M. Deniz Dalman, Manoj K. Agarwal and Junhong Min
This paper aims to investigate whether anthropomorphized (i.e. humanized) brands are judged less negatively for competence failures than for moral lapses and how these ethical…
Abstract
Purpose
This paper aims to investigate whether anthropomorphized (i.e. humanized) brands are judged less negatively for competence failures than for moral lapses and how these ethical judgments impact negative word-of-mouth (NWOM) intentions of less-lonely and more-lonely consumers.
Design/methodology/approach
Two scenario-based experiments were conducted, involving a total of 1,375 US mechanical turk (Amazon consumer panel) participants.
Findings
Findings show that brand humanization has an impact on ethical judgments only for less-lonely consumers. More specifically, for less-lonely consumers, a humanizing strategy backfires when the failure is moral but helps the brand when the failure is competence-related. On the other hand, more-lonely consumers judge the situation less negatively overall, and this effect is not impacted by the anthropomorphization strategy. Process tests indicate that these judgments indirectly affect consumers’ intention to spread NWOM following negative events.
Research limitations/implications
Future research could examine the specific process for lonely consumers (i.e. the role of empathy) and manipulate the size of the negative events (i.e. consumer perceptions of moderate vs extreme failures).
Practical implications
Brand managers need to consider their specific situations, as anthropomorphization can have both positive and negative effects depending on the consumers and the failure type (moral vs competence).
Originality/value
Extant research indicates that a humanizing strategy backfires when the market has negative information about the brand. This research introduces types of negative information, as well as consumers’ loneliness as moderators and contributes to the literature in branding, business ethics and word-of-mouth.
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Debi P. Mishra and M. Deniz Dalman
Signals, e.g. information released by firms about new products attract the attention and scrutiny of customers, competitors and other stakeholders. In product management, an…
Abstract
Purpose
Signals, e.g. information released by firms about new products attract the attention and scrutiny of customers, competitors and other stakeholders. In product management, an important area of research focuses on the economic value of such signals. However, extant studies consider valuation effects of product signals independently, and largely ignore how the value of a product signal at launch depends upon prior preannouncements. This study aims to investigate how the dependence of new product development (NPD) signals on past preannouncements affects firms’ security prices.
Design/methodology/approach
The study develops a conceptual model that draws upon information asymmetry theories, i.e. signaling and agency theory to hypothesize the effect of firms’ product introduction announcements on security prices given two antecedent preannouncement types (costless and costly signals). Hypotheses are tested by conducting an event study analysis on a sample of 149 matched observations (product introduction announcement preceded by a certain type of preannouncement).
Findings
Empirical results confirm the hypothesis that positive valuation effects are observed during product launch that is preceded by initial costless product signaling. In contrast, for ex ante costly product signaling, launch events are not diagnostic enough to affect value. Since organizations’ NPD communications can revise investors’ prior beliefs, they need to be understood in more detail and managed strategically.
Research limitations/implications
Valuation metrics can be noisy with a potential to influence information events. In addition, product introduction signals may be deployed more frequently in certain fast-paced industries, e.g. hi-tech.
Practical implications
Managers can incorporate signal dependence in product communications. For example, in costless ex ante product signaling situations, initial economic loss may be recovered through launch announcements. Furthermore, when costly signals have been used earlier, firms may economize on promotion costs during launch.
Originality/value
Past research has focused on assessing the economic value of new product signals independently, i.e. as discrete events. Absent is an examination of valuation effects due to the dependence of launch signals on prior preannouncements. This paper addresses the dependence gap, and empirical results show that even if firms do not deploy product signals ex ante, value can be created through ex post launch announcements.
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M. Deniz Dalman and Kartikeya Puranam
Prior research in ingredient branding (IB) has identified several important decision variables consumers use when evaluating IB alliances. This exploratory research aims to…
Abstract
Purpose
Prior research in ingredient branding (IB) has identified several important decision variables consumers use when evaluating IB alliances. This exploratory research aims to investigate the relationship between these variables and consumers’ buying likelihood of the IB alliance and the relative importance of these variables for low- vs high-involvement product categories.
Design/methodology/approach
A study with the participation of 458 mTurkers was conducted and the data were analyzed using random forests.
Findings
Findings reveal relative importance of different variables for an IB alliance and that these differ for low- vs high-involvement categories.
Research limitations/implications
Being exploratory in nature, this research has several limitations, such as using only one high- and one low-involvement categories.
Practical implications
Results of this research will help brand managers as they make decisions entering an IB alliance as well as with investing their budget on different aspects of their brand, and tailoring their marketing activities for low- vs high-involvement product categories.
Originality/value
To the best of authors’ knowledge, this paper is the first to discuss the relative importance of different decision variables in an IB context empirically.
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Debi P. Mishra, Gizem Atav and M. Deniz Dalman
This paper aims to investigate if product pre-announcement effects measured using stock market returns conform to the predictions of two competing consumer marketing theories. In…
Abstract
Purpose
This paper aims to investigate if product pre-announcement effects measured using stock market returns conform to the predictions of two competing consumer marketing theories. In particular, while buzz marketing theory indicates a direct positive effect, information asymmetry theory suggests an influence contingent upon evidence. The study also investigates whether a pecking order of performance effects exists across different signaling situations.
Design/methodology/approach
The final sample consists of 219 product-preannouncements reported in the Wall Street Journal between 2005 and 2015. The standard event study methodology was used to test for performance effects.
Findings
The results show that preannouncements with evidence alone significantly outperform those with buzz alone, and announcements containing buzz and evidence. Also, buzz acts as a salient moderator of the relationship between evidence and performance. In addition, company size also affects the evidence-performance relationship, with smaller firms benefiting more from evidence than larger firms.
Research limitations/implications
The event study method assumes efficient markets and deals with publicly traded companies.
Practical implications
Managers can allocate resources wisely by deciding whether to invest in evidence or buzz in their pre-announcements.
Originality/value
In contrast to extant research that primarily investigates contingency effects, this study identifies how an important moderator, i.e. buzz affects performance.
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M. Deniz Dalman and Subhasis Ray
There are vast opportunities for nonprofit organizations (NPOs) globally to find support for international humanitarian causes. However, donors/consumers are not always willing to…
Abstract
Purpose
There are vast opportunities for nonprofit organizations (NPOs) globally to find support for international humanitarian causes. However, donors/consumers are not always willing to contribute for such causes. This study aims to investigate how potential donor perceptions are shaped to gain wider support and aims to build a model that could guide managers of NPOs in their communication strategy.
Design/methodology/approach
Two scenario-based experiments with the participation of graduate students from an Indian university were conducted.
Findings
Cosmopolitan people have the higher moral judgment of the international causes championed by NPOs. However, anthropomorphizing the NPO’s message elevates the moral judgments among non-cosmopolitans. Process tests indicate that these moral judgments indirectly impact donation intentions for these causes.
Research limitations/implications
The paper only investigates donation intention for poverty and not humanitarian causes such as access to drinking water. Moreover, the campaign chosen takes place only in Africa (e.g. not in Asia or Latin America).
Practical implications
NPOs could tailor their marketing messages for international humanitarian causes by targeting cosmopolitan donors/consumers and using humanization as the branding strategy.
Originality/value
This research contributes to theory by showing how consumers who would otherwise not contribute to an out-group could be influenced positively by the NPOs’ branding strategy.