november 2011 university of michigan ross school richard p. bagozzi joint conference of korean...
TRANSCRIPT
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November 2011University of Michigan
Ross SchoolRichard P. Bagozzi
Joint Conference of Korean Consumption and Culture Association, Korean Society of Consumer Studies, Korean Society for Consumer and Advertising Psychology, and Korean Society of Consumer Policy
and Education
Biomarketing: The Coming Revolution in Neurology, Neuroendrocrinology, and Genetics in
Marketing Science
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Human empathy
Theory of mind
Boundary conditions of self-interest
Genetic and hormonal influences
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Human Empathy
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Existing theories, polices, and folklore do not work well in helping us understand and influence managers.
Existing approaches over-rely on flawed methods and frameworks:
•Psychologism (personality)•Situationalism (incentives)
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“[Apple’s] Jobs is a relentless perfectionist whose company creates such beautifully designed products that they have changed our expectations about how everything around us should work. He has an uncanny ability to cook up gadgets that we…can’t live without.”
Daniel Lyons, Newsweek,April 5, 2010
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Two Fundamentally Different Orientations that Salespeople
Take in their WorkSales orientation
“How can I convince the customer to buy our product?”
Customer orientation
“What is in the best interests of the customer and how can I best respond to those interests?”
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http://www.youtube.com/watch?v=ofpYRITtLSg&feature=related
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EmpathyAn affective response that arises from the apprehension or comprehension of another person’s emotional state (e.g., Eisenberg, 2000).
Three components:
A cognitive capacity to take the perspective of the other.
An emotional reaction that might include a sharing of the other’s feelings.
A monitoring mechanism that registers the source of the experienced affect in a way differentiating self from other.
(Decety and Lamm, 2006)
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Mental States: only humans capable of representing mental states of others
• Intentions, beliefs, attitudes, emotions
• Subjective, internal, intangible, in the mind
• Can only be inferred from what we observe, hear or know about a person
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Experimental DesignSubjects viewed 5 male and 5 female full-face,
full-color video clips showing (1)positive emotions (happy, surprised), (2)negative emotions (angry, disgust), (3)neutral, and (4)moving geometrical shapes.
..\..\cartoons\faces-Mirror Neuron taak V.mp4
Each clip was played for 3 seconds in 12 second blocks of 3 clips with interstimulus intervals of one second.
Counterbalancing was used.
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Negative versus Neutral
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(a) Location: Surface of the brain
(b) Location: Medial to the brain
Contrast activation maps (negative minus neutral facial stimuli), (a) Location: Surface of the brain; (b) Location: Medial to the brain.
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Brain Areas Activated During Empathy
Function Hemisphere MNI coordinates Cluster size Statistics
Anatomical Region L/R x y z k Z-value r
1. Supplemental motor area Mirror Neuron R 2 -2 52 67 3.12# .55**
2. Precentral gyrus Mirror Neuron R 62 6 24 858 4.91# .72**
3. Postcentral gyrus Mirror Neuron R 48 -20 62 1051 4.18# .67**
4. Pars opercularis/p ars triangularis Mirror Neuron R 62 6 22 267 4.80# .72**
5. Precuneus
Executive processes
R 10 -76 42 237 3.25# .57**
6. Precuneus Executive
processes
L -12 -42 76 22 3.23# .57**
7. Inferior parietal lobule
Perception R 26 -56 50 40 3.25# .54**
8. Superior parietal lobule
Perception R -46 66 68 26 3.25# .68**
9. Fusiform gyrus
Face Recognition L -34 -76 -16 19 3.21# .57**
Note: * = p < .05, ** = p < .01, # = p < .05 corrected for multiple comparisons at cluster level with small volume corr ections of a sphere of 5 mm radius
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Study 2: Implementation of Customer Orientation
How salespersons fashion shared intersubjective understandings with customers (alliance building).
Three actions:discerning capabilities and practices in the buying center social network
acquiring knowledge from customers
gaining knowledge of context.
