Academic Research
Tailoring Explanations in Conversational Recommendations: The Impact of Decision Contexts and User Interfaces
Explainability is crucial for building trust in traditional recommendation systems, yet its role in conversational settings is underexplored. Across three experimental studies (N = 1,429), we used between-subjects designs featuring diverse product categories (cameras, smartwatches, headphones) to examine the interactive effects of post hoc explanations (expert validation-based vs. consensus validation-based) and decision-making domains (hedonic vs. utilitarian) on consumer responses to conversational recommendations. We further examined how consumer decision-making styles (intuitive vs. rational) and user interfaces (text-based vs. voice-based) moderated these effects. Results show that post hoc explanations enhance perceived transparency and interpretability, thereby increasing consumer trust in conversational recommendations. In text-based interfaces, consumers making hedonic decisions preferred consensus-based explanations, whereas no clear preference emerged for utilitarian decision-makers. In voice-based interfaces, utilitarian consumers favored consensus-based explanations, while no significant preference was observed for hedonic decisions. Furthermore, intuitive consumers preferred consensus-based explanations for hedonic decisions and expert-based explanations for utilitarian decisions. Rational consumers consistently favored consensus-based explanations across both decision-making domains. These findings provide valuable insights for designing conversational recommendation systems on e-commerce platforms. By tailoring explanations to decision domains, user interfaces, and consumer decision-making styles, businesses can foster greater trust and engagement, driving more favorable purchasing behaviors and improving business outcomes.
Paper Link: https://doi.org/10.1016/j.jretconser.2025.104281
Authors: Qian Qian Chen, Li Min Lin, Youjae Yi
ABSTRACT
Explainability is crucial for building trust in traditional recommendation systems, yet its role in conversational settings is underexplored. Across three experimental studies (N = 1,429), we used between-subjects designs featuring diverse product categories (cameras, smartwatches, headphones) to examine the interactive effects of post hoc explanations (expert validation-based vs. consensus validation-based) and decision-making domains (hedonic vs. utilitarian) on consumer responses to conversational recommendations. We further examined how consumer decision-making styles (intuitive vs. rational) and user interfaces (text-based vs. voice-based) moderated these effects. Results show that post hoc explanations enhance perceived transparency and interpretability, thereby increasing consumer trust in conversational recommendations. In text-based interfaces, consumers making hedonic decisions preferred consensus-based explanations, whereas no clear preference emerged for utilitarian decision-makers. In voice-based interfaces, utilitarian consumers favored consensus-based explanations, while no significant preference was observed for hedonic decisions. Furthermore, intuitive consumers preferred consensus-based explanations for hedonic decisions and expert-based explanations for utilitarian decisions. Rational consumers consistently favored consensus-based explanations across both decision-making domains. These findings provide valuable insights for designing conversational recommendation systems on e-commerce platforms. By tailoring explanations to decision domains, user interfaces, and consumer decision-making styles, businesses can foster greater trust and engagement, driving more favorable purchasing behaviors and improving business outcomes.
How and When AI-Driven HRM Promotes Employee Resilience and Adaptive Performance: A Self-Determination Theory
Despite growing research on AI in HRM, gaps remain, particularly in understanding the mechanisms through which AI-driven HRM influences employee outcomes. This study addresses this gap by developing a conceptual model to examine how AI-driven HRM impacts employee resilience and adaptive performance. Based on self-determination theory, the model proposes that employee exploration mediates the relationships between AI-driven HRM and employee outcomes. Additionally, trust in AI moderates these relationships. Two studies were conducted to test the hypotheses: Study 1 developed and validated a 12-item AI-driven HRM scale across three samples: 50 managers, 150 employees for exploratory factor analysis (EFA), and 150 employees for confirmatory factor analysis (CFA). Study 2, with data from 274 US employees through a three-wave survey, explored the effects of AI-driven HRM on resilience and performance. Results from Study 2 supported all proposed relationships, thereby offering important implications for both theory and practice in the AI-driven HRM field.
Paper Link: https://doi.org/10.1016/j.jbusres.2025.115279
Authors: Hoa Do, Lin Xiao Chu, Helen Shipton
ABSTRACT
Despite growing research on AI in HRM, gaps remain, particularly in understanding the mechanisms through which AI-driven HRM influences employee outcomes. This study addresses this gap by developing a conceptual model to examine how AI-driven HRM impacts employee resilience and adaptive performance. Based on self-determination theory, the model proposes that employee exploration mediates the relationships between AI-driven HRM and employee outcomes. Additionally, trust in AI moderates these relationships. Two studies were conducted to test the hypotheses: Study 1 developed and validated a 12-item AI-driven HRM scale across three samples: 50 managers, 150 employees for exploratory factor analysis (EFA), and 150 employees for confirmatory factor analysis (CFA). Study 2, with data from 274 US employees through a three-wave survey, explored the effects of AI-driven HRM on resilience and performance. Results from Study 2 supported all proposed relationships, thereby offering important implications for both theory and practice in the AI-driven HRM field.
