Evolution of momentum and popularity

In this paper, the evolutionary behavior of two types of investor in a capital market with two risky competing securities is investigated. It is shown that, if all investors are momentum-oriented, then only those who are the most sensitive to popularity will survive. Conversely, if all investors are popularity-oriented, then they will all invest in the same security.     

When does a service guarantee work? The roles of the popularity of service guarantees and firm reputation

Despite substantial research on service guarantees in the literature, little study has examined how the popularity of service guarantees (SG) in a particular industry affects the effectiveness of SGs. Through four studies, the authors demonstrate an interactive effect between the market-level factor (the popularity of SGs) and the firm-level factor (firm reputation) in affecting consumer's responses to a travel agency's actions in (not) offering an SG. When offering SGs is popular in a given market, consumers perceive a loss from the absence of SGs, and a high-reputation agency will outperform a low-reputation agency in consumer service evaluation when neither agencies offer SGs. However, if both agencies provide guarantees, the SG offered by the high-reputation agency does not necessarily lead to greater service evaluation than that offered by the low-reputation agency. The results reverse when offering SGs is rare in the market, as consumers perceive a gain from the presence of SGs.     

The Perfect Fit: The Moderating Role of Selling Cues on Hedonic and Utilitarian Product Types

With the need among retailers to create effective promotional campaigns, scarcity, and popularity cues are increasingly used. Drawing from regulatory focus and popularity versus scarcity cues literature, this research explores the impact of popularity versus scarcity cues and product types on consumer perceptions of risk, product uniqueness, and purchase intentions. Results from three studies provide primary insights: (1) A utilitarian product aligns with prevention goals and hence the popularity cue will enhance consumers’ purchase intentions, and (2) a hedonic product aligns with promotion goals and hence the scarcity cue will enhance consumers’ purchase intentions. Further, we theorize that perceived risk and perceived product uniqueness will act as psychological mechanisms. We discuss theoretical contributions and strategic insights for retailers and marketers that the findings indicate.     

Cosmetic mergers: The effect of style investing on the market for corporate control

We study the impact of “style investing” on the market for corporate control. We argue that the choice of the bidder is influenced by the fact that the merge with a firm that belongs to an investment style more popular with the market may boost the bidder's value. By using data on the flows in mutual funds, we construct a measure of popularity, which relies directly on the identification of sentiment-induced investor demand, rather than being a direct transformation of stock market data. We show that differences in popularity between bidder and target help to explain their pairing. The merger with a more popular target generates a halo effect from the target to the bidder that induces the market to evaluate the assets of the less popular bidder at the (inflated) market value of the more popular target. Both bidder and target premiums are positively related to the difference in popularity between the target and the bidder. However, the target's ability to appropriate the gain is reduced by the fact that its bargaining position is weaker when the bidder's potential for asset appreciation is higher. We document a better short- and medium-term performance of less popular firms taking over more popular firms. The bidder managers engaging in these cosmetic mergers take advantage of the window of opportunity induced by the deal to reduce their stake in the firm under convenient conditions.     

“Chef recommended” or “most popular”? Cultural differences in customer preference for recommendation labels

Despite the widespread use of recommendation labels on restaurant menus, no prior research has investigated their impact on diners’ menu decisions. To bridge that gap, this study examines the joint effect of recommendation type (chef recommended vs. most popular) and culture (individualistic vs. collectivistic) on diners’ purchase intention. The results indicate that Indians showed higher levels of purchase intention when the recommendation involved a popularity (vs. expertise) cue, while Americans responded more favorably to an expertise (vs. popularity) cue. Furthermore, this study demonstrates that self-construal is the underlying mechanism explaining the culture effect for popularity cues. Theoretical and managerial implications are discussed.     

“I got it FIRST”: Antecedents of competitive consumption of a new product

When a new product of a well-known brand is released, consumers wait in line as early as possible to increase their chances of purchasing the product. This research investigated the two-stage competitive arousal model of a new product purchase competition. Results of a structural equation modeling with a multi-group analysis approach showed that competitive arousal was a central psychological state stimulated by product uniqueness, scarcity, popularity, need for uniqueness, and self-enhancement value, influencing the intention to queue in line. Practical insights in targeting the right consumers and promoting a new product to draw optimal attention from consumers were further discussed.     

我国发展EDI的问题及其对策分析

EDI，即“电子数据交换”是在贸易中应用电子计算机和网络技术来完成所有业务行为的新兴贸易方式。我国EDI技术起步晚，在开发及应用过程中所表现出来的问题十分突出，日渐成为阻碍发展的严重因素。分析问题、查找和及时解决EDI技术中产生的问题，以适应全球EDI的历史趋势，已成为当前我国EDI技术发展中一个重要问题。     

Posting reviews on OTAs: Motives,rewards and effort

High-quality reviews are crucial for users and websites. Many online travel agencies (OTAs) offer online incentives to encourage high-quality reviews. However, the effect of these incentive programs on users' posting effort remains unclear. Our analyses of a dataset collected from a leading OTA present the following: (1) users with more digest reviews tend to exert more effort when posting subsequent reviews; (2) an increasing number of digest reviews for a hotel induces subsequent users to exert additional posting effort; (3) the marginal effect of an additional digest review on posting effort is decreasing; (4) users with high expertise tend to exert extra posting effort when in a fierce competition. This study concludes by presenting theoretical and managerial implications for both research and practice.     

Please,talk about it! When hotel popularity boosts preferences

Many consumers post on-line reviews, affecting the average evaluation of products and services. Yet, little is known about the importance of the number of reviews for consumer decision making. We conducted an on-line experiment (n = 168) to assess the joint impact of the average evaluation, a measure of quality, and the number of reviews, a measure of popularity, on hotel preference. The results show that consumers’ preference increases with the number of reviews, independently of the average evaluation being high or low. This is not what one would expect from an informational point of view, and review websites fail to take this pattern into account. This novel result is mediated by demographics: young people, and in particular young males, are less affected by popularity, relying more on quality. We suggest the adoption of appropriate ranking mechanisms to fit consumer preferences.     

YouTube vloggers’ popularity and influence: The roles of homophily,emotional attachment,and expertise

This study examines how homophily, emotional attachment, and credibility influence the popularity of a video blogger (hereinafter referred to as vlogger) and his/her viewers' purchase decision in the context of the beauty product industry. More specifically, the research investigates the effects of four dimensions of the homophily construct (i.e., attitude, value, background, and appearance), vlogger's expertise, and emotional attachment to the vlogger on his/her popularity. In turn, the vlogger's popularity influences viewers' purchase of recommended products. Data were collected online among a sample of 501 US women about beauty product vloggers. The results show that three dimensions of homophily (attitude, values, and appearance) have a significant effect on the vlogger's popularity. Emotional attachment has a significant effect whereas expertise has no significant effect. Vloggers' popularity has a significant effect on viewers' purchase of recommended beauty products. Overall, our findings highlight the role of homophily and emotional attachment for the study of vloggers' popularity.