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JM Webinars for Managers

Introduction

Do Nudges Reduce Disparities? Choice Architecture Compensates for Low Consumer Knowledge, and How Marketing Perks Influence Word-of-Mouth, 17 Mar 2021

POSTING TYPE: Revisits

Author: Christine Moorman

Journal of Marketing Webinar, March 17, 2021 (1:00 PM – 2:00 PM Eastern)

Featured papers:

“Do Nudges Reduce Disparities? Choice Architecture Compensates for Low Consumer Knowledgeâ€

  • Kellen Mrkva (Columbia University), Nathaniel Posner (Columbia University), Crystal Reeck (Temple University), Eric Johnson (Columbia University)
  • There are massive gaps between low- and high-socioeconomic status (SES) Americans in retirement savings, COVID-19 susceptibility, consumer behaviors, and other domains. This Journal of Marketingstudy finds that automatic enrollment (defaults) and other nudges reduce gaps like these by impacting low-SES individuals most. For example, many states are considering making voter registration automatic, which could empower low-income, young, and less educated citizens. Many U.S. companies use automatic enrollment to help employees save for retirement. When COVID-19 struck, many employers automatically sent free masks to all employees. Additionally, Congress has considered making earned income tax credits automatic to get much-needed money to all eligible citizens. In this webinar, the authors will show how such actions improve welfare overall and reduces inequities by helping the vulnerable most. In this webinar, the authors will discuss these findings, which give decision makers a clear path to cost-effectively reduce SES disparities.

“How Marketing Perks Influence Word-of-Mouthâ€

  • Monika Lisjak (Arizona State University), Andrea Bonezzi (New York University), Derek Rucker (Northwestern University)
  • Marketers often try to stimulate WOM through referrals or seeding programs that involve giving consumers incentives if they generate WOM. But incentivizing WOM can sometimes backfire by hampering consumers’ willingness to share. This study explores how marketers can fuel positive WOM without using explicit incentives. In this webinar, the authors will show that commonly used marketing perks (e.g., gifts, benefits, and rewards) can effectively foster WOM if they are framed in a way that lowers their perceived contractuality—the perception that customers earn such perks by engaging in specific behaviors dictated by a company. Marketers can influence this perception of a perk with easily implementable pivots, such as reducing the restrictiveness of a perk, reducing the salience of a perk’s contingencies, or framing a perk as a gift from the company rather than a prize earned through a customer’s effort.