Online display advertising for CPG brands: (When) does it work?

This study examines how online display ads, alone or in combination with more conventional media (television and print), can help drive sales in the consumer packaged goods (CPG) sector. It also assesses how the combined sales effect of online and offline ads depends on the volatility of their expenditures over time. We explore these relations for 154 brands across 68 Dutch CPG product categories. We find that, even though display ads are not effective for the “average” CPG brand, they do have a significant impact for a sizable, and considerably larger than expected by chance, subset of brands. Importantly, this impact depends on the type of product. While display ads are found to be ineffective for low-involvement utilitarian products, they can significantly enhance sales for other CPG product types. Moreover, the effect depends on whether they are used in combination with other media: while display ads are best used as a stand-alone medium for high-involvement utilitarian products, it is better to combine them with traditional media for hedonic products. Finally, the long-term effectiveness of display messages increases significantly when they are spread more evenly in time.     

e-Honesty: when does it pay?

We consider a model of strategic reputation for online sales using an exchange format. In the model sellers can sell a cheap good to build up reputation, and then cheat when selling a more expensive good. We identify conditions under which a seller will always be honest.     

How does customer recognition affect service provision?

We examine how channel members’ ability to recognize repeat and new customers affects service provision, profits, and welfare. In decentralized channels, when only retailers can recognize customers, customer recognition increases service levels. However, in centralized channels or decentralized channels when both manufacturers and retailers can recognize customers, customer recognition reduces (increases) service levels if service investment persists (diminishes) sufficiently over time. Moreover, in centralized channels, customer recognition reduces firm profits and consumer surplus, whereas in decentralized channels, when manufacturers and retailers can recognize customers, customer recognition increases channel members’ profits but decreases consumer surplus.     

How does the learning climate affect customer satisfaction?

This study investigates the role of the learning climate in the effective management of salespersons' behaviour in service encounters. This paper reports the development and testing of a two-level model in which salespersons' perceptions of the learning climate are related to their adaptive selling behaviour and their adaptive selling behaviour is, in turn, related to customers' evaluation of the salespersons' knowledge of customers and customer satisfaction. A total of 417 service encounters involving 88 bank consultants were analysed using hierarchical linear modelling, with results that support most of the proposed model. More specifically, learning climate was positively related to adaptive selling behaviour, and adaptive selling behaviour was directly related to customer satisfaction. In addition, adaptive selling behaviour was associated with customer satisfaction through customers' perception of the salesperson's knowledge. Both theoretical and practical implications are discussed.     

How does ethics institutionalization reduce academic cheating?

Extant research on academic cheating primarily focuses on the impact of honor codes on academic cheating. However, the influence of ethics institutionalization is curiously missing in past research. The authors developed and validated a structural equations model in the R programming language to examine the impact of formal (explicit) and informal (implicit) ways of institutionalizing ethics on reducing students' academic cheating. They found a significant mediating effect of implicit ethics institutionalization on the relationship between explicit ethics institutionalization and academic cheating among business students. Therefore, academic administrators are encouraged to place significant emphasis on implicit forms of ethics institutionalization to curb academic cheating among students.     

International work experience: Is it really accelerating the way to the management board of MNCs?

International work experience is often claimed to be a prerequisite for managers in an MNC. This paper investigates how international work experience affects those managers who reach upper echelons. Drawing on both human capital theory and elite theory, we argue that stays abroad not only have beneficial, but also adverse effects on managers’ ascent to the top. By analysing the careers of 212 management board members from Germany, we find that once a certain threshold of international work experience is exceeded, being away from home impedes managers’ long-term career advancement. However, it is not only longer stays abroad that show a negative time effect; we are also able to reveal that being in countries with high geographic and cultural distance to the home country significantly decelerates managers’ speed of being appointed to the management board. Our findings demonstrate that conflicting interests exist between MNCs and high potentials who consider an international career. We stress that these conflicts call for being solved in managerial practice.     

Assurance of corporate social responsibility reports: Does it reduce decoupling practices?

