Journal of Marketing Research

This article develops the first structural model of organizational buying to study innovation diffusion in business-to-business markets. The model is particularly applicable for routinized exchange relationships, whereby centralized buyers periodically evaluate and choose contracts and then downstream users order items on contracted terms. The model captures different utility trade-offs for users and buyers while accounting for how buyer and user choices interact to influence user adoption/usage and buyer contracting. Further, the authors consider the dynamics induced by share-of-wallet (SOW) pricing contracts, commonly used in business-to-business markets to reward customer loyalty with discounts for buying more than a threshold share from a supplier. The authors assemble novel panel data on surgeons’ product usage, SOW contracts, contract switching, and hospital characteristics. They find two segments of hospitals in terms of the relative power of surgeons and buyers: a buyer-centric segment and a surgeon-centric segment. Further, they find that innovations diffuse faster in teaching hospitals and when surgical procedures are concentrated among a few surgeons. Finally, the authors answer questions such as these: Should the marketer focus on push (buyer-focused) or pull (user-focused) strategies? Do SOW contracts hurt the innovations of smaller firms? Surprisingly, the authors find that SOW contracts can help speed the diffusion of major innovations from smaller players.

Swearing can violate norms and thereby offend consumers. Yet the prevalence of swear word use suggests that an offensiveness perspective may not fully capture their impact in marketing. This article adopts a linguistic perspective to develop and test a model of how, why, and when swear word use affects consumers in online word of mouth. In two field data sets and four experiments, the authors show that relative to reviews with no swear words, or with non-swear-word synonyms (e.g., super), reviews with swear words (e.g., damn) impact review readers. First, reviews with swear words are rated as more helpful. Second, when a swear word qualifies a desirable [undesirable] product attribute, readers’ attitudes toward the product increase [decrease] (e.g., “This dishwasher is damn quiet [loud]!”). Swear words impact readers because they convey meaning about (1) the reviewer and (2) the topic (product) under discussion. These two meanings function as independent, parallel mediators that drive the observed effects. Further, these effects are moderated by swear word number and style: they do not emerge when a review contains many swear words and are stronger for uncensored and euphemistic swear words (e.g., darn) than censored swear words (e.g., d*mn). Overall, swear words in reviews provide value to readers—and review platforms—because they efficiently and effectively convey two meanings.

Consumers may need help using an inherently complex product after purchase. This article studies a manufacturer's and a retailer's incentives to provide presales service and after-sales support in a distribution channel. The authors consider a model in which a manufacturer makes wholesale price and channel service decisions. Subsequently, a retailer makes retail price and channel service decisions. They find that, in equilibrium, both channel members provide presales service. If the fixed-cost investment needed to enhance the effectiveness of after-sales support is small, the manufacturer lets the retailer provide after-sales support. Yet when it is above a threshold and the retailer becomes unwilling to invest in providing after-sales support, the manufacturer steps in and does so. As expected, when the fixed cost is too large, the manufacturer also opts out of providing after-sales support. Interestingly, when the retailer provides after-sales support, the level of presales service and the demand for after-sales support can simultaneously be the highest among all configurations. Finally, the authors demonstrate the robustness of their main results by studying alternative channel service configurations.

It is common in moderation analysis that at least one of the target moderation variables is latent and measured with measurement error. This article compares six methods for latent moderation analysis: multigroup, means, corrected means, factor scores, product indicators, and latent product. It reviews their use in marketing research, describes their assumptions, and compares their performance with Monte Carlo simulations. Several recommendations follow from the results. First, although the means method is the most frequently used method in the review (95% of articles), it should only be used when reliabilities of the moderation variables are close to 1, which is rare. Then, all methods except the multigroup method perform similarly well. Second, the results support using the factor scores method and latent product method when reliabilities are smaller than 1. These methods perform best with parameter and standard error bias less than or equal to 5% under most investigated conditions. Third, specific settings can warrant using the multigroup method (if the moderator is discrete), the corrected means method (if moderation variables are single indicators), and the product indicators method (if indicators are nonnormally distributed). Practical guidelines and sample code for four statistical platforms (SPSS, Stata, R, and Mplus) are provided.

Researchers and practitioners in marketing, economics, and public policy often use preference elicitation tasks to forecast real-world behaviors. These tasks typically ask a series of similarly structured questions. The authors posit that every time a respondent answers an additional elicitation question, two things happen: (1) they provide information about some parameter(s) of interest, such as their time preference or the partworth for a product attribute, and (2) the respondent increasingly “adapts” to the task—that is, using task-specific decision processes specialized for this task that may or may not apply to other tasks. Importantly, adaptation comes at the cost of potential mismatch between the task-specific decision process and real-world processes that generate the target behaviors, such that asking more questions can reduce external validity. The authors used mouse and eye tracking to trace decision processes in time preference measurement and conjoint choice tasks. Respondents increasingly relied on task-specific decision processes as more questions were asked, leading to reduced external validity for both related tasks and real-world behaviors. Importantly, the external validity of measured preferences peaked after as few as seven questions in both types of tasks. When measuring preferences, less can be more.