Seek for Harmony or Dominance? Gender Differences in Consumer Preference for Color Contrast
Despite the widespread application of color contrast in marketing practice, the current understanding of the antecedents of color contrast preferences has been largely overlooked, particularly in relation to heterogeneous consumer characteristics. The present research advances this field by focusing on gender differences in color contrast preferences and demonstrating the underlying mechanism. An observational dataset and four empirical studies provide converging evidence that female consumers prefer products with lower color contrast, while male consumers prefer products with higher color contrast. Moreover, the gender effect persists consistently across different operationalizations of gender and diverse color contrast stimuli in real-world brand logos and multiple product categories. We also document the harmony–dominance seeking tendency as the mechanism underlying the proposed gender effect, with females tending to seek harmony and males tending to emphasize dominance. Additionally, we confirm the moderating role of relational processing mindset and show that the proposed gender effect is attenuated when consumers adopt a similarity-focused or dissimilarity-focused processing mindset.
Paper Link: https://onlinelibrary.wiley.com/doi/10.1002/mar.22207?af=R
Authors: Yanzheng Liu, Ying Ding, Chen Yang
ABSTRACT
Despite the widespread application of color contrast in marketing practice, the current understanding of the antecedents of color contrast preferences has been largely overlooked, particularly in relation to heterogeneous consumer characteristics. The present research advances this field by focusing on gender differences in color contrast preferences and demonstrating the underlying mechanism. An observational dataset and four empirical studies provide converging evidence that female consumers prefer products with lower color contrast, while male consumers prefer products with higher color contrast. Moreover, the gender effect persists consistently across different operationalizations of gender and diverse color contrast stimuli in real-world brand logos and multiple product categories. We also document the harmony–dominance seeking tendency as the mechanism underlying the proposed gender effect, with females tending to seek harmony and males tending to emphasize dominance. Additionally, we confirm the moderating role of relational processing mindset and show that the proposed gender effect is attenuated when consumers adopt a similarity-focused or dissimilarity-focused processing mindset.
Heuristic Centred-Belief Players
Strategic behavior often diverges from Nash-equilibrium, in particular in inexperienced play. Studying a class of games in which participants choose their payment and receive it as long as their opponent chooses a different amount, I show that none of the popular models of behavioural game theory predicts the predominant aggregate choice pattern consistently. And yet, noisy introspection (Goeree and Holt, 2004) readily accounts for about half of the individual observations. The reason for the apparent paradox and the mis-match of the aggregate data and the models is a disregarded behavioural type that makes up about 25% of the population. These 25% display a specific form of central-tendency bias, holding beliefs that peak in the centre of the option set and that are roughly symmetric. In addition, the players show a more heuristic process translating their belief into actions, as their choices cannot be explained readily by quantal responding. The behavioural pattern of a ‘centred belief’ in connection with boundedly-rational decision-making is present also in another prominent game from the literature on behavioural game theory, the 11–20 game. Finally, I show that classifying players as ‘heuristic centred-belief types’ by one game’s beliefs has predictive power for behaviour in the other game.
Paper Link: https://doi.org/10.1016/j.joep.2025.102806
Authors: Irenaeus Wolff
ABSTRACT
Strategic behavior often diverges from Nash-equilibrium, in particular in inexperienced play. Studying a class of games in which participants choose their payment and receive it as long as their opponent chooses a different amount, I show that none of the popular models of behavioural game theory predicts the predominant aggregate choice pattern consistently. And yet, noisy introspection (Goeree and Holt, 2004) readily accounts for about half of the individual observations. The reason for the apparent paradox and the mis-match of the aggregate data and the models is a disregarded behavioural type that makes up about 25% of the population. These 25% display a specific form of central-tendency bias, holding beliefs that peak in the centre of the option set and that are roughly symmetric. In addition, the players show a more heuristic process translating their belief into actions, as their choices cannot be explained readily by quantal responding. The behavioural pattern of a ‘centred belief’ in connection with boundedly-rational decision-making is present also in another prominent game from the literature on behavioural game theory, the 11–20 game. Finally, I show that classifying players as ‘heuristic centred-belief types’ by one game’s beliefs has predictive power for behaviour in the other game.