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Customer orientation
Contextual knowledge formation
+
Salesorientation
Motivation to learn
from customers
Buying center
knowledge formation
+
+
0
0
0
21
1
2
3
Causal Model for Testing Effects of Customer Orientation and Sales
Orientation on Opportunity Recognition Dimensions (indicators of factors
omitted for simplicity)
2(25)=27.69P=.35
R 2= .40
R 2= .26
R 2= .33
.75***
.65***
1.01***
ns
ns
ns
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Managerial Implications
1. Managers high in customer orientation feel the pain of customers so to speak and as a consequence are better able to provide customer solutions.
2. Managers high in customer orientation feel less personal distress in interactions, have greater social competence, feel less socially anxious, and exhibit less fear of embarrassment.
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Managerial Implications (continued)
3. Managers high in customer orientation (a) discern capabilities and practices better in buying centers, (b) gain greater knowledge from customers, and (c) have better skills in gleaning contextual knowledge about firms and their needs.
4. Customer orientation can be measured with a scale.
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Theory of Mind
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Autism
A developmental brain disorder characterized by impaired social interaction and communication
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Interpersonal Mentalizing by Salespersons
Interpersonal mentalizing refers to the activity of inferring another person’s beliefs, desires, risk preferences, decisions, intentions, and other mental states or events and adjusting one’s volitions accordingly.
It is associated with putting oneself in the shoes of another person, so to speak, and mentally simulating what another person thinks, wants, intends, etc.
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Representation of the Brain Areas Associated with Interpersonal
Mentalizing
Medial prefrontal cortex
Temporo-parietal junction
Temporal pole
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Outline of Experimental Tasks
Stories involving mental state attributions: the interpersonal mentalizing condition
Stories not involving mental state attributions: the process condition.
Unlinked sentences condition.
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The Brain in Action
How do functional imaging studies identify which pattern of brain activity is associated with a particular cognitive process?
It is done by comparing activity during the performance of two tasks, which are identical in every way except for one: the presence of the cognitive processes of interest in the experimental task, and the absence of that process in the comparison task.
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Scenarios: Interpersonal Mentalizing Condition• Scenario 2:
Before visiting a customer, Jacqueline always browses the customer’s website. While browsing one of these websites she notices that the director, whom she has known for a long time, still works for the firm in question; but she also notices that many new people have joined the firm. Jacqueline is especially curious about what these new people think of her firm. However, Jacqueline first decides to speak with the director, the person she has known a long time; therefore she calls him to suggest having dinner together.
Why did Jacqueline ask the director to have dinner with her?
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Scenarios: Process Condition
• Scenario 1:
In a steel company the buying process occurs via a well-defined method: the buyers first study how previous firms supplied goods; and in collaboration with the technical stuff, they make up a request for a proposal. This RFP is then sent by e-mail to salespersons from different firms, who then indicate by e-mail whether they can match the RFP. Subsequently, using economical arguments, the buyers determine which salesperson will deliver the goods.
On what basis do buyers make decisions about which salesperson will deliver goods?
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Scenarios: Unlinked Sentences Condition
• Scenario 5:
People are working hard on the new block, and they expect it to be ready at the end of the next year. People are starting to ask when they will come with the new folder. One can ask if our vision about the future will catch on in the marketplace. The number of customers is rising according to a pattern. The housing market at this time is a bit unstable because the future of the tax deduction for rent is unclear. Around the Christmas season, the days are always short.
Why is the housing market unstable?
