European Journal of Marketing

Liu, Yeyi; Mayerhofer, Tobias Johannes Hubert; Marchand, André; Foscht, Thomas; Fritze, Martin Paul; Eisingerich, Andreas Benedikt

doi: 10.1108/ejm-12-2021-0925pmid: N/A

This study aims to explore the extent to which customer orientation and creative benefits offered by a firm may weaken rather than strengthen customer engagement. In doing so, it sheds new light on how customer orientation and creative benefits may facilitate rather than hinder engagement by customers.Design/methodology/approachA field study provides a test of the proposed effects in a hedonic consumption setting with 1,703 customers of an online dating service. Furthermore, an experimental study with 277 executives in a functional consumption setting (new mobile app) helps affirm the robustness of the field study findings.FindingsThis research theorizes and examines how communal relationship norms between customers and a firm, along with customers’ psychological empowerment, mediate the effect of customer orientation and creative benefits on customer engagement. A provocative finding of the study is that communal relationship norms help boost, whereas psychological empowerment reduces, the effects of both customer orientation and creative benefits on customer engagement.Research limitations/implicationsThe research examines different relationship norms and how they can become integral to customer–company relationships; this perspective helps reveal the underlying dynamics. It contributes to the literature on customer engagement by theorizing and demonstrating the link between customer orientation and customer engagement, two central constructs in the marketing literature. It theorizes and demonstrates that providing creative benefits brings about a direct competitive advantage for the product itself, and acts as a significant variable that explains the company−customer relationship.Practical implicationsThe findings highlight the advantages and challenges associated with encouraging customer engagement. First, they suggest that companies emphasize their customer orientation and creative benefits. Second, managers should try to minimize the possible process of raising customers’ psychological empowerment while maximizing the impact of communal relationship norms.Originality/valueThis study identifies psychological empowerment as a key reason customer-oriented companies that provide creative benefits still struggle to engage their customers. It also suggests viable tactics to overcome barriers to enhanced customer engagement, such as by minimizing the effects of customers’ psychological empowerment while maximizing the impact of their perceived communal relationship norms.

Byun, Kate Jeonghee

doi: 10.1108/ejm-08-2023-0633pmid: N/A

The purpose of this paper is to examine how temporal payment framing (i.e. segregate vs aggregate framing) and goal proximity (i.e. proximal vs distal goals) influence consumer purchase decisions.Design/methodology/approachStudy 1 included four laboratory experiments and examined the moderating role of goal proximity in temporal payment framing. Study 2, using Facebook and a firm’s website for an online field experiment with a data set of 38,731 impressions, extended Study 1, enhancing the generalizability of the findings.FindingsConsumers exhibited a stronger purchase intention for segregate payment framing. This effect became less pronounced when goal proximity was coupled with temporal payment framing. If products or services emphasized a distal goal, individuals showed greater responses for aggregate payment framing rather than segregate payment framing. The effect was substantial, demonstrating a consistent behavioral pattern in individuals’ browsing choices, including browsing duration and the number of pages viewed.Research limitations/implicationsFuture studies ought to investigate if the alignment of goal proximity and temporal payment framing holds consistent across different product types, such as utilitarian versus hedonic products, or search goods versus experience goods.Practical implicationsMarketers can improve the effectiveness and efficiency of their marketing strategies by crafting persuasive messages where the monetary offer is in harmony with the goal proximity.Originality/valueTemporal payment framing literature has focused on payment framing; however, consumers make their decisions based on a combination of factors rather than solely on payment framing. This study identifies the moderating role of goal proximity.

