Tag Archives: marketing

Publications

What makes us search?

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Yoon, Y., Deng, R., & Joo, J. (2022). The Effect of Marketing Activities on Web Search Volume: An Empirical Analysis of Chinese Film Industry Data. Applied Sciences, 12, 2143.

Abstract

Prior research on consumers’ web searches primarily examined the effect of web searches on product sales or the characteristics of the web searchers. Differing from prior research, we investigate the effect of marketing activities on web search volume. We selected 314 movies released in China whose box office revenues were greater than RMB 10,000. Then, we collected data points on web search volume and marketing activities from the Baidu, Sina Weibo, and Douban platforms from the 3 weeks prior to the release of each movie. Marketing activity data points were derived from three sources: news media, social network marketing, and film stars. Our data analysis of 6594 observations revealed two major findings. First, news media, social network marketing, and the effect of film stars increased the web search volumes of the films. In particular, social network marketing had the strongest impact on the web search volume. Second, the previous‐day web search volume increased the present‐day web search volume without marketing activities, suggesting a spillover effect. We discuss the academic contributions and managerial implications of our findings in the context of online marketing and new product launches.

Keywords

web search behavior; film industry; news media; social network; star; new product

Publications

People feel confident in wine selection when they know the founder

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Choi, B., & Joo, J. (2021). Authentic Information on the Back Label of Wine Bottle. Asia Marketing Journal, 23(3), 13–26.

Abstract

This paper investigates whether including authentic information on the back labels of wine bottles enhances consumers’ confidence and purchase intentions about wine; it also assesses the moderating role of involvement and knowledge about wine. We conducted two experimental studies. Study 1 generated three findings. First, when the back label had authentic information, subjects showed higher confidence levels. Second, this effect was hold for subjects with low levels of involvement. Finally, we did not observe this effect for subjects with high levels of involvement. Study 2 extended study 1’s findings and identified the moderated mediation effect of confidence. The findings highlight the important impact on wine choice of authentic information. However, the findings also suggest that authentic information may not be sufficient to attract people with high levels of involvement and knowledge. This study’s findings provide wine producers with practical marketing insights.

Keywords

Authenticity; Confidence; Involvement; Knowledge; Wine

Publications

Why do reusable cups turn into unnecessary waste?

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Jung, B., & Joo, J. (2021). Blind Obedience to Environmental Friendliness: The Goal Will Set Us Free. Sustainability, 13(21), 12322.

Abstract

In the past, researchers focusing on environmentally friendly consumption have devoted attention to the intention–action gap, suggesting that consumers have positive attitudes toward an environmentally friendly product even though they are not willing to buy it. In the present study, we borrow insights from the behavioral decision making literature on preference reversal to introduce an opposite phenomenon—that is, consumers buying an environmentally friendly product even though they do not evaluate it highly. We further rely on the research on goals to hypothesize that choice–evaluation discrepancies disappear when consumers pursue an environmentally friendly goal. A two (Mode: Choice vs. Evaluation) by three (Goal: Control vs. Quality vs. Environmentally friendly) between-subjects experimental design was used to test the proposed hypotheses. Our findings obtained from 165 undergraduate students in Korea showed that, first, 76% of the participants chose an environmentally friendly cosmetic product whereas only 49% of the participants ranked it higher than a competing product, and, second, when participants read the sentence “You are now buying one of the two compact foundations in order to minimize the waste of buying new foundations,” the discrepancy disappeared (64% vs. 55%). Our experimental findings advance academic discussions of green consumption and the choice–evaluation discrepancy and have practical implications for eco-friendly marketing.

Keywords

behavioral decision making; environmentally friendly; choice–evaluation discrepancy; intention–action gap; preference reversal; goal

Publications

Do people write longer reviews when their experience is worse than what they read than when better?

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Park, Young Joon, Jaewoo Joo, Charin Polpanumas, and Yeujun Yoon (2021), “‘Worse than what I read ?’ The external effect of review ratings on the online review generation process: An empirical analysis of multiple product categories using Amazon.com review data,” Sustainability, 13(19), 10912.

Abstract

In this paper, we study the online consumer review generation process by analyzing 37.12 million online reviews across nineteen product categories obtained from Amazon.com. This study revealed that the discrepancy between ratings by others and consumers’ post-purchasing evaluations significantly influenced both the valence and quantity of the reviews that consumers generated. Specifically, a negative discrepancy (‘worse than what I read’) significantly accelerates consumers to write negative reviews (19/19 categories supported), while a positive discrepancy (‘better than what I read’) accelerates consumers to write positive reviews (16/19 categories supported). This implies that others’ ratings play an important role in influencing the review generation process by consumers. More interestingly, we found that this discrepancy significantly influences consumers’ neutral review generation, which is known to amplify the effect of positive or negative reviews by affecting consumers’ search behavior or the credibility of the information. However, this effect is asymmetric. While negative discrepancies lead consumers to write more neutral reviews, positive discrepancies help reduce neutral review generation. Furthermore, our findings provide important implications for marketers who tend to generate fake reviews or selectively generate reviews favorable to their products to increase sales. Doing so may backfire on firms because negative discrepancies can accelerate the generation of objective or negative reviews.

