Research News
Marketing
Customer Behavior-Be Careful to Segment
Verbal, visual, or cognitive cues can have very opposite effects when used on different groups of potential customers, say researchers Christian Wheeler and Jonah Berger.
The Price of Medication May Affect How Well It Works
A marketing pitch or the price of a drug may do more than simply affect what the consumer thinks about the product. It also can have an actual
effect on how effective the user finds the drug, says researcher Baba Shiv.
Why Does Movie Popcorn Cost So Much?
The high price of popcorn at most movie theater concession stands actually benefits moviegoers, say researchers, including the Business School’s Wesley Hartmann. It helps hold down the price of the movie ticket.
Sales Simulator Throws Students Curveballs
Think sales managers are the only ones who worry about forecasting? Professor James Lattin uses a simulation tool to help students grasp the complexity of managing sales organizations.
Measuring Wine by Its Pricetag
Wine drinkers asked to compare wines told resarchers the one they believed was more expensive tasted better. Although their brains did react with more pleasure to the higher pricetag, the researchers including Baba Shiv, say the subjects were tasting the same wine under two pricetags.
Too Much Popularity Can Make Items Uncool
Products may go from cool to completely out of favor in a blink. The reason, say researchers, is that consumers associate their own identity with some products and will shy away from something they once liked if they perceive it is associated with the wrong kinds of groups or individuals. (December 2007)
Information Can Help You Get the Right Cell Phone Plan
Given enough information, most users can choose the best payment plan for their needs in a cell phone contract. But, caution researchers including Sridhar Narayanan of the Graduate School of Business, there isn’t always an obvious way to get the information.
Buyer Beware: Shopping Can Lead to More … Well … Shopping
Which items consumers purchase can actually create momentum to make them shop more, say researchers including the Business School’s Uzma Khan. That bag full of items you really didn’t intend to buy may not be completely your fault. (September 2007)
A Brand Is a Promise to a Customer
Nonprofits may not compete as fiercely as for-profit businesses, but they must find ways to make their brand stand out and evoke emotions from potential supporters says Professor Jennifer Aaker. (September 2007)
Time Pressures Color Consumer Decisions Say Researchers
As any woman who has ever shopped for shoes for a big event can tell you, a
looming deadline affects consumer decisions. A month before the big event the
shopper is looking for the perfect shoes. The day before, she just wants
something that won't be awful. Marketing researchers who have studied this
phenomenon caution that time is one factor that makes framing a marketing
campaign something that should not be taken lightly. (June 2007)
Not Coordinating Price and Quantity Can Mean Lost Competitive Advantage
In most manufacturing operations, price is determined by the marketing
department while operations decides how much to manufacture. When these two
don't coordinate well the result can mean the company loses competitive
advantage say researchers who have created a new mathematical model for finding
the optimal price and quantity to fit with real world consumer behavior. (June
2007)
Be Careful What You Ask Your Customers
Understanding the needs and wants of customers in an ever-more competitive
economic environment is critical. But Professor Itamar Simonson warns that
information gleaned from some widely used types of customer surveys can be
misleading and even counterproductive. (April 2007)
Social Networks Impact the Drugs Physicians Prescribe
Marketing drugs to medical opinion leaders such as specialists can boost
revenues by 18 percent over the return on marketing to a broad group of
physicians, according to recent research coauthored by Assistant Professor
Harikesh Nair. (March 2007)
The Price Should Be Right: Don't Underestimate the Savvy Consumer in Pricing
Goods
Video game makers can risk significantly lower profits if they set prices
for new products without gauging how likely customers are to be willing to
wait for the price to drop. In fact, says Assistant Professor Harikesh Nair, it
could lower manufacturers' profits by 30 percent. (October 2006)
New Research Center Named for Srinivasan
India's Great Lakes Institute of Management has created the Kotler-Srinivasan
Centre for Research in Marketing, honoring the Business School's Professor V. Seenu Srinivasan and Philip Kotler of the Kellogg School. (October 2006)
Loyalty Programs Can Be a Waste of Money
Programs that reward
frequent customers may have only limited effectiveness. Researchers say such
programs often don't change the behavior of frequent users although they can
attract less dedicated customers. (October 2006)
Startups Need a Special Learning Curve for Sales
Before a young company can sell its product successfully, the entire
organization needs to learn how customers will acquire and use the product. This
requires a special learning curve for sales and marketing before the product is
ready for a major push, say researchers Charles Holloway and Mark Leslie.
(September 2006)
Grocery Circulars Do Attract Shoppers
Grocery retailers spend some $8 billion on feature print ads each year,
but until now there has been little evidence of their effectiveness. A new
study by researchers Seenu Srinivasan and Anand Bodapati finds that at least 10
percent of shoppers chose their store based on the week's ads. (August 2006)
Marketing Directly to Physicians Reaps Higher Returns for Drug Companies
In the case of antihistamines, drug companies could increase revenues by
advertising more heavily soon after the launch of a new product, said
Sridhar Narayanan, assistant professor of marketing at the Graduate School of
Business, who has completed a trio of research projects on the purpose and
effectiveness of pharmaceutical advertising campaigns. (August 2006)
Can Polling Location Influence How Voters Vote?
Where you cast your ballot—whether it's in a church, a school, or an auto
garage—can have an effect on the outcome of elections, say three researchers
from the Graduate School of Business. (July 2006)
Lowering Switching Costs Have Made Cellular Services More Competitive
Allowing customers to keep the same number when they change wireless carriers has lowered the cost to consumers say researchers. (July 2006)
You Can Auction That Rembrandt Online
Auctioning items online can be profitable, say researchers, if the auction
firm does a good job of helping bidders understand the value of the item
being sold. Uncertainty, they say, is what holds down online bids. (June 2006)
For Buyers, More Choice Means Better Quality
When you absolutely positively have to pick up wine for a dinner party or
a watch for a son's graduation present, variety is indeed the spice of hype.
