Author Archives: support

Political Beliefs Could Shape Gift-Giving Decisions More Than Individual Buying Choices

Research conducted by the University of New Hampshire reveals that while political leanings might not significantly affect everyday purchases for individuals, these affiliations could significantly influence choices when buying gifts for friends, family, and co-workers. This insight into consumer behaviour suggests that political considerations could be more prominent in gift selections during the holiday season.

Justin Pomerance, an assistant professor of marketing at UNH’s Peter T. Paul College of Business and Economics, who led the research, explained that the study comprised five distinct investigations, each focusing on the purchase of different products. Participants were tasked with selecting items both for themselves and as gifts for acquaintances. It was observed that political inclinations had a more substantial impact on gift choices, presumably because gift-givers consider the perceived preferences of the recipients. This finding underscores the influence of political identity in scenarios where people are making choices on behalf of others.

The study, recently published in the International Journal of Research in Marketing, highlighted that the political affiliations of a gift recipient play a more crucial role than the nature of the product itself. In one of the experiments, participants were asked to create music playlists. When selecting songs for themselves, only 58% of their choices were from artists matching their political ideologies. However, this figure rose to 64% when the same individuals created playlists for someone else, indicating a stronger inclination to align gift choices with the recipient’s political views. Similar trends were observed in other scenarios, such as choosing artworks, where participants favoured pieces that were politically congruent with the recipient’s views more than their own.

The research further examined the impact of political cues compared to other identity markers like gender and race. Participants were informed about a museum’s major donor’s political leanings or demographic background in one instance. Findings showed that political cues had a more pronounced effect on the participants’ choices than gender or race, suggesting that political identity is perceived more as personal choice and preference. Therefore, it’s more socially acceptable to base likes or dislikes on politics.

Pomerance pointed out several reasons for this phenomenon. He suggested that because political identity is seen as a choice, it reflects an individual’s values and preferences more. This aspect makes it a more significant factor in decision-making, especially when choosing gifts to resonate with the recipient’s identity.

Moreover, this research sheds light on the broader implications for businesses. While companies might assume that taking a political stance or signalling political affiliations through their products or branding could sway consumer purchasing decisions, the findings indicate that this is less likely to impact individual purchases directly. However, the insights gained are crucial for understanding consumer behaviour, mainly when purchases are made on behalf of others. This is especially relevant in professional and social contexts where gifts are often exchanged among co-workers, friends, and family members.

While political polarization remains a dominant theme in public discourse, this research suggests that politics does not always play a central role in personal consumer decisions. This could be seen as a positive sign, indicating that despite society’s heightened political awareness, everyday consumer behaviour remains relatively unaffected by political divides.

More information: Justin Pomerance et al, Party Over Product: People Exaggerate the Influence of Political Cues on Others’ Consumption Preferences, International Journal of Research in Marketing. DOI: 10.1016/j.ijresmar.2024.07.007

Journal information: International Journal of Research in Marketing Provided by University of New Hampshire

Show and Explain: Uncovering the Inner Mechanisms and Assembly of Your Products

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Researchers from the University of New Hampshire, Singapore Management University, and the University at Buffalo have recently published a compelling new study in the Journal of Marketing, exploring how anatomical depictions in advertisements can enhance consumer confidence in a product’s performance and elevate perceived value. The study is forthcoming under the title “Anatomical Depiction: How Showing a Product’s Inner Structure Shapes Product Valuations” and is the work of Seo Yoon Kang, Junghan Kim, and Arun Lakshmanan.

Envision yourself browsing online and encountering two distinct images of noise-cancelling headphones. One image presents the headphones as they would typically appear in a retail box, while the other lays out the internal components such as ear pads, speakers, and batteries. This form of marketing, known as “anatomical depiction”, demystifies how products function and instils confidence that they will deliver on their core promises, thus potentially increasing what consumers are willing to pay.

This technique is not new; it harks back to the innovations of Leonardo da Vinci, a pioneer in illustrating the interiors of machines. Over the years, this method has found applications across various industries, including DIY furniture kits from companies like IKEA, car repair manuals from Haynes, and even the marketing of toys and consumer electronics from brands like LEGO and Meccano.

The recent study asserts that anatomical depiction not only reassures consumers of product quality in the face of increasing market scepticism caused by high-profile product failures but also addresses the escalating costs and inefficiencies of traditional assurance strategies like warranties and money-back guarantees. In today’s market, where conveying complex product information can often result in consumer confusion, anatomical depiction offers a clear and effective alternative.

The research team conducted nine experiments across various platforms, such as online peer-to-peer selling sites, social media ads, and controlled lab studies, exploring a range of products, including tech gadgets, wearables, home appliances, and furniture. These studies consistently demonstrated that anatomical depiction significantly influences consumer behaviour, particularly during the initial product adoption phase.