Vieira, Valter Afonso; Rafael, Diego Nogueira; Ou, Yi-Chun

doi: 10.1108/ejm-08-2022-0601pmid: N/A

This meta-analytic study aims to generalize the impacts of three customer equity drivers (CEDs), including value equity (VE), brand equity (BE) and relationship equity (RE), on different customer metrics (e.g. loyalty, word of mouth [WoM] and satisfaction); examine the relative importance of CEDs on customer metrics; and explore boundary conditions, considering geographic and methodological characteristics.Design/methodology/approachThis study used a meta-analytic approach, collected and coded 85 articles published between 2001 and 2022. After some exclusions, the authors used 272 observations (average of individuals’ sample M = 1,015, min = 10, max = 8,924).FindingsThe generalized effects of VE, BE, and RE on the selected customer metrics are positive. However, the importance of each CED differs for WoM and social equity. Between VE and BE, BE correlates more with WoM. RE correlates more with social equity than VE and BE That is, RE is effective in both WoM and social equity. In addition, the impacts of the CEDs on customer loyalty vary across multiple geographic and methodological characteristics. For example, the impacts of VE and RE on loyalty are stronger in more individualistic, more masculine, long-term orientation or more restraint cultures.Research limitations/implicationsWhile the authors examined VE, BE and RE as the most important marketing strategies, there might be other types of CEDs, such as interactions with others (e.g. employees and customers). Interactions with others at any touchpoints along the customer journey are important experiences (Lemon and Verhoef, 2016). Second, the authors limited the customer metrics to customer loyalty, WoM, customer satisfaction, customer trust and social equity.Practical implicationsThe magnitudes of VE, BE and RE differ across the three customer metrics. Compared with VE, BE symbolizes customers’ identity, status and extended self, which motivates WoM. Compared with VE and BE, RE convinces customers of companies’ actions in social equity such as corporate social responsibilities.Originality/valueThe meta-analysis resolves the issue of inconsistent impacts of CEDs across studies. Moreover, including CEDs in a model provides insight into these strategies’ relative importance when considering different marketing objectives. Finally, this study enriches understanding of the boundary conditions on the CEDs–loyalty link.

Guzmán, Francisco; Alvarado-Karste, Diego; Ahmad, Fayez; Strutton, David; Kennedy, Eric L.

doi: 10.1108/ejm-05-2023-0375pmid: N/A

Obesity imposes myriad negative consequences upon society, the economy and personal well-being. This study aims to investigate the effectiveness of using political correctness (PC) in social marketing messages to persuade consumers to change their unhealthy behavior. It also explores various underlying mechanisms that drive this effect. Specifically, this research studies that messaging approach – politically correct vs politically incorrect and gain vs loss message framing – generates higher consumer intentions to change their behavior.Design/methodology/approachFour experiments were conducted with nationally representative samples to examine the effect of PC and gain vs loss message framing on consumers’ behavior changing intentions.FindingsPolitically correct prosocial marketing messages displayed higher persuasiveness than politically incorrect messages. Each relationship was mediated by the perceived manipulative capacity of the message and consumers’ attitudes toward the message. Message framing performed as a boundary condition for these effects.Research limitations/implicationsThis paper sought to contribute to the literature that investigates the effectiveness of social marketing efforts. Three specific contributions related to the effects of message frames on politically correct and incorrect social marketing messages were developed.Practical implicationsThe strategies presented in this paper benefit firms wishing to create a more prosocial approach to their business. A firm can present a prosocial message to their target market in a frame focusing on what will be gained instead of lost. Likewise, firms should welcome this type of messaging that embraces politically correct terminology instead of shying away from it.Originality/valueThis paper generates actionable insights for marketers and policymakers regarding how best to communicate with targeted segments about culturally- and personally sensitive topics related to obesity and weight loss. This paper also contributes to the literature that explores the effectiveness of social marketing initiatives. The findings suggest policymakers and social marketers should be cautious and, regardless of today’s sociopolitical environment, avoid falling into the temptation of developing politically incorrect and loss-framed messages.

