Academic Research
When a Nudge Becomes Invisible: How Behavioral Interventions Prompt Metacognitive Miscalibration
Nudges, subtle design changes in a choice environment, have become a popular approach to influencing consumer behavior. In the current research, we explore their potential unintended consequences. While nudges can be helpful tools, we show they can distort people’s perceptions of their own abilities. We present evidence from ten studies (N = 5,395) suggesting that consumers attribute the positive effects of nudges to themselves rather than to the nudge. Employing nudges like reminders, defaults, and decision aids, we find that consumers underestimate the extent to which their behaviors are influenced by external aids. This effect occurs because nudges create ambiguity, leading individuals to mistakenly attribute their improved outcomes to their own abilities rather than the nudge. Our findings contribute to a more nuanced understanding of the impact of nudges, highlighting their potential to shape self-perception in unintended ways.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.03.006
Authors: Matthew Fisher, Daniel M. Oppenheimer
ABSTRACT
Nudges, subtle design changes in a choice environment, have become a popular approach to influencing consumer behavior. In the current research, we explore their potential unintended consequences. While nudges can be helpful tools, we show they can distort people’s perceptions of their own abilities. We present evidence from ten studies (N = 5,395) suggesting that consumers attribute the positive effects of nudges to themselves rather than to the nudge. Employing nudges like reminders, defaults, and decision aids, we find that consumers underestimate the extent to which their behaviors are influenced by external aids. This effect occurs because nudges create ambiguity, leading individuals to mistakenly attribute their improved outcomes to their own abilities rather than the nudge. Our findings contribute to a more nuanced understanding of the impact of nudges, highlighting their potential to shape self-perception in unintended ways.
The Impact of Healthcare Data Breaches on Patient Hospital Visit Behavior
The healthcare industry is highly vulnerable to data breaches, with over half of such incidents occurring in this sector in the United States. Leveraging threat and coping appraisal frameworks from the established theory, we explore how patients respond to a data breach. This study focuses on data breaches at 12 hospitals in California over a three-year period, analyzing individual-level hospital visit data to assess the impact. Using the difference-in-differences method, we estimate the effect of a data breach on patient behavior by comparing visits before and after the breach between affected and unaffected individuals. The findings reveal that patients who experience a healthcare data breach are less likely to visit hospitals in the following months. The impact of a data breach is greater when it is a more severe incident, such as those caused by employees or large-scale breaches. However, the effect is mitigated when discontinuing hospital visits could harm patients, especially those needing ongoing care for chronic conditions. We also conduct supplementary analyses to identify boundary conditions and performed robustness checks and falsification tests to validate our findings.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.01.004
Authors: Eunho Park, Joon Ho Lim
ABSTRACT
The healthcare industry is highly vulnerable to data breaches, with over half of such incidents occurring in this sector in the United States. Leveraging threat and coping appraisal frameworks from the established theory, we explore how patients respond to a data breach. This study focuses on data breaches at 12 hospitals in California over a three-year period, analyzing individual-level hospital visit data to assess the impact. Using the difference-in-differences method, we estimate the effect of a data breach on patient behavior by comparing visits before and after the breach between affected and unaffected individuals. The findings reveal that patients who experience a healthcare data breach are less likely to visit hospitals in the following months. The impact of a data breach is greater when it is a more severe incident, such as those caused by employees or large-scale breaches. However, the effect is mitigated when discontinuing hospital visits could harm patients, especially those needing ongoing care for chronic conditions. We also conduct supplementary analyses to identify boundary conditions and performed robustness checks and falsification tests to validate our findings.
On the Persistent Mischaracterization of Google and Facebook a/b Tests: How to Conduct and Report Online Platform Studies
Marketing research has increasingly relied on online platform studies, which are studies conducted in a naturalistic online environment and which leverage the A/B testing tool provided by platforms such as Facebook or Google Ads. These studies allow researchers to compare the effectiveness of different ads and the way they are delivered, and to study “real” consumer behavior, such as clicking on ads. However, they lack true random assignment of ads to consumers, preventing causal inference. In this manuscript, we present a comprehensive review of 133 published online platform studies revealing how researchers have, so far, utilized and characterized these studies; we find that most of these studies are mistakenly presented as (randomized) experiments and most of their findings are erroneously described as causal. Our review suggests limited awareness of the inherent confoundedness of online platform studies (i.e., the inability to attribute user responses to ad creatives versus the platform’s targeting algorithms). Importantly, the prevalence of these undesirable practices has remained relatively constant over time. Against this backdrop, we offer clear guidance on how to position, conduct, and report online platform studies for researchers interested in this method and for reviewers invited to evaluate it.
