2012 Summer Educators’ Proceedings

VOLUME 23

MARKETING IN THE SOCIALLY-NETWORKED WORLDChallenges of Emerging, Stagnant & Resurgent Markets

EDITORS TODD J. ARNOLD LISA K. SCHEERAND

2012 AMA WINTER/SUMMER EDUCATORS’ CONFERENCE PROCEEDINGS

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2012 AMA Educators’ Proceedings

Marketing in the Socially-NetworkedWorld: Challenges of Emerging,

Stagnant, and Resurgent MarketsEditorsTodd J. Arnold, Oklahoma State UniversityLisa K. Scheer, University of Missouri

Track ChairsBrad D. Carlson, Saint Louis UniversityJune Cotte, University of Western OntarioD. Todd Donavan, Colorado State UniversityAndreas Eggert, University of PaderbornTomas Falk, EBS Business SchoolRuud T. Frambach, VU University AmsterdamDwayne D. Gremler, Bowling Green State UniversityKevin P. Gwinner, Kansas State UniversityMaik Hammerschmidt, University of GoettingenKelly L. Haws, Texas A&M UniversityChristian Hinsch, Grand Valley StateMark B. Houston, Texas Christian UniversityDouglas E. Hughes, Michigan State UniversityRobert V. Kozinets, York UniversityRussell N. Laczniak, Iowa State UniversityCait Poynor Lamberton, University of PittsburghMurali K. Mantrala, University of MissouriDetelina Marinova, University of MissouriKelly D. Martin, Colorado State UniversityMaría Pilar Martínez-Ruiz, University of Castilla-La ManchaDarrel D. Muehling, Washington State UniversityRobert W. Palmatier, University of WashingtonDoreén Pick, Freie Universitaet BerlinKeith A. Richards, University of Tennessee at ChattanoogaEdward E. Rigdon, Georgia State UniversityMatthew J. Robson, University of LeedsSaeed Samiee, University of TulsaRonn J. Smith, University of ArkansasAlina Sorescu, Texas A&M UniversityShrihari (Hari) Sridha, Pennsylvania State UniversityTracy A. Suter, Oklahoma State UniversityMichael F. Walsh, West Virginia UniversityKaren Page Winterich, Pennsylvania State UniversityAlex R. Zablah, Oklahoma State University

Volume 23

311 S. Wacker Drive • Chicago, IL 60606

© Copyright 2012, American Marketing AssociationAll rights reserved.

Printed in the United States of America

Publication Director: Andy SeagramCover Design: Kristina WaltonCompositor: Marie Steinhoff, Southeast Missouri State UniversityISSN: 0888-1839ISBN: 0-87757-350-6

No part of the material protected by this copyright notice may bereproduced or used in any form or by any means, including elec-tronic, mechanical, photocopying, recording, Web distribution,information storage and retrieval systems, or any other means,without the written permission of the American MarketingAssociation

iii

Preface and Acknowledgments

Welcome to the 2012 American Marketing Association Summer Educators’ Conferenceand to Chicago, the home of American Marketing Association. This is AMA’s 75th anniversary,so don’t miss the festivities at our special Saturday evening reception, which is co-sponsoredby three exemplars of centers of marketing thought 75, 50, and 25 years ago.

The University of Illinois represents the early years, after the AMA was founded there in1937. Representing 1962 and the subsequent era is The Ohio State University, which sawdevelopments such as the meeting which laid the foundation for the Association for ConsumerResearch. Northwestern University represents 1987 and marketing’s maturation as a rigorousdiscipline encompassing diverse research methodologies and innovations in education. Heart-felt thanks to these co-sponsors for their contributions to the reception and to the video that willdebut Saturday evening.

What is our exemplar of a center of marketing thought for 2012? Centers of marketingthought have become more diffuse and virtual. You and your network of co-researchers are, orcan be, a center of marketing thought! More than ever before, cutting-edge researchers are foundin all types of universities and in numerous countries, collaborating across vast distances andtime zones. We marketing academics thrive in the socially-networked world!

Thus, we are pleased that the theme of this conference is “Marketing in the Socially-Networked World: Challenges of Emerging, Stagnant, and Resurgent Markets.” We encourageyou to examine the range of intriguing papers exploring the implications of the rise of socialmedia. Please also note the special sessions and competitive paper sessions that address thechallenges and opportunities of emerging markets and economies in other stages of develop-ment. We have a great program featuring quality research papers and special sessions spanningdiverse topic areas and methodologies, presented by researchers from a plethora of countriesaround the globe.

We are honored to have had the opportunity to organize this conference. Our deepest thanksto our indefatigable track chairs, who were the key players in assembling the participants andcontent of the sessions. To those who submitted work and are featured at this conference, weappreciate your willingness to share your ideas in this venue. We particularly appreciate thereviewers, the unsung heroes and heroines, who are critical to ensuring quality presentations.Thanks to all others who contribute to this conference, including session chairs, sponsors,exhibitors, AMA’s academic leadership, and the many AMA staff members without whom thisconference would not occur. We must make special note of the role program manager JessicaThurmond-Pohlonski has played; thank you, Jessica, for your positive, can-do attitude andchampioning some of our crazy ideas behind the scenes at AMA.

In contrast to specialty conferences, a broad-based conference such as this one offers avenue in which all research areas and methodologies are welcome. We encourage you to takeadvantage of this characteristic and expose yourself to diverse ideas. We hope that you find youractivities here intellectually stimulating, meet old friends, form new connections, leave herewith new ideas, and have a great time in the process!

Lisa K. ScheerUniversity of Missouri

Todd J. ArnoldOklahoma State University

iv

Best of Conference Award“The Impact of Proactive Marketing at the Fuzzy Front End of Innovation”

Fiona Schweitzer

Best Paper Awards by TrackAdvertising and Promotion“Ad Strategy for Multi-Ethnic Markets: The Influenceof Cosmopolitanism”

Enrique M. Becerra, Sindy Chapa,and Delonia O.Cooley

Branding and Brand Management“Do Personality Traits Influence Brand RelatedActivities in Social Networks? An Empirical Study”

Philipp A. Rauschnabel,Björn S. Ivens, and Gunnar Mau

Consumer Psychology and Behavior“How Close Brands Are Included in the Self:Psychological and Neural Processes”

Martin Reimann, Raquel Castaño,Judith L. Zaichkowsky, and Antoine Bechara

Emerging Markets“MNCs and Food Security in Emerging Markets:Provocations from India”

Susan M. Mudambi, Thomas Reardon,and Bart Minten

Ethical, Legal, Social, and Public Policy Issues“Does Corporate Social Responsibility Save Firms? AnExploration of Corporate Social Responsibility, FirmCapability, Environmental Influences, and Firm DefaultRisk”

Wenbin Sun

Global and Cross-Cultural Marketing Issues“The Effects of Product Diversification and Globaliza-ion on the Performance of Large International Firms”

Tianjiao Qiu

Innovative Marketing Technology“The Effects of Product Diversification and Globaliza-tion on the Performance of Large International Firms”

Tianjiao Qiu

Interorganizational Issues in Marketing“Managing Exclusive Channels for RelationshipEffectiveness”

Alberto Sa Vinhas

Marketing Education and Teaching Innovation“Using the RFM Model to Rank Doctoral MarketingPrograms”

Matt Elbeck and Brian A. Vander Schee

Marketing Strategy and Marketing Management“When Customers Show Divided Attitudinal Loyalty:Using Channel Intermediaries to Increase BehavioralLoyalty”

Sridhar N. Ramaswami, S. Arunachalam,and Kirti Rajagopalan

New Product Design and Development, Product Man-agement, and Entrepreneurship“The Impact of Proactive Marketing at the Fuzzy FrontEnd of Innovation”

Fiona Schweitzer

Personal Selling and Sales Management“Managing Salesforce Selling Behaviors andPerformance: The Interactive Effects of Sales ControlSystems”

C. Fred Miao and Kenneth R. Evans

Research Methods and Analytics“Effects of Store Manager Climate upon FLECommitment, Customer Loyalty and Store FinancialPerformance”

George D. Deitz, John D. Hansen,Thomas E. DeCarlo, Emin Babakus,and Kristopher J. Preacher

Retailing and Pricing“Accepting or Fighting Piracy: Can Firms ReducePiracy for Digital Media Products by OptimizingTheir Marketing?”

Felix Eggers, Alexa Burmester,Michel Clement, and Tim Prostka

Services Marketing“Does Technology Orientation Matter in TechnologyServices Organizations?”

Nacef Mouri, Maheshkumar P. Joshi,and Sidhartha R. Das

Sports Marketing“Segmenting Fans of a New Team: A Typology ofEarly Adopters”

Heath McDonald, Civilai Leckie,and Adam Karg

v

2012 AMA Summer Educators’ ConferenceList of Reviewers

ACarmen Abril, Complutense

UniversityManoj Agarwal, State University of

New York, BinghamtonUniversity

Raj Agnihotri, William PatersonUniversity

Billur Akdeniz, University of NewHampshire

Bob Akin Jr., Texas ChristianUniversity

Ulun Akturan, GalatasarayUniversity

Lumina Albert, Colorado StateUniversity

Thomas Allard, University ofBritish Columbia

Alexis Allen, Florida StateUniversity

Cesare Amatulli, University ofSalento (Lecce)

Michelle Andrews, University ofTexas at Arlington

Martin Artz, University ofMannheim

S. Arunachalam, Iowa StateUniversity

Anthony Kwame Asare,Quinnipiac University

Ioannis Assiouras, ESC ToulouseBusiness School

BImad B. Baalbaki, American

University of BeirutSally Baalbaki, University of North

TexasChristof Backhaus, Technische

Universitaet BraunschweigAndrew Michael Baker, San Diego

State UniversityCarmen Balan, Academy of

Economic Studies fromBucharest

Brian Baldus, Michigan StateUniversity

George Baltas, Athens Universityof Economics & Business

Soumava Bandyopadhyay, LamarUniversity

Gloria Barczak, NortheasternUniversity

Paul G. Barretta, University ofTexas–Pan American

M. Jesus Barroso-Mendez,Universidad de Extremadura

Darrell Bartholomew, OklahomaState University

Christopher Bartl, EBS BusinessSchool

Paige Beal, Point Park UniversityEnrique P. Becerra, Texas State

UniversityNina Belei, University of

MaastrichtAronte Bennett, Villanova

UniversityRam Bezawada, State University of

New York, BuffaloPelin Bicen, Pennsylvania State

University, ErieJochen Binder, University of St.

