Distributed Signaling Games

A recurring theme in recent computer science literature is that proper design of signaling schemes is a crucial aspect of effective mechanisms aiming to optimize social welfare or revenue. One of the research endeavors of this line of work is understanding the algorithmic and computational complexity of designing efficient signaling schemes. In reality, however, information is typically not held by a central authority, but is distributed among multiple sources (third-party "mediators"), a fact that dramatically changes the strategic and combinatorial nature of the signaling problem, making it a game between information providers, as opposed to a traditional mechanism design problem. In this paper we introduce {\em distributed signaling games}, while using display advertising as a canonical example for introducing this foundational framework. A distributed signaling game may be a pure coordination game (i.e., a distributed optimization task), or a non-cooperative game. In the context of pure coordination games, we show a wide gap between the computational complexity of the centralized and distributed signaling problems. On the other hand, we show that if the information structure of each mediator is assumed to be "local", then there is an efficient algorithm that finds a near-optimal ($5$-approximation) distributed signaling scheme. In the context of non-cooperative games, the outcome generated by the mediators' signals may have different value to each (due to the auctioneer's desire to align the incentives of the mediators with his own by relative compensations). We design a mechanism for this problem via a novel application of Shapley's value, and show that it possesses some interesting properties, in particular, it always admits a pure Nash equilibrium, and it never decreases the revenue of the auctioneer

The Effects of Recruitment Message Specificity on Applicant Attraction to Organizations

We used the elaboration likelihood model from marketing research to explain and examine how recruitment message specificity influences job seeker attraction to organizations. Using an experimental design and data from 171 college-level job seekers, the results showed that detailed recruitment messages led to enhanced perceptions of organization attributes and person-organization fit. Perceptions of fit were found to mediate the relationship between message specificity and intention to apply to the organization. In addition, perceptions of organization attributes and person-organization fit were found to influence intentions to apply under circumstances of explicit recruitment information while attractiveness and fit perceptions were shown to influence application intentions under conditions of implicit recruitment information. The theoretical and practical implications of these findings are discussed

Quality Scores in Sponsored Search

In sponsored search auctions (SSA) advertisers bid on particular keywords for the oppor- tunity to display their ad besides the search results for the corresponding query. The amount of information on the details of these auctions is limited. Most of the scientific literature has focused on a simplified model, that nonetheless appears to explain many of the observed behaviors of these markets. However one fundamental feature is missing from these models: the ability of the search engine to directly affect the rankings of the ads. The main tool search engines have to do this are quality scores (QS), which have already been considered in the current models, albeit in a limited way. In this paper we extend the model to include quality scores that are independent of other properties of the auction, and show how this modifies the theoretical properties of the market. Finally we also consider a scarcely studied cooperative behavior, in which a group of bidders collude (forming a so called ring) to decrease their overall payment and share the profits. We show that, in the sponsored search setting, rings are not always profitable, and consider the effect of quality scores in this scenario

Finding The Sweet Spot Of Cause-Related Marketing: Consumer Response To Campaign Tactics

Cause-related marketing is an effective promotional tool that connects with consumers’ emotions and increases sales. Two essays are presented that explore how consumers respond to different marketing tactics. The first essay presents two studies that examine cause-related marketing (CRM) promotions that require consumers’ active participation. Requiring a follow-up behavior has very valuable implications for maximizing marketing expenditures and customer relationship management. Theories related to ethical behavior, like motivated reasoning and defensive denial, are used to explain when and why consumers respond negatively to these effort demands. The first study finds that consumers rationalize not participating in CRM by devaluing the sponsored cause. The second study identifies a tactic marketers can utilize to neutralize consumers’ use of defensive denial. Allowing the consumer to choose the sponsored cause seems to effectively refocus their attention and increases consumers’ threshold for campaign requirements. Implications for nonprofits and marketing managers include a tendency for consumers to be more likely to perceive a firm as ethical and socially responsible when they are alloto choose the specific cause that is supported. The second essay addresses promotions that donate the same product purchased by the consumer, like Tom’s shoes, and creates a connection between the consumer and donation recipient. The identified victim effect is proposed to explain the success of “one for one” style donation programs. Compared to monetary donations, matched product donations lead consumers to feel more empathy for the needy recipients and also to perceive the donation has more impact. Perceptions about the transparency of the donation are also found to be an important driver of the differences between product and monetary differences

The Business of Influencing: Business Models of Social Media Influencers – a Literature Review

Purpose: Influencer Marketing (IM) has become an important marketing category and has, in turn, led to the rise of so-called social media influencers (SMI), who as a group generate significant economic activity. Whereas IM has been studied extensively from an advertiser or effectiveness perspective, addressing the issue from the perspective of SMIs and their economic activities – how they generate, deliver and capture value – has received relatively little attention. Therefore, this study reviews and conceptually represents the current state of knowledge on business models of SMIs. Methodology: Structured literature review of peer-reviewed, English-language journals in Scopus database between 2017-2022. The findings are organised according to Osterwalder and Pigneur’s nine-dimension business model concept, adapted to service-dominant logic aspects following Ojasalo & Ojasalo (2015). Findings/Contribution: Value generation, delivery and capture in SMI business models occur in complex, even collective (co-)production and (co-)consumption settings. This co-creation involves several stakeholders, involves mutual vetting by potential partners and is characterized by significant transaction costs. The scalability of SMI business models is limited due to the core value proposition (the SMI persona and contents), space and time constraints as well as by increasing efforts to sustain parasocial relationships with audiences. Due to the personalised nature of the value proposition, the intertemporal stability of business models is uncertain. The study enlarges the understanding of competition within platform-based ecosystems by looking at complementors with limited resources and scaling ability. It also sheds light on digital business models from a service-dominant logic perspective