Paper Link: https://doi.org/10.1016/j.ijresmar.2024.12.004
Authors: Johannes Boegershausen, Yann Cornil, Shangwen Yi, David J. Hardisty
ABSTRACT
Marketing research has increasingly relied on online platform studies, which are studies conducted in a naturalistic online environment and which leverage the A/B testing tool provided by platforms such as Facebook or Google Ads. These studies allow researchers to compare the effectiveness of different ads and the way they are delivered, and to study “real” consumer behavior, such as clicking on ads. However, they lack true random assignment of ads to consumers, preventing causal inference. In this manuscript, we present a comprehensive review of 133 published online platform studies revealing how researchers have, so far, utilized and characterized these studies; we find that most of these studies are mistakenly presented as (randomized) experiments and most of their findings are erroneously described as causal. Our review suggests limited awareness of the inherent confoundedness of online platform studies (i.e., the inability to attribute user responses to ad creatives versus the platform’s targeting algorithms). Importantly, the prevalence of these undesirable practices has remained relatively constant over time. Against this backdrop, we offer clear guidance on how to position, conduct, and report online platform studies for researchers interested in this method and for reviewers invited to evaluate it.
The Effectiveness of Advertising and Price During Conflict Delistings
Negotiations between manufacturers and retailers often go sour and result in conflict delistings in which the manufacturers’ products are removed from the retailers’ assortment. While conflict delistings can cause major revenue and market share losses for both manufacturers and retailers, prior literature provides little guidance on how to use marketing actions to alleviate these severe damages. To fill this gap, the authors use a contingency framework to assess the impact of advertising and price for both manufacturers and retailers in different conflict delisting situations. Using household scanner data for different conflict delistings, this study reveals that overall the impact of advertising decreases during the conflict delisting for both involved parties while price reductions become more effective for the brand manufacturer (but not the retailer). Importantly, the impact of advertising and price during the conflict delisting depends on conflict characteristics. The impact of advertising will be higher if the firm initiated the conflict and when the conflict is surrounded by a lot of publicity. Price reductions are particularly interesting for retailers, especially when the conflict involved a smaller elimination size, when the retailer was the initiator of the conflict, and when there was less publicity. Price reductions are also fruitful for brand manufacturers in case they did not initiate the conflict.
Paper Link: https://doi.org/10.1016/j.ijresmar.2024.12.001
Authors: Marleen Hermans, Kathleen Cleeren, Néomie Raassens
ABSTRACT
Negotiations between manufacturers and retailers often go sour and result in conflict delistings in which the manufacturers’ products are removed from the retailers’ assortment. While conflict delistings can cause major revenue and market share losses for both manufacturers and retailers, prior literature provides little guidance on how to use marketing actions to alleviate these severe damages. To fill this gap, the authors use a contingency framework to assess the impact of advertising and price for both manufacturers and retailers in different conflict delisting situations. Using household scanner data for different conflict delistings, this study reveals that overall the impact of advertising decreases during the conflict delisting for both involved parties while price reductions become more effective for the brand manufacturer (but not the retailer). Importantly, the impact of advertising and price during the conflict delisting depends on conflict characteristics. The impact of advertising will be higher if the firm initiated the conflict and when the conflict is surrounded by a lot of publicity. Price reductions are particularly interesting for retailers, especially when the conflict involved a smaller elimination size, when the retailer was the initiator of the conflict, and when there was less publicity. Price reductions are also fruitful for brand manufacturers in case they did not initiate the conflict.