GallenMelissa Bishop, University of New

HampshireVera Blazevic, University of

AachenJohn Charles Blewitt, Saint Louis

UniversityChristopher P. Blocker, Baylor

UniversityMartin Boehm, IE Business SchoolElmira Bogoviyeva, KIMEP

UniversityWilly Bolander, Florida State

UniversitySterling A. Bone, Brigham Young

UniversityLeff Bonney, Florida State

UniversityTorsten Bornemann, University of

MannheimMousumi Bose Godbole, Fairfield

UniversityBrian L. Bourdeau, Auburn

UniversityPhilip Boutin, University of

TennesseeMichael K. Brady, Florida State

UniversityMichael Breazeale, Indiana

University Southeast

Tim Oliver Brexendorf, WHU–Otto Beisheim School ofManagement

Christian Brock, ZeppelinUniversity

Jacob Brower, Queen’s UniversityBrian P. Brown, Virginia

Commonwealth UniversityElisabeth Christine Brüggen,

Maastricht University

CMeltem Cakici, Gediz UniversityBrad D. Carlson, Saint Louis

UniversityBrian R. Chabowski, University of

TulsaDeepa Chandrasekaran, Lehigh

UniversityWei-Lun Chang, Tamkang

UniversityLan Chaplin, Villanova UniversitySimos Chari, University of LeedsSharmila Chatterjee, Massachusetts

Institute of TechnologyChien-Chung Chen, Stillman

CollegeI-Shuo Chen, Trinity College

DublinSteven Chen, California State

University, FullertonViviane Chen, IÉSEG School of

ManagementPilsik Choi, Clark UniversityWoo Jin Choi, Texas A&M

UniversityTilottama G. Chowdhury,

Quinnipiac UniversityGeorge Chryssochoidis, University

of East AngliaJohn E. Cicala, Texas A&M

University–KingsvilleBart Claus, IÉSEG School of

ManagementJoe Cobbs, Northern Kentucky

UniversityLaurel Aynne Cook, University of

ArkansasDelonia O. Cooley, Texas Southern

University

vi

June Cotte, University of WesternOntario

Birton Cowden, Saint LouisUniversity

Adam Craig, University of SouthFlorida

David Crockett, University ofSouth Carolina

Julia Marie Cronin-Gilmore,Bellevue University

Annie Cui, West VirginiaUniversity

Kevin J. Cumiskey, EasternKentucky University

DAntónio Pimenta da Gama,

Instituto de Artes Visuais,Design e Marketing

Steven Dahlquist, Michigan StateUniversity

Prakash Das, University of CalgaryMeredith David, Florida State

UniversityBrad Davis, Wilfrid Laurier

UniversityCassandra Davis, University of

ArkansasScott Davis, Texas A&M

UniversityAd de Jong, Eindhoven University

of TechnologyClaudio Dell’Era, Politecnico di

MilanoMbaye Fall Diallo, University Paul

CézanneAdamantios Diamantopoulos,

University of ViennaBarry Dickinson, Holy Family

UniversityJohn Bowman Dinsmore,

University of CincinnatiAndrea Dixon, Baylor UniversitySara Loughran Dommer,

University of PittsburghTodd Donavan, Colorado State

UniversityThomas Dotzel, McGill UniversityJames D. Doyle, Carleton

UniversityCourtney Droms, Butler UniversityShuili Du, Simmons CollegeLea Dunn, University of British

ColumbiaTurkan Dursun, West Texas A&M

University

Hristina Rumenova Dzhogleva,University of Pittsburgh

EPeter Eberle, Pennsylvania State

UniversityCornelia Ebertin, University of

MannheimFelix Eggers, University of

HamburgAndreas Eggert, University of

PaderbornMajid Eghbali-Zarch, Western

University CanadaA. Meike Eilert, University of

South CarolinaMaik Eisenbeiss, University of

CologneMartin Eisend, European

University ViadrinaHounaida El Jurdi, American

University of BeirutBeatrice Ermer, HHL–Leipzig

Graduate School of Management

FMartin Fassnacht, WHU–Otto

Beisheim School of ManagementMonica J. Favia, Bloomsburg

UniversityBradley Fay, Arizona State

UniversitySven Feurer, University of

MannheimMonica Fine, Coastal Carolina

UniversityAdam Finn, University of AlbertaPeter-Matthias Fischer, University

of St. GallenSabine Fliess, University of HagenJohn Ford, Old Dominion

UniversityGavin Fox, Texas Tech UniversityJohn Paul Fraedrich, Southern

Illinois University–CarbondaleGeorge Franke, University of

AlabamaElisa Fredericks, Northern Illinois

UniversityRegina Frey, German Graduate

School of Management and LawJohanna Frösén, Aalto UniversityChristoph Fuchs, Erasmus

University Rotterdam

Andreas Fuerst, University ofErlangen-Nürnberg

GLili Gai, University of North TexasAndrew Gallan, Case Western

Reserve UniversityJason Garrett, Bradley UniversityLi-Shiue Gau, Asia University,

TaiwanAnja Geigenmueller, Ilmenau

University of TechnologyKatja Gelbrich, Catholic University

Eichstaett-IngolstadtDominik Georgi, Frankfurt School

of Finance and ManagementFrank Germann, Pennsylvania

State UniversityAndreas Giese, EBS Business

SchoolErin Gillespie, University of

MississippiDavid A. Gilliam, University of

Arkansas at Little RockJohn T. Gironda, Florida Atlantic

UniversityDaniel Goebel, Illinois State

UniversityMatthias Gouthier, EBS Business

SchoolStacy Landreth Grau, Texas

Christian UniversityChristopher John Groening,

University of MissouriStephen J. Grove, Clemson

UniversityMark D. Groza, Northern Illinois

UniversityRichard Lars Gruner, University of

MelbourneStephan Grzeskowiak, Rouen

Business SchoolAditya Gupta, Pennsylvania State

UniversityShipra Gupta, University of

Nebraska, LincolnEda Gurel Atay, University of

Puget SoundAnders Gustafsson, Karlstad

University

HPerry Haan, Tiffin UniversityAlexander Hahn, University of

Mannheim

vii

Laura Hainle, University ofMannheim

Maik Hammerschmidt, GeorgAugust University Goettingen

Stephen A. Hampton, University ofMissouri

Jared M. Hansen, University ofNorth Carolina at Charlotte

Savita Hanspal, Kamala NehruCollege

Colleen Harmeling, Saint LouisUniversity

Angela Hausman, HowardUniversity

Kelly Haws, Texas A&MUniversity

Babak Hayati, University ofHouston

Sven Heidenreich, EBS BusinessSchool

Wibke Heidig, University of St.Gallen

Conor M. Henderson, University ofWashington

Stephan Henneberg, ManchesterBusiness School

Nadine Hennigs, LeibnizUniversity of Hannover

Dennis Herhausen, University ofSt. Gallen

Steffen Herm, TechnischeUniversität Berlin

Carlos Hernández-Carrión,University of Valladolid

Marc F. Herz, University of ViennaAndreas Christian Hildesheim,

University of MannheimAndrew Christian Hinsch, Grand

Valley State UniversityTanawat Hirunyawipada,

University of DaytonNga Nguyen Ho-Dac, University of

UtahCharles F. Hofacker, Florida State

UniversityJens Hogreve, University of

IngolstadtLinda Hollebeek, University of

AucklandJessica J. Hoppner, George Mason

UniversityChris Horbel, University of

BayreuthRonald Hoverstad, University of

the PacificChe-Hao Hsu, National Cheng

Kung University

Douglas E. Hughes, Michigan StateUniversity

Magnus Hultman, University ofLeeds

Shane Hunt, Arkansas StateUniversity

Gary Hunter, Case WesternReserve University

Katie Hybnerova, University ofMississippi

ISajna Ibrahim, State University of

New York, BinghamtonMonika Hannelore Imschloss,

University of MannheimPaul Ingenbleek, Wageningen

UniversityCharles Ingene, University of

MississippiChiharu Ishida, Illinois State

UniversityAlicia Izquierdo-Yusta, University

of Burgos

JBenedikt Josef Jahn, Ludwig-

Maximilians-Universität MunichClaudia Jasmand, Imperial College

LondonHongyan Jiang, Sun Yat-sen

UniversityAna I. Jimenez-Zarco, Open

University of CatalunyaYao Jin, University of ArkansasMark Johlke, Bradley UniversityCarol Johnson, University of

DenverBabu Lourduraj John Mariadoss,

Washington State UniversityChristopher Joiner, George Mason

UniversityWilliam Jones, Wayne State

UniversityYogesh Joshi, University of

MarylandJae Min Jung, California State

Polytechnic University, Pomona

KUlrike Kaiser, WU Vienna

University of Economics andBusiness

Sudhir Kale, Bond UniversityAnna Kaleka, Cardiff University

Vamsi Krishna Kanuri, Universityof Missouri

Fahri Karakaya, University ofMassachusetts Dartmouth

Constantine Katsikeas, Universityof Leeds

Eleni Kevork, Athens University ofEconomics and Business

Ceyhan Kilic, MarketingConsultant

Ilse Klanner, Vienna University ofEconomics and Business

Christiane Klarmann, LeibnizUniversity of Hanover

Martin Klarmann, KarlsruheInstitute of Technology

Michael Kleinaltenkamp, FreieUniversitaet Berlin

Susan Bardi Kleiser, TexasChristian University

Richard R. Klink, LoyolaUniversity Maryland

Peter Knight, University ofWisconsin Parkside

Yuliya Komarova, FordhamUniversity

Steven W. Kopp, University ofArkansas

Nicole Koschate-Fischer,University Erlangen–Nuremberg

Christine Kowalczyk, EastCarolina University

Alexander Krasnikov, GeorgeWashington University

Henning Kreis, FU BerlinKirk Kristofferson, University of

British ColumbiaChristina Kuehnl, University of

MannheimSabine Kuester, University of

MannheimWerner H. Kunz, University of

MassachusettsDidem Kurt, University of

Pittsburgh

LVishal Lala, Pace UniversityDesmond Lam, University of

MacauSon K. Lam, University of GeorgiaTak Ming Lam, Hong Kong

Polytechnic UniversityCatherine Lamberton, University of

PittsburghJoel Le Bon, University of Houston

viii

Kenneth Le Meunier-FitzHugh,University of East Anglia

Ju-Yeon Lee, University ofWashington

Ruby Lee, Florida State UniversitySae Rom Lee, Pennsylvania State

UniversityS.H. (Mark) Lee, Colorado State

UniversityKevin Lehnert, Grand Valley State

UniversityAlexander Leischnig, Freiberg

University of TechnologyConstantinos N. Leonidou,

University of LeedsAda Leung, Pennsylvania State

University, BerksMichael Levin, Otterbein

UniversityTheo L. Lieven, University of St.