Seo Yoon Kang noted that anatomical depictions could be a potent tool for building consumer trust more efficiently. Meanwhile, Junghan Kim highlighted the dual nature of this approach. While it generally boosts purchase intentions among tech-savvy consumers, it can sometimes diminish confidence among those apprehensive about technology. Arun Lakshmanan advised that anatomical depictions are most effective for products marketed for functional benefits rather than aesthetic qualities.

The implications of this study are profound for business leaders and marketers. For example, Apple’s successful 2009 launch of the unibody Mac leveraged anatomical depiction to highlight its novel design and manufacturing process, setting it apart from competitors and underscoring its unique selling points through visual storytelling. This study posits that anatomical depiction is a subtle yet powerful persuasive technique that can be effectively utilised across various communication mediums, including digital, print, and multimedia campaigns.

Moreover, the research provides insights into consumer segmentation, suggesting that while specific demographics, mainly those more receptive to new technologies, are likely to respond positively to anatomical depictions, others more technology-anxious might require different approaches.

The broader implications of this research could lead to further studies on how anatomical depiction can be adapted for products that lack a clear internal structure, such as food items. For instance, the study speculates on the impact of anatomical depiction on perceived taste and food valuation, presenting a fertile ground for future research into consumer perception and marketing strategies.

More information: Seo Yoon Kang et al, Anatomical Depiction: How Showing a Product’s Inner Structure Shapes Product Valuations, Journal of Marketing . DOI: 10.1177/00222429241257911

Journal information: Journal of Marketing Provided by American Marketing Association

Revolutionary Mental Health Education May Reshape Work Environments in Uganda

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The study focuses on adapting an acceptance-based mental health intervention known as Acceptance and Commitment Training (ACT-W), initially crafted by Dr. Paul Flaxman and Ross McIntosh at City St George’s. The aim is to tailor this programme to fit the unique socio-cultural and economic landscape of Uganda, where a significant portion of the workforce suffers from mental health issues due to unstable employment conditions. This adaptation is vital, as there is a pressing need for accessible and effective mental health promotion programmes in the region. The programme promises to fill this gap by equipping employees with the necessary tools to manage stress, anxiety, and other common mental health issues at work, with its findings published in the journal PLOS Mental Health.

Globally, mental health challenges affect 15% of working adults, leading to substantial economic losses estimated at US$1 trillion and 12 billion working days annually. The burden is hefty in low and middle-income countries (LAMICs), which house 75% of the global labour force. In Uganda, a typical LAMIC, the situation is exacerbated by a scarcity of resources, with studies showing that 68% of Ugandan workers face mental health challenges. Moreover, over 78% of Ugandan employers provide no formal mental health support, a situation worsened by societal stigma which prevents many workers from seeking help. As a result, employees are often left to manage stress, anxiety, and other issues without adequate support, adversely impacting their productivity and overall quality of life.

Initially developed and tested in high-income countries like the UK, the ACT-W programme has been widely adopted in the UK’s National Health Service (NHS) to improve mental health among healthcare staff. The training promotes psychological flexibility, encouraging participants to endure uncomfortable internal states while engaging in actions that align with their values. This approach has proven effective in high-income settings, helping individuals focus on meaningful activities despite experiencing complex thoughts and emotions.

However, Uganda’s cultural and economic context necessitated adjustments to make the programme relevant to its workforce. Recognising the importance of communal values in Uganda, the researchers modified the programme to emphasise group well-being alongside individual goals. This involved collaborating with mental health providers in Kampala to adapt the programme’s content, incorporating more community-based values and adjusting the language and metaphors to align with Ugandan cultural views, which often interpret mental health through spiritual and traditional beliefs.

A significant challenge highlighted in the research is the stigma surrounding mental health in Uganda, where many are reluctant to discuss such issues openly, especially in the workplace. To combat this, the ACT-W programme includes elements that promote mental health awareness and education, aiming to reduce stigma by demonstrating that mental health can be improved through learning psychological and behavioural skills.

The benefits of the adapted ACT-W programme for Ugandan workers are considerable. It teaches employees how to skillfully relate to their emotions and remain mindful of their values even in challenging circumstances, potentially leading to enhanced mental well-being, increased job satisfaction, and improved productivity. The programme offers clear advantages for employers: healthier employees are more likely to perform well, take fewer sick days, and contribute to a more positive workplace atmosphere. In a country with limited mental health support, such interventions could be cost-effective to boost employee well-being and business performance.

Dr Khamisi Musanje, lead researcher from Makerere University, stressed the importance of improving mental health to create a more productive workforce for Uganda’s future. Dr. Paul Flaxman, co-researcher at City St George’s, echoed this sentiment, expressing enthusiasm about the study’s findings, which show that evidence-based mental health training like ACT-W can be adapted to diverse cultural contexts. The team is optimistic about expanding this initiative, planning to roll out the programme across Ugandan workplaces and evaluate its effectiveness. If successful, this could serve as a model for enhancing workplace mental health in other low-resource environments, improving lives and economic outcomes.