Research: When Laughing Becomes Labor
Many studies suggest that humor is a useful leadership tool. Leaders with a sense of humor are seen as 27% more motivating, executives rated as outstanding tended to use humor twice as much as those deemed average, and leader humor, in general, can relieve stress and boredom by boosting engagement and well-being. But two recent studies suggest that humor can sometimes backfire. It turns out that leaders who use humor a lot—especially if they are perceived as authority figures—can make employees feel obligated to act as though they enjoy the humor, even when they do not, leading to emotional exhaustion and reduced job satisfaction.
Paper Link: https://hbr.org/2025/03/research-when-laughing-becomes-labor
Authors: Grace M. Simon, Xiaoran Hu, Michael Park, Randall Peterson
ABSTRACT
Many studies suggest that humor is a useful leadership tool. Leaders with a sense of humor are seen as 27% more motivating, executives rated as outstanding tended to use humor twice as much as those deemed average, and leader humor, in general, can relieve stress and boredom by boosting engagement and well-being. But two recent studies suggest that humor can sometimes backfire. It turns out that leaders who use humor a lot—especially if they are perceived as authority figures—can make employees feel obligated to act as though they enjoy the humor, even when they do not, leading to emotional exhaustion and reduced job satisfaction.
When and Why Does Corporate Hypocrisy Trigger Vindictive Customer Behavior? The Moderating Role of Self-Construal
With increasing concern about the negative effects of corporate hypocrisy on brand management, this study aims to investigate how corporate hypocrisy prompts customers to engage in vindictive behavior. It examines the moderating role of self-construal to determine how vindictive customer behavior varies based on individuals’ dispositional characteristics. By investigating why corporate hypocrisy triggers vengeful behavior among customers, this research contributes to the literature on corporate hypocrisy. Additionally, it provides a novel contribution by highlighting that customers’ traits, such as self-construal, play a significant role in shaping their responses to corporate hypocrisy.
Paper Link: https://www.emerald.com/insight/content/doi/10.1108/jpbm-08-2023-4661/full/html
Authors: Junghyun Kim, Won-Moo Hur
ABSTRACT
With increasing concern about the negative effects of corporate hypocrisy on brand management, this study aims to investigate how corporate hypocrisy prompts customers to engage in vindictive behavior. It examines the moderating role of self-construal to determine how vindictive customer behavior varies based on individuals’ dispositional characteristics.
Design/methodology/approach
Data were collected through a two-wave online survey involving 346 bank customers. The mediating role of customer cynicism between corporate hypocrisy and vindictive customer behavior, as well as the moderating role of self-construal, was analyzed using the PROCESS macro in Mplus.
Findings
Customer cynicism mediates the relationship between corporate hypocrisy and two types of vindictive customer behavior: desire for revenge and aggressive customer behavior. Furthermore, customers with independent self-construal exhibit lower levels of cynicism and, consequently, weaker vindictive behaviors, while those with interdependent self-construal exhibit higher levels of cynicism and stronger vindictive behaviors.
Practical implications
Marketing managers should ensure consistent communication to address discrepancies in a firm’s behavior. By introducing self-construal as a moderator, this research provides a nuanced understanding of how individual differences shape customers’ negative reactions to corporate hypocrisy, offering insights into customer segmentation and branding strategies.
Originality/value
By investigating why corporate hypocrisy triggers vengeful behavior among customers, this research contributes to the literature on corporate hypocrisy. Additionally, it provides a novel contribution by highlighting that customers’ traits, such as self-construal, play a significant role in shaping their responses to corporate hypocrisy.
Unpacking Conflicting Evaluations and Ambivalence in Online Hotel Booking: The Moderating Role of Perceived Enjoyment in User Retention
The online travel industry, particularly hotel booking platforms, operates in a highly competitive environment where user retention is crucial for reducing acquisition costs and ensuring long-term profitability. While ambivalence toward technology has been linked to unfavorable outcomes, its antecedents and associations with user retention in the context of online hotel booking platforms remain underexplored. This study addresses this gap by examining how key platform features—perceived security risk, effort, usefulness, and enjoyment—are associated with user ambivalence and retention. Using structural equation modeling with survey data from 387 participants, the findings reveal that perceived usefulness and enjoyment are negatively associated with ambivalence, whereas perceived effort and security risk are positively associated with it. Ambivalence, in turn, is negatively associated with user retention. Additionally, perceived enjoyment moderates this relationship by weakening the negative association between ambivalence and retention. Mediation analyses suggest that ambivalence partially mediates the relationships between perceived usefulness and enjoyment with retention, while fully mediating the associations between perceived effort and security risk with retention. These findings highlight the importance of addressing user ambivalence and provide actionable insights for enhancing user retention. Strategies such as improving enjoyable features and addressing perceived effort and security concerns may contribute to increased engagement and competitiveness in online hotel booking platforms.