Personalized Game Design for Improved User Retention and Monetization in Freemium Games
One of the most significant levers available to gaming companies in designing digital games is setting the level of difficulty, which essentially regulates the user’s ability to progress within the game. This aspect is particularly significant in free-to-play (F2P) games, where the paid version often aims to enhance the player’s experience and facilitate faster progression. In this paper, we leverage a large randomized control trial to assess the effect of dynamically adjusting game difficulty on players’ behavior and game monetization in the context of a popular F2P mobile game. The results highlight the intertwined dynamics of customer retention and monetization in such settings. As expected, offering players an easier game significantly decreases purchases in the specific round played — faced with an easier game, users do not need to resort to in-game purchases to make progress. However, because lowering the game difficulty increases both immediate engagement and long-term retention, lower difficulty levels result in a significant increase in customer spending both in the short and long run. We find substantial heterogeneity in the strength of these effects. Customers who are more prone to making progress in the game exhibit stronger effects in both the short and long run, whereas customers who previously spent money on the game exhibit stronger effects primarily in long-term monetization. We leverage these insights to demonstrate how the focal firm can use game difficulty adjustment to further increase revenues from both advertising and premium services and to recommend personalized product design strategies for freemium apps more broadly.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.01.006
Authors: Eva Ascarza, Oded Netzer, Julian Runge
ABSTRACT
One of the most significant levers available to gaming companies in designing digital games is setting the level of difficulty, which essentially regulates the user’s ability to progress within the game. This aspect is particularly significant in free-to-play (F2P) games, where the paid version often aims to enhance the player’s experience and facilitate faster progression. In this paper, we leverage a large randomized control trial to assess the effect of dynamically adjusting game difficulty on players’ behavior and game monetization in the context of a popular F2P mobile game. The results highlight the intertwined dynamics of customer retention and monetization in such settings. As expected, offering players an easier game significantly decreases purchases in the specific round played — faced with an easier game, users do not need to resort to in-game purchases to make progress. However, because lowering the game difficulty increases both immediate engagement and long-term retention, lower difficulty levels result in a significant increase in customer spending both in the short and long run. We find substantial heterogeneity in the strength of these effects. Customers who are more prone to making progress in the game exhibit stronger effects in both the short and long run, whereas customers who previously spent money on the game exhibit stronger effects primarily in long-term monetization. We leverage these insights to demonstrate how the focal firm can use game difficulty adjustment to further increase revenues from both advertising and premium services and to recommend personalized product design strategies for freemium apps more broadly.
Navigating Toxic Playgrounds: Managing Reputational and Financial Brand Safety in Multiplayer Video Games
Brands are increasingly leveraging video games to connect with consumers through advertising activities such as virtual in-game ads, product placement, and branded skins. However, the prevalence of toxic player behavior in multiplayer video games poses significant challenges for brands, as many are hesitant to establish a presence in this space due to growing concerns over brand safety. Despite efforts by game providers to combat toxicity, empirical evidence of the impact of toxicity on brands remains scarce. This study investigates whether and why toxic player behavior poses a brand safety risk for brands that advertise in video games and how game providers can mitigate these risks. We introduce a two-dimensional brand safety framework that disentangles brand safety into a reputational and financial performance component and conduct six experiments that show that toxic player behavior produces negative spillover effects on advertising brands. Contrary to popular belief, we show that toxicity does not harm a brand’s reputation or directly impact financial brand outcomes. Instead, toxic player behavior indirectly affects financial brand outcomes. Specifically, toxicity leads players to blame toxic players more, reducing game enjoyment and thereby diminishing financial brand outcomes within the game. We also find negative effects on financial brand outcomes outside the game. Our findings further reveal that active game moderation and kicking toxic players out of the game effectively mitigate these spillover effects. These results provide valuable insights for brands seeking to navigate the rapidly evolving video game landscape safely.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.01.002
Authors: Stefan F. Bernritter, Ilias Danatzis, Jana Möller-Herm, Francesca Sotgiu
ABSTRACT
Brands are increasingly leveraging video games to connect with consumers through advertising activities such as virtual in-game ads, product placement, and branded skins. However, the prevalence of toxic player behavior in multiplayer video games poses significant challenges for brands, as many are hesitant to establish a presence in this space due to growing concerns over brand safety. Despite efforts by game providers to combat toxicity, empirical evidence of the impact of toxicity on brands remains scarce. This study investigates whether and why toxic player behavior poses a brand safety risk for brands that advertise in video games and how game providers can mitigate these risks. We introduce a two-dimensional brand safety framework that disentangles brand safety into a reputational and financial performance component and conduct six experiments that show that toxic player behavior produces negative spillover effects on advertising brands. Contrary to popular belief, we show that toxicity does not harm a brand’s reputation or directly impact financial brand outcomes. Instead, toxic player behavior indirectly affects financial brand outcomes. Specifically, toxicity leads players to blame toxic players more, reducing game enjoyment and thereby diminishing financial brand outcomes within the game. We also find negative effects on financial brand outcomes outside the game. Our findings further reveal that active game moderation and kicking toxic players out of the game effectively mitigate these spillover effects. These results provide valuable insights for brands seeking to navigate the rapidly evolving video game landscape safely.