More information: Khamisi Musanje et al, Social validity of acceptance-based workplace mental health training for use in a low resource setting. A qualitative study with Ugandan mental health providers, PLOS Mental Health. DOI: 10.1371/journal.pmen.0000127

Journal information: PLOS Mental Health Provided by City St George’s, University of London

Underserved Entrepreneurs Carve Out Their Own Niches

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In 2014, Whitney Wolfe Herd resigned from her position at the dating app Tinder, having encountered workplace sexism, and set out to establish her dating platform to empower women within the dating sphere. As Bumble approaches its tenth anniversary, Herd’s initiative stands as a testament to how entrepreneurship can serve commercial objectives and assist marginalised groups in overcoming systemic barriers. This insight comes from a recent study by Rowena Crabbe, an assistant professor of marketing at Texas McCombs.

Marginalised groups are defined by their frequent disenfranchisement due to prevailing social and economic frameworks. Such groups include people of colour, women, LGBTQ+ individuals, those with disabilities, older adults, and low-income individuals. In the specific case of Bumble, the focus was on women navigating the dating world. Crabbe highlights that Wolfe crafted a product that addressed the needs of this group, allowing her to sidestep the discrimination she faced and leverage her social connections.

Despite Whitney Wolfe Herd’s challenges with sexism in the tech industry, she utilised her intersecting identities—her race, socioeconomic background, and educational attainment—to navigate her entrepreneurial journey. As Crabbe points out, marginalised groups are not homogeneous; their experiences and resources can vary significantly within the group.

Crabbe’s research emphasises entrepreneurship as a potential avenue for liberating women, people of colour, and other low-status individuals from underpaid and undervalued labour. She defines emancipation as breaking free from or mitigating structural limitations. However, societal and economic hurdles can frequently impede this progress. The research conducted by Crabbe, alongside co-author Alexander Lewis from the University of Texas at San Antonio, identifies factors enabling marginalised entrepreneurs to achieve their business aspirations and emancipation.

Although the paper is theoretical and refrains from offering explicit advice, it incorporates startup narratives to exemplify conditions conducive to success. Crabbe notes that real-world stories enhance the theoretical foundations of their study.

The research also explores self-employment as a more fitting alternative for some individuals than organisational employment. Chris Tidmarsh, an environmental scientist with autism, found that his condition affected his ability to function in traditional work settings. By founding his aquaponic farm, he could operate beyond these constraints. Similarly, Collette Divitto, who has Down syndrome, faced challenges in the job market but managed to harness her resources, including her degree from Clemson University, to open her bakery.

Moreover, the paper discusses how marginalised consumers often require innovative products. For instance, Robert Braun, who suffered from spinal muscular atrophy, invented a wheelchair lift in 1970, founding Braun Corporation (now BraunAbility), which pioneered vehicular mobility solutions for others with similar disabilities.

Additionally, entrepreneurship can transform barriers into opportunities. Tony Aguilar, a Mexican American entrepreneur in financial technology, used his personal experience with student debt to develop Chipper, an app designed to assist graduates in managing and refinancing their loans. He also advises other marginalised entrepreneurs on engaging with potential investors.

However, as Crabbe notes, not every business endeavour leads to emancipation. Market pressures and resource shortages can pose significant obstacles. A business is deemed emancipatory when it aligns more closely with the entrepreneur’s interests and values than a traditional employer, offering autonomy, financial resources, or an escape from discrimination.

Crabbe categorises the outcomes that can promote emancipation into three groups: businesses that reflect the entrepreneur’s values, products that address the unique needs of disadvantaged consumers, and processes that reduce barriers for other entrepreneurs.

In summary, by outlining a structured approach to understanding startups and overcoming challenges, Crabbe hopes her research will prove valuable and practical, particularly for policymakers aiming to enhance entrepreneurship among marginalised groups.

More information: Alexander Lewis et al, The entrepreneurship of marginalized groups and compatibility between the market and emancipation, Journal of Business Venturing. DOI: 10.1016/j.jbusvent.2024.106408

Journal information: Journal of Business Venturing Provided by University of Texas at Austin

Tackling Climate Change and Inequality: A Dual-Benefit Policy Approach

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Climate change and economic disparity are intricately linked, posing a mutual risk of escalating one another if not effectively managed. A recent study in Nature Climate Change illuminates this essential connection, utilizing data from eight comprehensive Integrated Assessment Models (IAMs) to explore how climate policies and climate risks affect distribution. The research offers compelling evidence that climate strategies consistent with the goals of the Paris Agreement can simultaneously combat climate change and diminish long-term inequality.

