Conference Sessions - Jesse H. Jones Graduate School of ...
Conference Sessions - Jesse H. Jones Graduate School of ...
Conference Sessions - Jesse H. Jones Graduate School of ...
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4- Optimal Allocation <strong>of</strong> Marketing Resources: Employing Spatially<br />
Determined Social Multiplier Effects between Physicians<br />
Sina Henningsen, Department <strong>of</strong> Innovation, New Media, and<br />
Marketing, Christian-Albrechts-University at Kiel, Germany,<br />
henningsen@bwl.uni-kiel.de, Soenke Albers, Tammo Bijmolt<br />
A central aim <strong>of</strong> marketing managers is the optimal allocation <strong>of</strong> budgets across customer<br />
segments and market regions. Often, these allocation decisions are subject to<br />
interpersonal contagion. However, sales response models traditionally assume customers’<br />
independence. We present a method for incorporating spatial spillovers into<br />
sales response functions and a subsequent optimization procedure that allows for<br />
allocating sales/pr<strong>of</strong>it optimizing budgets across segments and regions while accounting<br />
for spillover effects. Employing hierarchical Bayesian estimation, our results from<br />
an empirical application to a pharmaceutical panel dataset indicate that substantive<br />
additional sales/pr<strong>of</strong>its can be ex-pected due to incorporating spillovers and thereby<br />
improving allocation.<br />
■ SB11<br />
Champions Center I<br />
Social Influence II<br />
Contributed Session<br />
Chair: Duraipandian Israel, Associate Pr<strong>of</strong>essor, <strong>School</strong> <strong>of</strong> Business &<br />
Human Resources, XLRI Jamshedpur, Circuit House Area (East),<br />
Jamshedpur, Jharkhand State, 831035, India, disrael@xlri.ac.in<br />
1 - Co-creation <strong>of</strong> Social Value in an Online Brand Community<br />
Kwok Ho Poon, DBA Student, <strong>Graduate</strong> <strong>School</strong> <strong>of</strong> Business/The Hong<br />
Kong Polytechnic University, Rm B, 11/F, Chau’s Comm Ctr., 282 Sha<br />
Tsui Road, Tsuen Wan, Hong Kong - PRC,<br />
stephenpoon@hzlimited.com, Leslie S.C. Yip<br />
This study explores one <strong>of</strong> the core features <strong>of</strong> a brand community, its social aspects<br />
which drive value co-creation among members <strong>of</strong> the community. Value co-creation<br />
emphasizes the dual role <strong>of</strong> customers as consumer and creator <strong>of</strong> value through<br />
interactions with the company and other customers, sharing experience on products<br />
and brands. This service-dominant (S-D) logic has not been adopted to examine<br />
brand communities which serve as an ideal platform for these interacting processes to<br />
take place. In this study, we try to examine empirically how iPhone users who are<br />
members <strong>of</strong> an online iPhone community interact and derive new values from<br />
community participation. It provides insights to practitioners on the value co-creation<br />
dimension <strong>of</strong> brand communities and gives future research direction on the social<br />
aspect <strong>of</strong> online marketing.<br />
2 - What is There to ‘Like’ About Facebook?<br />
K N Rajendran, Associate Pr<strong>of</strong>essor, University <strong>of</strong> Northern Iowa, 342<br />
Curris Business Building, Cedar Falls, IA, 50614-0126,<br />
United States <strong>of</strong> America, raj.rajendran@uni.edu, Steven B Corbin,<br />
Ciara Pearce, Matthew Bunker<br />
Social media and social networks (like MySpace, Facebook, and LinkedIn) have<br />
proliferated and grown exponentially over the past decade or so. Even Hollywood has<br />
taken notice with a recent movie (“The Social Network”) tracing the origins <strong>of</strong><br />
Facebook. There has been a tremendous interest in understanding aspects <strong>of</strong> the<br />
social network phenomenon by all manner <strong>of</strong> organizations, business in particular.<br />
Articles have been published in fields as diverse as educational technology (Baran<br />
2010) , managerial psychology (Klumpfer and Rosen 2009), human resources<br />
(Elsweig and Peoples 2009), information technology (McAfee 2010, Palvia and<br />