Exploring Player Cocreation Dynamics on the Gaming Platform: Interplay of Goal Fulfillments, Orchestration Actions, and Platform Affordances
Understanding player co-creation dynamics on gaming platforms is crucial for fostering engagement and driving innovation in digital marketing. This study investigates these dynamics on the Roblox platform, proposing an integrated framework that connects platform capabilities with player-driven orchestration actions and the pursuit of diverse goals − a model applicable to various digital marketing contexts. We identify three types of gaming platform affordances and three types of developers’ orchestration actions, ultimately shaping co-creation activities in terms of creative and social engagement. Using web crawling and text mining methodologies, we analyze a large, longitudinal dataset from Roblox developers engaged in co-creation projects. We employ three observable metrics to quantify co-creation activities, applying different perspectives including equality-based, effort-based weighted, and specialized measures of creative and social engagement. Our findings confirm the direct effects of platform affordances and orchestration actions on co-creation activities, with post-hoc analyses revealing goal fulfillment as an important antecedent mechanism. To validate our results, we conducted a two-stage survey with 206 experienced Roblox developers, providing additional robustness to our empirical findings. This research advances our understanding of digital co-creation and offers practical implications for designing more engaging and innovative gaming platforms. As gaming and digital marketing converge, particularly in the evolving metaverse landscape, this study underscores the importance of leveraging co-creation dynamics to enhance user engagement and drive platform growth.
Paper Link: https://doi.org/10.1016/j.ijresmar.2024.12.003
Authors: Hsiu-Yu Hung, Ajay Kumar, V. Kumar, Chih-Cheng Lin, Kim Hua Tan
ABSTRACT
Understanding player co-creation dynamics on gaming platforms is crucial for fostering engagement and driving innovation in digital marketing. This study investigates these dynamics on the Roblox platform, proposing an integrated framework that connects platform capabilities with player-driven orchestration actions and the pursuit of diverse goals − a model applicable to various digital marketing contexts. We identify three types of gaming platform affordances and three types of developers’ orchestration actions, ultimately shaping co-creation activities in terms of creative and social engagement. Using web crawling and text mining methodologies, we analyze a large, longitudinal dataset from Roblox developers engaged in co-creation projects. We employ three observable metrics to quantify co-creation activities, applying different perspectives including equality-based, effort-based weighted, and specialized measures of creative and social engagement. Our findings confirm the direct effects of platform affordances and orchestration actions on co-creation activities, with post-hoc analyses revealing goal fulfillment as an important antecedent mechanism. To validate our results, we conducted a two-stage survey with 206 experienced Roblox developers, providing additional robustness to our empirical findings. This research advances our understanding of digital co-creation and offers practical implications for designing more engaging and innovative gaming platforms. As gaming and digital marketing converge, particularly in the evolving metaverse landscape, this study underscores the importance of leveraging co-creation dynamics to enhance user engagement and drive platform growth.