Johannes Emmerling, a senior scientist at the Euro-Mediterranean Center on Climate Change (CMCC), spearheaded the study, which projects an increase in internal national inequalities due to climate change, with the Gini index expected to rise by an average of 1.4 points by the year 2100. Nonetheless, the adoption of ambitious climate measures, such as carbon pricing, could substantially decrease this rise in inequality over time. The findings indicate that an equitable redistribution of carbon revenues among the populace could balance the short-term economic burdens and lower the Gini index by almost 2 points.

Emmerling articulates that this research underscores the dual potential of well-crafted policy measures to address climate change and economic inequality among contemporary society’s foremost challenges. He expresses optimism that demonstrating the immediate advantages of redistributing carbon revenues to poorer households while promoting a stable climate trajectory will equip policymakers with a strategic guide for crafting more equitable and politically viable climate policies.

This pioneering comparison of multiple models reveals that although initial climate policies might trigger a temporary increase in inequality, thoughtfully designed redistributive mechanisms have the potential to counteract this effect and enhance social justice.

Emmerling further notes the study’s timeliness as nations globally strive to achieve climate objectives without worsening inequality. He highlights the critical role of intelligent policy formulation in ensuring that the dividends of climate initiatives are distributed fairly.

Concluding the discussion, Massimo Tavoni, the study’s co-author and the director of the European Institute on Economics and the Environment at CMCC, emphasizes the significance of aligning climate safety with climate justice. He points out that this project addresses a vital research area and proves collaborative research’s impact on guiding decisions in high-stakes arenas.

More information: Johannes Emmerling et al, A multi-model assessment of inequality and climate change, Nature Climate Change. DOI: 10.1038/s41558-024-02151-7

Journal information: Nature Climate Change Provided by CMCC Foundation – Euro-Mediterranean Center on Climate Change

Implementing a Comprehensive Physical Activity Initiative for Remote Employees in Japan

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The transition to remote working during the COVID-19 pandemic has significantly impacted the physical activity levels of office workers, leading to increased sedentary behaviours and associated health risks. Research has consistently shown that remote workers are less active than their office-based counterparts. However, effective interventions tailored to increase physical activity among remote workers are scarce, highlighting a critical gap in current health promotion strategies.

In response, a research team from the University of Tsukuba initiated a pilot study to explore the effectiveness of a structured physical activity program targeted at remote workers. This study employed an open-label randomized controlled trial design involving 52 remote workers randomly assigned to either an intervention or a control group. The intervention group participated in an eight-week, multicomponent physical activity promotion program delivered remotely. This comprehensive program included individual strategies such as lectures, printed materials, goal setting, feedback, and motivational posters; sociocultural strategies aimed at team-building and creating a supportive environment; and organizational strategies featuring company executives’ encouragement.

Conversely, the control group received only a minimal intervention, consisting of posters promoting physical activity. Despite the disparate intervention levels, the trial’s final analysis revealed no significant differences in moderate-to-vigorous physical activity levels between the two groups over the eight weeks. This outcome suggests that while the program was robust in content, its impact on intense physical activity was limited.

However, the intervention group showed considerable improvements in less vigorous forms of physical activity. Notably, there was an increase of 14 minutes per day in light physical activity and a significant rise of 9.4 minutes per day in moderate-to-vigorous activity during working hours. Furthermore, the intervention led to an increase of 984 steps per working day. Intriguingly, even the control group, which had less interactive intervention, showed an increase of 895 steps per working day.

These results demonstrate the feasibility and potential benefits of a multicomponent physical activity program for remote workers. They suggest that such interventions can effectively enhance various physical activity levels, even if they do not significantly alter the most vigorous forms of activity. The findings provide a foundation for developing future strategies and action plans to promote physical activity among the increasingly common demographic of remote workers in Japan and potentially in other regions.

More information: Jihoon Kim et al, Effectiveness of a multicomponent intervention to promote physical activity among Japanese remote workers: a pilot open-label randomized controlled trial, Journal of Occupational Health. DOI: 10.1093/joccuh/uiae052

Journal information: Journal of Occupational Health Provided by University of Tsukuba

Greater Efforts Needed: Non-Indigenous Companies Face Challenges in Increasing Indigenous Employment

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A recent study by The Australian National University (ANU) has revealed that Indigenous-owned businesses in Australia employ Indigenous staff at a rate twelve times higher than that of non-Indigenous-owned businesses. This significant disparity underscores the urgent need for non-Indigenous companies to adopt more inclusive employment practices.

Christian Eva, the lead researcher and a PhD candidate at ANU, emphasised that the findings indicate a clear requirement for non-Indigenous-owned businesses to integrate Indigenous knowledge and cultural practices more fully into their workplaces. He pointed out that these businesses should also consider the broader responsibilities of Indigenous peoples within their communities by offering more flexible working arrangements and cultural leave entitlements. By doing so, they increase Indigenous employment numbers and foster a more diverse and inclusive workplace culture, which can lead to improved productivity and innovation.

