Month: December 2017

“Be Careless with That!” Availability of Product Upgrades Increases Cavalier Behavior toward Possessions

What? A new study finds that consumer act more careless with current products when they know of an appealing upgrade opportunity in the near future. So What? Carelessness and neglect toward currently owned products stem from a desire to justify the attainment of upgrades without appearing wasteful. Now What? Marketers should consider how rolling out frequent upgrades to a product might be beneficial for upgrade-minded consumers by “making it easier” to justify getting a new version. They should also consider other strategies such as encouraging gifting slightly older versions. Les...

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Interpreting the Stock Returns to New Product Announcements: How the Past Shapes Investors’ Expectations of the Future

What? Investors do not always respond positively to new product announcements, even when these products are well received by consumers and industry experts. So What? This does not mean that these products destroy firm value, but rather that investors already had  expectations about their value-added. Now What? Accounting for pre-event expectations is a critical step to correctly interpret results from short-term event studies. Les...

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Seller Beware: How Bundling Affects Valuation

What? Bundling causes consumers to perceive multiple items as a single, inseparable “gestalt” unit. So What? Consumers will demand more compensation for the loss of items from bundles, yet offer lower willingness-to-pay for items added to bundles. Now What? Firms should be more cautious to bundle an untested product as the adverse risk is much greater than if that untested product is sold unbundled. Les...

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How to Make (and Keep) a New Year’s Resolution

Are you making a resolution for 2018? Warning: More than half of all resolutions fail, but this year, they don’t have to be yours. Here’s how to identify the right resolution to improve your life, create a plan on how to reach it, and become part of the small group of people that successfully achieve their goal. Les mer...

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Brand choice can break bonds

We know an everyday choice, like buying a certain type of toothpaste, isn’t necessarily a deal breaker, but when you’re in a relationship, it can be a source of contention. According to a recent Duke University study, preferring different brands from each other can affect happiness in a relationship more than shared interests or personality traits. Published in the Journal of Consumer Research, “Coke vs. Pepsi: Brand Compatibility, Relationship Power, and Life Satisfaction” researchers used brand preferences in coffee, chocolate, beer, soda and cars to look at individuals and couples (some of whom were tracked over two years) and combined their findings...

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