The Color Gradation Effect: How Boundlessness Shapes Brand Attribute Judgments
The present research examines when and how logo color gradient affects consumer perceptions of brand innovativeness and their subsequent behavior toward products. Across six pre-registered studies, we consistently find that gradient (vs. solid) color logos can boost perceived brand innovativeness and increase purchase intention for products where innovation is of high importance. The effect emerges across different product categories (e.g., running shoes, online games, skin care products, and home decoration) and in different countries (the United States and China). We also show that this effect occurs because color gradation induces a sense of boundlessness, leading consumers to perceive greater innovativeness. This research contributes to research on logos, brand identity, innovativeness perceptions, and the role of boundlessness perceptions in marketing, offering actionable managerial implications.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.02.004
Authors: Chuang Wei, Maggie Wenjing Liu, Iris Hung
ABSTRACT
The present research examines when and how logo color gradient affects consumer perceptions of brand innovativeness and their subsequent behavior toward products. Across six pre-registered studies, we consistently find that gradient (vs. solid) color logos can boost perceived brand innovativeness and increase purchase intention for products where innovation is of high importance. The effect emerges across different product categories (e.g., running shoes, online games, skin care products, and home decoration) and in different countries (the United States and China). We also show that this effect occurs because color gradation induces a sense of boundlessness, leading consumers to perceive greater innovativeness. This research contributes to research on logos, brand identity, innovativeness perceptions, and the role of boundlessness perceptions in marketing, offering actionable managerial implications.
From Social Feeds to Market Fields: How Influencer Stories Drive Market Innovation
One post at a time, social media influencers are transforming markets. From beauty to technology, they are changing the way consumers form opinions and engage with the marketplace. Yet, past marketing scholarship has predominantly portrayed influencers as brand intermediaries—conduits for amplifying brand messages and appealing to a wider audience. This brand-centric perspective overlooks the broader role that influencers play in reshaping entire markets and thus restricts our understanding of influencers’ importance in market systems. In this study, we examine how stories shared by influencers drive market innovation, the process by which new ideas, practices, and technologies reshape markets. Drawing on an ethnographic approach to a unique context—Indian farmers who have become influencers on social media—we document how social media stories spread new ways for followers to understand and behave in the market, with consequences that change the market system itself. We thus reveal how influencers contribute to market innovation, while uncovering the narrative dynamics that drive their impact. These findings should spur new ways of thinking about and engaging with influencers. Instead of focusing solely on influencers’ role as brand intermediaries, managers and policy makers need to harness their market innovation capabilities.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.03.001
Authors: Julien Cayla, Kushagra Bhatnagar, Rajesh Nanarpuzha, Sayantan Dey
ABSTRACT
One post at a time, social media influencers are transforming markets. From beauty to technology, they are changing the way consumers form opinions and engage with the marketplace. Yet, past marketing scholarship has predominantly portrayed influencers as brand intermediaries—conduits for amplifying brand messages and appealing to a wider audience. This brand-centric perspective overlooks the broader role that influencers play in reshaping entire markets and thus restricts our understanding of influencers’ importance in market systems. In this study, we examine how stories shared by influencers drive market innovation, the process by which new ideas, practices, and technologies reshape markets. Drawing on an ethnographic approach to a unique context—Indian farmers who have become influencers on social media—we document how social media stories spread new ways for followers to understand and behave in the market, with consequences that change the market system itself. We thus reveal how influencers contribute to market innovation, while uncovering the narrative dynamics that drive their impact. These findings should spur new ways of thinking about and engaging with influencers. Instead of focusing solely on influencers’ role as brand intermediaries, managers and policy makers need to harness their market innovation capabilities.
Sounds Cute: Exploring The role Of Sound Reduplication In Brand Names
Reduplication, a linguistic feature in which part or all of a word is repeated (e.g., “kuku,” in which the syllable “ku” is doubled), is widely observed across languages and plays a significant role in child-directed speech, language acquisition, and even adult communication (e.g., “knock knock”). Despite its prevalence, reduplication remains one of the least studied aspects of brand names, and little is known about its impact on consumer perception. This study investigates how reduplicated sounds in brand names affect consumer preferences, revealing that such names enhance brand appeal by triggering associations with baby-schema cuteness. Additionally, this research identifies two key moderators: brand–product fit and the perceived cuteness of specific phonemes, such as bilabial sounds (e.g., “m” and “p”). These findings advance our understanding of brand naming and cute branding, offering practical insights for companies looking to increase brand attractiveness through sound-based cuteness.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.02.002
Authors: Kosuke Motoki, Sayo Iseki. Abhishek Pathak
ABSTRACT
Reduplication, a linguistic feature in which part or all of a word is repeated (e.g., “kuku,” in which the syllable “ku” is doubled), is widely observed across languages and plays a significant role in child-directed speech, language acquisition, and even adult communication (e.g., “knock knock”). Despite its prevalence, reduplication remains one of the least studied aspects of brand names, and little is known about its impact on consumer perception. This study investigates how reduplicated sounds in brand names affect consumer preferences, revealing that such names enhance brand appeal by triggering associations with baby-schema cuteness. Additionally, this research identifies two key moderators: brand–product fit and the perceived cuteness of specific phonemes, such as bilabial sounds (e.g., “m” and “p”). These findings advance our understanding of brand naming and cute branding, offering practical insights for companies looking to increase brand attractiveness through sound-based cuteness.
