Considering a diversification strategy? Follow insights from HEC Professor John Mawdsley
Corporate diversification can be risky and costly, but the results of two researchers' latest study suggest that customer-centered companies may have a key advantage when it comes to such organizational change. Exclusive interview with Assistant Professor John Mawdsley (HEC Paris) on his and Professor Deepak Somaya’s latest research.
Buying: the effect on self-worth feelings and consumer well-being
Consuming can boost self-worth feelings, but might adversely impact consumer well-being. Our new research published in Journal of Consumer Research shows that consumption of certain products can restore feelings of self-worth that have been damaged for whatever reason. However, this boost or restoration effect is diminished by overt marketing tactics like slogans or taglines that make products’ link to the hurt self-identity aspect overly explicit.
Understanding the language of persuasion
Successful marketing and advertising rely on the effective use of persuasive language. To help marketers and advertisers choose the right language devices to persuade consumers, researchers Ruth Pogacar, L. J. Shrum and Tina M. Lowrey provide an easy-to-use framework.
Thinking through cannabis markets
The relationship between cannabis and society is a long and deeply contested one. Throughout history, cannabis has been associated with everything from health, leisure, and pop culture to criminal and immoral behavior. But beyond the simple debate about whether cannabis is good or bad, the study of cannabis markets needs interdisciplinarity, to know what is required to construct an effective and fair contested market.
Sharing possessions helps counteract loneliness
Loneliness and materialism are linked. In a recent study, Elodie Gentina, L.J. Shrum and Tina Lowrey investigate the materialistic coping strategies that can alleviate loneliness and its associated unethical behaviors. They find that adopting active strategies, like sharing possessions, leads to fewer unethical tendencies, while passive strategies, like product acquisition, can lead to more.
Analytics in the Era of Big Data: Opportunities and Challenges
This special issue of Knowledge@HEC highlights several research projects and teaching initiatives at HEC Paris in the context of big data and business analytics. Nowadays it does not take much to convince students or managers alike of the importance of data for businesses. As Wedel and Kannan (2016) put it, “data is the oil of the digital economy”. Indeed, data is completely transforming organizations, and data-driven decision making is becoming more and more a part of a company’s core. In an increasing digital world, all of us are walking data generators, leaving long data trails: we have more data on everything.
Widening the scope of your CRM campaigns to take advantage of customer social networks
Marketing campaigns traditionally target individual customers, while ignoring their social connections. In a recent study, however, Eva Ascarza, Peter Ebbes, Oded Netzer, and Matt Danielson, had unique access to telecommunications data and a field experiment that enabled them to take a first-ever look into the effects of a traditional customer relationship marketing campaign on social connections.
Why consumers stockpile rather than spend loyalty-program points
Consumers tend to accumulate loyalty cards in their wallets and unused points on those cards, creating either liabilities or deferred revenue for retailers. A team of researchers has developed a model that explains this hoarding behavior and offers suggestions to improve loyalty reward program structures.
Can online reputations be improved by offering Groupon-type Promotions?
Xitong Li crafted a study with a clear purpose: to find out if deal promotions like those offered via Groupon can have a positive effect on businesses’ online reputations. He found that despite an overall negative impact, certain merchants could boost their online review ratings by running Groupon-type deals. Li discusses the need for managers to assess online reviews and ratings carefully, and to consider both the pros and cons of Groupon-type promotions.
What does the future hold for luxury?
Like other markets, the luxury sector must cope with the inexorable shift toward digitalization, the challenges of sustainable development, and an explosion of demand from new consumers in emerging countries especially from China. At the same time, the luxury market is different from other markets, with highly specific management. Luxury brands must therefore come up with novel ways to deal with the technological and social changes that are creating a new world order.