Pancaro 2010, Venkatraman 2010), marketing communication (Zhang 2010),<br />
intellectual property (Steinman and Hawkins 2010), academic performance<br />
(Kirschner and Karpinski 2010, Yu et al 2010), among many others. Our primary<br />
interest is in understanding the behavior <strong>of</strong> ‘liking’ on Facebook. We collect and<br />
analyze survey information from a fairly large sample <strong>of</strong> respondents who self<br />
identify themselves as ‘liking’ a business or organization. In the study being<br />
presented, we compare characteristics and behavior <strong>of</strong> two samples; those that have<br />
actually experienced the good or service being provided by the organization they<br />
‘like’ vs. those who have not had such experience. Preliminary results suggest there<br />
are interesting differences between the groups in measures pertaining to identity,<br />
norms, involvement, and word-<strong>of</strong>-mouth behavior, some <strong>of</strong> which appear to be<br />
counter-intuitive.<br />
3 - Too Much or Not Enough - How the Degree <strong>of</strong> Interpersonal<br />
Similarity Forces Compliance with Requests<br />
Johannes Hattula, Research Assistant, University <strong>of</strong> St. Gallen,<br />
Institute <strong>of</strong> Marketing, Dufourstr. 40a, St. Gallen, CH-9000,<br />
Switzerland, johannes.hattula@unisg.ch, Sven Reinecke,<br />
Stefan Hattula<br />
Imagine you are asked for participation in a survey. Would your willingness to<br />
comply depend on characteristics <strong>of</strong> the requester? Would you be more likely to<br />
answer when there is a similarity between you and the requester? And, particularly,<br />
would the degree <strong>of</strong> similarity affect your willingness? Many studies provide support<br />
for the persuasive role <strong>of</strong> similarity on willingness to comply. When people share<br />
similarities, they feel socially connected that is enough to increase compliance with<br />
requests. However, contrary to that literature, research on uniqueness empathizes<br />
MARKETING SCIENCE CONFERENCE – 2011 SB13<br />
85<br />
humans’ innate drive for uniqueness that leads them to avoid too much similarity.<br />
Therefore, we experimentally investigate whether the degree <strong>of</strong> similarity,<br />
manipulated by the first name <strong>of</strong> the requester, influences compliance with a request.<br />
600 marketing and sales managers were invited to participate in an online survey.<br />
They were randomly assigned to one <strong>of</strong> three conditions: one third <strong>of</strong> the participants<br />
were invited by a person with the same first name (“high similarity”), the second<br />
third received the request by a person with same first name initials (“low similarity”),<br />
and the remaining third was contacted by a person with a completely different first<br />
name (“no similarity”). The conditions were identical with the exception <strong>of</strong> the name<br />
that appeared as the requester <strong>of</strong> the invitation. The results support our assumption<br />
<strong>of</strong> an inverted u-shaped relationship between the degree <strong>of</strong> similarity and humans’<br />
willingness to comply. Persons with identical initials were significantly more likely to<br />
participate in the survey than both those who received the request by a person with<br />
different initials and those with same first name. We find no difference between high<br />
and no similarity conditions.<br />
4 - User Personality, Perceived Benefits and Usage Intensity <strong>of</strong> Social<br />
Networking Sites: An Indian Study<br />
Duraipandian Israel, Associate Pr<strong>of</strong>essor, <strong>School</strong> <strong>of</strong> Business & Human<br />
Resources, XLRI Jamshedpur, Circuit House Area (East), Jamshedpur,<br />
Jharkhand State, 831035, India, disrael@xlri.ac.in, Debasis Pradhan<br />
Social Networking Sites (SNS) such as Orkut, Facebook and LinkedIn have attracted<br />
millions <strong>of</strong> users around the globe. While studies have been conducted to explore the<br />
user motives to participate in such virtual communities, research linking the impact<br />
<strong>of</strong> the personality and usage intensity is scantily done. Even so, the available studies<br />