Keywords

electronic word-of-mouth (eWOM); review rating; online review; external effect; review generation process; fake review

Cases

Less is better for flower?

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At Nicolai Bergmann, a flower shop in Seoul, I noticed two preserved flower arrangements.

One was overfilled with blooms, spilling out of its display.

The other was neatly arranged inside a square box.

The overfilled one caught my attention first, but after looking at both, I chose the boxed arrangement. Why? When comparing them side by side, I started thinking about something that was harder to judge—the actual amount of flowers. The boxed one felt more balanced, structured, and perhaps even more valuable. I imagine many other visitors would come to the same conclusion

This reminds me of a study by Chris Hsee. In his experiment, people preferred the look of an overfilled ice cream cup with 7 ounces of ice cream over an underfilled one with 8 ounces. But when asked how much they would pay, they were willing to spend more on the underfilled cup ($1.85 vs. $1.56). Why? When evaluating the ice cream separately, they focused on an easy-to-judge factor—whether it looked full or not. But when comparing them together, they paid attention to the harder-to-judge factor—the actual amount of ice cream.

When making choices, we might be drawn to what looks impressive at first glance. But when we take a moment to compare, we start to value things differently.

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Reference

Hsee, C. K. (1998). Less is better: When low‐value options are valued more highly than high‐value options. Journal of Behavioral Decision Making, 11(2), 107-121.

This research demonstrates a less-is-better effect in three contexts: (1) a person giving a $45 scarf as a gift was perceived to be more generous than one giving a $55 coat; (2) an overfilled ice cream serving with 7 oz of ice cream was valued more than an underfilled serving with 8 oz of ice cream; (3) a dinnerware set with 24 intact pieces was judged more favourably than one with 31 intact pieces (including the same 24) plus a few broken ones. This less-is-better effect occurred only when the options were evaluated separately, and reversed itself when the options were juxtaposed. These results are explained in terms of the evaluability hypothesis, which states that separate evaluations of objects are often infuenced by attributes which are easy to evaluate rather than by those which are important.

Cases

Lay rationalsim leads consumers to choose subscription services

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Subscription-based model attracts attention. It helps firms to stabilize profits, obtain insights, and forecast sales, enabling them sustain.

However, marketers have to pay attention to consumer psychology when they develop a subscription service. That is, pain of payment is detached from joy of enjoyment. When consumers consider subscribing a service or not, they emphasize the realized pain of payment rather than their expected joy of enjoyment. In this case, they tend to rely on “lay rationalism” and base their decisions on reason than on feeelings (Hsee et al. 2014, pg. 134). In order to use reason to guide decisions, consumers may calculate the cost effectiveness of a service rigorously (e.g., how much I will enjoy later based on how much I pay now).

Since payment-enjoyment time gap leads consumers to rely on lay rationalism, they may like a subscription service that is is easy to calculate its cost effectiveness. Take an example of the following 2 TB Dropbox service. The cost effectiveness of the two billing cycle options are easy to calculate and easy to compare because their pay period is identical (month). I subscribed this Dropbox service because I found it easy to calculate cost effectiveness.

In contrast, when cost effectiveness is difficult to calculate, a subscription service may not be chosen. Take an example of the following 3 TB Dropbox space. In this case, the cost effectiveness of the two billing cycle options are difficult to calculate and difficult to compare because their pay periods differ (year vs. month). I assume many others hesitate to choose one of the two options.


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Reference

Hsee, C. K., Yang, Y., Zheng, X., & Wang, H. (2014). Lay Rationalism: Individual Differences in Using Reason Versus Feelings to Guide Decisions. Journal of Marketing Research, 52(1), 134–146.

People have a lay notion of rationality—that is, the notion of using
reason rather than feelings to guide decisions. Yet people differ in the degree to which they actually base their decisions on reason versus feelings. This individual difference variable is potentially general and important but is largely overlooked. The present research (1) introduces the construct of lay rationalism to capture this individual difference variable and distinguishes it from other individual difference variables; (2) develops a short, easy-to-implement scale to measure lay rationalism and demonstrates the validity and reliability of the scale; and (3) shows that lay rationalism, as measured by the scale, can predict a variety of consumer-relevant behaviors, including product preferences, savings decisions, and donation behaviors.