Recent research shows the existence of a selective corporate social responsibility (CSR) disclosure strategy that creates a gap between CSR disclosure and actual performance. These CSR decoupling practices compromise the credibility of CSR reports and have triggered a demand for the adoption of credibility enhancement mechanisms, such as adherence to the global reporting initiative (GRI) reporting guidelines, and the external assurance of CSR reports. The effectiveness of such mechanisms is not clear, however. This paper draws on legitimacy theory and addresses the issue of symbolic versus substantive use of assurance, and compliance with GRI reporting standards, by analysing their effect on CSR decoupling using an international sample of 1,939 companies (15,219 observations from 2002 to 2017). Analysis of a sub-sample of 708 firms (3,730 observations from 2011 to 2017) also shows that the application of GRI guidelines and the specific characteristics of the assurance provider—accountant, experience and specialisation—reduce CSR decoupling practices. The results provide researchers, managers, assurance providers, investors, stakeholders and regulators with additional insight into the value of the external assurance of sustainability reports and have important managerial and policy implications.     

Chatbots in retailers’ customer communication: How to measure their acceptance?

Currently, online retailers evaluate whether chatbots—software programs that interact with users using natural languages—could improve their customers' satisfaction. In a retail context, chatbots allow humans to pose shopping-related questions and receive answers in natural language without waiting for a salesperson or using other automated communication forms. However, until now, it has been unclear which customers accept this new communication form and which factors determine their acceptance. In this paper, we contrast the well-known technology acceptance model (TAM) with the lesser known uses and gratifications (U&G) theory, applying both approaches to measure the acceptance of the text-based “Emma” chatbot by its target segment. “Emma” was developed for the prepurchase phase of online fashion retailing and integrated into Facebook Messenger by the major German online retailer Zalando. Data were collected from 205 German Millennial respondents in a usability study. The results show that both utilitarian factors such as “authenticity of conversation” and “perceived usefulness,” as well as hedonic factors such as “perceived enjoyment”, positively influence the acceptance of “Emma”. However, privacy concerns and the immaturity of the technology had a negative effect on usage intention and frequency. The predictive power of both models was similar, showing little deviation, but U&G gives alternative insights into the customers’ motivation to use “Emma” compared to the TAM.     

Islamic corporate financing: does it promote profit and loss sharing?

Islamic financing instruments can be categorised into profit and loss/risk sharing and non‐participatory instruments. Although profit and loss sharing instruments such as musharakah are widely accepted as the ideal form of Islamic financing, prior studies suggest that alternative instruments such as murabahah are preferred by Islamic banks. Nevertheless, prior studies did not explore factors that influence the use of Islamic financing among non‐financial firms. Our study fills this gap and contributes new knowledge in several ways. First, we find no evidence of widespread use of Islamic financing instruments across non‐financial firms. This is because the instruments are mostly used by less profitable firms with higher leverage (i.e. risky firms). Second, we find that profit and loss sharing instruments are hardly used, whilst the use of murabahah is dominant. Consistent with the prediction of moral‐hazard‐risk avoidance theory, further analysis suggests that users with a lower asset base (to serve as collateral) are associated with murabahah financing. Third, we present a critical discourse on the contentious nature of murabahah as practised. The economic significance and ethical issues associated with murabahah as practised should trigger serious efforts to steer Islamic corporate financing towards risk‐sharing more than the controversial rent‐seeking practice.     

The practitioners’ path to customer loyalty: Memorable experiences or frictionless experiences?

Managers of CX programs are often faced with a decision between investing more in experience design (memorable CX) or improving experience delivery (frictionless CX). Current measurement approaches in both industry and academia do not provide a useful framework to address this dilemma adequately or directly. Using 6009 brand ratings by 1070 unique respondents, this research evaluates the impact of memorable vs frictionless CX on customer share of wallet, as well as the mediating effects of satisfaction on these relationships. Both memorable and frictionless CX have significant positive effects on customer share of wallet. These effects are partially mediated by satisfaction. There is an interaction between memorable and frictionless CX which suggests that attempts to maximize both have diminishing returns. The relative impact of each type of CX varies significantly by sector. This alternative method for measuring CX and assessing its impact provides incremental insight over common industry approaches.     

Flag backlash: Why does the presence of the American flag reduce product evaluation?