GallenVeronica Liljander, Hanken School

of EconomicsLily Lin, University of British

ColumbiaBirgit Loehndorf, University of

ViennaDonald J. Lund, University of

Alabama at BirminghamLorman L. Lundsten, University of

St. Thomas

MMelih Madanoglu, Florida Atlantic

UniversityRamana Kumar Madupalli,

Southern Illinois University–Edwardsville

Peter Magnusson, Northern IllinoisUniversity

Igor Makienko, University ofNevada

Lucia Malär, University of BernNaresh K. Malhotra, Nanyang

Technological UniversityAneela Malik, Lahore University of

Management SciencesAvinash Malshe, University of St

ThomasRujirutana Mandhachitara,

Pennsylvania State UniversityMurali Krishna Mantrala,

University of MissouriAndre Marchand, University of

Muenster

Melissa Markley, DePaulUniversity

Kelly D. Martin, Colorado StateUniversity

Noemi Martinez-Caraballo,University of Zaragoza

María Pilar Martínez-Ruiz,University of Castilla–LaMancha

Mercedes Martos-Partal,Salamanca University

Daniele Mathras, Arizona StateUniversity

James Mark Mayer, IndianaUniversity

Regina McNally, University ofLimerick

Cathy Ferris McPherson, MaryBaldwin College

Michael Merz, San Jose StateUniversity

Frederik Meyer, JohannesGutenberg-University of Mainz

Fred Miao, Clarkson UniversityClaudia Mich, Purdue University

CalumetStefan Michel, IMDJoseph Calvin Miller, Rochester

Institute of TechnologyKlaus M. Miller, University of

BernJunhong Min, Michigan

Technological UniversityKyeong Sam Min, University of

New OrleansAnubha Mishra, University of

IdahoSaurabh Mishra, McGill UniversityShashi Shekhar Mishra, Indian

Institute of TechnologyMayoor Mohan, Oklahoma State

UniversityGina S. Mohr, Colorado State

UniversityBruce Money, Brigham Young

UniversityFred Morgan, Wayne State

UniversityAlexander Josef Mrozek, EBS

Business SchoolJifeng Mu, Alabama A&M

UniversityDarrel Muehling, Washington State

UniversityEva Muenkhoff, University of

Paderborn

Michael R. Mullen, FloridaAtlantic University

Ryan Mullins, Clemson UniversityJames Muncy, Valdosta State

UniversityMatthew Bowman Myers,

University of Tennessee

NMohammed M. Nadeem, National

UniversityIman Naderi, University of North

TexasJacques Nel, University of the Free

StateGergana Nenkov, Boston CollegeChristopher Newman, University

of ArkansasJeananne Nicholls, Slippery Rock

UniversityTim Nicolas Nierobisch, University

of Göttingen, GermanyPatricia Norberg, Quinnipiac

University

OMike W. Obal, Temple UniversityJoon-Hee Oh, Georgia State

UniversityDouglas Olsen, Arizona State

UniversityFred Oswald, Rice UniversityJan Owens, Carthage CollegePeren Ozturan, Koç University

PKadayam H. Padmanabhan,

University of Michigan–Dearborn

Nicolas Papadopoulos, CarletonUniversity

Dominik Papies, University ofHamburg

Jeong Eun Park, Ewha WomansUniversity

Jieun Park, Cleveland StateUniversity

Audhesh K. Paswan, University ofNorth Texas

Iryna Pentina, University of ToledoMaria Petrescu, Barry UniversityAdrienne Hall Phillips, Worcester

Polytechnic Institute

ix

Joan M. Phillips, Loyola UniversityChicago

Doreen Pick, Freie UniversitaetBerlin

Wesley Pollitte, University ofSouthern Mississippi

Sonja Martin Poole, University ofSan Francisco

Jana Prigge, University ofMannheim

Elizabeth F. Purinton, MaristCollege

QTianjiao Qiu, California State

University, Long BeachVictor Quinones, University of

Puerto Rico

RBrendan G. Rafferty, Sacred Heart

UniversitySascha Raithel, Ludwig-

Maximilians-UniversitätMünchen

Arilova Randrianasolo, Saint LouisUniversity

Deva Rangarajan, Vlerick LeuvenGent Management School

Adam Rapp, University ofAlabama–Tuscaloosa

Justine Rapp, University ofNebraska–Lincoln

David Raska, Northern KentuckyUniversity

Pradeep A. Rau, GeorgeWashington University

Philipp Rauschnabel, University ofBamberg

Steven W. Rayburn, OklahomaState University

Petra Riefler, University of ViennaChristine Ringler, Arizona State

UniversityTerri Rittenburg, University of

WyomingThomas Ritter, Copenhagen

Business SchoolCarlos M. Rodriguez, Delaware

State UniversityMichael Rodriguez, Elon

UniversityWilliam Taylor Ross Jr., University

of Connecticut

Marty Roth, University of SouthCarolina

Dominique Rouzies, HEC ParisAbhik Roy, Quinnipiac UniversityRosalyn J. Rufer, State University

of New York, Empire StateCollege

Pablo Ruiz-Palomino, Universityof Castilla–La Mancha

SAlok Saboo, Pennsylvania State

UniversityTakisha Salley-Toler, Saint Louis

UniversitySaeed Samiee, University of TulsaMatthew Sarkees, West Virginia

UniversityMarko Sarstedt, Ludwig-

Maximilians-University MunichMichael Anthony Sartor,

University of Western OntarioCinthia B. Satornino, Florida State

UniversityDaniela B. Schäfer, University of

BaselTobias Schäfers, EBS Business

SchoolTammy Schakett, Ohio Northern

UniversityDebbie Schallock, University of

North Carolina at GreensboroJeroen Schepers, Eindhoven

University of TechnologyKristina Schmidt, WHU–Otto

Beisheim School of ManagementPhilipp Schmitt, Goethe University

FrankfurtMonika Schuhmacher, University

of MannheimJan Hendrik Schumann,

Technische Universität MünchenMarko Schwertfeger, Freiberg

University of TechnologyKristin Scott, Minnesota State

University, ManaktoAlexey V. Semenov, Saint Louis

UniversityLaura Serviere-Munoz, University

of North Texas at DallasArun Sharma, University of MiamiPiyush Sharma, Hong Kong

Polytechnic UniversitySohyoun Shin, Eastern Washington

University

Christina Sichtmann, University ofVienna

Shir Way Siew, University ofTexas–Pan American

Debika Sihi, University of Texas atAustin

Bonnie Simpson, University ofCalgary

Ardhendu Shekhar Singh, Instituteof Rural Management, Anand

Ramendra Singh, IIM CalcuttaHotniar Siringoringo, Gunadarma

UniversitySanjay Sisodiya, University of

IdahoEugene Sivadas, University of

Washington, TacomaDionysios Skarmeas, Athens

University of Economics &Business

Jeffery Smith, Florida StateUniversity

Michael Smith, Temple UniversityRonn J. Smith, University of

ArkansasRobin Soster, University of

ArkansasAnne Souchon, Loughborough

UniversityCarlos M.P. Sousa, Durham

UniversityNicola Spiller, Politecnico di

MilanoAmanda Catherine Spry,

University of Melbourne,Australia

Srinivas Sridharan, MonashUniversity

Axel Stock, University of CentralFlorida

Barbara Stoettinger, WU ViennaNicola Stokburger-Sauer,

University of InnsbruckAmy Stokes, Oregon State

UniversityAndreas Strebinger, York

UniversityNadine Stutz, Institution for

Communication and MarketingLishan Su, Iowa State UniversityUrsula Y. Sullivan, Northern

Illinois UniversityWenbin Sun, Rockhurst UniversityRetno Tanding Suryandari,

University of North Texas

x

Esther Swilley, Kansas StateUniversity

TM. Berk Talay, University of

Massachusetts LowellYihui (Elina) Tang, University of

Illinois at ChicagoEmily Tanner, Oklahoma State

UniversityCrina O. Tarasi, Central Michigan

UniversityDavid G. Taylor, Sacred Heart

UniversityKarin Teichmann, University of

InnsbruckSahure Gonca Telli, Okan

UniversityHarri Terho, University of TurkuMarios Theodosiou, University of

CyprusAristeidis Theotokis, University of

LeedsChristoph Thiesbrummel,

University of PaderbornPeter Thirkell, Victoria UniversityCarri R. Tolmie, Saint Louis

UniversityDirk Totzek, University of

MannheimClaudia Townsend, University of

MiamiGina A. Tran, University of North

TexasRodoula H. Tsiotsou, University of

Macedonia, GreeceAnna M. Turri, Texas State

University–San MarcosSven Tuzovic, Pacific Lutheran

University

UWolfgang Ulaga, IMD Lausanne

VBrian A. Vander Schee, Aurora

UniversityEric Van Steenburg, University of

North TexasDaniel J. Veit, University of

Mannheim

Alladi Venkatesh, University ofCalifornia

Nicole Verrochi, University ofPittsburgh

Handan Vicdan, EMLYONBusiness School

Akshaya Vijayalakshmi, Iowa StateUniversity

Jorge Villegas, University ofIllinois at Springfield

Goran Vlasic, University ofZagreb/University of Sussex

Arnd Vomberg, University ofMannheim

Kevin Voss, Oklahoma StateUniversity

WMichael Wachter, Cleveland State

UniversityL. Jean Walker, University of

Houston–Clear LakeMichael Francis Walsh, West

Virginia UniversityChen Wang, University of British

ColumbiaDanielle Way, Woodbury

UniversityJack Wei, University of West

GeorgiaYinghong (Susan) Wei, Oklahoma

State UniversityBert Weijters, Vlerick Leuven Gent

Management SchoolHauke A. Wetzel, Georg August

University GoettingenAllyn White, Eastern Kentucky

UniversityD. Steven White, University of

Massachusetts DartmouthRyan White, University of

Wisconsin–La CrosseAnne Wiese, University of

GoettingenJennifer Wiggins Johnson, Kent

State UniversityMichael Wiles, Arizona State

UniversityRicky Wilke, Copenhagen

Business SchoolRobert Wilken, ESCP Europe

Business School Berlin

Karen Page Winterich,Pennsylvania State University

Kristina Wittkowski, EBS BusinessSchool

David M. Woisetschläger,Technische UniversitätBraunschweig

Jeremy Wolter, Florida StateUniversity

Charles Wood, University of TulsaJohn Andy Wood, West Virginia

UniversityScott Wright, University of

CincinnatiNancy Wuenderlich, Technische

Universität München

XGuang-Xin Xie, University of

Massachusetts Boston

YChun-Ming Yang, Ming Chuan

UniversityJun Yang, University of Houston

VictoriaAtefeh Yazdanparast, University of

EvansvilleMujde Yuksel, University of

Massachusetts Amherst

ZAlex Ricardo Zablah, George

Mason UniversityMuhammad Abrahim Zaka,

Nyenrode Business SchoolLia Zarantonello, Catholic

University of LilleHaisu Zhang, University of Illinois

at ChicagoShuoyang Zhang, Colorado State

UniversityChen Zhou, Pennsylvania State

UniversityYimin Zhu, Sun Yat-sen UniversityStephan Zielke, Aarhus UniversityMohammadali Zolfagharian,

University of Texas–PanAmerican

Yueming Zou, Old DominionUniversity

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TABLE OF CONTENTS

PREFACE AND ACKNOWLEDGMENTS iii

BEST PAPERS BY TRACK iv

LIST OF REVIEWERS v

TABLE OF CONTENTS xi

RESEARCH METHODS AND ANALYTICS

The Application of Structural Equations to the Attributes in Discrete ChoiceModels

Cam M. Rungie 1

Anchoring in Choice Experiments: Influence of the Experimental Design onWillingness-to-Pay

Felix Eggers, Franziska Völckner 10

The Dynamics Underlying Performance Signaling: Insights from the ProfessionalSports Market

Stefan Hattula, Hauke A. Wetzel, Maik Hammerschmidt, Hans H. Bauer 12

Effects of Store Manager Climate Upon FLE Commitment, Customer Loyalty, andStore Financial Performance

George D. Deitz, John D. Hansen, Thomas E. DeCarlo, Emin Babakus,Kristopher J. Preacher 14

Do Group-Buying Deals Induce More Coupon Regret?Xueming Luo, Yiping Song, Pengdong Fan 16

Distribution of Changes in Consumer Purchasing BehaviorGiang Trinh, Cam Rungie, Malcolm Wright, Carl Driesener, John Dawes 17

INTERORGANIZATIONAL ISSUES IN MARKETING

Are Suppliers Inaccurate in Judging Their Price Fairness in Buyer-SellerRelationships?

