Does Deceptive Marketing Pay? The Evolution of Consumer Sentiment Surrounding a Pseudo-Product-Harm Crisis

Song, Reo; Kim, Ho; Lee, Gene Moo; Jang, Sungha

doi:10.1007/s10551-017-3720-2

Cited by 27 publications

(15 citation statements)

References 46 publications

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“…This opens some exciting research opportunities. For example, individual and cultural differences regulate the amount of risk consumers are willing to take on (Avnet and Higgins 2006;Song et al 2017). Managers and consumers often interpret the adoption of new technology as a risky endeavor.…”

Section: Limitations and Directions For Future Researchmentioning

confidence: 99%

The impact of superstar and non-superstar software on hardware sales: the moderating role of hardware lifecycle

Gretz

Malshe

Bauer

et al. 2019

J. of the Acad. Mark. Sci.

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In the context of two-sided markets, we propose hardware lifecycle as a key moderator of the impact of superstar and non-superstar software on hardware adoption. A hardware's earlier adopters are less price sensitive and have a higher preference for exciting and challenging software. In contrast, later adopters are more price sensitive and prefer simplicity in software. Superstar software tend to be more expensive and more complex compared to non-superstars. Therefore, earlier (later) adopters prefer superstars (nonsuperstars), which leads to higher impact of superstars (non-superstars) on hardware adoption in the early (later) stages of the hardware lifecycle. Using monthly data over a 12-year timeframe (1995)(1996)(1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007) from the home video game industry, we find that both superstar and non-superstar software impact hardware demand, but they matter at different points in the hardware lifecycle. Superstars are most influential when hardware is new, and this influence declines as hardware ages. In contrast, non-superstar software has a positive impact on hardware demand later in the hardware lifecycle, and this impact increases with hardware age. Findings reveal that eventually the amount of available non-superstar software impacts hardware adoption more than the amount of available superstar software. We provide several managerial implications based on these findings.

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Section: Limitations and Directions For Future Researchmentioning

confidence: 99%

The impact of superstar and non-superstar software on hardware sales: the moderating role of hardware lifecycle

Gretz

Malshe

Bauer

et al. 2019

J. of the Acad. Mark. Sci.

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show abstract

“…e product-harm crisis is a knotty issue created by defective or dangerous products [6,7]. As shown in a previous study [8], the episode of a product-harm crisis includes initial negative event, firm's recovery strategy, and post-recovery.…”

Section: Introductionmentioning

confidence: 89%

The Effect of Product-Harm Crises on the Financial Value of Firms under the Concept of Green Development

Yang

Dong

2021

Complexity

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Product-harm crises can trigger product recalls or product discards, which is very likely to cause secondary pollution to the environment. Also, these crises may harm customers’ health and threaten firms’ survival. To foster low-carbon economy and green development in such complex systems, this paper studies the internal mechanism of the product crisis and its impact on the firm value. It proposes a two-stage model to avoid the endogeneity of product-harm crises. In the first stage, this paper assesses the effect of firms’ leverage on their capacity to produce higher quality products. In the second stage, this paper conducts the impact of these crises on stock prices. Then, it depicts the financial effects of product-harm crises over time, and analyzes the differences of such effects based on brand equity. Results show that book leverage can positively impact firms’ capacity to produce high-quality products. In addition, the market’s response to product-harm crises is significant at 1% level, and with the increase in severity, the market reaction is more prominent. Furthermore, its negative effect is persistent for a firm experiencing a severe crisis. Luckily, brand equity can mitigate this negative impact. These findings provide some ways to improve product performance and firm value in the green context.

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“…Indeed, Song et al (2017) studied deceptive marketing and slanderous practices online, and found that “while both firms suffered, the damage to the offending firm (which spread fake news to cause the crisis) was more detrimental, in terms of advertising effectiveness and negative news publicity, than that to the victim firm (which suffered from the false claim).” In short, ethical considerations aside, foul play online simply may not pay.…”

Section: Ethical Considerations For the Use Of Social Media In Negotimentioning

confidence: 99%

Dealmaking Disrupted: The Unexplored Power of Social Media in Negotiation

Sebenius¹,

Cook²,

Lax³

et al. 2021

Negotiation Journal

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While social media has had profound effects in many realms, the theory and practice of negotiation have remained relatively untouched by this potent phenomenon. In this article, we survey existing research in this area and develop a broader framework for understanding the wider roles and effects of social media on negotiation. Through a series of detailed case studies, we explore how social media can drive important negotiations either off the rails or toward beneficial outcomes—and how savvy practitioners can harness this often‐neglected factor to their advantage, or else find themselves outmaneuvered by more digitally sophisticated parties. Applying the lens of the “3D negotiation” approach developed by Lax and Sebenius, we describe a number of potentially decisive roles that social media can play to enhance actions by negotiators “at the table,” with respect to deal design, and “away from the table.” In this 3D context, we show how social media can help negotiators learn about their counterparts (interests, perceptions, relationships, and networks), directly and indirectly influence the parties, mobilize supporters, and neutralize potential opponents. We show that being proactive—both in cultivating digital influence or allies and in building resilience to threats across online information ecosystems—can provide critical advantages for negotiators navigating a hyperconnected world. We develop a preliminary framework to help identify the full range of platforms, tools, and methodologies appropriate for the use of social media in negotiations, including network mapping software and open‐source intelligence techniques. Throughout our analysis, we stress the importance of ethical and privacy considerations.

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Does Deceptive Marketing Pay? The Evolution of Consumer Sentiment Surrounding a Pseudo-Product-Harm Crisis

Cited by 27 publications

References 46 publications

The impact of superstar and non-superstar software on hardware sales: the moderating role of hardware lifecycle

The impact of superstar and non-superstar software on hardware sales: the moderating role of hardware lifecycle

The Effect of Product-Harm Crises on the Financial Value of Firms under the Concept of Green Development

Dealmaking Disrupted: The Unexplored Power of Social Media in Negotiation

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