Add On or Move On: Do In-Game Purchases Help or Hurt Upgrading to Newer Game Versions?
Video game players frequently face trade-offs between investing in in-game purchases to improve their currently owned game version and upgrading to a newer, improved version altogether. This decision is significant, as upgrading usually implies losing all acquired in-game items, which are typically incompatible with the newer game version. From the game publisher’s perspective, in-game purchases may deter upgrading and cannibalize newer game versions. However, these purchases may also increase game usage, making upgrading more likely. We consider these two paths with opposite effects. We use over four years of longitudinal data from a major video game publisher, containing individual players’ gaming, in-game purchasing, and upgrading behavior. We find evidence for both paths, with a stronger negative path for cannibalization and a weaker positive path via increased game usage. Furthermore, the net effect of in-game purchases on upgrading is contingent on two salience-related moderators, with recency of in-game purchases reinforcing the positive path and buzz about an upcoming game version attenuating the negative and reinforcing the positive path.
Paper Link: https://www.sciencedirect.com/science/article/pii/S0167811625000199?dgcid=rss_sd_all
Authors: Olga Ungureanu, Rutger van Oest, Nico Schauerte
ABSTRACT
Video game players frequently face trade-offs between investing in in-game purchases to improve their currently owned game version and upgrading to a newer, improved version altogether. This decision is significant, as upgrading usually implies losing all acquired in-game items, which are typically incompatible with the newer game version. From the game publisher’s perspective, in-game purchases may deter upgrading and cannibalize newer game versions. However, these purchases may also increase game usage, making upgrading more likely. We consider these two paths with opposite effects. We use over four years of longitudinal data from a major video game publisher, containing individual players’ gaming, in-game purchasing, and upgrading behavior. We find evidence for both paths, with a stronger negative path for cannibalization and a weaker positive path via increased game usage. Furthermore, the net effect of in-game purchases on upgrading is contingent on two salience-related moderators, with recency of in-game purchases reinforcing the positive path and buzz about an upcoming game version attenuating the negative and reinforcing the positive path.
The Rise of the Subscription Model in the Video Game Console Industry: Unveiling the Commercial Consequences for Platform Owners and Video Game Sellers
Prior research in the video game console industry empirically examined the interdependence of hardware (i.e., console) sales, software (i.e., video game) sales and software supply. Recently, we have witnessed the rise of the subscription model (such as Microsoft’s Xbox Game Pass and Sony’s PlayStation Plus) as a new business model among platform owners. The impact of this new business model on platform owner revenues, video game seller revenues, and video game supply are unknown to date. Does this new model fuel growth for all sides of the market or does it come at the expense of console and/or video game sales revenue? We study the past launches of Microsoft’s Xbox Game Pass and Sony’s PlayStation Plus on which now the dust has settled enough to examine the commercial consequences thereof. Our research provides first evidence that the introduction of the respective subscription models in proprietary video game console markets: (1) enhanced console revenue, (2) had limited impact on video game revenue (contrary to the cannibalizing effects observed in the music, movie and TV industry), and (3) created a healthier video game supply, either by increasing the quantity of video game introductions (i.e., for PlayStation) or increasing their average quality (i.e., for Xbox).