Christian Homburg, Jan Allmann, Dirk Totzek 19

Gratitude Versus Entitlement: An Antagonistic Process Model of theProfitability Impact of Customer Prioritization

Hauke A. Wetzel, Maik Hammerschmidt, Alex R. Zablah 21

Do Seller Perceptions of Fairness Lead to Sales Growth? A Latent Growth CurveAnalysis

Ghasem Zaefarian, Zhaleh Najafi Tavani, Stephan C. Henneberg,Peter Naudé 23

Reciprocity in Interfirm Relationships: A Review and ExtensionJessica J. Hoppner, David A. Griffith 25

Sales and Value Creation: A Synthesis and Directions for Future ResearchAlexander Haas, Nina Stuebiger 27

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Implementing Service Growth Strategies at the Industrial Sales Force Level: KeyChallenges in Selecting and Managing the Service-Savvy Sales Force

James M. Loveland, Wolfgang Ulaga 29

Ready to Pitch? Proposal and Vendor Attractiveness as Mediators of Vendor Successin Competitive Tenders

Eva K. Steinbacher, Christian Schmitz, Dirk Zupancic 31

Managing Exclusive Channels for Relationship EffectivenessAlberto Sa Vinhas 33

EMERGING MARKETS

Are Chinese State-Owned Enterprises Lagging Behind in Product Innovation?Xiaomin Zhao, Ping Lan 34

From Innovative and Marketing Capabilities to Firm Performance: EmpiricalComparison on Different Paths in Two Emerging Nations

Xina Yuan, Sohyoun Shin, Sang Yong Kim 36

MNCs and Food Security in Emerging Markets: Provocations from IndiaSusan M. Mudambi, Thomas Reardon, Bart Minten 37

Adding to the “Missing Link” Perspective in Emerging Economy: The Role ofProduct Innovation in Russia

Maria Smirnova, Vera Rebiazina, Alexander Krasnikov, Sergey Kusch 39

Evaluation of Retail Services: A Developed vs. Emerging Markets PerspectivePiyush Sharma, Sherriff T.K. Luk, Ivy S.N. Chen 40

Factors Influencing Growth Potential of E-Commerce in Emerging Economies:A Multi-Theoretical Approach and Research Propositions

James Agarwal, Terry Wu 42

Driving the Value Premium Through Cultural, Symbolic, Economic and SocialCapital Management

Goran Vlasic, Josef Langer, Zoran Krupka 43

Microfinance Market Failures in Emerging MarketsJoseph Hansen-Addy, Esi Abbam Elliot, Joseph Cherian 45

Reactance Vs. Acceptance: Emerging Market Consumers’ Perceptions of LocalBrands After an MNC’s Acquisition

Martin Heinberg, Markus Taube 46

Rethinking Marketing Practices in an Emerging Market Context: An EmpiricalEvaluation of Competing Conceptual Frameworks in Ghana

Kofi Q. Dadzie, Charlene A. Dadzie, Evelyn M. Winston 47

Expanding “Brotherhood” in Emerging Markets: Methodological Approach andCultural Value Analysis

Richard Michon 49

Still on the Road to Capitalism? Weighing the Visible Hand of GovernmentIntervention in the Chinese Property Market

Tao Zhu, Killian J. McCarthy 51

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INTERORGANIZATIONAL ISSUES IN MARKETING

Studying Emotions in Business RelationshipsAndreas Zehetner 63

Interorganizational Favor Exchange as a Cooperative BehaviorAdam Nguyen 72

Using Dyadic Agent-Based Simulations to Model Strategic Decision Making inBusiness Relationships

Sebastian Forkmann, Di Wang, Stephan C. Henneberg, Peter Naudé,Alistair Sutcliffe 74

Reinstitutionalizing Surveillance Through Social Media: Healthcare Market CaseHandan Vicdan 76

The Mediating Role of Marketing Process Improvement in the Market-Based AssetFramework

Anthony K. Asare, Thomas G. Brashear, Jing Yang, Jun Kang 78

How Integration Enables Marketing to Become More AccountableAndreas Waschto, Malte Brettel 79

Why Do Manufacturers Engage in Private Labels Production? Market Strategyand Channel Relationship Perspectives

Ho-Taek Yi, Chae-Un Lim 81

ADVERTISING, PROMOTION AND MARKETING COMMUNICATIONS

Quantifying the Sales Impact of Location-Targeted Mobile AdsXueming Luo, Zheng Fang, Megan E. Keith 90

How Advertising Works Embedded in New Media: Consumer Media ExperienceModel

Mark Yi-Cheon Yim, Minette E. Drumwright, Vincent J. Cicchirillo 92

Viral Advertising and Its Place in the Advertising FrameworkMaria Petrescu, Pradeep Korgaonkar, Tamara Mangleburg, Ann Root 94

The Role of Facebook for Advertising: Advertising Effectiveness of Social NetworksCompared to Traditional Online Advertising, Including Synergies and Time Lags

Jens-Christian Reich, Malte Brettel 96

Buying the Forthcoming: A Prelaunch Information and Value Congruence ModelKyung-Ah Byun, Junghwan Kim, Gavin L. Fox 98

The Role of Financial Gift Formats on the Persuasiveness of the AdvertisingMessages

Qing Yao, Rong Chen 100

A Framework to Understand Customer Data Quality in CRM Systems for FinancialServices Firms

Debra Zahay-Blatz, James Peltier, Anjala Krishen 102

The Role of Fit and Similarity in Social Sponsorship CommunicationsRavi Pappu, T. Bettina Cornwell 103

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Should Firms Name Competitors in the Ads?Chun-Kai Tommy Hsu, Leona Tam 105

Regulatory Focus and Daily Deal Message Framing: Are We Saving or Gainingwith Groupon?

Iryna Pentina, David G. Taylor 107

An Investigation of the Attitude Resistance Process on Negatively FramedComparative Ads

Russell Laczniak, Kristine Ehrich, Darrel Muehling, Akshaya Vijayalakshmi 109

The Effect of Analytic and Holistic Thinking on Consumers’ Attitudes’ TowardHolistic or Attribute Advertising

Beichen Liang 111

Using Self- Versus Other-Benefit Messages in Ads for Green Products: TheModerating Role of Perceived Consumer Effectiveness and Consumer Guilt

Ceren Ekebas, Kiran Karande 113

The Impact of Violent Humor on Advertising Success: A Gender PerspectiveKunal Swani, Marc Weinberger 115

Ad Strategy for Multi-Ethnic Markets: The Influence of CosmopolitanismEnrique P. Becerra, Sindy Chapa, Delonia O. Cooley 117

Stronger Environmental Norms Increase “Green” Buying Intentions but NotBehavior: Implications for Advertisers

Melissa M. Bishop, Nelson A. Barber 119

BRANDING AND BRAND MANAGEMENT

#Loweshatesmuslims: Consumer Ethical Decision Making Related to CorporateAdvertising Choices

R. Nicholas Gerlich, Kristina Drumheller, Emily Kinsky, Meagan Brock,Marc Sollosy 121

Brand Heritage in the Luxury Industry: Creating and Delivering Continuous Valueto Consumers

Nadine Hennigs, Steffen Schmidt, Thomas Wuestefeld, Klaus-Peter Wiedmann 129

Loss of Brand Equity in Crises: The Impact of Emotions and Attributions in Productand Non-Product Negative Publicity

Haodong Gu, Ashish Sinha 131

Investigating How Word-of-Mouth Drives Information Search for a BrandAndrew M. Baker, Naveen Donthu, V. Kumar 133

Employees as Internal Brand Consumers: the Nature of RelationshipsLucy Gill-Simmen, Andreas B. Eisingerich 135

To Be Familiar or to Be There? Brand Familiarity, Social Presence, and OnlineRetailing

Xiaoping Fan, Feng Liu, Jia Zhang 137

Do Personality Traits Influence Brand Related Activities in Social Networks? AnEmpirical Study

Philipp A. Rauschnabel, Björn S. Ivens, Gunnar Mau 139

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Identity Presentation and Conflict in a Social Network: Implications for Brandingin Social Games

Ginger Killian, John Hulland 141

Risk Reducing Portfolio Effects: Uncertainty Avoidance in Brand ExtensionsMatthew A. Hawkins, Jatinder Jit Singh 143

Sub-Branding Affect Transfer: The Role of Product Category Crowdedness andBrand Loyalty

Yi He, Qimei Chen, Ruby P. Lee, Leona Tam 150

Explicit and Implicit Measures of Brand Information Processing and Its Impacton Brand Perception and Brand-Related Behavior

Sascha Langner, Nadine Hennigs, Steffen Schmidt, Klaus-Peter Wiedmann 152

Diminishing Effects of Perceived Fit on Vertical ExtensionsNicolas Pontes, Mauricio Palmeira, Colin Jevons 154

Managing Brand Architecture: State-of-the-Art and Decision-MakingChristopher Kanitz, Michael Schade, Christoph Burmann 156

Branding with Political Theories: An Interdisciplinary ApproachTony Yan 158

Constructing Bayesian Network and Nomological Network of Performance-BasedUsability of Mobile Devices

Taewon Suh, John Ford, Jang-Ho Park, Kyungdoc Kim, Chi-Hyuck Jun 165

Investigating the Effects of Vagueness in Advertising Slogans on Brand PreferenceWidyarso Roswinanto 167

CONSUMER PSYCHOLOGY AND BEHAVIOR

Consuming Ethically: The Role of EmotionsDiana Gregory-Smith, Andrew Smith, Heidi Winklhofer 169

Does In-Store Marketing Reduce the Attitude-Behavior Gap for Ethical Products?Gulberk Keysan, Vishal Talwar, Amitav Chakravarti 170

Understanding Teenage Poker Gambling: Policy and Consumer BehaviorImplications

Sudhir H.Kale, Natalina Zlatevska 172

“It’s Not My Fault” and “Money Can Buy Anything”: Recovering from EthicalFailures

Sekar Raju, Priyali Rajagopal 174

Word-of-Mouth Behavior, Online Activity and Company’s Communication StrategyDanny P. Claro, Silvio A. Laban Neto, Priscila B.O. Claro 176

The Role of Resistance and Positive Coping in Consumption of Mobile AppsAnubha Mishra, Mary Ann Eastlick 178

Strategies for Increasing Online Survey ParticipationMary Foster, Anne Warner, Adam Froman 180

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Too Much Facebook: An Exploratory Examination of Social Media FatigueStacy Landreth-Grau, Laura F. Bright, Susan Bardi Kleiser 182

On Materialism, Coping and Consumer Behaviors Under Traumatic StressAyalla A. Ruvio, Eli Somer 184

The Green Side of MaterialismPia Furchheim, Steffen Jahn, Cornelia Zanger 186

Subjective Well-Being and its Influence on Consumer Purchase Behavior of LuxuryItems Do Materialism and Affective Autonomy Have an Impact?

