Research Seminars

Marketing Social Responsibility

Speaker: Sumitro Banerjee, Assistant Professor of Marketing
EMST European School of Management and Technology GmbH

15 December 2011 - Room H010 - From 12:30 to 14:00

Authors: Sumitro Banerjee and Luc Wathieu
We examine conditions under which firms are likely to heed the social responsibility concerns of their customers. We analyze a monopolist's decision to invest in social responsibility in a vertically differentiated market where consumers value social responsibility. Results show for social causes valued higher by consumers who also value quality more than others, firms invest in social responsibility strategically and charge a higher price than when they do not invest. However, for general social causes valued equally by all consumers, only firms with product quality above a threshold will engage in social responsibility. Firms with product quality below the threshold do not earn enough profits to incur the cost of social responsibility. Further, the extent of social responsibility of this type decreases as quality increases to the point that the most profitable firms which have the highest product quality are responsible to only a minimal extent. Under asymmetric information about product quality, high quality firms signal their type by distorting both price and social responsibility upward when the cost of social responsibility is lower for high quality firms than low quality firms. When this cost is higher for high quality firms, these firms reject social responsibility and distort only price - either higher or lower - to signal quality.

In Praise of Putting Things Off: Postponing Consumption Pleasures Facilitates Self-Control

Speaker: Nicole Mead, Assistant Professor of Marketing
Catolica-Lisbon School of Business and Economics, Palma de Cima, Lisbon

1 December 2011 - Room H033 - From 12:30 to 14:00

Consumers have difficulty controlling their intake of tasty but unhealthy food. The most common strategy – deprivation – often backfires, sabotaging self-control. Four experiments tested the hypothesis that postponing consumption of a hedonic temptation to an unspecified future time reduces desire for and consumption of that hedonic item. In the short-term, postponement is theorized to reduce hedonic desires by alleviating the motivational conflict, thereby enabling the impulse to dissipate; in the long run, the unreinforced impulse continues to decay naturally, thereby encouraging self-control. The short- and long-run consequences of postponement were compared to the two outcomes most frequently investigated in self-control research: satiation and deprivation. Desire for (experiments 1 and 2) and consumption of (experiments 3 and 4) the hedonic good were lowest among postpone participants. Reduced desire 24 hours post-experiment mediated the effect of postponement on reduced consumption 1 week later (experiment 3). Overall, results suggest that postponement can help consumers manage transient hedonic desires

Consumer Reactions to Need Threat Depend on the Type of Threat: How Social Exclusion Influences Conspicuous Consumption and Charitable Giving

Speaker: Mr L.J. SHRUM
University of Texas at San Antonio

25 November 2011 - Room H041 - From 12:00 to 16:00

Towards an Understanding of Children’s Consumption Knowledge: Consumption Constellations, Experiential vs. Material Preferences, and Sound Symbolism

Speaker: Ms Tina LOWREY
University of Texas, San Antonio

25 November 2011 - Room H041 - From 12:00 to 16:00

Linguistic-Based Perceptual Shocks and Quantile Regression: A Study of Corporate Reputation and Financial Performance

Speaker: Mathieu Trepanier
SIAW-HSG (Swiss Institute for International Economics and Applied Economic Research (SIAW) - University of St-Gallen (HSG)

14 November 2011 - room H009 - From 12:30 to 14:00

The paper proposes a novel approach for the empirical investigation of
corporate reputation relying on linguistic-based perceptual shocks
derived from the varying affective content of media coverage about
companies. The method is compared to more traditional survey-based
approaches for the study of corporate reputation. A quantile regression
framework is used to document the impact of the shocks on subsequent
firm performance for both under and over performing firms. The
informational foundations of perceptual shocks are also examined.
Finally, attention is given to the respective role of expected and
unexpected perceptual shocks for explaining subsequent performance.
Overall, the findings offer substantial evidence supporting the use of
the quantile regression approach over least squares alternatives for
estimates of the conditional mean. The main findings suggest that the
perceptual shocks based both on "negative" and "positive" lexica impact
the scale of the subsequent stock returns distribution, but not its
location. The informational foundations are found to vary significantly
across perceptual shock measures derived from different lexica. Finally,
both expected and unexpected perceptual shocks are significant
predictors of the next-day stock returns distribution, consistent with
linguistic-based perceptual shocks being proxies for certain common risk
factors as well as for these shocks impacting investor beliefs more