a Gab: A Multivariate Poisson Analysis of the Effects of
Gifts on Customer Acquisitions
Sudipt Roy, Assistant Professor of Marketing, Indian School of
Business, Gachibowli, Hyderabad, AP, 500032, India,
Sudipt_Roy@ISB.edu, Purushottam Papatla
We use a Multivariate Poisson count model to investigate whether receiving products
of a firm as gifts can turn recipients into buyers of those products as well as other
products from that firm. We use a count model since we examine the number of
renewals of magazines by subscribers who first received those magazines via gift
subscriptions. Additionally, we investigate the number of times that the recipients of
gift subscriptions for some magazines initiate and continuation subscriptions to their
sister magazines from the same publisher. Our analysis is based on a Multivariate
Poisson analysis of counts of renewals of different magazines using link functions that
include the receipt of gift subscriptions, household demographics and recipient
lifestyles since the magazines that we analyze are lifestyle-related. Findings from this
research are presented along with implications for additional research on gifts as
alternative mechanisms of consumer word of mouth which has been has traditionally
been defined as “informal, evaluative communication (positive or negative) between
at least two conversational participants about characteristics of an organization and/or
a brand, product, or service that could take place online or offline” (Carl 2006 p.608).
We propose that gifts can be viewed as consumer brand advocacy (Keller 2007; Park
and MacInnis 2006) where a consumer actively promotes the brand to other
potential consumers. We also suggest that companies can encourage gifts of their
products by current customers as an alternative to using sales promotions to reach
prospective customers.
4 - Promoting a Brand Portfolio with a Social Cause: Findings from an
In-market Natural Experiment
Ty Henderson, University of Texas - Austin, 1 University Station
B6700, Austin, TX, 78712, United States of America,
ty.henderson@mccombs.utexas.edu, Neeraj Arora
What happens when a company links its brand to a social cause? Existing research
provides process-level and experimental insight into this question. Given the
popularity of promotion campaigns where purchases trigger an accompanying public
good (e.g. Yoplait Pink Lids for Breast Cancer Research), there is a lack of research
investigating the market outcomes of these embedded premium (EP) promotion
campaigns. Our research examines the effects on primary and secondary demand of a
nationwide in-market implementation of an EP promotion program across product
categories. We leverage a specialized self-reported A.C. Nielsen panel dataset marker
that classifies participating and non-participating households to quantify the effects of
the EP intervention on purchase incidence, quantity and brand choice. The
household-level hierarchical Bayes model accounts for participating/non-participating
cohort differences and temporal shifts in brand preference to uncover the differential
effect of the EP promotion launch in the market. We calibrate the model on four
years of data from a national household purchase panel across different product
categories. After accounting for temporal shifts in brand preference and buying
behavior while also incorporating other marketing mix drivers, we find that the EPbrand
association increases brand preference among the EP-participating households.
We observe this cohort-conditional EP effect on brand choice amid significant
aggregate changes in brand preference and buying behavior that impact both primary
and secondary demand. We quantify the impact of the EP promotion relative to other
elements of the marketing mix (e.g. coupons) and evaluate the financial implications
of the EP strategy vis-á-vis other promotion options.
MARKETING SCIENCE CONFERENCE – 2011 TC10
23
■ TC10
Founders IV
Consumer Behavior
Contributed Session
Chair: Yi-Yun Shang, National Taipei University, 67, Sec.3,
Ming-shen E. Rd., Taipei, 104, Taiwan - ROC, peeressann@hotmail.com
1 - My Brain is Tired. Can I Make Inference Spontaneously?
Xiaoning Guo, PhD Candidate, University of Cincinnati, Department
of Marketing, Cincinnati, OH, 45220, United States of America,
guoxo@mail.uc.edu, Inigo Arroniz
Most purchases involve choices among options with incomplete attribute
information. In such situations, consumers often have the option not to choose any
of the alternatives to avoid uncertainty. Alternatively, consumers can make inferences
about the missing attributes. These inferences may occur spontaneously. In this paper,
the authors investigate the situational factor (ego depletion) and the personality
factor (need for closure) to affect consumers to make inferences about the missing
attributes. The findings show that consumers with high need for closure and highly
depleted (or consumers with low need for closure and in the low ego depletion
condition) are more likely to defer the choice.
2 - Theories of Emotion in Consumer Behavior
Khalil Rohani, PhD Candidate, University of Guelph, Marketing and
Consumer Studies, Guelph, ON, N1G 2W1, Canada,
rohanik@uoguelph.ca, Laila Rohani, Joe Barth
The subject of emotion has been gaining popularity among researchers in the area of
consumer behaviour. Past research shows that researchers paid more attention to
consumer’s rational behaviour; however, there are a growing number of studies
dedicated to the emotion aspect of consumers. In this paper, two theories are
introduced regarding emotion in consumer behaviour; Appraisal-Tendency theory
and the Hierarchical consumer emotions model. The purpose of this paper is to find
relations between consumers’ emotions and their consumption behaviour by
exploring two different theories concerning emotions and consumers’ decision
making behaviour. This paper first discusses definitions of major terms that are often
used to describe consumers feeling such as mood, emotion, and affect. Second,
Appraisal Tendency theory, related studies, and their findings are introduced. Third,
the Hierarchical consumer emotions model and its empirical research are presented.
Last, based on analysis of the two theories, propositions are proposed in order to
predict specific consumption behaviour according to consumers’ certain emotional
condition.
3 - Carrot or Stick? - Asymmetric Evaluation on Counterfeit Products
under Different Self Construal
Xi Chen, Assistant Professor, Business School, China University of
Political Science and Law, 1903, #4,Wankexingyuan,Yangshan Rd,
Chaoyang District, Beijing, 100107, China,
chelseatsinghua@gmail.com
This paper proposes that counterfeit products can be seen as representative of both
return and risk. Consumers with different self construal exhibit asymmetric
evaluation toward counterfeit product when exposed to uncertainty of return and
risk – asymmetric sensitivity to financial risk and social risk under claim that
emphasize on risk , and asymmetric sensitivity to financial return and social return
under claim that emphasize on return. This paper shows that (a) when risk aspect of
counterfeit product is accessible, consumers exhibit different sensitivity to different
types of risks, namely the social risk and financial risk. Specifically, interdependent
people are more risk averse toward social loss compared with financial loss, the
reverse for independent people. (b) When return aspect is activated and accessible,
consumers are asymmetrically sensitive to different gains, namely the social gain and
financial gain. In particular, independent people consider financial return more than
social return, the reverse for interdependent people.This phenomenon occurs because
of different weight put on social and financial aspect by different self construal
people, different self view becomes underlying antecedent of this asymmetric effect.
And this is exhibited within a single counterfeit product because counterfeit product
is representative of combination of both risk and return.