La Toya M. Russell 188

The Impact of Esoteric Product Specifications on ChoiceChelsea Wise, Paul F. Burke, Sandra J. Burke 194

Conformity, Uniqueness, and Social Class Mobility Consumer Self Identity in theYard

Elizabeth C. Hirschman, David L. Kendall 195

How Close Brands Are Included in the Self: Psychological and NeuralProcesses

Martin Reimann, Raquel Castaño, Judith L. Zaichkowsky, Antoine Bechara 205

The Referral Backfire Effect: The Identity Threatening Nature of Referral FailureBart Claus, Kelly Geyskens, Kobe Millet, Siegfried Dewitte 206

Self-Other Differences in Purchase Uncertainty and Contingent Decision StrategiesDemetra Andrews, Stephanie Oneto 208

Corporate Social Responsibility and Consumer Relationships: An Application ofthe Motivator-Hygiene Theory

Russell Lacey, Pamela Kennett-Hensel 210

A New Tool for Customer Segmentation: Defining and Measuring RelationshipProneness

Stephanie M. Mangus, Jacob L. Hiler, Benjamin D. McLarty 212

Determinants of Customer Loyalty: The Role of Relational Benefits in the Contextof Customer Club

Kevin Yu, Song Yang 213

Turning a Lion into a Kitten: The Role of Apology Timing and RelationalExpectation

Kyeong Sam Min, Jae Min Jung, Kisang Ryu 222

The Impact of Parent-Child Buying Communication Strategies on Self-BrandConnections

Farrah Arif, Wayne D. Hoyer, Omar Merlo 224

Making Brand Associations and Brand Elements Memorable in Elderly ConsumersPraggyan (Pam) Mohanty, S. Ratneshwar, Moshe Naveh-Benjamin 226

On the Interpersonal Transmission of LuckChun-Ming Yang, Edward Ku, Chung-Chi Shen 228

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Personal and Historical Nostalgia: Investigating Consumption Consequences ofTwo Different Types of Nostalgia

Tina Kiessling, Steffen Jahn, Cornelia Zanger 230

When I Can’t Touch: An Examination of the Role of Purchase Involvement andRegulatory Orientation in Online Shopping Decisions

Atefeh Yazdanparast, Nancy Spears 231

Differences in the Influence of Choice Confidence and Outcome Quality onSatisfaction as a Function of Information Diagnosticity

Demetra Andrews, Alexis M. Allen, Edward Blair 233

Self-Efficacy and Self-Prophecy Effects on Preventive Health BehaviorCarmen-Maria Albrecht, Hans H. Bauer, Kai Bergner, Tamara Gogia,Daniel Heinrich, David E. Sprott 235

The Role of Goal Specificity in Initial and Subsequent Decisions RegardingConsumption of Healthy or Unhealthy Foods

Meredith E. David, William O. Bearden 236

Checkout Frustration: Investigating Consumer Reactions Using FrustrationTheory

Eric Van Steenburg, Nancy Spears, Robert O. Fabrize 238

Antecedents and Consequences of Situated Learning in Stressful ServiceExperiences: A Cross-Cultural Perspective

Mousumi Bose, Lei Ye 240

The Pursuit of Extraordinary Experiences: An Exploration of TriggersColleen Harmeling, Mark Arnold 242

Consumer Goal Dynamics: An Empirical IllustrationShilpa Iyanna 244

ETHICAL, LEGAL, SOCIAL, AND PUBLIC POLICY ISSUES

CSR-Related Communication in Different Industries: A Qualitative andQuantitative Study Based on Corporate Annual Reports

Thomas Kilian, Nadine Hennigs 245

Does Corporate Social Responsibility Save Firms? An Exploration of CorporateSocial Responsibility, Firm Capability, Environmental Influences, and FirmDefault Risk

Wenbin Sun 247

Communicating Corporate Social Responsibility Using Social Media: Implicationsfor Marketing Strategists

Amy Lyes, Nitha Palakshappa, Sandy Bulmer 249

Customer Outcomes of Corporate Social Responsibility in Supplier-CustomerRelationships

Christian Homburg, Marcel Stierl, Torsten Bornemann 257

Measuring Consumer Confusion Evoked by Design Copycats: The Influence ofEvaluation Mode

Steffen Herm, Jana Möller 259

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Consumers View Nutrition Facts Through Cultural LensesAnnie Cui, M. Paula Fitzgerald, Karen Russo France 260

Willing to Pay for a Better Brand: Consumer Responses to CSR PerformanceScores

Laurel Aynne Cook, Ronn J. Smith, Yao Jin 262

Environmentally Friendly Consumer Behavior: A Scale Review, Modification, andValidation

Lynn Sudbury-Riley, Florian Kohlbacher, Agnes Hofmeister 264

Afro-Descendents in Children’s Television Advertisements: A Content AnalysisStudy in the Brazilian Context

Claudia Rosa Acevedo, Marcello Muniz, Jouliana Jordan Nohara 266

How Companies Should React on Social Misconducts: The Role of In- and Extra-Domain Compensation

Isabell Lenz, Hauke Wetzel, Maik Hammerschmidt 268

How Big a Concern? Privacy, Targeted Advertising and Social Media: TheCanadian Corporate and Consumer View

Avner Levin, Bettina West, Mary Foster 270

Developing a Corporate Social Responsibility Process Scale of IndividualStakeholder’s Perception

Seongjin Kim, Clarissa Chaiy, Seoil Chaiy 271

NEW PRODUCT DESIGN AND DEVELOPMENT, PRODUCTMANAGEMENT AND ENTREPRENEURSHIP

The Roles of Marketing and Sales in New Product DevelopmentWim G. Biemans, Avinash Malshe 281

Sales Integration and Its Performance Effects in New Product Development:The Moderating Role of Innovativeness

Malte Brettel, Andreas Waschto 283

Resources in New Product Development: An Investigation of Resource Flexibility,Augmentation, and Leveraging

Sanjay R. Sisodiya, Jean L. Johnson, Stephen M. Wagner 285

Incremental Service Innovation, Service Employees’ Innovative Activities, and theEnabling Factors

Jun Ye 287

Examination of the Link Between New Product Preannouncements and FirmValue: The Case of the U.S. Automotive Industry

M. Billur Akdeniz, M. Berk Talay 289

Learning Marketing Management and Leadership Practices from Peers: The Caseof Industry Peer Networks

Ada Leung, Huimin Xu, Kyle Luthans, Susan Jensen 290

The Impact of Proactive Marketing at the Fuzzy Front End of InnovationFiona Schweitzer 292

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I Don’t Need It and I Don’t Want to – Examining Effects of Situational andCognitive Resistance to Innovations

Sven Heidenreich, Matthias Handrich 294

RETAILING AND PRICING

The Pricing of Soft and Hard Information: Lessons from Screenplay SalesMilton Harris, S. Abraham Ravid, Suman Basuroy 296

The Entrant’s Pricing Dilemma: Linking Low Price Entry Strategies to AggressivePrice Responses by Incumbents

Alexander J. Mrozek, Tomas Falk 297

Accepting or Fighting Piracy: Can Firms Reduce Piracy for Digital Media Productsby Optimizing Their Marketing?

Felix Eggers, Alexa Burmester, Michel Clement, Tim Prostka 299

Framing Effects on Evaluation of Coupon Offers: Assessing the Performance ofAlternative Face Value Frames

George Baltas, Grigorios Painesis, Paraskevas Argouslidis 301

I Thought It Was All Over and Now It Is Back Again: Customer Reactions to TimeExtensions of Sales Promotions

Ina Garnefeld, Eva Muenkhoff, Andrea Bruns 303

Purchase Behavior and Psychophysiological Responses to Different Price LevelsOuti Somervuori, Niklas Ravaja 305

Social Commonalities and Subjective DiscountingMark S. Rosenbaum, Richard Wozniak, Carolyn Massiah 307

Price-Quality Relationships and the Price HeuristicMark J. Kay 309

Product Masking: Effects of Consumer Embarrassment on Shopping Basket Sizeand Value

Bridget Satinover Nichols, David Raska, Daniel J. Flint 311

Examining the Role of Cognitive Dissonance After Purchase on Product ReturnIntentions

Devdeep Maity 313

Assessing Customer Satisfaction and Unplanned Buying Behavior in GroceryRetailing

María Pilar Martínez-Ruiz, Alicia Izquierdo-Yusta, Phil Megicks 315

Flow Experience in Physical Retail StoresLiz C. Wang, Daniel F.J. Hsiao 317

Effects of Illumination on Store Atmosphere, Price, and Quality Perception, andShopping Intention

Stephan Zielke, Thomas Schielke 318

The Hybrid Online Shopping EnvironmentJeffrey Hu Xie 320

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Temporary Stores: Consumer Responses to a Limited Assortment and LimitedTime Horizon

Doreén Pick, Marko Schwertfeger 322

Do Customer Experiences Enhance Retail Brand Equity?Alexander Leischnig, Marko Schwertfeger 323

Antecedents of Primary Store Disloyalty in a Stagnant MarketPeter J. McGoldrick, Daniel P. Hampson 325

Signaling E-Tailer Trust: Exploring Source Influences of Internet TrustmarksK. Damon Aiken, Vincent Pascal, Sohyoun Shin 326

A Comparison of Brand Extensions for Private Labels and National BrandsMonica Grosso, Sandro Castaldo 328

MARKETING STRATEGY AND MARKETING MANAGEMENT

An Experimental Examination of Buyers’ Responses to Relationship FailuresDonald J. Lund, John D. Hansen, Thomas E. DeCarlo, Lisa K. Scheer 330

When Customers Show Divided Attitudinal Loyalty: Using Channel Intermediariesto Increase Behavioral Loyalty

Sridhar N. Ramaswami, S. Arunachalam, Kirti Rajagopalan 332

Customer Reactions to Massive Workforce Reductions: When Is SatisfactionAffected?

