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While corporate political activity is increasing, its effects on firms' marketing-relevant outcomes have been largely overlooked in the literature. We propose that corporate lobbying will decrease a firm's emphasis on product safety and, in turn, increase its product recalls. We further propose that the positive indirect effect of corporate lobbying on a firm's product recalls via lower emphasis on product safety will be moderated by the firm's (a) CEO's functional background and (b) focus on radical (vs. incremental) innovation. We provide empirical support for the proposed model using data on 86 U.S. medical device firms from 2005-2018. The findings extend the literature on the effects of non-market forces on firms' marketing-relevant outcomes. They also extend the literature on the antecedents of product recalls, which has, hitherto, overlooked the role of non-market forces. The findings on the moderating roles of the firm's marketing CEO and focus on radical (vs. incremental) innovation generate actionable managerial implications., Author(s): Verdiana Giannetti [sup.1] , Raji Srinivasan [sup.2] Author Affiliations: (1) grid.9909.9, 0000 0004 1936 8403, Leeds University Business School, Marketing Department, University of Leeds, , Maurice Keyworth Building, Moorland [...]

Pandemics have been an unfortunate but consistent facet of human existence over centuries, threatening lives as well as livelihoods globally. Disconcertingly, their frequency persists, with four 'major' pandemics disrupting the planet in the last 65 years and more expected in the future. While many of the economic and health consequences of pandemics are well-documented, their marketing implications are less understood. Addressing this gap, we develop a broad, conceptual framework to highlight the characteristics and impacts of pandemics as they relate to marketing. We first identify four macro-level forces that characterize pandemics and highlight their marketing implications. Next, using the 7P marketing mix model as the organizing structure, we discuss these implications at a micro-level and identify a set of research questions to stimulate further inquiry, not only to generate deeper insights pertaining to pandemics' marketing implications but also to envision new developments in these areas. Finally, we identify pandemics' disproportionate impacts on and implications for some industry sectors, including healthcare, retail, education, hospitality, and tourism., Author(s): Gopal Das [sup.1] , Shailendra Pratap Jain [sup.2] , Durairaj Maheswaran [sup.3] , Rebecca J. Slotegraaf [sup.4] , Raji Srinivasan [sup.5] Author Affiliations: (1) grid.417952.c, 0000 0001 0333 3968, [...]

Abstract Individuals watch TV shows while simultaneously and/or immediately searching online. Thus, the content of offline TV ads can affect online brand search, a key predictor of sales. Yet there [...]

Algorithms, increasingly used by brands, sometimes fail to perform as expected or, even worse, cause harm, leading to brand harm crises. Algorithm failures are unfortunately increasing in frequency, yet little is known about consumers' responses to brands following such crises. Extending developments in the theory of mind perception, the authors hypothesize that, following a brand harm crisis, consumers respond less negatively if the error was caused by an algorithm (vs. a human). The authors further hypothesize that consumers' lower mind perception of agency of the algorithm (vs. a human), which lowers their perceptions of the algorithm's responsibility for the harm, mediates this relationship. Four moderators of this relationship are hypothesized: two algorithm characteristics (whether the algorithm is anthropomorphized and whether it involves machine learning) and two characteristics of the task for which the algorithm is deployed (whether the task is subjective [vs. objective] and whether it is interactive [vs. noninteractive]). The authors find support for the hypotheses in eight experimental studies. The effects of two managerial interventions to manage brand harm crises caused by algorithm errors are examined. This research advances the literature on brand harm crises, algorithm usage, and algorithmic marketing and generates managerial guidelines to address such crises. [ABSTRACT FROM AUTHOR]

Firms' spending on R&D, advertising, and inventory holding affect firm performance, which in turn affects future spending in each of these three areas. Effective allocation of resources across R&D, advertising, and inventory holding is challenging since an understanding of their dynamic inter-relationships is necessary. Past research has not examined these spending issues simultaneously. We estimate inter-relationships among the effects of firms' R&D spending, advertising spending, and inventory holding on sales and firm value (as measured by its Tobin's Q)using a vector auto regression model of a panel of publicly listed U.S. high technology manufacturing firms. Insights from the computation of long-term effects indicate that advertising spending and inventory holding increase sales, while R&D spending does not, and advertising and R&D spending increase firm value, while inventory holding does not. In addition, firm spending in all three functions is positively affected by sales but negatively by firm value. We discuss the implications of the study for marketing literature and managerial practice. Keywords R&D, Advertising, Inventory holding, Sales, Firm value, Vector auto regression models, Introduction A key responsibility for managers is to coordinate their firm's research and development (R&D), advertising activities, and inventory holding to improve performance. R&D spending helps develop new products and [...]