Potential buyers see brands that offer greater variety as having higher quality,
and so are more likely to purchase those brands, according to recent research.
(May 2006)
Getting Emotional About Health
Public service announcement programs aimed at heightening awareness of
health issues need to fall on receptive ears to be effective. Research by
Jennifer Aaker and others says such ads should consider the emotional state of
the potential message audience and whether those individuals are self-focused or
focused on others. (March 2006)
Calculating the Dollar Value of Brand Equity
Most managers would give five years' worth of stock options to figure out
just how much brand equity is worth in dollar terms. Now, thanks to the work
of Professor V. Srinivasan and his colleagues, the magic market research method
for doing so just may have arrived. (February 2006)
Bridging the Culture Chasm: Ensuring Consumers Are Healthy, Wealthy, and Wise
Consumers' goals can be strongly influenced by culture; for instance,
whether to assert yourself by taking a proactive stance or maintain harmony
with others by focusing on avoiding an outcome. New research coauthored by
Jennifer Aaker argues that in a world where people increasingly identify with
multiple ethnic groups, individuals may react differently in different
situations. (February 2006)
When Does Culture Matter in Marketing?
When cultural biases affect a reaction to advertising messages is becoming a bigger issue as marketers search for global customers. Researchers say
culture-based differences are more likely to show up when we react quickly and
spontaneously to messages such as billboards or banners than when we have time
to think about the ads. (November 2005)
Franchisers
Protect Valuable Brands Through Higher Company Ownership
Companies that spend heavily on advertising to build
their brand's reputation own a higher percentage of franchise outlets,
according to recent research, and those same franchisers will choose a set
percentage of outlets to operate and stick with that number. (November 2005)
The Four-Minute Search for the Perfect Mate
Researchers have always reported that women pay more attention to intelligence
and compatibility in deciding whom they date. A new study finds that when it
comes to spending four minutes on a “speed date,” women are just as likely as
men to concentrate on what the potential date looks like. (July 2005)
Asking Consumers to Compare May Have Unintended Results
Asking consumers to compare your product to a more expensive one may seem like a
good idea, but researchers caution that it could have surprising results. July
2005)
Let Them Eat Cake: How Thoughts of Death Affect Consumer Behavior
How do people behave when faced with a threat to their mortality?
According to research by Associate Professor Baba Shiv, there are dramatic
changes ranging from increased church attendance to serious overeating. The
reaction depends heavily on our self-image. (September 2005)
Discredited
"Mozart Effect" Remains Music to American Ears
There is no scientific proof that listening to classical music enhances
intelligence. Professor Chip Heath has tracked this scientific legend and
finds it has grown because problems attract solutions and Americans are
obsessed about their children's education. (February 2005)
Valuing Bestselling Books
Making the New York Times Bestsellers list is an honor, but it
really doesn't boost sales substantially for most of the big name
authors who make the list, according to research by Prof. Alan Sorensen.
(July 2004)
What
Makes Consumers Want to Buy the Latest Model?
Potential customers weigh a predictable list of pros and cons when they
decide whether to upgrade to the newest cell phone or video camera.
Researchers have created a model they say can help marketers decide who is
most likely to upgrade to the latest version. (May 2004)
Too Much Choice Can Hurt Brand Performance
Some brand managers believe their brand needs to keep offering new
choices to stay in the game but giving consumers too many choices may
actually hurt brand performance say marketing researchers. (February 2004)
Are Discount Tickets Good for Business?
The Business School's Phillip Leslie says Broadway show producers benefit
from multi-tiered ticket pricing systems, including those same-day discount
ticket booths. He also concludes that these systems are a good match for
consumers too. (November 2003)
Consumers Work Hard for Loyalty Programs
Good marketing isn't always about giving consumers what they want and
reaping a profit. Research by Itamar Simonson shows that customers may not
know what they want and second-guessing them can be expensive. (September
2003)
When Good Brands Do Bad Things
Brands that attempt to establish trust and nurturing relationships with
their customers may pay a heavy price if things go wrong, say marketing
researchers. And the only thing certain in the world of marketing is that
someday, something will go wrong. (March 2003)
Matching the Pitch to the Perspective
Advertisers can connect with consumers by understanding whether the
consumers see themselves as autonomous beings or as members of an
interdependent group, says marketing researcher Jennifer Aaker. (February 2002)
Ideas that Stick Without Advertising Dollars
People do care about the truth of an idea, but they also want to tell
stories that produce strong emotion, and that second tendency sometimes
gets in the way of the first, says Chip Heath as he researches why we want
to believe urban legends and pass on bad news. (February 2002)
Principals of Internet Marketing
Marketing has always been the voice of the customer--a conduit through which the rest of the company can hear the wishes of its customers. With the Internet, the voice of the customer becomes a shout. (2001)
How Consumers Value Frequent Flier Programs and Other Rewards
The harder they are to earn, the more consumers believe they deserve
luxury items when they claim their premiums from customer loyalty programs
such as credit card gifts or frequent flier miles. (August 2001)
The Limits of One to One Marketing
One-to-one marketing isn't the magic bullet it was rumored to be, says
Itamar Simonson, because customers often don't really know what they want.
(August 2000)
The Downside of Conducting Consumer Surveys
Telling consumers in advance that they are going to be asked for their
opinion makes their responses more negative than merely asking them to
evaluate something after the fact, says marketing Professor Itamar Simonson.
(May 2000)