Martin Klarmann, Christian Homburg, Johannes Habel 334

A Customer-Centric Approach to B2B Market SegmentationYihui (Elina) Tang, Murali Mantrala, Esther Thorson 336

A Stratified Examination of the Drivers and Outcomes of Marketing Cross-Pollination

Jeff S. Johnson, Amit Saini 338

The Role of Franchisee Marketing Commitment on Promotion Execution andPerformance

Joseph Matthes, Amit Saini 340

Determinants of the Adoption of a Mobile Commerce Strategy: The PerceivedBenefits to the Firm

Esther Swilley 342

The Moderating Effect of Creativity on Consensus and Performance: A ModeratedPolynomial Regression Model

Linda M. Orr, Frederik Beuk, Hyeong-Gyu Choi 343

Does CEO Tenure Really Matter? The Mediating Role of Employee and CustomerRelations

Xueming Luo, Vamsi K. Kauri, Michelle Andrews 345

When the Fog Dissipates: The Choice of Strategic Emphasis in a PartnerTodd Morgan, Sergey Anokhin 347

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Why Quality May Not Always Win: The Impact of Product Generation Life-Cycleson Quality and Network Effects in High-Tech Markets

Richard T. Gretz, Suman Basuroy 349

GLOBAL AND CROSS-CULTURAL MARKETING ISSUES

Foreign Direct Investment Impact on Retail StructureBoryana V. Dimitrova, Bert Rosenbloom 351

The Differential Effect of Internet Trustmark Source: An Exploratory Study ofKorean and U.S. Consumers

Sohyoun Shin, K. Damon Aiken, Vincent J. Pascal 353

Market Orientation and Business Performance in MNC Foreign Subsidiaries: TheModerating Effects of Integration and Responsiveness

Riliang Qu 354

Emergence of Online Shopping in India: Shopping Orientation SegmentsKenneth C. Gehrt, Mahesh N. Rajan, G. Shainesh, David Czerwinski,Matthew O’Brien 355

It’s Nice to Be Important, But It’s More Important to Be Nice: Country-of-OriginEffects in Product Failures

Huimin Xu, Ada Leung, Terry Yan 357

The Effects of Product Diversification and Globalization on the Performance ofLarge International Firms

Tianjiao Qiu 359

What Happens to “Brand Japan” When Toyota Suddenly Accelerates? TheSpillover Effects of Brand Transgressions on Country Image and Related Brands

Peter Magnusson, Vijaykumar Krishnan, Srdan Zdravkovic,Stanford A. Westjohn 360

The Real Mccoy: Product Ethnicity, Authenticity, and Cosmopolitanism inEvaluations of Search and Experience Goods

Michael Wachter, Jieun Park 362

The Hofstede Paradox: Fact or Fiction?Terry Clark, Songpol Kulviwat, Juan (Gloria) Meng 364

Ethnocentrism, Consumer Ethnocentrism, Religion and Religiosity: A ConceptualReformation

Daniel Friesen, Attila Yaprak 365

Consumers’ Global Identity and National Identity: An Empirical StudyJoyce X. Zhou, Nitish Singh, Jun Yu 367

INNOVATIVE MARKETING TECHNOLOGY

The Effect of Blog Interactivity and Perceived Trust on Visitor Response: TheModerating Role of Blogger Expertise and Consumer Involvement

Yueming Zou, Kira Karande 368

How Quality of Life Affects Social Networking Site Use Intention: Role ofPerceived Self Disclosure and Social Tie Quality

Chung-Chi Shen, Jyh-Shen Chiou, Chun-Ming Yang, Szu-Yu Chou 370

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Factors Affecting Online Trust in Online Shopping: The Role of NetworkExternality and Internet Skill

Kazuhiro Kishiya, Nao Yamamoto 371

Effects of Personalized E-Mail Messages on Perceived Risk: Moderating Roles ofControl and Intimacy

Sung-Won Lee, Ji Hee Song, Hye Young Kim 379

Linking the Virtual World with the Real World: How to Build Online RelationshipsThat Lead to Offline Interactions

Sukanya Seshadria, Werner H. Kunz 381

101 People Like This: Evaluating the Facebook Message Strategy Effectiveness ofFortune 500 Companies

Kunal Swani, George R. Milne, Brian P. Brown 382

Does Social Media Matter for Marketing? The Effects of Social Media Engagementon the Consumer-Brand Relationship

Benedikt Jahn, Werner H. Kunz 384

Evaluation and Authentication of Music Shared Through Social Networking:eWOM of Cultural Products

Paul G. Barretta, Michael S. Minor 385

Social Networking Sites and Planned BehaviorJohn T. Gironda, Pradeep K. Korgaonkar 387

What Consumers Really Think of Targeted Online Advertising: A SegmentedApproach

Bettina West, Avner Levin, Mary Foster 389

Engaging the Facebook User to Foster Sales: Drivers of Advertising Effectivenessin Social Networks, Incorporating Synergies and Time Lags

Jens-Christian Reich, Malte Brettel 391

Social Media Marketing Intensity and Its Impact on the Relation Between DynamicCapabilities and Business Performance

Felipe Uribe, Josep Rialp, Joan Llonch, Henry Robben 393

Netnography and Metaphysical BrandingSteve Oakes, Noel Dennis, Helen Oakes 395

Integration vs. Regulation: What Really Drivesg User-Generated Content in SocialMedia Channels?

Welf Weiger, Hauke Wetzel, Maik Hammerschmidt 397

Is There a Dark Side to Customer Co-Creation? Exploring Consequences of FailedCo-Created Services

Matthias Handrich, Sven Heidenreich 399

The Role of Moral Identity in Online Consumer Review BehaviorNan Zhang, Mavis T. Adjei 401

Who Cares About Crowdsourcing from a Virtual Brand Community? The Case ofMarvel.com

Paul G. Barretta 403

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The Omnichannel Luxury Retail Experience: Building Mobile Trust and TechnologyAcceptance Through Symbolic Self-Completion

Charles Aaron Lawry, Laee Choi 405

Can You Hear Me Now? How Product Attributes Influence Online Phone ReviewsElliott Manzon, Richard Gonzalez, Colleen M. Seifert 407

Design of Reward Systems in Customer Referral ProgramsChristoph Look 409

The Power of a Tweet: An Exploratory Study Measuring the Female Perception ofCelebrity Endorsements on Twitter

Nicole Cunningham, Laura Bright 416

Consumers’ Online Responses to the Death of a CelebrityScott K. Radford, Peter H. Bloch 424

Extending the Electronic Technology Acceptance Model: Consumer Adoption ofAugmented Reality-Based Marketing Tool

Mark Yi-Cheon Yim, Shu-Chuan Chu 426

MARKETING EDUCATION AND TEACHING INNOVATION

Do Personal Response Systems (Clickers) Enhance Learning and Retention ofKnowledge in Higher Education: An Empirical Investigation

Erin Cavusgil 428

Using the RFM Model to Rank Doctoral Marketing ProgramsMatt Elbeck, Brian A. Vander Schee 430

Impact Dynamics of Marketing Scholarship: Going Beyond Journal QualityShibo Li, Eugene Sivadas, Mark S. Johnson 439

The Effects of Individual and Team Characteristics on Simulation-enhancedCritical Thinking: A Multilevel Analysis

George D. Deitz, Alexa K. Sullivan, Robert Evans Jr. 440

SPORTS MARKETING

Without the Volunteers the Event Cannot Go On: Examining Retention with aBehavioral Reasoning Theory Approach

Mya Pronschinske, Mark D. Groza, Mark Peterson 442

Motivating Factors for Participation in National and Olympic Sports in KazakhstanElmira Bogoviyeva 444

Segmenting Fans of a New Team: A Typology of Early AdoptersHeath McDonald, Civilai Leckie, Adam Karg 446

The Service Profit Chain in a Professional Sports SettingAdrien Bouchet, James J. Zboja 448

SERVICES MARKETING

The Effect of Formal and Informal Marketing Controls on Customer ContactEmployee Performance

Ryan C. White, Roger J. Calantone, Clay M. Voorhees 450

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Bad Customers or Bad Management? An Empirical Investigation of What DrivesService Employees’ Deviant Behavior

Gianfranco Walsh, Simon Brach, Arne K. Albrecht, David Dose, Patrick Hille 452

Linking IMO with Different Fit Types and Willingness to Report Service ComplaintsAchilleas Boukis, Spiros Gounaris, Kostas Kaminakis 454

Firm Self-Service Technology Readiness: A Socio-technical Systems PerspectiveB. Ramaseshan, Russel P.J. Kingshott 462

Does Technology Orientation Matter in Technology Services Organizations?Nacef Mouri, Maheshkumar P. Joshi, Sidhartha R. Das 464

Adapting Principles of Service Quality to Personal Media Marketing CommunicationTodd J. Bacile, Charles F. Hofacker 466

Consumer Reactions to Aesthetic Incongruity: Investigating Aesthetic Incongruityin the Service Consumption Context

Seonjeong (Ally) Lee, Miyoung Jeong 468

Enhanced Regret: Ruminative Thinking, Mood Regulation and Service FailureKevin Lehnert, Mark Arnold 470

Serving in an Online World: How to React on Negative Electronic Word-of-Mouth?Werner H. Kunz, Andreas Munzel, Benedikt Jahn 472

Relinquishing the Moment of Truth: A Model of Firm and Customer-Led ServiceRecovery

Sara K. Bahnson 474

The Impact of Perceived Service Recovery Justice on Customer Affection, Loyalty,and Word-of-Mouth

Beomjoon Choi 476

Caught by Surprise: The Behavioral Effects of Surprise and Delight on Consumersin Different Industries

Tobias Kraemer, Andreas Giese, Christopher Bartl, Nadine Ludwig,Matthias Gouthier 478

Forging Relationships to Coproduce: A Consumer Commitment Model in anExtended Service Encounter

Lin Guo, Cuiping Chen, Chuanyi Tang 480

You’re Such an Embarrassment! A Qualitative Study of the Determinants andConsequences of Vicarious Embarrassment in Customer-to-Customer Interactionsin the Service Context

Thomas Kilian, Kathrin Greuling, Eva Hammes 482

Tempted by Another: How Customer-Perceived Competitive Advantage InfluencesRepurchase Intentions in Service Relationships?

Martin Mende, Scott Thompson, Christian Coenen 484

The Service Level/Gratitude/Reciprocation Relationship and the ModeratingImpact of Reciprocation Wariness

Yihui (Elina) Tang, Chris Hinsch 486

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Give-and-Take in Loyalty Programs: The Asymmetric Effects of MediumMagnitude

Sören Köcher, Markus Blut 488

The Bright and Dark Side of Endowed Status in Hierarchical Loyalty ProgramsAndreas Eggert, Ina Garnefeld, Lena Steinhoff 490

New Insights in the Moderating Effect of Switching Costs on the Satisfaction-Loyalty Link

Thomas Rudolph, Liane Nagengast, Heiner Evanschitzky, Markus Blut 492

PERSONAL SELLING AND SALES MANAGEMENT

Managing Salesforce Selling Behaviors and Performance: the Interactive Effectsof Sales Control Systems

C. Fred Miao, Kenneth R. Evans 494

Do Salesperson Perceptions of Management-Directed Technology-EnabledTransparency Influence Their Behavioral Ethicality?

John E. Cicala, Alan J. Bush, Daniel L. Sherrell, George D. Deitz 496

A New Customer Typology for Adaptive SellingJeffrey S. Larson, Sterling A. Bone 498

Salesperson’s Acculturation Behavior and its Impact on Buyers’ CommitmentHalimin Herjanto, Sanjaya S. Gaur 500

Solution Selling Teams: A Multi-Perspective Review of the Impact of Cross-Functionality

Doreen Wienhold, Michael Nippa 502

The Strategic Alignment of Organizational Development Interventions forSalesperson Value Management with a Salesperson Lifecycle Management Model

Joon-Hee Oh 504

Demystifying Network Strategies: Increasing Product Quality, CustomerSatisfaction, and Profitability Through the Strategic Deployment of InfluentialHubs

Cinthia B. Satornino, Michael K. Brady, Michael Brusco, Clay Voorhees 506

A Nuanced View of the Marketing-Sales “Activity” Interface: A Case of Small B2BFirms

Avinash Malshe, Wim G. Biemans 508

Investments in Customer Relationships and Relationship Strength: Evidence fromInsurance Industry in China

Guicheng Shi, Yuan Ping, Yonggui Wang, Matthew T. Liu 510

Salesperson’s Personality and Relationship Quality: Are You a Friend or aCustomer?