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Study 4: Significant Correlations Between SToM and Neural Activity for Interpersonal Mentalizing Minus Process Task Condition
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Findings for Predictive Validity Model in Study 2 (method 1 results not in parentheses: method 2 results in
parentheses)
AdaptivenessR2=.68(.72)
PerformanceR2=.33(.39)
Perspectivetaking
R2=.20(.34)
Social anxietyR2=.11(.12)
SToM1
RapportBuilding
SToM2*
Detectingnonverbal
cues
Taking a “birds-eye”
view
Shapingthe
interaction *p<.05 **p<.01***p<.001 ap<.08
.56*** (.53***)
.03(.09) .09(-.03)
.09(.04)
.35a(.61**)
.13(.23a
)
-.03(-.04)
-.32*(-.32**)
-.21*(-.18*)
-.02(-.07).81***
(.80***)
.36*(.43**)
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Managerial Implications1. Interpersonal mentalizing can be learned to a
certain extent. By observing good and bad interactions, role playing, and receiving good coaching, we all can learn to a certain extent to be better mind readers.
2. To help managers become better mind readers, we need to help them (a) build rapport with customers, (b) gain skills in detecting nonverbal cues, (c) acquire a birds eye view and sense of irony with regard to their relationships, and (d) learn how to subtly shape conversations and influence people with whom they interact.
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Managerial Implications (continued)
3. Interpersonal mentalizing can be measured. We developed a 13-item Sales Theory of Mind scale to accomplish this.
4. The person-job fit is crucial. Not all tasks require managers high in interpersonal mentalizing. People scoring low actually perform better in tasks that require people to categorize things and act closely in relating to these categories.
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Boundary Conditions of Self-interest
(Machiavellianism)
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Machiavellianism
The personality style or trait characterized by social conduct that involves taking advantage of others for personal gain.
Contrasted with benevolent or cooperative actions.
Plays a central role in politics, business, and legal matters, as well as everyday behavior.
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Key Characteristics of Machiavellianism
World view: dismal outlook on life and the nature of people
distrust people; cynical
Orientation: opportunism
strike first before people takeadvantage of you
Tactics: deceit and guileflatterymanipulation
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Amoral (immoral): tend not to feel guilt, shame,
or embarrassment much
Temperament: exhibit a “cool syndrome”
not distressed by others’ suffering
not committed to individuals, groups, or ideals
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Theory of Mind Skills and Machiavellianism
Are Machiavellians cooperative and trustworthy when it is to their advantage?
Do Machiavellians use influence tactics that are both coercive and prosocial?
Is the success of Machiavellians due to their ability to read the minds of people with whom they interact?
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Empathy and Machiavellianism
Are Machiavellians good at experiencing the emotional states of others and do they use these to influence them?
Do Machiavellians take the perspective of others better than non-Machiavellians?
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Experimental DesignSubjects viewed 5 male and 5 female full-face, full-
color video clips showing (1)positive emotions (happy, surprised), (2)negative emotions (angry, disgust), (3)neutral, and (4)moving geometrical shapes.
Each clip was played for 3 seconds in 12 second blocks of 3 clips with interstimulus intervals of one second.
Counterbalancing was used.
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Medial Prefrontal Cortex
Temporoparietal Junction Temporoparietal
Junction
Precuneus
Medial Prefrontal Cortex
Temporoparietal Junction Temporoparietal
Junction Precuneus
Pars Opercularis Pars
Opercularis
Insula Insula
Precuneus Pars Opercularis Pars
Opercularis
Insula Insula
Precuneus
(a)
(b)
Figure 2 Activation Maps ToM and Mirror Neuron Networks
Figure 2 represents below represents the spatial location of the significantly activated areas in both the Theory-of-Mind (ToM) task (a); and the Mirror Neuron (MN) task (b). Using FSL and the Harvard-Oxford Cortical structure atlas to pinpoint these locations. Abbreviations: L (Left Hemishpere), R (Right Hemisphere), A (Anterior part of the brain), P (Posterior part of the brain), S (Superior part of the brain), I (Inferior part of the brain). X, Y and Z are the slice coordinates in the XYZ-plane. Note: it might be counter intuitive that Right and Left are mirrored, however, in medical imaging this is common practice that the images are presented this manner.
