Influencers
The Positive Effect of Not Following Others on Social Media
Francesca Valsesia, Davide Proserpio & Joseph Nunes
Journal of Marketing Research, forthcoming
Abstract:
Marketers commonly seed information about products and brands through individuals believed to be influential on social media, which often involves enlisting micro influencers, users who have accumulated thousands as opposed to millions of followers (i.e., other users who have subscribed to see that individual's posts). Given an abundance of micro influencers to choose from, cues that help distinguish more versus less effective influencers on social media are of increasing interest to marketers. The authors identify one such cue: the number of users the prospective influencer is following. Using a combination of real-world data analysis and controlled lab experiments, they show that following fewer others, conditional on having a substantial number of followers, has a positive effect on a social media user's perceived influence. Further, the authors find greater perceived influence impacts engagement with the content shared in terms of other users exhibiting more favorable attitudes toward it (i.e., likes) and a greater propensity to spread it (i.e., retweets). They identify a theoretically important mechanism underlying the effect: following fewer others conveys greater autonomy, a signal of influence in the eyes of others.
In Generous Offers I Trust: The Effect of First-Offer Value on Economically Vulnerable Behaviors
Martha Jeong, Julia Minson & Francesca Gino
Psychological Science, forthcoming
Abstract:
Negotiation scholarship espouses the importance of opening a bargaining situation with an aggressive offer, given the power of first offers to shape concessionary behavior and outcomes. In our research, we identified a surprising consequence to this common prescription. Through four studies in the field and laboratory (total N = 3,742), we explored how first-offer values affect the recipient's perceptions of the offer-maker's trustworthiness and, subsequently, the recipient's behaviors. Specifically, we found that recipients of generous offers are more likely to make themselves economically vulnerable to their counterparts, exhibiting behaviors with potentially deleterious consequences, such as disclosing negative information. We observed this effect in an online marketplace (Study 1) and in an incentivized laboratory experiment (Study 3). We found that it is driven by the greater trust that generous first offers engender (Studies 2 and 3). These results persisted in the face of debiasing attempts and were surprising to lay negotiators (Studies 3 and 4).
The Hidden Costs of Requiring Accounts: Quasi-Experimental Evidence From Peer Production
Benjamin Mako Hill & Aaron Shaw
Communication Research, forthcoming
Abstract:
Online communities, like Wikipedia, produce valuable public information goods. Whereas some of these communities require would-be contributors to create accounts, many do not. Does this requirement catalyze cooperation or inhibit participation? Prior research provides divergent predictions but little causal evidence. We conduct an empirical test using longitudinal data from 136 natural experiments where would-be contributors to wikis were suddenly required to log in to contribute. Requiring accounts leads to a small increase in account creation, but reduces both high- and low-quality contributions from registered and unregistered participants. Although the change deters a large portion of low-quality participation, the vast majority of deterred contributions are of higher quality. We conclude that requiring accounts introduces an undertheorized tradeoff for public goods production in interactive communication systems.
The Effects of Numerical Divisibility on Loneliness Perceptions and Consumer Preferences
Dengfeng Yan & Jaideep Sengupta
Journal of Consumer Research, forthcoming
Abstract:
This research seeks to examine, first, whether and why consumers perceive divisible versus indivisible numbers differently and second, how such divergent perceptions influence consumer preferences for marketer-created entities associated with divisible versus indivisible numbers. Integrating insights from two different literatures - numerical cognition and loneliness - we propose and find that numbers perceived to be divisible (vs. indivisible) are viewed as having more "connections" and are therefore deemed to be less lonely. Building on these findings and the literature on compensatory consumption, we then propose and demonstrate that a temporary feeling of loneliness increases participants' relative preference for various targets - products, attributes and prices - associated with divisible (vs. indivisible) numbers, which are perceived to be relatively more connected and less lonely. It merits mention that our findings are triangulated across a wide variety of numbers, different product categories, and multiple operationalizations of loneliness.
Free Shipping Promotions and Product Returns
Edlira Shehu, Dominik Papies & Scott Neslin
Journal of Marketing Research, forthcoming
Abstract:
Free shipping promotions have become popular among online retailers. However, little is known about their influence on consumers' purchases, return behavior, and, ultimately, firm profit. The authors propose that free shipping promotions encourage customers to make riskier purchases, leading to more product returns. They estimate the impact of these promotions on purchase incidence, high-risk and low-risk spend, and return share. The results show that free shipping promotions increase expenditure for high-risk products, expanding their share of the consumer's market basket and thus increasing the overall return rate. This is validated in a field experiment. A field test and an online lab experiment analyze the mechanism linking free shipping and returns. The results suggest that the free shipping effect occurs through consumers' perceptions that free shipping serves as a risk premium compensating them for potential returns and through positive affect generated by the promotion. A simulation shows that for the focal firm, free shipping promotions increase net sales volume, but higher product returns and lost shipping revenue render these promotions unprofitable.