Paper Link: https://www.sciencedirect.com/science/article/pii/S0969698925000451?dgcid=rss_sd_all
Authors: Yixiu Yu, Fred Davis, Eric Walden, Ofir Turel
ABSTRACT
The online travel industry, particularly hotel booking platforms, operates in a highly competitive environment where user retention is crucial for reducing acquisition costs and ensuring long-term profitability. While ambivalence toward technology has been linked to unfavorable outcomes, its antecedents and associations with user retention in the context of online hotel booking platforms remain underexplored. This study addresses this gap by examining how key platform features—perceived security risk, effort, usefulness, and enjoyment—are associated with user ambivalence and retention. Using structural equation modeling with survey data from 387 participants, the findings reveal that perceived usefulness and enjoyment are negatively associated with ambivalence, whereas perceived effort and security risk are positively associated with it. Ambivalence, in turn, is negatively associated with user retention. Additionally, perceived enjoyment moderates this relationship by weakening the negative association between ambivalence and retention. Mediation analyses suggest that ambivalence partially mediates the relationships between perceived usefulness and enjoyment with retention, while fully mediating the associations between perceived effort and security risk with retention. These findings highlight the importance of addressing user ambivalence and provide actionable insights for enhancing user retention. Strategies such as improving enjoyable features and addressing perceived effort and security concerns may contribute to increased engagement and competitiveness in online hotel booking platforms.
Brand Love And Customer Brand Engagement For Masstige: A Cross-cultural Perspective
Masstige (mass-produced and affordable luxury) goods are receiving increasing literature-based attention. However, despite existing advances, insight into how different cultural backgrounds shape consumer perceptions, attitudes and behaviors toward masstige goods remains tenuous. Correspondingly, this study aims to examine the association of masstige luxury with customers’ love for and brand engagement with masstige products across cultures.This study used a sample comprising 342 Indian and 354 Canadian masstige customers. Partial least squares structural equation modeling was used to analyze the data. The results corroborate brand prestige and identification as key antecedents to customers’ love for masstige brands, which in turn impact their brand engagement. Surprisingly, the authors find that the effects of brand prestige and brand identification on brand love and customer brand engagement do not significantly differ between Indian and Canadian customers. However, the positive effect of brand identification and brand love on customer brand engagement is stronger for Indian customers than for Canadian customers. This study addresses an important literature-based gap in understanding how cultural backgrounds shape consumer perceptions of masstige brands. It offers key theoretical and practical implications for masstige marketing. Identifying differential effects among Indian and Canadian customers provides a foundation for tailoring marketing approaches in the masstige sector. This study addresses a critical literature-based gap in understanding how cultural backgrounds shape consumer perceptions of masstige brands, offering key theoretical and practical implications for masstige marketing.
Paper Link: https://www.emerald.com/insight/content/doi/10.1108/jpbm-07-2024-5370
Authors: Shadma Shahid, Rehan Husain, Jamid Ul Islam, Linda D. Hollebeek
ABSTRACT
Masstige (mass-produced and affordable luxury) goods are receiving increasing literature-based attention. However, despite existing advances, insight into how different cultural backgrounds shape consumer perceptions, attitudes and behaviors toward masstige goods remains tenuous. Correspondingly, this study aims to examine the association of masstige luxury with customers’ love for and brand engagement with masstige products across cultures.This study used a sample comprising 342 Indian and 354 Canadian masstige customers. Partial least squares structural equation modeling was used to analyze the data. The results corroborate brand prestige and identification as key antecedents to customers’ love for masstige brands, which in turn impact their brand engagement. Surprisingly, the authors find that the effects of brand prestige and brand identification on brand love and customer brand engagement do not significantly differ between Indian and Canadian customers. However, the positive effect of brand identification and brand love on customer brand engagement is stronger for Indian customers than for Canadian customers. This study addresses an important literature-based gap in understanding how cultural backgrounds shape consumer perceptions of masstige brands. It offers key theoretical and practical implications for masstige marketing. Identifying differential effects among Indian and Canadian customers provides a foundation for tailoring marketing approaches in the masstige sector. This study addresses a critical literature-based gap in understanding how cultural backgrounds shape consumer perceptions of masstige brands, offering key theoretical and practical implications for masstige marketing.
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.