Cases

Why are we attracted by Starbucks toys?

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Starbucks Coffee Korea recently launched a set of limited edition Playmobil toy figures. Customers get one of six tall-size beverages with an accompanying Playmobil figure for $12.

Today at a nearby Starbucks, I found several customers paid extra to have a barista figure. Another Starbucks was crowded even though customers have to leave store shortly due to social distancing regulations. It suggests this campaign increases offline store traffic.

Why do adults like Starbucks toys? Although brand power and scarcity play key roles, a more deeply rooted reason is that Playmobil figures are whimsically cute. “Cute products (e.g., an ice-cream scoop shaped like a miniature person or a dress with tropical colors and pink flamingos) can have whimsical nature, which is associated with capricious humor and playful disposition. Whimsical cuteness is … associated with fun and playfulness.” (Nenkov and Scott 2014, pg. 327).

Interestingly, whimsically cute products do not necessarily appeal when they are designed for kids. Contrary to our belief, whimsical cuteness attracts adults. This argument is supported by the experimental findings obtained from a marketing paper.

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Reference

Nenkov, G., & Scott, M. (2014). “So Cute I Could Eat It Up”: Priming Effects of Cute Products on Indulgent Consumption. Journal of Consumer Research,41(2), 326-341.

This article examines the extent to which consumers engage in more indulgent consumption when they are exposed to whimsically cute products and explores the process by which such products affect indulgence. Prior research on kindchenschema (baby schema) has found that exposure to cute babies or baby animals leads to more careful behavior (see the study by Sherman, Haidt, and Coan), suggesting restraint. The present research uncovers the opposite: consumers become more indulgent in their behavior after exposure to whimsically cute products. Drawing from research on cognitive priming, kindchenschema, anthropomorphization, indulgence, and regulatory focus, this research posits that exposure to whimsically cute products primes mental representations of fun, increasing consumers’ focus on approaching self-rewards and making consumers more likely to choose indulgent options. These effects do not emerge for kindchenschema cute stimuli, since they prime mental representations of vulnerability and caretaking. Four empirical studies provide evidence for the proposed effects and their underlying process.

When two cookies were presented under “The Cookie Shop,” participants indicated significantly weaker preference for the healthy entree when they had earlier viewed the whimsically cute cookie than when they had viewed the neutral cookie. However, no such differences occurred when two cookies were presented under “The Kid’s Cookie Shop.”

Cases

Look and feel mismatch: Looking heavy but feeling light

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We sometimes experience sensory disconfirmation, meaning we expect to feel A but actually feel B. For instance, iPhone looks like a product with light plastic but it is made by heavy metal. In particular, disconfirmation between visual and haptic information (or mismatch between look and feel) is critical for business.

Showroom (Curated by Sarah Robayo Sheridan, January 21 – March 5, 2016)

“How do Toronto artists perceive new social and visual orders brought about by a decade of rapid urban development?”

Commonly, a showroom is intended to present a generic ideal of living, devoid of the nuances of lives as they are lived. The artists in this exhibition, however, turn our attention to the influence of lifestyle marketing in constructing the form and texture of the cityscape. By turns, critical, comedic and formal, the works deepen given knowledge of architecture, place, and the social order.

Fitness equipment looks heavy and rough. However, some artists challenge our intuition: dumbbells are light and sandbags are soft in the exhibition. According to research, when negative sensory disconfirmation is introduced, the source of disconfirmation can sometimes be perceived positively. To go further, the more our intuitions are challenged by look-and-feel mismatch, the more we may become creative.

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Reference

Sundar, A., & Noseworthy, T. J. (2016). Too Exciting to Fail, Too Sincere to Succeed: The Effects of Brand Personality on Sensory Disconfirmation. Journal of Consumer Research, 43(1), 44–67.

Across four studies, the authors demonstrate that consumers intuitively link disconfirmation, specifically sensory disconfirmation (when touch disconfirms expectations by sight), to a brand’s personality. Negative disconfirmation is often associated with negative posttrial evaluations. However, the authors find that when negative sensory disconfirmation is introduced by an exciting brand, the source of disconfirmation can sometimes be perceived positively. This occurs because consumers intuitively view disconfirmation as more authentic of an exciting personality. Similarly, despite the wealth of literature linking positive disconfirmation to positive posttrial evaluations, the authors find that sensory confirmation is more preferred for sincere brands because consumers intuitively view confirmation as more authentic of a sincere personality. The authors conclude by demonstrating the intuitive nature of this phenomenon by showing that the lay belief linking brand personality to disconfirmation does not activate in a context where sensory disconfirmation encourages a more deliberative assessment of the product.