Kaveh Peighambari, Setayesh Sattari, Maria Ek Styvén, Lars Bäckström 511

Knowledge Transfer Antecedents and Consequences: A Conceptual ModelNicholas Kolenda, Lee McGinnis, Brian Glibkowski 519

xxvi

Intrafirm Information Advantage and Brokerage: Effects on SalespersonPerformance

Gabriel R. Gonzalez, Danny P. Claro 527

SPORTS MARKETING

Befriending Sport Celebrities Through Mediated Relationships: ParasocialInteractions and Relationships with Athletes in Social Media

Mujde Yuksel 529

The Effect of Sport Event Advertising on Brand AttitudeWonseok Jang, Yong Jae Ko, Songhyun Cho 530

Branding Higher Education Through PSAS: Producing Global Citizens for the21st Century

Michael J. Clayton, Kevin V. Cavanagh 532

A Cutting Edge Approach to Achieve Vivid Destination for Sport SponsorshipAlireza Faed, Afsaneh Ashouri, Morteza Saberi 534

AUTHOR INDEX 545

American Marketing Association / Summer 2012 1

THE APPLICATION OF STRUCTURAL EQUATIONS TO THEATTRIBUTES IN DISCRETE CHOICE MODELS

Cam M. Rungie, University of South Australia

ABSTRACT

The paper demonstrates the integration of the meth-ods of structural equation modeling into the modeling ofthe attributes in discrete choice models and in particulardiscrete choice experiments. The approach generates out-comes well known to research and to structural equationmodeling but previously not available within discretechoice models.

Key Words: discrete choice, structural equation, la-tent variable, attribute, choice set.

INTRODUCTION

Recently, methods known as structural choice mod-eling (SCM) have been developed for including latentvariables and structural equations in discrete choice mod-els (DCMs). The methods allow for the modeling ofassociations in the utilities for the attributes, and theirlevels, over one or more DCMs. SCM gives structure tothe variance covariance matrix of random coefficientmodels and allows the analyst to operationalise a prioriknowledge and theory. This paper reviews the outcomes,and what has been learnt so far, from eight studies usingSCM undertaken in five countries. The first observation inapplying SCM is of a technical nature. Parsimoniousmodels fit the data better than the traditional fixed andrandom coefficient models. There is always structure inthe unobserved heterogeneity of DCMs. However, themore interesting and useful observations relate to theinterpretation and nature of the outcomes. SCM leads tosegmentation, hypothesis testing, modeling across prod-uct category, analyst of joint decision making, evaluationof the association between attitudes and behavior, statedependent and temporal models. These outcomes are notnew to research but are new to DCMs.

The marketing literature over the past 30 years hasseen substantial growth in the use of structural equationmodeling (SEM) and DCM but as relatively separatefields. SEM has offered an outstanding ability tooperationalize and evaluate theory particularly with re-gards to consumer behavior. In contrast DCM has offeredoutstanding ability in measurement and demand estima-tion, and is used especially in those fields where predictivevalidity is at a premium including econometrics, transportplanning and non-market valuation. In DCMs, and inparticular in discrete choice experiments (DCEs), therespondent makes a selection from each of several differ-

ent choice sets containing a discrete number of alterna-tives in a manner similar to how consumers make choiceson a daily basis. From the pattern of selections over therespondents it is possible, using random utility theory(RUT), to estimate and evaluate the impact and elasticityof the attributes of the alternatives, and the variability ofthis impact over respondents. In DCEs the analyst ma-nipulates the choice sets so as to optimize identification,estimation and causal inference. SCM integrates SEMinto DCM and so combines the better operationalizationof theory of SEM with the better observation, measure-ment, causal inference, and predictive validity of DCM.SCM is old, it draws on two well-established modelingapproaches, and it is new, it integrates the two andgenerates outcomes previously not available. The out-comes are demonstrated below.

The paper reviews the literature and the outcomesfrom the eight studies and then finishes with a discussionemphasizing the new contributions and expanded role ofDCMs.

LITERATURE

In their paper, evolving from the Choice Symposium,Ben-Akiva et al. (2002) develop the hybrid choice modelscontaining latent class (LCM) and latent variable (LVM)models. They present a diagram, which is reproduced inFigure 1 but to which has been added a third form ofmodel, structural choice (SCM) (Walker 2001; Rungie2011; Rungie, Coote, and Louviere 2011).

LVM and SCM are examples of the techniques de-signed to incorporate latent variables and structural equa-tions into the analyses of discrete choice models (DCM)and more generally into choice processes and RUT(McFadden 1974, 2001). There are indeed several impor-tant precursors and examples. Firstly, factor analyticchoice models have been applied to the study of brandspreferences using revealed preference (RP) data. This isas if “brand” is an attribute with the individual brands aslevels. One or more factors have been applied across thebrands and other attributes (Elrod 1988; Elrod and Keane1995; Keane 1997; Walker 2001). Secondly, factor ana-lytic models have been applied to the characteristics ofrespondents using indicator variables based on RP and SPdata (Walker 2001; Ashok, Dillon, and Yuan 2002;Morikawa, Ben-Akiva, and McFadden 2002; Temme,Paulssen, and Dannewald 2008; Bolduc and Daziano

2 American Marketing Association / Summer 2012

2010; Yáñez, Raveau, and de Dios Ortúzar 2010; Hessand Stathopoulos 2011). Thirdly, methods using latentvariables have been developed for combining RP and SPdata (Ben-Akiva and Morikawa 1990; Hensher, Louviere,and Swait 1999; Louviere et al. 1999; Ben-Akiva et al.2002; Louviere et al. 2002; Morikawa, Ben-Akiva, andMcFadden 2002). The approaches differ in the nature ofthe covariates. In the first the covariates are the attributesof the alternatives and in the second the characteristics ofthe respondents. However, the approaches are similar intheir mathematics and in their use of factor analytics.SCM adapts this mathematics and, as in SEM (Jöreskog1970, 1973; Bollen 1989; Jöreskog and Sörbom 1996),adds the capacity to specify autoregressions, structuralequations and correlations for the factors.

In the traditional random coefficient model (e.g.,Ben-Akiva et al. 1997; McFadden and Train 2000; Dubeet al. 2002; Train 2003, 2009) the coefficients for eachcovariate are independent random variables with meansand variances estimated from the data. That is, the vari-ance covariance matrix, ΣΣΣΣΣ, for the random coefficient isdiagonal. Various approaches have been applied to allow

Σ Σ Σ Σ Σ to be other than diagonal including adding the correla-tions to the random coefficient model and latent classmodels LCM (Kamakura and Russell 1989). In SCM, thecoefficients have a multivariate distribution where, throughthe prudent and parsimonious use of factor analytics,autoregressions, structural equations, and specific corre-lations, Σ Σ Σ Σ Σ can be other than diagonal. The number ofparameters need not be excessive and the number ofdisturbances can be less than the number of randomcoefficients. SCM allows the analyst to specify structurefor ΣΣΣΣΣ. A priori knowledge, hypotheses and theory can beoperationalized and competing specifications for ΣΣΣΣΣ can betested empirically.

The covariates for a DCM can record the attributes ofthe alternatives and the characteristics of the respondents.LVM and SEM both conceptualize latent variables asbeing the process driving the observations of indicatorvariables which are characteristics of the respondents. Incontrast, SCM conceptualizes latent variables as prefer-ences driving the utilities for the attributes and their levels.The latent variables are higher order utilities for over-arching and meta attributes or constructs. By-and-large,

FIGURE 1Hybrid Choice Modeling and Structural Choice Modeling; Modified from

Ben-Akiva et al. 2002. Marketing Letters

 

Indicators Indicators 

Choice Indicators: Stated  

Latent  Variables 

Latent Classes 

Decision Process 

Latent  Variables 

SP  and RP disturbances and  Kernel 

Disturbances Disturbances 

Disturbances 

Choice Indicators: Revealed 

Latent Variable Model 

Choice Model 

Covariates. Explanatory Variables. 

Latent  Class Model 

Structural Choice Model 

Factor Analytics 

Autoregression Latent

Variables

DecisionProcess

LatentClasses

LatentVariables

American Marketing Association / Summer 2012 3

LVM concentrates on the characteristics of the respon-dents while SCM concentrates on the attributes of thealternatives.

As a general tendency revealed preference (RP),while being excellent data, is constrained to the alterna-tives commercial suppliers make available and does notalways record the choice set from which each selection isdrawn. By comparison stated preference (SP) data, par-ticularly when collected through the use of DCEs(Louviere, Hensher, and Swait 2000), can provide moreinformation on preferences for attributes and better iden-tification, estimation and causal inference. Thus, of theeight studies using SCM reviewed below seven use datafrom DCEs and only one from RP.

From RUT (McFadden 1974, 2001), let the utilitiesfor the alternatives in a DCM be u comprising of asystematic components v and idiosyncratic disturbances ewhere u = v + e. The vector and matrix notation for SCMis presented in detail by Rungie, Coote, and Louviere(2011) and in summary here. Let the covariates be x withrandom coefficients η where v = ηx. The variance cova-riance matrix for η is Σ. SCM specifies that has a factoranalytic structure based on the latent variables ξ whereη = γξ. The γ are constants to be estimated from the dataand can be referred to as regression coefficients, factorloadings or weights. The ξ have a distribution over respon-dents but for each respondent are latent and fixed. SCMspecifies that the factors ξ can be autocorrelated where ξ= ßξ + δ. The ß are constants to be estimated from the dataand can be referred to as autoregression or structuralregression coefficients. Over respondents, the disturbanceshave a distribution, such as a multivariate Gaussian withselected correlations. For each respondent the δ are latentand fixed. Solving gives:

η = γ(1- ß)-1δ where v = ηx and u = v + e

The scope for DCMs has been expanded throughrecognition of the potential to simultaneously model morethan one discrete choice data set recorded from the samerespondents (Rungie, Coote, and Louviere 2011). Latentvariables have a new role to play in linking the utilitymodels specified for each data set. The potential tooperationalize constructs and to generate new outcomes isgreatly enhanced through allowing the different data setsto reflect different choice tasks but with similar attributes.Of the eight studies reviewed below six combine data setswith different choice tasks. Latent variables are modeledacross product categories, across people in joint decisionmaking, to model the associations between attitudes andbehavior and across time periods.

The more technical aspects of SCM are not repre-sented here. A lot is now known about validity andidentification of SCMs, as discussed by Walker (2001)

and Rungie, Coote, and Louviere (2011). The syntax forSCM is described in detail by Rungie (2011). Software,known as DisCoS (discrete choice software), is availablefor beta testing in academic research from the author’shome page (http://people.unisa.edu.au/Cam.Rungie).Rather than discuss technical issues, the motivation of thispaper is to review the new outcomes and contributions ofSCM. The paper shows what can be achieved usingdiscrete choice data and SCM.