Eva explained that the superior Indigenous employment rates in Indigenous-owned businesses could be attributed to their unique workplace practices. He suggested that these practices drive Indigenous employment outcomes rather than local labour market conditions alone. He highlighted the national significance of this issue, noting that Indigenous employment is a crucial aspect of Australia’s Closing the Gap framework aimed at reducing disparities between Indigenous and non-Indigenous Australians. However, he said, the employment gap remains stubbornly wide, signalling a clear call to action.

In their research, the team analysed data from Supply Nation on 2,291 Indigenous-owned businesses and compared this with data from 680 non-Indigenous-owned companies across Australia. They investigated whether non-Indigenous businesses had a Reconciliation Action Plan (RAP), offered cultural competence training, or had other Indigenous-focused workplace policies and practices.

Eva pointed out that despite a heightened focus on Indigenous employment, the national Indigenous employment rate has not seen significant improvement, and many Australian businesses are still not meeting their Indigenous employment targets. To address these issues effectively, he stressed the importance of incorporating Indigenous-led strategies in organisational governance, human resource management, and recruitment.

Furthermore, another ANU study led by Eva found that businesses with Indigenous staff in management positions employed over three times as many Indigenous workers compared to those with no Indigenous managers. This finding suggests a vital strategy for non-Indigenous-owned businesses to boost Indigenous employment and highlights the potential of Indigenous leadership in driving positive change. Creating pathways for Indigenous employees to ascend into senior management roles and ensuring equitable advancement opportunities within organisations can significantly impact Indigenous employment rates.

Eva also noted that managers from Indigenous backgrounds are particularly well-placed to understand the unique cultural and personal nuances of their Indigenous colleagues, enhancing the overall workplace environment. This comprehensive approach fosters excellent employment opportunities for Indigenous individuals and enriches the organisations’ cultural competency.

More information: Christian Eva et al, Closing the employment gap: Estimations of Indigenous employment in Indigenous- and non-Indigenous-owned businesses in Australia, The Economic and Labour Relations Review. DOI: 10.1017/elr.2024.37

Journal information: The Economic and Labour Relations Review Provided by The Australian National University

Reasons Why Employing Brand Nicknames in Marketing Strategies Can Be Problematic

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Researchers from Western University, Stockton University, and the University of Massachusetts Amherst co-authored an article in the Journal of Marketing, exploring whether firms benefit from incorporating popular nicknames into their branding strategies.

Zhe Zhang, Ning Ye, and Matthew Thomson have written the paper, “BMW is Powerful, Beemer is Not: Nickname Branding Impairs Brand Performance,” which will soon be published. It delves into the phenomenon of brand nicknames that have seamlessly woven themselves into everyday language—such as BMW becoming “Beemer,” Bloomingdale’s shortened to “Bloomie’s,” Rolex to “Rollie,” Walmart to “WallyWorld,” and Starbucks to “Starbies.”

Despite their widespread use and consumer affection, the study suggests that officially adopting these nicknames in marketing efforts might harm a brand’s strength. For instance, in 2021, Bloomingdale’s embraced the moniker “Bloomie’s” for a new store in Fairfax, Virginia; Target revived its “Fall for Tarzhay All Over Again” campaign in 2018; and the Howard Johnson hotels have been marketed under the slogan “Go Happy. Go HoJo.”

The research highlights that brand nicknames are typically consumer-generated, and by adopting them, brands might inadvertently signal that they are ceding control to their customers, thereby diminishing their authority and power. Zhang notes that embracing a consumer-generated nickname can be seen as acknowledging that consumers hold sway over the brand’s identity, potentially undermining the brand’s perceived strength.

The study differentiates between nicknames used by customers and those used by marketers. Brands often monitor consumer language closely, especially on social media, aiming to gain insights rather than merely mimicking consumer expressions. While nicknames can endear a brand to consumers when used organically by them, marketer adoption of these nicknames can make the brand appear weaker, as it might seem to infringe on what could be considered consumers’ “intellectual property.”

The authors argue that marketers must distinguish between consumer-driven nickname usage, which does not imply submission to consumer influence, and marketer-driven usage, which might. Prior studies have suggested that nicknames used by consumers can have positive effects, but these benefits do not translate when the nicknames are used in marketing. Thomson emphasizes that while marketers should not discourage nickname usage within the consumer community, they should be cautious about adopting them for marketing purposes.

The context in which nicknames are used also matters significantly. For example, a small, family-owned restaurant in a local community might benefit from adopting a well-loved local nickname when raising funds for community projects, as this can strengthen regional ties and support. Here, the nickname enhances the communal identity and engagement rather than diluting the brand’s power.

