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​​​​Volume 53, Issue 2​​

​April 2016

​Halo (Spillover) Effects in Social Media: Do Product Recalls of One Brand Hurt or Help Rival Brands?

Abhishek Borah and Gerard J. Tellis​

  • ​We examine whether a focal firm’s product recall has a “perverse halo” of negative online chatter for competitors, which then damages those competitors’ sales and stock market performance.

Homogeneous Contracts for Heterogeneous Agents: Aligning Sales Force Composition and Compensation
Øystein Daljord, Sanjog Misra, and Harikesh S. Nair

​The Influence of Serotonin Deficiency on Choice Deferral and the Compromise Effect
Marcel Lichters, Claudia Brunnlieb, Gideon Nave, Marko Sarstedt, and Bodo Vogt

  • This study investigates the role of the neurotransmitter serotonin in consumer decision making, showing that low serotonin levels increase peoples’ tendency to avoid buying and reduce a well-known behavioral bias, “the compromise effect.”

Can Sales Uncertainty Increase Firm Profits?
Niladri Syam, James D. Hess, and Ying Yang

Advertising Effectiveness: The Moderating Effect of Firm Strategy
Leigh McAlister, Raji Srinivasan, Niket Jindal, and Albert A. Cannella

Investigating How Word-of-Mouth Conversations About Brands Influence Purchase and Retransmission Intentions
Andrew M. Baker, Naveen Donthu, and V. Kumar

Consumer Preferences for Annuity Attributes: Beyond Net Present Value
Suzanne B. Shu, Robert Zeithammer, and John W. Payne

  • Using a choice-based stated-preference survey, we estimate consumers’ valuation for attributes of a financial product, single immediate life annuities, and find that attributes directly influence preferences beyond their impact on the annuity’s expected present value, consistent with psychological theories of consumer financial decision making.​​

Lower Connectivity Is Better: The Effects of Network Structure on Redundancy of Ideas and Customer Innovativeness in Interdependent Ideation Tasks
Andrew T. Stephen, Peter Pal Zubcsek, and Jacob Goldenberg

  • This research looks at how online network connectedness – who is connected to whom – affects customers’ abilities to generate creative, innovative ideas for products in crowdsourcing tasks, and finds that too much connectivity can stifle innovative thinking.

Community Participation and Consumer-to-Consumer Helping: Does Participation in Third Party–Hosted Communities Reduce One’s Likelihood of Helping?
Scott A. Thompson, Molan Kim, and Keith Marion Smith

  • Firms have had little guidance on the impact that brand community and product category community participation have on consumer-to-consumer (C2C) helping, but this research demonstrates that brand community participation increases helping toward fellow community members and reduces helping toward rival brand communities; surprisingly, product category community participation reduces helping toward brand communities.

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