Suchergebnisse

Existing research demonstrates that industry competitiveness influences the effectiveness of marketing actions. However, limited scholarly attention has been paid to how service companies should communicate on social media under different levels of industry competitiveness. The current research seeks to address this gap in the literature by analyzing social media communication, brand impression, and financial data from two large samples of service companies and by employing state-of-the-art methods of machine learning. Study 1 demonstrates that industry competitiveness positively (negatively) moderates the impact of persuasive tone (volume) of social media communications on company value. We argue that these effects stem from investors' expectations about the impact of these communication styles in facilitating differentiation and improving brand impressions in a congested competitive environment. Consistent with this mechanism, Study 2 reveals that as an industry becomes more cluttered, persuasive tone (volume) becomes more (less) effective in impacting consumers' brand impressions. The findings provide important insights for service companies that operate under different levels of industry competitiveness. [Formula: see text]

Abstract
We show that providing a low (vs. no) price discount can lower purchase propensity of low-priced products under certain conditions—when purchases are nonessential and purchase volume is small. Based on the theory of purchase value (Grewal, Monroe, and Krishnan 1998; Thaler 1983), we argue that offering a low price discount for nonessential purchases decreases perceived transaction value that in turn lowers consumers' purchase propensity. However, this boomerang effect reverses when purchase volume is larger or when the purchase is essential. We demonstrate this effect with secondary scanner panel data sets (with six different product categories) and in five laboratory experiments (with real purchases). We also document the process and delineate boundary conditions.