THE STUDIES

In each of the eight studies a comparison is drawnbetween an SCM model and the traditional models usingfixed coefficients, where ΣΣΣΣΣ = 0, and random coefficient,where ΣΣΣΣΣ is diagonal. Not surprisingly, the SCMs fit thedata better as assessed using log likelihood values, AICand BIC, as seen in the Tables 3 and 4. The SCMs haveslightly more parameters than the random coefficientmodel – ranging, over the eight studies, from only 5percent more to 25 percent more – as shown in Table 3.However, most of the SCM have fewer disturbances, asshown in Table 5. In this trade-off where there are fewersources of randomness but more parameters it can beargued that the SCMs are parsimonious. They simplify ΣΣΣΣΣ.

However, a low P value in a likelihood ratio test anda better fit to the data is a relatively inconsequentialoutcome. Of far greater relevance are the theoretical andpractical outcomes of the new (and better fitting) models.Over eight studies SCM leads to segmentation, hypoth-esis testing, evaluations of antecedents, and modelingacross product categories, time and people in joint deci-sions. The review that now follows emphasizes these newoutcomes and contributions for DCMs.

1. Postgraduate research candidates completed a DCEon preferences for post doctorial employment (Rungie,Coote, and Louviere 2010). With candidates tradingoff status, security and life style, high levels ofcolinearity were expected in the utilities for the attri-butes and their levels. A separate single factor wasapplied to the levels within each attribute and then anoverarching factor was applied to these attributefactors. The result was a model that confirmed theexistence of the colinearity and demonstrated theconsiderable segmentation in the market; reputationof university department versus family life style.When making post doctoral appointments, schoolswithin one segment could see from the study howmuch, and on which attributes, they competed withother schools in the same segment and the schools inthe other segments.

2. Consumers completed a DCE on preferences for beefwhere the attributes included price, brand, feed con-ditions, fat content and marbling (Umberger and

4 American Marketing Association / Summer 2012

Mueller 2010; Rungie 2012). Propositions wereoperationalized as six hypotheses specifying associa-tions between utilities for attributes or levels, such asthe preference for higher marbling would correlatewith high tolerance for fat trim and for higher prices.Models with latent variables were specified to for-mally test each of the hypotheses. This form ofanalysis of DCMs to test hypothesis regarding con-sumer behavior is relatively unknown but with SCMis now relatively straight forward.

3. In a study of an Islamic market two attributes ofpackaging and labeling were used in three separateDCEs across different product categories; soup,chocolate and detergent (Abou Bakar, Lee, and Rungie2011; Rungie, Abou Bakar, and Lee 2012). The twopackaging and labeling attributes were the crescentshaped moon, which was either present or absent, andthe background color, which was red or green. Thestudy was undertaken in Pakistan, an Islamic marketwhere culturally symbols are of importance, particu-larly the crescent moon and the specific color ofgreen. The aim was to measure the impact of thesymbols and to explore if this impact can be attributedto religiosity or nationalism. Both symbols havereligious importance and both are part of the Pakistannational flag. The study showed different preferencesfor symbol and color. The preferences varied be-tween respondents. Most respondents were relativelyconsistent over the three categories. The requirementfor religious considerations and Halal processing arenot the same for the three product categories. Thus,given the consistency, for individual respondents, ofthe utility for the attributes over the three categories,the study concluded that the variation between respon-dents in preference was more appropriately attributedto nationalism than religiosity. The study demon-strates the additional contribution from simultaneouslymodeling the same attributes over multiple productcategories.

4. In a study in China of country of origin (COO) effectstwo separate DCEs measured the preferences forwine and for seafood. For the COO attribute, twolevels – China and Australia – were common acrossboth DCEs as was the price attribute. Thus, threecorrelations across the two DCEs were specified. Itwas proposed that the utility for price (i.e., money)would have a high correlation over the two DCEs, asthe same respondents would not mind paying a littlemore. It was also proposed that COO-China would becorrelated but not as highly, because there would bedifferences between respondents in their preferencefor goods produced in China, which would tend to begeneric and consistent across categories. For COO-Australia it was proposed that the correlation would

be less. Preference would be experience and stimulusbased reflecting specific categories. A respondent,positively influenced regarding Australian wine maydevelop a preference for it, but may not transfer thepreference to seafood, and vice versa. Hence, it wasproposed that the three correlations between the twoDCEs would be positive with price the highest, fol-lowed by COO-China and then COO-Australia. Theactual variances for the coefficients were all large andthe correlations were price 0.42 (p = .0000), COO-China 0.22 (p = .0025) and COO-Australia 0.09 (p =.35). This style of choice analysis of consumer behav-ior using DCEs across product categories is quitenew.

5. SCM was applied to the study of water quality inwhich the impact of individuals on joint decisionmaking by couples was evaluated (Rungie, Scarpa,and Thiene 2011). Three DCEs were used, one com-pleted by each of two adults in a household and thenthe third completed jointly by the couple. Waterquality was assessed using six attributes. In the SCMthe attributed were specified to be latent variables andthe structure linked the three experiments. The SCMmeasured how much each individual influenced thejoint decisions. The influence was measured overalland separately for each attribute. Women in generalhad greater influence but not on all attributes. This isthe first formal statistical method for fully evaluatingjoint decision making using DCEs.

6. One of the most pressing public policy issues today isto understand consumers’ preferences for carbonmitigation. Two DCSs were undertaken by the samerespondents but with different choice tasks (Coote,Rungie, and Louviere 2011; Rungie, Coote, andLouviere 2011). The first recorded preferences forgeneric mitigation strategies of a government policynature and the second recorded the selection of prod-uct that embedded the strategies. The DCEs showedwhich strategies were preferred and which wouldhave actual impact. The latent variables linked thesimilar constructs across the two DCEs through regres-sions the contribution of which was evaluated usingR2 goodness-of-fit measures. The study evaluated theassociations between attitudes and behavior.

7. SCM was applied to the study of the antecedents forthe selection of brands of airlines (Rungie, Coote, andLouviere 2011). Two DCEs were completed by thesame respondents; the first recorded the qualities ofeach of the major brands available in the market andthe second recorded the selection of a journey wherebrand was one of the attributes. The brands weremodeled as latent variables which linked the twoDCEs. The SCM showed how the brands influencedthe choice of journey and which qualities influenced

American Marketing Association / Summer 2012 5

the perception of the brand. Thus, the role of thequalities on the selection of brand was assessed.

8. Of the eight studies only one analyzed RP data. Itexamined changes over time in the purchases of wineclassified by three attributes, price, format and denom-ination (regional quality and production standards)(Corsi and Rungie 2011; Rungie, Coote, and Louviere2011). A separate random coefficient model was

specified for each year. The models were linked andfitted to the data simultaneously using latent vari-ables and regressions. The outcome was a process forseparating the various forms of state dependence anddemonstrated how to validly model changes in util-ity, rather than the specific choices, over time. Themethod, applied in the study to RP data, is equallyapplicable to DCEs with a temporal component suchas before/after treatment/control designs.

TABLE 1Studies

Seven of the Eight Studies Used Stated Preference DCEs

Combination of Data Sets

NumberStudy N Country Data of data sets Purpose

1 Post Doc 797 USA DCE2 Beef 1846 Australia DCE3 Islamic 241 Pakistan DCE 3 Across categories4 COO 1033 China DCE 2 Across categories5 Water 80 Italy DCE 3 Joint decisions6 Carbon 1204 Australia DCE 2 Attitude v behaviour7 Airlines 200 Australia DCE 2 Attitude v behaviour8 Wine 693 Italy RP 3 Across time (years)

TABLE 2Choice Tasks

Six of the Studies Combined DCM with Differing Choice Tasks

Number of Number of Choice SetStudy Choice Task Attributes Choice Sets Size

1 Post Doc Select employment 7 8 22 Beef Selection of beef 9 16 53 Islamic Selection of soup 2 6 2

Selection of chocolate 2 6 2Selection of detergent 2 6 2

4 COO Selection of wine 3 8 4Selection of seafood 3 8 4

5 Water Selection by female 6 8 4Selection by male 6 8 4Selection by couple 6 8 4

6 Carbon Mitigation program 5 5 4Select Refrigerator 9 8 9

7 Airlines Corporate qualities 6 16 4Selection of trip 7 16 5

8 Wine Purchase wine 2007 3 10 12Purchase wine 2008 3 10 12

6 American Marketing Association / Summer 2012

TABLE 3Log Likelihood Values

For Each Study the SCM Fitted the Data Better

Fixed RandomStudy Coefficient Model Coefficient Model SCM

# par LL # par LL # par LL

1 Pos Doc 19 -2,326 38 -2,245 45 -2,1762 Beef 31 -40,390 62 -29,150 70 -26,5183 Islamic 6 -2759 12 -2311 13 -22924 COO 12 -21,128 18 -19,606 21 -19,5575 Water 36 -1,250 72 -1,090 84 -9686 Carbon 33 -26,847 68 -23,913 77 -21,6537 Airlines 29 -13,253 57 -11,930 60 -11,6878 Wine 8 -31,512 16 -23,557 20 -22,372

TABLE 4AIC and BIC

As in Table 3, for Each Study the SCM Fitted the Data Better

Fixed RandomStudy Coefficient Model Coefficient Model SCM

AIC BIC AIC BIC AIC BIC

1 Post Doc 4690 4818 4566 4823 4442 47462 Beef 80842 81099 58424 58938 53176 537573 Islamic 5530 5568 4646 4723 4610 46934 COO 42280 42373 39248 39387 39156 393185 Water 2572 2772 2324 2724 2104 25716 Carbon 53760 54013 47962 48483 43460 440507 Airlines 26564 26760 23974 24360 23494 239008 Wine 63040 63100 47146 47267 44784 44935

TABLE 5Number of Disturbances*

Given the Ability of SCM to Specify Structure for the Unobserved Heterogeneity They Often Fit the DataBetter While Having Fewer Disturbances than the Traditional Random Coefficient Model

Disturbances in Random DisturbancesStudy Coefficient Model in SCM δδδδδ

1 Post Doc 19 82 Beef 31 93 Islamic 6 24 COO 6 65 Water 18 126 Carbon 35 147 Airlines 29 148 Wine 8 8

*Excluding the RUT idiosyncratic disturbances, e = u – v.)

American Marketing Association / Summer 2012 7

DISCUSSION

The eight studies demonstrate that applying latentvariables to attributes has new, useful and relevant out-comes that contribute to the subject area to which theDCMs and their choice tasks are applied. The outcomesare not new to research; they are just new to DCMs. Study1 used factors to identify segments. Study 2 tested hypoth-eses. Studies 3 and 4 examined patterns over multipleproduct categories. Study 5 examined patterns over peoplein the same household and modeled joint decision mak-ing. Studies 6 and 7 modeled the associations betweenattitudes and behavior. Study 8 modeled changes overtime. All eight studies deliver statistical process andoutcomes prevalent in research but generally not in theanalysis of DCMs.

Through applying latent variables to the utilities ofattributes SCM has been demonstrated to be a