Paper Link: https://www.sciencedirect.com/science/article/pii/S0167811625000187?dgcid=rss_sd_all
Authors: Michiel Van Crombrugge, Stefan Stremersch
ABSTRACT
Prior research in the video game console industry empirically examined the interdependence of hardware (i.e., console) sales, software (i.e., video game) sales and software supply. Recently, we have witnessed the rise of the subscription model (such as Microsoft’s Xbox Game Pass and Sony’s PlayStation Plus) as a new business model among platform owners. The impact of this new business model on platform owner revenues, video game seller revenues, and video game supply are unknown to date. Does this new model fuel growth for all sides of the market or does it come at the expense of console and/or video game sales revenue? We study the past launches of Microsoft’s Xbox Game Pass and Sony’s PlayStation Plus on which now the dust has settled enough to examine the commercial consequences thereof. Our research provides first evidence that the introduction of the respective subscription models in proprietary video game console markets: (1) enhanced console revenue, (2) had limited impact on video game revenue (contrary to the cannibalizing effects observed in the music, movie and TV industry), and (3) created a healthier video game supply, either by increasing the quantity of video game introductions (i.e., for PlayStation) or increasing their average quality (i.e., for Xbox).
Not All AI Is Created Equal: A Meta-analysis Revealing Drivers of Ai Resistance Across Markets, Methods, and Time
While artificial intelligence (AI) is used by billions of consumers daily through tools like ChatGPT, prior research often documents that consumers are resistant to it. The current research proposes that such resistance is strongly context-dependent, rapidly evolving, and often an artifact of how researchers study it. We provide a comprehensive synthesis of consumer responses to AI by analyzing 440 effect sizes from 76,142 unique participants across two decades of experimental research. Our meta-analysis reveals three key insights about consumer aversion towards AI (average Cohen’s d = −0.21). First, consumer responses vary systematically by AI label and domain, with the most negative responses to embodied forms of AI (e.g., robots) compared to AI assistants or mere algorithms. We also identify substantial domain differences in areas such as transportation and public safety, which trigger more negative responses compared to areas where AI improves productivity and performance, such as in business and management. Second, we document a temporal evolution towards increasingly less negative responses, particularly for cognitive consumer responses (e.g., performance or competence judgements), with aversion approaching a null-effect in most recent years. Third, we demonstrate overall shrinking effect sizes with greater ecological validity. This work advances our understanding of when and why consumers resist AI and provides directions for future research on consumer-AI interactions.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.02.005
Authors: Meike Zehnle, Christian Hildebrand, Ana Valenzuela
ABSTRACT
While artificial intelligence (AI) is used by billions of consumers daily through tools like ChatGPT, prior research often documents that consumers are resistant to it. The current research proposes that such resistance is strongly context-dependent, rapidly evolving, and often an artifact of how researchers study it. We provide a comprehensive synthesis of consumer responses to AI by analyzing 440 effect sizes from 76,142 unique participants across two decades of experimental research. Our meta-analysis reveals three key insights about consumer aversion towards AI (average Cohen’s d = −0.21). First, consumer responses vary systematically by AI label and domain, with the most negative responses to embodied forms of AI (e.g., robots) compared to AI assistants or mere algorithms. We also identify substantial domain differences in areas such as transportation and public safety, which trigger more negative responses compared to areas where AI improves productivity and performance, such as in business and management. Second, we document a temporal evolution towards increasingly less negative responses, particularly for cognitive consumer responses (e.g., performance or competence judgements), with aversion approaching a null-effect in most recent years. Third, we demonstrate overall shrinking effect sizes with greater ecological validity. This work advances our understanding of when and why consumers resist AI and provides directions for future research on consumer-AI interactions.