Love Me, Love My Endorsed Brand: Unveiling the Impact of Generation Z Fan’s Celebrity Worship on Online Brand Advocacy
This study aims to investigate the interrelationship among consumers, celebrities and brands within social media environments. It proposes a theoretical framework based on an integrative approach that combines parasocial relationship theory and the meaning transfer model. This study collected data from 342 Generation Z fans, and structural equation modeling was used for the analysis.The results revealed that social media use strongly affects celebrity worship, but its impacts on brand love and online brand advocacy are weak. Celebrity worship significantly influences brand love; however, the relationship with online brand advocacy is nonsignificant, highlighting the crucial mediating role of brand love. The mediating effects of celebrity worship and brand love significantly strengthened the relationship between social media use and online brand advocacy. By using an integrative approach, this study advances the understanding of the dynamics of consumer–brand relationships, revealing the serial mediating path that highlights the roles of celebrity worship and brand love.
Authors: Lokweetpun Suprawan, Wanny Oentoro, Sarinya L. Suttharattanagul
ABSTRACT
This study aims to investigate the interrelationship among consumers, celebrities and brands within social media environments. It proposes a theoretical framework based on an integrative approach that combines parasocial relationship theory and the meaning transfer model. This study collected data from 342 Generation Z fans, and structural equation modeling was used for the analysis.The results revealed that social media use strongly affects celebrity worship, but its impacts on brand love and online brand advocacy are weak. Celebrity worship significantly influences brand love; however, the relationship with online brand advocacy is nonsignificant, highlighting the crucial mediating role of brand love. The mediating effects of celebrity worship and brand love significantly strengthened the relationship between social media use and online brand advocacy. By using an integrative approach, this study advances the understanding of the dynamics of consumer–brand relationships, revealing the serial mediating path that highlights the roles of celebrity worship and brand love.
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.
In-Store Technology Personalization: A Typology and Research Agenda Based on Type of Automation and Data Collection
Smart retail leverages novel intelligent technologies that can sense, connect, and interact with customers to apply personalization tactics widely available in online shopping to offline settings. Retailers rely on such technologies to provide customers with personalized messages. The increasing autonomy of the technologies delivering the personalization and the data collection upon which this personalization is based and produce different manifestations of personalization in smart retail. To establish a foundation for research and practice involving these different manifestations, this article proposes a 2 (autonomy of technology: autonomous vs. employee-guiding) × 2 (type of data collection: explicit vs. implicit) in-store personalization-technology typology. Building on this typology, the authors analyze real-world manifestations and thereby establish the state-of-the-art of in-store personalization practices for smart retail. By comparing current knowledge in academic research with the status quo of managerial practice, this article advances an agenda for further research into personalization in smart retail.
Paper Link: https://www.sciencedirect.com/science/article/pii/S0148296325000591?dgcid=rss_sd_all
Authors: Katrin Merfeld, Jan F. Klein, Anouk de Regt, Anne-Sophie Baltin (née Riegger), Sven Henkel
ABSTRACT
Smart retail leverages novel intelligent technologies that can sense, connect, and interact with customers to apply personalization tactics widely available in online shopping to offline settings. Retailers rely on such technologies to provide customers with personalized messages. The increasing autonomy of the technologies delivering the personalization and the data collection upon which this personalization is based and produce different manifestations of personalization in smart retail. To establish a foundation for research and practice involving these different manifestations, this article proposes a 2 (autonomy of technology: autonomous vs. employee-guiding) × 2 (type of data collection: explicit vs. implicit) in-store personalization-technology typology. Building on this typology, the authors analyze real-world manifestations and thereby establish the state-of-the-art of in-store personalization practices for smart retail. By comparing current knowledge in academic research with the status quo of managerial practice, this article advances an agenda for further research into personalization in smart retail.
Optimizing Gift Card And Pricing Strategies In The Presence Of Double Mental Discounting
Gift card promotions are widely used in the retail industry and often lead to a phenomenon known as double mental discounting, where consumers mentally deduct the gift card value from their purchase costs multiple times—both when they receive and redeem the card. This paper develops an analytical model to examine the impact of double mental discounting on retailers' promotion and pricing decisions within a two-period framework. The results indicate that retailers' decisions to implement gift card strategies depend on both the double mental discounting and the cash equivalent effects. When offering gift card promotions, retailers generally provide high-value gift cards and raise prices to stimulate consumer purchases while preserving revenue. The double mental discounting effect positively influences gift card value but may negatively impact prices. Additionally, when consumers exhibit inconsistency in their perceived value of gift cards, retailers are even more inclined to offer gift card promotions. Furthermore, we extend the basic model to incorporate consumer heterogeneity in cash equivalent effects, retailer sales costs and competition. This study provides valuable managerial insights for retailers, particularly in identifying when and how to deploy gift card promotions in the presence of double mental discounting.