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Correlations between Machiavellianism and Mirror Neuron Activity for Negative Faces versus Objects
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Correlations between Machiavellianism and Mirror Neuron Activity for Negative Faces versus Objects
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Interaction effect of Machiavellianism and managerial control systems on sales volume
4
4.5
5
5.5
Low Machiavellianism High Machiavellianism
Sal
es P
erfo
rman
ce
Low Managerial Control
High Managerial Control
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Conclusions and Implications
1. Machiavellians score low on social and emotional intelligence and suffer from social anxiety.
2. Machiavellians have lower social and empathetic skills.
3. Machiavellians have more difficulty taking the perspective of customers but actually are more sensitive in detecting the emotions of others.
4. Machiavellians are less able to read the minds of customers.
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Conclusions and Implications (cont.)
5. As a consequence, Machiavellians rely more on manipulation tactics.
6. Tight managerial control inhibits the freedom of Machiavellians to manipulate others but also their performance.
7. Machiavellians are less committed and loyal to organizations.
8. Machiavellians engage in few organization citizenship behaviors.
9. Machiavellianism can be measured with a scale.
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Genetic and Hormonal Influences
Nature versus nurture
Art and science
Gene-gene, gene-environment, gene-person interactions
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Genetic and Hormonal Influences on Manager
BehaviorThe role of attachment styles and dopamine receptors (DRD2 and DRD4) on customer orientation.
The effects of oxytocin receptor and serotonin transporter genes on customer orientation.
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Attachment Styles
Research by psychologists Bowlby (1988) and Ainsworth (1991) showed that people exhibit one of three styles of interpersonal orientation in their relationships with other people: anxious, avoidant, and secure.
These styles arise early in childhood through interactions with a caregiver and persist chronically into adulthood. Most research has been done with children and with adult romantic relationships, not with managers.
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A person showing an anxious attachment style tends to be preoccupied in their relationships with others and often feels unneeded, even unloved, and as a result may become fixated on eliciting support, affection, and approval from others.
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The secure attachment style consists of openness and trust in relationships with others, leading often to intimacy.
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Under an avoidant attachment style, a person is often reserved and desires to keep a certain distance or remoteness from others.
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The moderating role of DRD2 gene variants on the effects of avoidant attachment style on customer orientationcu
stom
er
ori
enta
tion
avoidant attachment style
5
6
7
1 72 3 4 5 6
x
x
DRD2 A2/A2 A1/A2 or A1/A1
x
A2/A2Delay gratificationRequire low stimulationFlexible
A1/A2 or A1/A1Difficult delaying gratificationRequire much stimulationInflexibleProne to addiction
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The moderating role of DRD4 gene variants on the effects of avoidant attachment style on customer orientation
cust
om
er
ori
enta
tion
avoidant attachment style
5
6
7
1 72 3 4 5 6
x
xDRD4 7R- 7R+x
9
8
7R+Seek novelty, open to risk takingAdaptableProcess business
opportunities well
7R-Risk averseRigid in style
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Two Genes Found to Underlie Social Behavior
Oxytocin receptor gene (OXTR
Reduces social anxiety in stressful relationships
Increases interpersonal trust
Related to empathy
Serotonin transporter gene (5-HTT)
Sensitivity to anxiety and stress
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Cust
om
er
ori
enta
tion
L/S S/S
L/L
5-HTT(serotonin transporter gene) Sensitivity to anxiety and
stress
4.50
5.00
5.50
6.00
6.50
7.00
xx
x
G/G
A/G
A/A
OXTR(oxytocin receptor gene)
ANOVASensitivit
y to rewards
and proclivity
to experien
ce empathy
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ANOVAC
ust
om
er
ori
enta
tion
A/G G/G
A/A OXTR
(oxytocin receptor gene) Sensitivity to rewards and proclivity to experience empathy
4.50
5.00
5.50
6.00
6.50
7.00
x
xx L/S
L/LS/S
5-HTT(serotonin transporter
gene)
Sensitivity to
anxiety and
stress
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Managerial Implications of Genetic and Hormonal Research
Selection
Promotion
Training
Coaching
Assignment to accounts/territories
Help managers overcome or compensate for shortcomings and take advantage of strengths
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Thank you very much