The reasons behind some firms viewing a recession as an opportunity to develop an aggressive marketing response and the effects to such a marketing response on the performance of the firm are analyzed. The results suggest that not all firms respond in a proactive manner during recession, but those firms with a strategic emphasis on marketing already have programs in place that would enable them to derive benefits from a proactive marketing response during the recession.

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.ijresmar.2004.05.002 Byline: Raji Srinivasan (a), Arvind Rangaswamy (b), Gary L. Lilien (b) Abstract: Recessions can severely affect the performance of firms, and even their very survival. However, all firms are not equally affected by a recession. Some firms view recessions as opportunities to strengthen their businesses, invest aggressively and establish their advantage over their weaker competitors, whereas others cut back, waiting for the recession to pass. Why do some firms view the recession as an opportunity and develop an aggressive marketing response to it? What are the effects of such a marketing response on the performance of the firm? These are the two central questions we address in this paper. We propose a new construct, which we call proactive marketing in a recession, as the firm's interpretation of the recession as an opportunity (opportunity interpretation) and development and execution of a response to capitalize on the perceived opportunity created by the change (offensive response). We develop and test a model of the antecedents and consequences of proactive marketing during a recession. The results of a survey of 154 senior marketing executives show that some firms do indeed adopt proactive marketing during a recession. Both organizational and environmental contexts influence firms' proactive response to a recession. Firms that have a strategic emphasis on marketing, an entrepreneurial culture, and slack resources are proactive in their marketing activities during a recession, while the severity of the recession in the industry negatively affects proactive marketing response. In addition, firms that have a proactive marketing response in a recession achieve superior business performance even during the recession. Our results suggest that not all firms do, or should, respond in a proactive manner during a recession. Those firms with a strategic emphasis on marketing already have programs in place (e.g., well-recognized brands, differentiated products, targeted communications, good support and service, etc.) that enable them to derive benefits from a proactive marketing response during the recession. Author Affiliation: (a) The University of Texas at Austin, TX 78712, USA (b) The Pennsylvania State University, University Park, PA 16802-3004, USA

For several decades, the Journal of Public Policy & Marketing (JPP&M) has stimulated and led debates with far-reaching implications for consumer well-being, global relationships, and, ultimately, human survival. The challenges we face have not disappeared but intensified. Today, we must respond to climate change, manage a global pandemic, and address disparities and inequities that threaten our planet in ways we are yet to comprehend fully. However, the JPP&M community remains well placed to inform responses to these crises. This article draws together perspectives on new and long-standing questions and challenges, as it highlights the increasing urgency of addressing inequities and embedding sustainability at the heart of policy making. Although progress addressing these complex questions often has been slow, the authors also identify compelling opportunities in the form of sound policies and good marketing and consumption practices in response to health crises, environmental degradation, injustice, automation, violence, and war. The transformational benefits following constructive engagement offer hope that, even when faced with unprecedented challenges, human resilience and ingenuity can create meaningful responses. As the authors address chronic and novel problems, they are confident that JPP&M's community of researchers, policy makers, and advocates will continue to bring innovation, insight, and rigor and play a leading role in discovering solutions, locally and globally. [ABSTRACT FROM AUTHOR]

Transparent packages are pervasive in food consumption environments. Yet prior research has not systematically examined whether and how transparent packaging affects food consumption. The authors propose that transparent packaging has two opposing effects on food consumption: it enhances food salience, which increases consumption (salience effect), and it facilitates consumption monitoring, which decreases consumption (monitoring effect). They argue that the net effect of transparent packaging on food consumption is moderated by food characteristics (e.g., unit size, appearance). For small, visually attractive foods, the monitoring effect is low, so the salience effect dominates, and people eat more from a transparent package than from an opaque package. For large foods, the monitoring effect dominates the salience effect, decreasing consumption. For vegetables, which are primarily consumed for their health benefits, consumption monitoring is not activated, so the salience effect dominates, which ironically decreases consumption. The authors' findings suggest that marketers should offer small foods in transparent packages and large foods and vegetables in opaque packages to increase postpurchase consumption (and sales). [ABSTRACT FROM AUTHOR]