Paper Link: https://doi.org/10.1016/j.jretconser.2025.104269
Authors: Jie Cui, Jingming Pan
ABSTRACT
Gift card promotions are widely used in the retail industry and often lead to a phenomenon known as double mental discounting, where consumers mentally deduct the gift card value from their purchase costs multiple times—both when they receive and redeem the card. This paper develops an analytical model to examine the impact of double mental discounting on retailers' promotion and pricing decisions within a two-period framework. The results indicate that retailers' decisions to implement gift card strategies depend on both the double mental discounting and the cash equivalent effects. When offering gift card promotions, retailers generally provide high-value gift cards and raise prices to stimulate consumer purchases while preserving revenue. The double mental discounting effect positively influences gift card value but may negatively impact prices. Additionally, when consumers exhibit inconsistency in their perceived value of gift cards, retailers are even more inclined to offer gift card promotions. Furthermore, we extend the basic model to incorporate consumer heterogeneity in cash equivalent effects, retailer sales costs and competition. This study provides valuable managerial insights for retailers, particularly in identifying when and how to deploy gift card promotions in the presence of double mental discounting.
Inclusive Marketing: A Review and Research Agenda
In today’s globalized, multicultural markets, the diversity of consumer needs highlights the increasing social role of consumption and the demand for marketplace justice. This shift has propelled the importance of inclusive marketing in academic research. Despite its growing relevance, critical aspects of inclusive marketing’s development, including its conceptual framework and consumer responses, remain underexplored. This study systematically reviews 71 articles to elucidate these aspects through four critical research questions. This review utilizes the TCCM framework to scrutinize the predominant theories, contexts, methods, and typologies shaping the domain. It also categorizes scholarly works into a representation of diverse consumers, responses of the marketplace actors, consumer identities in the inclusive marketplace, continuum of inclusive marketing, inclusive marketing under a critical lens, and conceptual boundaries of inclusive marketing. Based on this analysis, the study proposes a refined definition of inclusive marketing. It concludes by suggesting future research directions to advance this emergent field, focusing on unexplored areas with potential for significant academic contribution.
Paper Link: https://www.sciencedirect.com/science/article/abs/pii/S0148296325000979?dgcid=rss_sd_all
Authors: Nikhita Tuli, Vibhava Srivastava, Harish Kumar
ABSTRACT
In today’s globalized, multicultural markets, the diversity of consumer needs highlights the increasing social role of consumption and the demand for marketplace justice. This shift has propelled the importance of inclusive marketing in academic research. Despite its growing relevance, critical aspects of inclusive marketing’s development, including its conceptual framework and consumer responses, remain underexplored. This study systematically reviews 71 articles to elucidate these aspects through four critical research questions. This review utilizes the TCCM framework to scrutinize the predominant theories, contexts, methods, and typologies shaping the domain. It also categorizes scholarly works into a representation of diverse consumers, responses of the marketplace actors, consumer identities in the inclusive marketplace, continuum of inclusive marketing, inclusive marketing under a critical lens, and conceptual boundaries of inclusive marketing. Based on this analysis, the study proposes a refined definition of inclusive marketing. It concludes by suggesting future research directions to advance this emergent field, focusing on unexplored areas with potential for significant academic contribution.
Quality Certifications Influence User-Generated Ratings
Platforms present various certifications to signal the quality of their offerings to prospective consumers. For example, Airbnb.com designates some hosts as “Superhosts” to distinguish properties that provide superior experiences. Platforms also present user-generated ratings—typically elicited and presented as “star ratings”—from their customers for the same purpose. This research investigates the interaction of these signals of quality and suggests a potential downside to platform-provided certifications: They decrease subsequent ratings. In an analysis of over 1,500,000 ratings from Airbnb.com and three follow-up studies, we find that properties with the superhost designation receive lower ratings. We assess the robustness of this result in several ways, including comparing ratings on Airbnb with those for the same property of Vrbo. In three follow-up experiments, we find that the net effect of certifications can lead to reduced choice share: The positive effect of signaling quality is more than offset by the negative effect of reduced ratings. This suggests that consumers are not sufficiently aware of this effect of quality certifications on ratings when choosing.