Chaudhuri, Malika; Hirunyawipada, Tanawat; Pan, Yue

doi: 10.1108/ejm-05-2023-0317pmid: N/A

Pharmaceutical marketers use detailing, sampling and direct-to-consumer advertising (DTCA) to promote a branded prescription drug (brand drug) to health-care professionals and consumers. These promotion mix elements help raise brand awareness, increase prescription likelihood and guard a product market against competing brand drugs. However, the extent to which these elements remain effective when a brand drug goes off patent and its marketing exclusivity expires, allowing low-price generics to enter the market, remains unclear. This study aims to explore the effectiveness of promotion mix elements before and after the market entry of a generic drug.Design/methodology/approachThe authors collected and analyzed a panel data set of 41 brand drugs from 7 therapeutic classes between 2007 and 2014 (3,201 observations) using the two-stage control function approach to address potential endogeneity.FindingsThe effectiveness of promotion mix elements changes significantly, but not in a universally uniform way, during a market transition. Detailing and DTCA are increasingly effective after a brand drug’s generics enter the market. In contrast, sampling is more effective before the market transition. The positive effects of sampling on brand sales are stronger when the price of a brand drug is higher than the average price of its competing brands. Sampling also helps amplify the positive influences of detailing and DTCA on brand sales.Research limitations/implicationsThis study shows that pharmaceutical promotion is not equally effective in the brand drug market with/without generic competitors. Detailing and DTCA are increasingly effective when generic competition intensifies. In contrast, the distribution of free drug samples is less effective after more generic drugs enter the market.Practical implicationsIncumbent brands’ promotion expenditures often drop dramatically when the expiration of their patents is near, a practice that likely continues after generics enter the market. Taking into consideration these industry norms and their findings, the authors suggest that promotional decisions during a market transition should not overly focus on cutting promotional expenditures across the board. Since a firm’s promotional expenditure tends to be expensive, factoring in information on the effectiveness of each promotion mix element helps marketers make well-informed strategic decisions on resource allocation during the transition from a market without generics to a market with generics.Originality/valuePrevious studies do not explicitly account for structural changes in the brand drug market over time. However, the expiration of patent and marketing exclusivity marks a transitional period in which a brand drug eventually competes with its generic counterparts. Given the criticality of such structural change, the authors examine brand drugs’ promotion effectiveness in the presence of their generic counterparts.

Chan, Fanny Fong Yee; Edwards, Steven Marc

doi: 10.1108/ejm-02-2023-0099pmid: N/A

Brands increasingly coappear in television programs while research in product placement has primarily focused on the placements of a single brand. Building on research related to product placement and cobranding, this study aims to systematically examine the roles of product competitiveness and brand competitiveness on the effectiveness of brand coappearance on television programs.Design/methodology/approachExtensive pretesting and four experimental studies were conducted. Real stimuli that had been digitally manipulated with fictitious brands were used in Study 1 (laboratory experiment involved student samples) and Study 2 (online experiment with a national sample) to examine the short- and long-term impacts of product competitiveness on brand coappearance. Real stimuli incorporated actual brands were used in Study 3 (involved advertisers’ key demographic) and Study 4 (alterative television program with a national sample) to examine the impacts of brand competitiveness and its interaction effect with product competitiveness.FindingsThe study found that coappearing with a product of high competitiveness significantly enhanced attitudes and purchase intention toward the coappearing products both in the short and long term. Product competitiveness further interacts with brand competitiveness to influence attitudes and purchase intention toward the coappearing brands suggesting a coopetition pattern for brand coappearances. The effect of brand coappearances did not vary substantially for low or high involvement products with or without character interaction.Research limitations/implicationsThe study develops a useful framework for explaining and understanding the potential spillover effects in brand coappearances. It contributes to the existing literature on product placement and cobranding, while also paving the way for future research opportunities.Practical implicationsWhen introducing new brands, marketers are advised to consider coappearance deals with more competitive brands in highly competitive product categories. Conversely, coappearance deals with less competitive brands in less competitive product categories should be adopted to promote well-known brands. Advertisers may also consider product or brand exclusivity arrangements with broadcasters to enhance the effectiveness of the product placement.Originality/valueAlthough brand coappearance in media content is likely to continue to proliferate, little is known about the phenomenon and its effects. To the best of the authors’ knowledge, this research is the first to systematically examine the perceptions toward brands coappeared in television programs.