Moreover, before deciding to adopt a nickname, marketers must thoughtfully consider their brand’s archetype (competent versus warm) and the nature of their messaging (transactional versus communal). The study points out that meaningful brand name changes—like Apple Computer’s shortening to Apple, IHOP’s temporary rebrand to IHOb, and Dunkin’ Donuts’ shift to Dunkin’—reflect strategic repositioning that communicates a new brand identity clearly to consumers, unlike superficial nickname adoptions.

Thomson remarks that without significant alterations to a brand’s core identity, nickname branding may seem like a mere superficial attempt to win consumer favour. This can backfire, as seen in Radioshack’s rebranding as “The Shack,” which was perceived as a desperate bid for relevance and is believed to have accelerated its decline.

More information: Zhe Zhang et al, BMW Is Powerful, Beemer Is Not: Nickname Branding Impairs Brand Performance, Journal of Marketing. DOI: 10.1177/00222429241266586

Journal information: Journal of Marketing Provided by American Marketing Association

Craft Beer Enthusiasts Abandon Brands Following Corporate Takeovers

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According to recent research on brand loyalty within the craft beer sector, local craft beer consumers appear to be disenchanted when their favourite brands are acquired, and their dissatisfaction becomes apparent through their purchasing behaviours.

The study, published in the INFORMS journal Marketing Science under the title “Local Market Reaction to Brand Acquisitions: Evidence from the Craft Beer Industry,” was conducted by a team of scholars comprising Ali Umut Guler from Koç University in Istanbul, Turkey; Kanishka Misra of the University of California, San Diego; and Vishal Singh of New York University.

Researchers discovered a significant decline in product demand—by approximately 15%—in local craft beer markets following larger entities’ acquisition of these breweries.

Guler explains that the bond between consumers and their preferred brands is deeply emotional, often fostering a sense of psychological ownership over the brand. “Consumers regard the brand as an extension of themselves,” Guler notes. “Therefore, when a beloved local craft beer brand is acquired, it can disrupt this personal connection, impacting the consumer’s perceived ownership.”

As of 2019, the beer industry in the United States recorded sales of around $120 billion annually, with over 6,400 breweries in operation. The study’s authors analysed data about roughly 40 regional breweries acquisitions between 2006 and 2016.

Misra points out that brand loyalty erosion commences immediately after an acquisition, reflected in dwindling sales and lower product ratings. “Our findings also suggest a more pronounced negative reaction when the acquiring entity is seen as ‘big business,'” Misra adds. This situation typically benefits competing brands that are still locally owned.”

Singh elaborates on the unique appeal of local craft beer brands, noting, “The local identity of craft beer brands significantly contributes to their allure. Removing this element can detract from the very attributes that initially drew consumers to the brand.”

In their methodological approach, the researchers examined news coverage across local and regional media outlets and consumer responses on social media following announcements of such acquisitions. They utilised SerpAPI to aid their analysis, alongside evaluations of Google searches and activity on Twitter/X correlating with times of acquisition news.

Guler further shares intriguing insights from their in-depth analysis of sentiments expressed in tweets and posts during the acquisition phase, revealing that “the predominant sentiment expressed was overwhelmingly negative, showcasing the consumer’s adverse reaction to these corporate takeovers.”

More information: Ali Umut Guler et al, Local Market Reaction to Brand Acquisitions: Evidence from the Craft Beer Industry, Marketing Science. DOI: 10.1287/mksc.2022.0383

Journal information: Marketing Science Provided by Institute for Operations Research and the Management Sciences

Strategies to Persuade Managers of the Benefits of Teleworking

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Amazon has declared that starting January 2025, it will terminate its remote work policy for office personnel, which defies the ongoing trend as the post-pandemic era has increasingly embraced digitalisation, signalling a significant shift towards teleworking. Before the health crisis of 2020, the concept of remote working was nearly unthinkable for numerous firms; however, it has grown significantly in its implementation. The Adecco Employment Opportunities and Satisfaction Monitor, a study conducted by The Adecco Group Institute, indicates that in 2023 alone, teleworking in Spain saw a 19% increase, with over 3 million individuals working from home—more than twice the figure before the Covid-19 outbreak.

Despite its significant growth and stabilisation post-pandemic, working remotely has yet to be uniformly accepted. Various companies have hesitated to adopt teleworking, confronted by challenges including the suitability of roles for remote work, the deployment of technological resources, and maintaining communication across team members. A major obstacle lies in the leadership teams, whose role is pivotal in deciding whether teleworking aligns with the company’s operational strategies. The Universitat Oberta de Catalunya (UOC) conducted a study involving 186 participants, predominantly over 45 years old and nearly 45% female, from various European countries to determine what influences managerial decisions regarding the adoption of teleworking in their organisations.

This study, accessible in open format, suggests that managers’ perspectives on teleworking can significantly influence its acceptance within companies. Conducted by Josep Lladós, Prof. Antoni Meseguer, Eva Rimbau, and Mar Sabadell of the UOC’s Faculty of Economics and Business and the Digital Business Research Group (DigiBiz), the research highlights the essential skills managers must possess to create an environment conducive to remote working and the factors that should be considered to facilitate this change.