Environmental sustainability is a common practice of global brands, with 90% of the top 100 Interbrand global brands making statements about environmental efforts on their websites. In this research, the authors explore how a consumer’s global–local identity can affect consumer engagement with a global brand’s environmental sustainability initiative. Specifically, they examine consumer engagement in response to environmental messaging based on regulatory focus, spatial construal, and temporal construal. They theorize and find, across six experimental studies, that consumers with a strong global identity are more engaged with environmental sustainability initiatives when messaging includes frames congruent with their global identity, specifically promotion frames coupled with distant spatial frames and with proximal temporal frames. For consumers with a local identity, these regulatory and construal messaging frames do not impact consumer engagement with environmental sustainability initiatives. Consumer environmental mindset mediates the effect of global–local identity on consumer engagement with environmental sustainability initiatives when such congruent frames are used, and consumer eagerness to act provides additional process explanation for the asymmetric spatial (distant) and temporal (proximal) construal effects. The findings have significant implications for the design of global brand and environmental policy messaging, particularly for consumers with a strong global identity.

Ad blockers allow users to browse websites without viewing ads. Online news publishers that rely on advertising income tend to perceive users’ adoption of ad blockers purely as a threat to revenue. Yet, this perception ignores the possibility that avoiding ads—which users presumably dislike—may affect users’ online news consumption behavior in positive ways. Using 3.1 million visits from 79,856 registered users on a news website, this research finds that ad blocker adoption has robust positive effects on the quantity and variety of articles users consume. Specifically, ad blocker adoption increases the number of articles that users read by 21.0%–43.2%, and it increases the number of content categories that users consume by 13.4%–29.1%. These effects are stronger for less-experienced users of the website. The increase in news consumption stems from increases in repeat visits to the news website, rather than in the number of page impressions per visit. These postadoption visits tend to start from direct navigation to the news website, rather than from referral sources. The authors discuss how news publishers could benefit from these findings, including exploring revenue models that consider users’ desire to avoid ads.

In today’s advanced economies, consumers are constantly exposed to an increasing number of upgraded products. This research examines consumer response to a brand's launching of an upgraded product and identifies the consumer's ownership status of a previous version of the product as a key dimension that can influence their reaction. Contrary to common intuition, the research demonstrates that while the release of an upgraded product is received positively by nonowners of a previous version, this is not always the case for owners. The authors propose that owners respond unfavorably because the new upgrade increases perceived distance between the owners and the brand as the brand progresses forward with the enhanced products. That is, when the new product replaces an existing product the consumers own, consumers perceive that the brand is moving away from them. This negative effect of an upgrade is attenuated if the owners are provided with an extra source of connection to the brand. The authors investigate this phenomenon in five studies and discuss the implications of their findings.

Ad exchanges, where real-time auctions for display ad impressions take place, have historically emphasized user targeting, and advertisers sometimes did not know on which sites their ads would appear; in other words, they had no ad context. More recently, some ad exchanges have been encouraging publishers to provide context information to ad buyers that would allow them to adjust their bids for ads at specific sites. This article explores the empirical effect of a change in context information provided by a private European ad exchange. Analyzing this as a quasi-experiment using difference in differences, the authors find that average revenue per impression rose when the exchange provided subdomain information to ad buyers. Thus, ad context information is important to ad buyers, and they will act on it. Revenue per impression rises for nearly all sites, which is what auction theory predicts will happen when rational buyers with heterogeneous preferences are given more information. Exceptions are sites with thin markets prior to the policy change; consistent with theory, these sites do not show a rise in prices. This study adds evidence that ad exchanges with reputable publishers, particularly smaller volume, high-quality sites, should provide ad buyers with context information, which can be done at almost no cost.

Trademarks play an important role in protecting intangible brand assets. However, the impact of trademark rights on brand assets has received little attention in the literature. The authors examine the impact of trademark rights on brand assets from the perspective of appropriability—that is, the firm’s ability to benefit from innovation and creativity. To ensure causal identification, they use a natural experimental context in which U.S. Supreme Court decisions on trademark rights provide an exogenous variation in strength of trademark rights. Using a database of trademarks registered in the United States and a difference-in-difference estimation approach, the authors show that, overall, trademark applications and applications to register in other categories increase when trademark rights are strengthened and decrease when trademark rights are weakened. However, trademarking responses of brands to a change in property rights are muted for design trademarks and amplified when a firm has multiple brands. The authors discuss the theoretical, substantive, and managerial implications of the findings and provide guidance for further research.