Balancing Generosity with Profitability: The Role of Relative Market Price and Value Perceptions in Crypto Philanthropy
Considering the exponential increases in donations made in cryptocurrencies in recent years, the decision-making process that underlies crypto philanthropy demands deeper insights. Given that both individual donors and recipients are motivated to own multiple types of cryptocurrencies to strategically diversify their investment, our research examines the influence of different cryptocurrencies’ relative market price on the donation amount. The results derived from on-chain data and five experiments indicate that donors tend to set a lower donation amount for higher-priced cryptocurrency than for lower-priced cryptocurrency to protect the profitability of their crypto portfolios. To alleviate the profitability concerns and encourage larger donations in higher-priced cryptocurrencies, potential recipients could intensify donation campaigns at times when analysts predict lower future values, or emphasize the number of cryptocurrency coins that would remain in the donor’s wallet after donation. By uncovering new insights into the effects of relative market prices, future value predictions, and crypto-wallet designs, our findings provide guidance for marketers, practitioners, and policymakers interested in crypto philanthropy.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.02.001
Authors: Hyunjung Crystal Lee, Eline L.E. De Vries, Rahil Hosseini
ABSTRACT
Considering the exponential increases in donations made in cryptocurrencies in recent years, the decision-making process that underlies crypto philanthropy demands deeper insights. Given that both individual donors and recipients are motivated to own multiple types of cryptocurrencies to strategically diversify their investment, our research examines the influence of different cryptocurrencies’ relative market price on the donation amount. The results derived from on-chain data and five experiments indicate that donors tend to set a lower donation amount for higher-priced cryptocurrency than for lower-priced cryptocurrency to protect the profitability of their crypto portfolios. To alleviate the profitability concerns and encourage larger donations in higher-priced cryptocurrencies, potential recipients could intensify donation campaigns at times when analysts predict lower future values, or emphasize the number of cryptocurrency coins that would remain in the donor’s wallet after donation. By uncovering new insights into the effects of relative market prices, future value predictions, and crypto-wallet designs, our findings provide guidance for marketers, practitioners, and policymakers interested in crypto philanthropy.
Non-fungible Tokens (Nfts) as Digital Brand Extensions: Evidence on Financial Performance and Parent-brand Spillovers
Fueled by new technologies, such as blockchain and Web3, brands are increasingly extending into the digital space. One such novel extension is the non-fungible token (NFT). Numerous examples indicate that brands’ market performance with NFTs varies widely in terms of short-term revenues and spillovers to the parent brand. However, little is known about the factors that are associated with a successful performance. The goal of our research was to identify those factors. Regarding short-term revenues, we empirically tested the value of several possible success drivers; these drivers reflected a combination of the most important success factors for physical brand extensions (e.g., extension fit, brand equity) and value drivers for NFTs (e.g., added NFT utility, number of NFTs in the campaign). Using a novel dataset of 450 NFT campaigns, we document that both types of variables help to predict financial revenues from brand-related NFTs. Going beyond the short-term financial results of NFT campaigns, we also report experimental evidence that shows such campaigns may create negative spillovers for the parent brand. Overall, this research demonstrates (i) which value drivers correlate with a brand’s NFTs success, (ii) which brands are the best fit for NFTs, (iii) in what ways brand managers need to adapt their brand-extension strategies from the physical to the digital environment if they want to succeed with NFTs, and (iv) the risk that brand extensions with NFTs may hurt customers’ attitude towards the parent brand.
Paper Link: https://doi.org/10.1016/j.ijresmar.2025.01.001
Authors: Leif Brandes, Katharina Dölp
ABSTRACT
Fueled by new technologies, such as blockchain and Web3, brands are increasingly extending into the digital space. One such novel extension is the non-fungible token (NFT). Numerous examples indicate that brands’ market performance with NFTs varies widely in terms of short-term revenues and spillovers to the parent brand. However, little is known about the factors that are associated with a successful performance. The goal of our research was to identify those factors. Regarding short-term revenues, we empirically tested the value of several possible success drivers; these drivers reflected a combination of the most important success factors for physical brand extensions (e.g., extension fit, brand equity) and value drivers for NFTs (e.g., added NFT utility, number of NFTs in the campaign). Using a novel dataset of 450 NFT campaigns, we document that both types of variables help to predict financial revenues from brand-related NFTs. Going beyond the short-term financial results of NFT campaigns, we also report experimental evidence that shows such campaigns may create negative spillovers for the parent brand. Overall, this research demonstrates (i) which value drivers correlate with a brand’s NFTs success, (ii) which brands are the best fit for NFTs, (iii) in what ways brand managers need to adapt their brand-extension strategies from the physical to the digital environment if they want to succeed with NFTs, and (iv) the risk that brand extensions with NFTs may hurt customers’ attitude towards the parent brand.