Cases

Mini-me, 3D printer, and handmade effect

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I once believed mini-mes are expensive because they are produced by cutting edge 3D printers, which differ from my 3D printer or a mere 3D food printer. A news article elaborates that human miniatures are not cheap.

Pinla3D scans its customers in-store and then gives them a choice of 3D model sizes. A 25cm (9.8-inch) figure costs RMB 3,580 (US$580), according to the store’s site. Three generations of one family can be immortalized in plastic at 1:9 scale for RMB 8,997 (US$1,470). That’s cheaper than we’ve seen it done by a Japanese startup site – with the added bonus that going in-person to the store will make the mini-me more accurate than submitting a bunch of photos to a website.

However, my belief was corrected when I visited Tianzifang in Shanghai, China. A series of mini-mes displayed outside a store cost only RMB 480 (US$ 68). I wondered how and why they are inexpensive.

The mystery was solved when I entered the store. These mini-mes were not produced by 3D printers. Instead, two people made mini-mes out of clay.

We tend to assign greater value to a product when it is made by human than when made by machine. It is called as “handmade effect.” Then, why did I observe a reverse handmade effect, that it, hand-crafted mini-mes are cheaper than the ones printed by 3D printers? I suspect the handmade effect is observed only when the people who make a product is clearly associated with the final product. If the association is not established so that buyers do not know who produce their purchased products, handmade effect disappears and buyers are not willing to pay more. If I come back to Shanghai, I suggest two mini-me makers to give their own name cards and personal stories to buyers!

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Reference

Fuchs, C., Schreier, M., & van Osselaer, S. M. J. (2015). The Handmade Effect: What’s Love Got to Do with It? Journal of Marketing, 79(2), 98–110.

Despite the popularity and high quality of machine-made products, handmade products have not disappeared, even in product categories in which machinal production is common. The authors present the first systematic set of studies exploring whether and how stated production mode (handmade vs. machine-made) affects product attractiveness. Four studies provide evidence for the existence of a positive handmade effect on product attractiveness. This effect is, to an important extent, driven by perceptions that handmade products symbolically “contain love.” The authors validate this love account by controlling for alternative value drivers of handmade production (effort, product quality, uniqueness, authenticity, and pride). The handmade effect is moderated by two factors that affect the value of love. Specifically, consumers indicate stronger purchase intentions for handmade than machine-made products when buying gifts for their loved ones but not for more distant gift recipients, and they pay more for handmade gifts when purchased to convey love than simply to acquire the best-performing product.

Cases

People need vocabulary to develop taste

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Barry Schwartz argues in his book, the Paradox of Choice, that increasing choices does not make us happy. Instead, reducing choices boosts sales and giving more options lowers choices.

Autonomy and Freedom of choice are critical to our well being, and choice is critical to freedom and autonomy. Nonetheless, though modern Americans have more choice than any group of people ever has before, and thus, presumably, more freedom and autonomy, we don’t seem to be benefiting from it psychologically. —quoted from Ch.5, The Paradox of Choice, 2004

Then, does giving more choices enhance the enjoyment choosers experience? It may not be, either. I had a similar experience at the cheese section of the Annam Gourmet at Ho Chi Minh city, Vietnam. It provided a wide variety of cheeses. Therefore, spent a significant amount of time in carefully comparing multiple cheeses and eventually choosing one. When I tasted the selected cheese, unfortunately, I was confused which one to choose because I spent too much time on thinking about several cheeses.

Then, what could marketers do to help people enjoy their experience? One suggestion is that when customers experience the option, they are reminded which one was chosen. For instance, if the option name is shown, customers will be able to keep focused on it.

Nekkid Wings is a chicken wing restaurant in Seoul, Korea. Customers select one out of twelve flavors for a bucket of five wings. Some flavors are safe (e.g., classic buffalo) and others are risky (e.g., parmesan garlic). Most customers order multiple buckets and try safe and risky flavors together. The flavor names printed on the paper help customers focus on which flavor they are testing.

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Reference

West, P. M., Brown, C. L., & Hoch, S. J. (1996). Consumption Vocabulary and Preference Formation. Journal of Consumer Research, 23(2), 120–135.

Consumers’ understanding of their own preferences can be aided by a “consumption vocabulary”—a taxonomy or framework that facilitates identifying the relation between a product’s features and one’s evaluation of the product. In the absence of such a vocabulary, consumers’ understanding of their own preferences will require more extensive experience and may never fully develop. The effect of such a vocabulary is tested in two experiments in which subjects provided with a vocabulary (1) exhibit better-defined and more consistent preferences than control subjects, (2) show improved cue discovery, and (3) show learning (i.e., increases in consistency over time). All results hold regardless of the functional form of the model used to assess subjects’ preference formation.