indicate mixed evidence between user personality traits (such as extraversion,<br />
agreeableness, openness to experience, neuroticism and conscientiousness) and the<br />
SNS usage. Research linking user personality and SNS usage intensity is expected to<br />
have major strategic policy implications for marketers in strengthening the<br />
advertisement and promotions <strong>of</strong> their products as SNS are emerging as attractive<br />
medium for marketers to reach out to the target audience. This paper based on<br />
empirical research conducted among the youth (n=203) in India explores the impact<br />
<strong>of</strong> user personality traits on the SNS usage intensity, with perceived benefits in using<br />
SNS as a mediator. Mediation regression analysis <strong>of</strong> the data indicates that user<br />
personality trait has direct and indirect effect on the usage intensity <strong>of</strong> SNS. Further,<br />
it is observed that the relationship between user personality, perceived SNS benefits<br />
and the usage <strong>of</strong> SNS varies for male and female respondents.<br />
■ SB13<br />
Champions Center III<br />
Private Labels II: Effect on the Distribution Channel<br />
Contributed Session<br />
Chair: Alexei Alexandrov, Assistant Pr<strong>of</strong>essor <strong>of</strong> Economics and<br />
Management, University <strong>of</strong> Rochester (Simon), Univ. <strong>of</strong> Rochester,<br />
Carol Simon Hall 3-110P, Box 270100, Rochester, 14627-0100,<br />
United States <strong>of</strong> America, alexei.alexandrov@simon.rochester.edu<br />
1 - Retailer Brand: To Keep it Private or Not?<br />
Yunchuan Liu, Assistant Pr<strong>of</strong>essor, University <strong>of</strong> Illinois at Urbana<br />
Champaign, 350 Wohlers Hall 1206 S. 6th St., Champaign, IL, 61801,<br />
United States <strong>of</strong> America, liuf@illinois.edu, Liwen Chen, Steve Gilbert<br />
A retailer with its own brand can either make its brand private by selling through<br />
only the retailer’s own stores or make the brand public by selling through another<br />
competing retailer. In the first case, the retailer brand becomes a private label; in the<br />
second case, the retailer brand becomes more like a national brand. In this paper, we<br />
study when a retailer should keep its brand private and when not, and the<br />
consequent implications for distribution channel members. We find conditions under<br />
which the retailer should keep its brand private or sell it through another retailer. We<br />
show that selling through a competing retailer can help expand a retailer’s market.<br />
However, it also has significant implications for the competition between the retailers,<br />
the distribution channel, and consumer welfare.<br />
2 - Retailer Brand Introduction with Consumer Evaluation<br />
Ying Xiao, University <strong>of</strong> Illinois at Urbana Champaign, 350 Wohlers<br />
Hall 1206 S. 6th St., Champaign, 61801, United States <strong>of</strong> America,<br />
yxiao2@illinois.edu, Yunchuan Liu<br />
In the market place, there is a growing trend for retailers to introduce retailer brands<br />
(store brands) to complement manufacturer brands and enrich the in-store product<br />
variety. In this paper, we study the effects <strong>of</strong> a retailer brand on the pr<strong>of</strong>itability <strong>of</strong> a<br />
manufacturer and a retailer when consumers do not have full information about the<br />
products and have to incur a cost to evaluate the brands. We show that a<br />
manufacturer can benefit from a retailer brand, and the benefit may increase with<br />
the rising quality <strong>of</strong> the retailer brand. This happens when the introduction <strong>of</strong> a<br />
retailer brand motivates the retailer to induce consumer evaluation and the<br />
manufacturer can take advantage <strong>of</strong> that to charge a high wholesale price. Depending<br />
on the level <strong>of</strong> consumer evaluation cost, either a decentralized channel or a<br />
centralized channel can <strong>of</strong>fer more product varieties. Furthermore, at certain<br />
evaluation costs, consumers can be better <strong>of</strong>f in a decentralized channel than in a<br />
centralized one.