Zhang, Jin; Cai, Lingkui; Zheng, Xiaoying

doi: 10.1108/ejm-05-2023-0362pmid: N/A

This paper aims to explore whether, how and when influencers’ value co-creation behavior in a post – influencers investing operant resources to enhance the value gained from using the product – shapes consumers’ responses toward an influencer’s recommendation. Based on value co-creation theory and consumer inference, this paper proposes that consumers infer influencers have more expertise with and more favorable attitude toward the product from value co-creation. Consequently, such behavior can foster consumer engagement and favorable attitude toward the recommended product.Design/methodology/approachThe authors collected real-world data and conducted four sets of experimental studies. In the experimental studies, the presence of an influencer’s value co-creation behavior (i.e. co-creation vs. control) was manipulated to test the causal effect and mechanisms of co-creation on engagement and product attitude.FindingsResults show that influencers’ value co-creation behavior positively affects consumers’ engagement and attitudes toward the product. These effects are driven by perceived influencer’s expertise with and favorability toward the product (Studies 1 and 2). Co-creating utilitarian value is more effective than co-creating hedonic value (Studies 3A and 3B). In addition, influencers with a larger number of followers benefit more from co-creation behavior than those with fewer followers (Study 4).Research limitations/implicationsThis research adds to the literature on value co-creation by investigating how, why and when influencers’ value co-creation enhances consumer responses to the post. Our investigation concretizes value co-creation behavior in the context of influencer marketing and demonstrates its signaling effect with nuanced role of value type in shaping the effect. The findings provide a novel cue that influencers can use to enhance consumer responses to their posts.Practical implicationsBrands should encourage influencers to focus on value-in-use co-creation when promoting their products. While emphasizing value co-creation in influencer partnership, brands should also carefully consider the type and size of influencers they collaborate with based on the nature of their products and target audience. The research findings also provide practical implications for influencers, offering guidance on how they can optimize their content creation strategies and enhance their effectiveness in influencer marketing collaborations.Originality/valueThis research enriches understanding of value co-creation in the context of influencer marketing and the role of content specifics in influencers’ posts. The findings provide a novel cue that influencers can use to enhance consumer responses to their posts.

Gurazada, Pavankumar; Maity, Moutusy

doi: 10.1108/ejm-08-2022-0623pmid: N/A

This paper aims to delineate the nature of the costs associated with the diffusion of brand posts. Since cost is an essential component of customer lifetime value, this research also aims to identify factors that impact consumer engagement (CE) with brand posts.Design/methodology/approachThis study conceptualize marginal cost of CE as the ratio of a unit change in cost for a unit change in CE – this ratio is conceptualized for a paid brand post compared to an organic brand post. The authors present a theoretically grounded simulation method that analyzes the relative impact of several factors that influence CE with brand posts. By using an agent-based simulation model, the method presented in this paper helps explain the relative impact of four factors on CE with brand posts on social media.FindingsThe authors explain four factors that influence the diffusion of CE with a brand post – promotion-related (i.e. whether it is paid vs organic), network-related, user-related and active periods. The authors also show that the effectiveness of paid posts vs organic posts attributed to a better audience assembled by the seeding algorithms dissipates after the initial stages of diffusion. These findings indicate that paid posts are effective vs organic posts in large part due to higher exposure than due to the efficiency of the algorithms to assemble nodes that are likely to engage with the post.Research limitations/implicationsAn agent-based model details the impact of several factors that influence the effectiveness of paid and organic posts and presents methods to analyze the impact of these factors that have implications for theory.Practical implicationsThe authors address the difficulty in ascertaining the effectiveness of paid posts by proposing a metric – marginal cost of engagement, defined as the incremental cost incurred by the marketer in earning one additional unit of CE. Since the costs incurred on paid and organic posts differ only on variable components, the marginal cost of engagement presents a way to benchmark paid posts against organic posts, which is very useful for managers in ascertaining the amount to spend on paid posts on social media.Originality/valueThere is little prior research on the costs involved in the diffusion of brand posts on social media. Identifying specific factors that impact costs is valuable for theory and practice.