The research underscores managers’ pivotal role in promoting teleworking, suggesting that their positive perceptions and belief in their ability to manage remote teams are crucial. Managers’ willingness to adopt teleworking largely stems from their belief in its utility and ease of implementation. A critical organisation of their perception is the expected impact on work performance, gauged through various indicators such as task completion, goal achievement, quality of output, and absenteeism rates. Though it’s challenging to measure the effects of teleworking on efficiency and productivity objectively, managers’ positive views on how remote working benefits these aspects play a significant role in their overall perception of its utility, as highlighted by Eva Rimbau.

The UOC study reveals that the adoption of teleworking depends not only on managers’ views of their employees and the perceived benefits or performance outcomes but also on their self-perception—their confidence in their ability to manage this type of work arrangement—and their relationship with their teams. Rimbau stresses the importance of managers trusting their employees and managing based on outcomes or objectives rather than physical presence or hours logged. This approach fosters a “virtuous circle” where increased trust leads to better outcomes and, conversely, employees are more proactive in taking on responsibilities to meet demands. This stress on trust can reassure managers about the effectiveness of remote team management.

The challenges of teleworking, such as lack of face-to-face interaction and coordination difficulties, are significant. Yet, managers’ confidence in their ability to lead and supervise remotely is crucial. Rimbau points out that managers must develop skills to effectively build, motivate, recognise, and hold accountable in remote work, utilising digital tools to improve effective communication and interaction. Leaders should strive to avoid professional isolation, encourage collaboration and trust, and adapt their leadership and supervisory practices to fit the digital context, ensuring they act not merely as bosses but as leaders who can nurture teamwork in any work scenario.

Furthermore, the readiness of managers to implement teleworking is influenced by external factors such as peer pressure, superior directives, and compatibility with the organisational knowledge that managers are more likely to adopt if senior management or leading firms in the industry advocate for teleworking. Another decisive factor is managers’ ability to lead change. The digital and knowledge intensity of a company’s activities significantly affects how easily teleworking can be broadly and successfully implemented. Technological barriers also play a role, underscoring the need for employees and the company to have the necessary resources and digitise their processes and workplace practices to adapt effectively to teleworking.

More information: Josep Llados-Masllore et al, Telework and new work practices: The role of managers, Human Resources Management and Services. DOI: 10.1007/s00394-023-03123-x

Journal information: Human Resources Management and Services Provided by Universitat Oberta de Catalunya (UOC)

Seeking to Boost Sustainable Practices Among Consumers? Develop Prosocial Representatives

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A new article in the Journal of Marketing authored by researchers from the University of Kentucky, Arizona State University, and Pennsylvania University sheds light on how an ambassador role to advocate for a cause impacts one’s prosocial behaviours. The paper, set to be published under the title “The Prosocial Ambassador Effect: Adopting an Ambassador Role Increases Sustainable Behavior”, explores the dynamic wherein individuals support a cause through ambassadorship and the subsequent enhancement of their prosocial actions.

This research emerges against increasing corporate responsibility initiatives, such as those by the apparel company Tentree, which has launched an ambassador program to rally consumers dedicated to a more sustainable future. Tentree’s initiative encourages participants to inspire others to adopt greener practices. In a parallel initiative, the 5 Gyres Institute promotes a program where global ambassadors commit to a plastic-free existence, advocating for a culture of reusability and raising awareness about the enduring harms of plastic use.

Amidst a broader corporate shift towards sustainability, exemplified by moves to cut down on single-use plastic bags, this study delves into the mechanics of ambassadorship in fostering cause support. It specifically examines how personal commitment to prosocial behaviour—such as opting for reusable shopping bags—and its promotion to others further individual practices and motivate others towards similar behavioural shifts.

The researchers address two primary questions: what does it take for a consumer to become a prosocial ambassador, and how does this role affect their future prosocial behaviour? Corinne M.K. Hassler elaborates on the concept, distinguishing these ambassadors from traditional brand ambassadors and influencers. These prosocial ambassadors are not directly affiliated with the brands they support and are not necessarily compensated. Their influence is rooted in genuine personal commitment and promoting sustainable behaviours amongst their peers.

Through a series of four experiments, the research team observed that grocery shoppers who embraced the ambassador role were more likely to continue using reusable shopping bags compared to those who did not promote the behaviour interpersonally. The findings underscore an “ambassador effect” that not only promotes a collective identity among consumers but also boosts prosocial behaviour beyond individual efforts alone.

Key insights from the study include the recognition that combining personal commitment with promoting prosocial actions significantly amplifies sustainable behaviours. It also highlights that fostering a collective identity among consumers, transitioning their self-conception from “I” to “we”, can drive further prosocial activities. Notably, the study notes that such ambassadorship does not require financial incentives, sharply distinguishing it from referral programs that often rely on such incentives.