Paper Link: https://academic.oup.com/jcr/advance-article/doi/10.1093/jcr/ucaf008/8046664?rss=1
Authors: Matt Meister, Nicholas Reinholtz
ABSTRACT
Platforms present various certifications to signal the quality of their offerings to prospective consumers. For example, Airbnb.com designates some hosts as “Superhosts” to distinguish properties that provide superior experiences. Platforms also present user-generated ratings—typically elicited and presented as “star ratings”—from their customers for the same purpose. This research investigates the interaction of these signals of quality and suggests a potential downside to platform-provided certifications: They decrease subsequent ratings. In an analysis of over 1,500,000 ratings from Airbnb.com and three follow-up studies, we find that properties with the superhost designation receive lower ratings. We assess the robustness of this result in several ways, including comparing ratings on Airbnb with those for the same property of Vrbo. In three follow-up experiments, we find that the net effect of certifications can lead to reduced choice share: The positive effect of signaling quality is more than offset by the negative effect of reduced ratings. This suggests that consumers are not sufficiently aware of this effect of quality certifications on ratings when choosing.
Does One Size Fit All? The Role of Extraversion in Generating Electronic Word‐of‐Mouth Through Social Media Brand Page Engagement
Brands are increasingly investing in fostering consumer engagement with their social media pages to strengthen consumer–brand relationships, ultimately aiming to generat positive electronic word-of-mouth (eWOM). Brands' social media marketing budgets could be used more effectively if they were to tailor their engagement strategies to their consumers' characteristics, including their relevant personality traits, such as their extraversion. However, the role of consumers' extraversion in driving eWOM through social media brand page engagement remains underexplored. Drawing on social identity theory, cultivation theory, and trait theory of personality, this paper integrates findings from two studies—a cross-sectional survey and an experiment—conducted among users of the world's most popular social networking site (i.e., Facebook). The results show that passive and active social media brand page engagement have distinct impacts on eWOM, thereby highlighting the mediating role of self-brand connection (i.e., the extent to which consumers incorporate a brand into their self-concept), and extraversion's dual role as both an antecedent and a moderator. Our results provide social media managers with valuable guidance by highlighting the differing impact of engagement activities on introverts versus extraverts.
Paper Link: https://onlinelibrary.wiley.com/doi/10.1002/mar.22205?af=R
Authors: Ovidiu-Ioan Moisescu, Oana-Adriana Gică, Flavia-Andreea Herle, Ioana Dan, Marko Sarstedt
ABSTRACT
Brands are increasingly investing in fostering consumer engagement with their social media pages to strengthen consumer–brand relationships, ultimately aiming to generat positive electronic word-of-mouth (eWOM). Brands' social media marketing budgets could be used more effectively if they were to tailor their engagement strategies to their consumers' characteristics, including their relevant personality traits, such as their extraversion. However, the role of consumers' extraversion in driving eWOM through social media brand page engagement remains underexplored. Drawing on social identity theory, cultivation theory, and trait theory of personality, this paper integrates findings from two studies—a cross-sectional survey and an experiment—conducted among users of the world's most popular social networking site (i.e., Facebook). The results show that passive and active social media brand page engagement have distinct impacts on eWOM, thereby highlighting the mediating role of self-brand connection (i.e., the extent to which consumers incorporate a brand into their self-concept), and extraversion's dual role as both an antecedent and a moderator. Our results provide social media managers with valuable guidance by highlighting the differing impact of engagement activities on introverts versus extraverts.
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).
The Impact of New Product Entry on Brand Sales Volatility at the Retailer: A Detailed Look Into Volatility Drivers
Volatile sales patterns with large and uncertain peaks and drops significantly increase operational complexity and complicate inventory activities tremendously. This study examines whether and to what extent the addition of a new product into the assortment of a grocery retailer is responsible for an increase in sales volatility for incumbent offerings and which brand and retailer factors underlie this change. Using time-series models of eight years of sales data from brands in nine categories at six German grocery retailers, a significant and persistent rise in volatility is observed in sales after a new product enters the store for the majority of these brands. National brands are affected the most by the addition of an entirely new brand, whereas sub-brands introduced under an existing national brand name have a more limited impact on sales volatility. Interestingly, the opposite is found for retailers’ private labels, where volatility increases more after the entry of a new sub-brand (rather than a new brand). Several other brand and assortment characteristics can be linked to changes in the sales volatility of incumbent brands at the retailer. Based on this, two prediction tools are developed to anticipate before product entry if—and by how much—brand sales volatility will change. These insights can assist retailers and brand suppliers in managing their inventories and brand operations and provide relevant input for planning marketing support when new products arrive.
