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Abstract
In a classic seeded WOM marketing campaign, a company sends product samples to a selected group of influencers, and encourages them share the product information and their own opinions with other consumers. Positive effects include more WOM for the focal product in the target segment, but also in additional segments. But there are additional spillover effects on the brand and the product category level and they are negative. More conversations about the focal product reduced the "off-topic" conversations about other brands in the same category as well as other products of the same brand. These negative brand and category spillover effects are stronger when the focal product is of a more functional nature. Marketers tend to consider only positive spillovers to be beneficial for a company, but negative spillovers should not be immediately classified as "bad news." There are upsides to this effect that managers can use in their favor.

We investigate the use of exploding offers in job hiring situations via behavioral experiments. The proposer chooses between issuing an exploding or extended offer, whereas the responder waits for a better outside alternative. Whereas an exploding offer must be accepted or rejected before discovering whether a better alternative will arrive, an extended offer allows the responder first to learn the outcome of the better alternative. If the proposer's offer is accepted, the responder can reciprocate and alter the proposer's payoff. Across multiple studies, we find that a large portion of proposers issue exploding offers even though this results in substantially lower payoffs to themselves. These losses primarily arise from negative reciprocation by responders after accepting exploding offers. We show that decision makers exhibit behavioral consistency between their response to offers and the offers they make to others. Finally, we demonstrate that it is possible to decrease the propensity of making exploding offers through making potential negative reciprocity more salient by encouraging explicit introspection of the outcomes.