The American flag is often incorporated into product branding. However, little research has investigated how the use of American flag imagery as a marketing tool for products influences consumer behavior. The present research examines (1) whether the presence of the American flag on a product affects consumers’ evaluation of products and (2) the social cognitive mechanisms underlying the effect of the flag on product‐related judgments. This research provides evidence that the presence of the American flag on a product induces negative product evaluation (Study 1). This negative effect is found to be moderated by participants’ trait level of psychological reactance (Study 2) and mediated by participants’ outrage (Study 3a) and perceived persuasion (Study 3b). When the American flag's link with the product is broken, its negative impact on product evaluation disappears (Study 4).     

Making Drones to Kill Civilians: Is it Ethical?

A drone industry has emerged in the US, initially funded almost exclusively for military applications. There are now also other uses both governmental and commercial (in the US and abroad). Many military drones are still being made, however, especially for surveillance and targeted killings. Regarding the latter, this essay calls into question their legality and morality. It recognizes that the issues are complex and controversial, but less so as to the killing of non-combatant civilians. The government using drones for targeted killings maintains secrecy and appeals to non-traditional justifications. Most scholars who assess these killer drone practices support citizen immunity, either by favoring a modified just war theory that prioritizes civilians’ right to life or by challenging official deviations from applicable laws. They accordingly declare such killing immoral if not a war crime. The manufacturers of these killer drones are not themselves the killers, but they are abetters, i.e., sine qua non facilitators. So, I argue that any company concerned about its corporate social responsibility should cease manufacturing them.     

Is it godly to waste food? How understanding consumers' religion can help reduce consumer food waste

Food waste is a problem worldwide, but solutions have yet to adequately incorporate consumers' core values—values which are often rooted in religion. Study 1 shows that restrictive religious norms (e.g., rules about food consumption, fasting) lead to greater food waste, whereas supportive religious norms (e.g., sharing food) lead to reduced food waste. Study 2 replicates prior findings and rules out competing explanations. Study 3 manipulates marketing messaging to show that consumers with higher (lower) levels of religiosity are more likely to reduce food waste with a prevention (promotion) framed message partnered with environmental reasoning or a promotion (prevention) framed message partnered with people-based reasoning. Implications for marketers, consumer advocacy groups, and policy makers desiring to reduce food waste are provided.     

Carbon information on vegetables: How does it affect the buying process?

Information on the climate impact of a food product has practically not been communicated in Germany, even though it could provide important acknowledgement of producers’ actions in low‐carbon production. So far, carbon labelling has predominantly been discussed without taking into account German consumers’ opinions (proven by empirical data) on this issue, even though involving the consumer in the considerations of a Carbon Label is essential for its success. Especially the question, if information on the product carbon footprint is a considerable factor within the search process of a purchase decision, was of special interest in this work. To answer these questions, we analysed consumers’ information‐seeking behaviour using an information display matrix (IDM) experiment with 232 participants. The IDM is a process tracing technique which allows to track the information search in a buying process. Our results show that basically the place of origin is the most important criterion for the purchase decision, followed by price and production method (conventional/organic). In contrast, the sustainability information (i.e., carbon footprint and water consumption) are at a low level of importance. Comparing two locally produced products with the help of a multinominal logistic regression‐model, it seems that the group of consumers preferring organic products is influenced in the purchase decision by the carbon footprint information. In summary it can be stated that although some people may be basically interested in carbon labelling of fresh food, the purchase decision would probably be hardly influenced by a carbon label on vegetables at present. The majority of people are more concerned about factors like origin and price so that Carbon Labelling would only be a viable option for a small group of consumers.     

Umpire and batsman: Is it cricket to be both?

The paper is a response to Richard De George's essay, Theological Ethics and Business Ethics. It defends the possibility of theologically oriented approaches to business ethics by pointing out certain deficiencies in business ethics narrowly based on the premisses of analytic moral philosophy. In particular it argues, in a manner consistent with Alasdair MacIntyre's After Virtue (1981), that such a program of business ethics is insufficiently critical of its own roots in the social fiction of bureaucratic rationality. After showing how this ideology governs De George's negative judgments on theological approaches to business ethics, the author outlines a program of critical reflection that would draw from the intellectual traditions of both theology and philosophy in order to facilitate a dialogue in business ethics that no longer is captive in the Iron Cage of bureaucratic rationality. Dennis P. McCann is an Associate Professor of Religious Studies at De Paul University. He has served on the faculties of Reed College and Lewis and Clark College. He is the author of Christian Realism and Liberation Theology (1981) and a co-author of Polity and Praxis: A Program for American Practical Theology (1985).