Paper Link: https://www.sciencedirect.com/science/article/pii/S0148296325000906?dgcid=rss_sd_all
Authors: Wanxin (Britney) Wang, Barbara Deleersnyder, Gokhan Yildirim
ABSTRACT
Volatile sales patterns with large and uncertain peaks and drops significantly increase operational complexity and complicate inventory activities tremendously. This study examines whether and to what extent the addition of a new product into the assortment of a grocery retailer is responsible for an increase in sales volatility for incumbent offerings and which brand and retailer factors underlie this change. Using time-series models of eight years of sales data from brands in nine categories at six German grocery retailers, a significant and persistent rise in volatility is observed in sales after a new product enters the store for the majority of these brands. National brands are affected the most by the addition of an entirely new brand, whereas sub-brands introduced under an existing national brand name have a more limited impact on sales volatility. Interestingly, the opposite is found for retailers’ private labels, where volatility increases more after the entry of a new sub-brand (rather than a new brand). Several other brand and assortment characteristics can be linked to changes in the sales volatility of incumbent brands at the retailer. Based on this, two prediction tools are developed to anticipate before product entry if—and by how much—brand sales volatility will change. These insights can assist retailers and brand suppliers in managing their inventories and brand operations and provide relevant input for planning marketing support when new products arrive.
Real-Time Marketing Messages and Consumer Engagement in Social Media
Branded advertising messages incorporating a transient context, such as events or holidays in their content and published in close temporal proximity to the particular context (i.e., real-time messages) have gained significant use. This research takes a firm-side perspective to study Real-Time Marketing (RTM) messages in social media and examines its effect on consumer engagement. Despite their growing use, we find that RTM messages do not significantly impact consumer engagement. However, the nature of the development process is a moderating factor and explains the heterogeneity in the effect of RTM messages on consumer engagement. The development process of RTM messages—Planned versus Improvised—plays a crucial role, with Planned RTM messages marginally enhancing consumer engagement, whereas Improvised RTM messages reduce it. We identify managerially controllable factors, namely targeting audience and having a product image enhance the effect of Improvised RTM messages on consumer engagement.
Paper Link: https://www.sciencedirect.com/science/article/abs/pii/S014829632500089X?dgcid=rss_sd_all
Authors: Myoung-Jin Chae, Omar Rodríguez-Vilá, Sundar Bharadwaj
ABSTRACT
Branded advertising messages incorporating a transient context, such as events or holidays in their content and published in close temporal proximity to the particular context (i.e., real-time messages) have gained significant use. This research takes a firm-side perspective to study Real-Time Marketing (RTM) messages in social media and examines its effect on consumer engagement. Despite their growing use, we find that RTM messages do not significantly impact consumer engagement. However, the nature of the development process is a moderating factor and explains the heterogeneity in the effect of RTM messages on consumer engagement. The development process of RTM messages—Planned versus Improvised—plays a crucial role, with Planned RTM messages marginally enhancing consumer engagement, whereas Improvised RTM messages reduce it. We identify managerially controllable factors, namely targeting audience and having a product image enhance the effect of Improvised RTM messages on consumer engagement.
Awe-Inspired: Appraising Awe’s Consequences for Consumers and Brands
This article builds on Keltner's conceptual model of awe, innovation, and choice (Keltner, 2025). This article expands on the framework in two main ways by outlining (1) when awe could have positive versus negative consequences for consumer choice and (2) how focusing on distinctive aspects of the consumer behavior setting may further enhance understanding of awe. Building on these themes, this article proposes several areas for research: examining granular aspects of the core appraisals, further characterizing different cognitive functions, considering consequences for different consumer choice domains (e.g., decision making, indulgence, customization), and focusing on how different kinds of relationships (e.g., brand communities), types of prosocial action (e.g., donating vs. volunteering), and forms of brand generated awe (direct vs. indirect) impact consumer behavior. This article offers specific propositions to encourage future research on how awe may impact consumers and brands.
Paper Link: https://myscp.onlinelibrary.wiley.com/doi/10.1002/jcpy.1451?af=R
Authors: Lisa A. Cavanaugh
ABSTRACT
This article builds on Keltner's conceptual model of awe, innovation, and choice (Keltner, 2025). This article expands on the framework in two main ways by outlining (1) when awe could have positive versus negative consequences for consumer choice and (2) how focusing on distinctive aspects of the consumer behavior setting may further enhance understanding of awe. Building on these themes, this article proposes several areas for research: examining granular aspects of the core appraisals, further characterizing different cognitive functions, considering consequences for different consumer choice domains (e.g., decision making, indulgence, customization), and focusing on how different kinds of relationships (e.g., brand communities), types of prosocial action (e.g., donating vs. volunteering), and forms of brand generated awe (direct vs. indirect) impact consumer behavior. This article offers specific propositions to encourage future research on how awe may impact consumers and brands.