The study offers several takeaways for marketing leaders and stakeholders. Maura L. Scott points out that understanding the contexts in which such interventions are effective is crucial for designing successful ambassadorship programs. The cost of inducing such roles is relatively low, requiring minimal time and financial investment while potentially generating additional revenue through related product sales.

Furthermore, the potential longevity of these effects suggests that organisations could use ambassador programs strategically to maintain engagement with consumers over time, deepening relationships and enhancing brand loyalty and reputation.

The research presents a pioneering approach to utilising marketing strategies for societal benefit. It demonstrates that by acting as prosocial ambassadors, consumers elevate their sustainable behaviours and contribute to a broader positive impact, creating a synergistic benefit that supports both the individual and the community. This innovative model offers a practical yet impactful way for organisations to engage with and sustain consumer interest in prosocial activities, ultimately fostering a more sustainable society.

More information: Corinne M.K. Hassler et al, The Prosocial Ambassador Effect: Adopting an Ambassador Role Increases Sustainable Behavior, Journal of Marketing. DOI: 10.1177/00222429241265000

Journal information: Journal of Marketing Provided by American Marketing Association

How a Well-Known Economic Principle Could Aid in the Conservation of Threatened Frog Species

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A prevalent financial investment strategy might also be crucial for protecting an endangered frog species in Puerto Rico. A recent study has implemented modern portfolio theory to pinpoint future “investments” in natural resource management. This approach could help managers make informed decisions to conserve the populations of coquí llanero frogs on the island. Known for their distinctive high-pitched chirps, the 17 species of coquí frogs serve as informal symbols of Puerto Rico. The coquí llanero, notably the smallest and most at risk, is confined to just three small freshwater wetlands on the northern coast. This geographic limitation exposes them to significant risks from severe storms, rising sea levels, and other climatic shifts.

Mitch Eaton, the study’s principal investigator and a research ecologist at the Southeast Climate Adaptation Science Center, emphasises these frogs’ vulnerability. “The coquí can only do so much by themselves to avoid climate-related risks. Thus, it’s crucial that we consider ways to manage and alleviate risks within this complex ecosystem.” Modern portfolio theory, a staple in economic strategies used commonly for building stable retirement investment portfolios, forms the basis of this approach. Investors typically create a portfolio of assets that react differently to market fluctuations, including high-risk, high-reward stocks and more stable, low-return bonds. The balance of these assets is tailored to the investor’s risk tolerance.

But what does investment strategy have to do with endangered frogs in Puerto Rico? Like financial investors, natural resource managers also deal with assets and make strategic investments under conditions of uncertainty. These investments involve purchasing land for conservation, restoring habitats, or relocating species to safer areas. The study explores the potential of using modern portfolio theory to identify such investment opportunities to aid the conservation of the coquí.

“Diversification of investments is kind of a magic bullet for stability under future market uncertainty,” says Eaton. He explains that using modern portfolio theory, managers can more effectively manage risk under the unpredictable conditions of future climates. The approach also encourages managers to consider their investments more judiciously, considering realistic variables like budget constraints. Researchers developed models incorporating current protected habitats, projected sea-level rises, and future climate scenarios. They also considered various future funding levels that could be available for investment.

The study conducted two portfolio analyses that weighed cost against risk. One strategy aimed to maximise conservation benefits within the constraints of available budgets. The other strategy, focused on minimising risks, proposed more conservative investments even if they came at a higher cost, such as buying new land parcels specifically for relocating the frogs, which would lead to a lower risk of extinction. This approach showed that merely relying on existing protected areas might not suffice to mitigate future climate risks and that investing in conserving additional habitats could be worthwhile.

Researchers were also surprised to find potential sites for the frogs on the eastern side of Puerto Rico, which expands the geographic options for protecting the coquí llanero. This could increase the species’ footprint and offer more robust protection options. “Ideally, modern portfolio theory acts as a handy tool for managers that gives them a new way of thinking about how to implement management actions over space,” Eaton adds. This means pooling investments to manage risk and achieve maximal benefits effectively.

While this study focused on the coquí llanero, the implications of applying modern portfolio theory extend beyond this particular species. However, it’s crucial to note the limitations: the current application considers only one species when assessing conservation actions and requires more detailed local condition analyses for implementing high-cost investments. Despite these challenges, modern portfolio theory could be adapted for various species, addressing broad resource management needs and preparing for uncertain futures.

More information: Mitchell Eaton et al, Applying portfolio theory to benefit endangered amphibians in coastal wetlands threatened by climate change, high uncertainty, and significant investment risk, Frontiers in Conservation Science. DOI: 10.3389/fcosc.2024.1444626

Journal information: Frontiers in Conservation Science Provided by North Carolina State University