Replicating and Extending Our Understanding of How Managers Can Adjust the “Warm Glow Thermostat”

This article presents four studies that replicate and extend a recent article examining how guest participation in voluntary green programs (e.g., towel reuse) increases service satisfaction by evoking a “warm glow” response. Importantly for managers, we not only replicate across new hospitality and service contexts but also conceptualize alternative incentive paradigms, and test alternative mediators. In particular, we reconceptualize the “self-benefiting” versus “other-benefiting” incentive structure presented by Giebelhausen, Chun, Cronin, and Hult to consider “virtue,” “vice,” and “cash” incentives (i.e., three different types of self-benefiting incentives). The results provide managers with a better understanding of how they should promote and reward sustainable guest behavior. In addition to managerial implications, the present research also contributes to the academic literature on a growing phenomenon that has important implications for both business and society at large

The Warm Glow of Restaurant Checkout Charity

Checkout charity is a phenomenon whereby frontline employees (or self-service technologies) solicit charitable donations from customers during the payment process. Despite its growing ubiquity, little is known about this salient aspect of the service experience. The present research examines checkout charity in the context of fast-food restaurants and finds that, when customers donate, they experience a “warm glow” that mediates a relationship between donating and store repatronage. Study 1 utilizes three scenario-based experiments to explore the phenomenon across different charities and different participant populations using both self-selection and random assignment designs. Study 2 replicates with a field study. Study 3 examines national store–level sales data from a fast-food chain and finds that checkout fund-raising, as a percentage of sales, predicts store revenue—a finding consistent with results of Studies 1 and 2. Managers often infer, quite correctly, that many consumers do not like being asked to donate. Paradoxically, our results suggest this ostensibly negative experience can increase service repatronage. For academics, these results add to a growing body of literature refuting the notion that small prosocial acts affect behavior by altering an individual’s self-concept

Affective Forecasting and Self-Control: Why Anticipating Pride Wins Over Anticipating Shame in a Self-Regulation Context

We demonstrate that anticipating pride from resisting temptation facilitates self-control due to an enhanced focus on the self while anticipating shame from giving in to temptation results in self-control failure due to a focus on the tempting stimulus. In two studies we demonstrate the effects of anticipating pride (vs. shame) on self-control thoughts and behavior over time (Studies 1 and 2) and illustrate the process mechanism of self vs. stimulus focus underlying the differential influence of these emotions on self-control (Study 2). We present thought protocols, behavioral data (quantity consumed) and observational data (number/size of bites) to support our hypotheses

Free Drink or Free Mug? Managing Service Experience with Experiential vs. Material Complimentary Gifts

In the marketplace, complimentary gifts can take the form of experiential elements (e.g., a meal) or material items (e.g., tangible objects such as a mug). We identify these free gifts as a meaningful service design choice that helps service providers innovate service. Specifically, we examine the circumstances under which experiential or material gifts are preferred and generate greater consumer satisfaction, enhancing the overall service experience. Across three experiments, we demonstrate that consumers are generally happier with experiential offerings, and they prefer (and are more satisfied with) experiential offerings on ordinary consumption occasions; experiential elements are believed to further enrich otherwise mundane experiences. However, this experiential advantage disappears for consumers on meaningful and special occasions because of a strong desire to obtain a memory cue that will help them recall the experience. Indeed, the preference for a material item holds only when the gift has the quality to serve as a salient memory marker, but not when it lacks this quality. This research provides insight for managers to take into account consumption occasions or type of consumers (e.g., special occasions, repeat customers) to effectively design service bundles with complimentary gifts and thus better manage overall service experience

Replicating and Extending Our Understanding of How Managers Can Adjust the “Warm Glow Thermostat”

This article presents four studies that replicate and extend a recent article examining how guest participation in voluntary green programs (e.g., towel reuse) increases service satisfaction by evoking a “warm glow” response. Importantly for managers, we not only replicate across new hospitality and service contexts but also conceptualize alternative incentive paradigms, and test alternative mediators. In particular, we reconceptualize the “self-benefiting” versus “other-benefiting” incentive structure presented by Giebelhausen, Chun, Cronin, and Hult to consider “virtue,” “vice,” and “cash” incentives (i.e., three different types of self-benefiting incentives). The results provide managers with a better understanding of how they should promote and reward sustainable guest behavior. In addition to managerial implications, the present research also contributes to the academic literature on a growing phenomenon that has important implications for both business and society at large.Giebelhausen24_Replicating_and_extending.pdf: 175 downloads, before Aug. 1, 2020

Matching Digital Companions with Customers : The Role of Perceived Similarity

Digital companions are an advanced form of digital agents that do not only provide advice and support but accompany people on their day-to-day customer journeys. This article sheds light on the psychological processes underlying customers’ responses to these digital companions (i.e., virtual friends or co-consumers). We propose that framing them as matched with customers on goal-relevant attributes (i.e., attributes related to customers’ consumption goals) fosters positive customer outcomes (i.e., consumption enjoyment and positive word-of-mouth), mediated by perceived similarity in these attributes. Importantly, in this matching context, humanlikeness serves as a boundary condition for perceived similarity to occur. Furthermore, the effect of perceived similarity on customer outcomes is driven by perceived connectedness. In Study 1, in the context of experiential learning, we identified shared interest and personality as goal-relevant attributes underlying perceived similarity. With the manipulation of the match frame and humanlike versus artificial voice of the digital companion, Study 2 supports our propositions and highlights shared interest, but not personality, as the core driver. We provide recommendations on how to design and market digital companions to foster connection and favorable customer outcomes

Strategic Benefits of Low Fit Brand Extensions: When and Why?

Brand extensions have the potential to both enhance liking of the brand extension and induce positive spillover effects on the parent brand. Such dual outcomes enhance the brand's growth potential. We propose and empirically demonstrate that three variables endemic to any brand extension decision (brand reputation, brand extension fit, brand extension benefit innovativeness) jointly impact these positive outcomes. For strong reputation brands, these dual outcomes are maximized when the brand extension is low in fit and offers innovative benefits because low fit motivates consumers to process innovative brand extension information more deeply. For weak reputation brands, these effects are maximized when the brand extension is high in fit and offers innovative benefits because high fit strengthens consumers' trust in the weak brand's ability to deliver promoted benefits. The results suggest two distinct brand growth strategies for strong and weak reputation brands respectively.Chun12_Strategic_benefits.pdf: 1338 downloads, before Aug. 1, 2020

Why Recommend a Brand Face-to-Face but not on Facebook? How Word-Of-Mouth on Online Social Sites Differs From Traditional Word-of-Mouth

We examine the conceptual difference between consumer electronic word-of-mouth on online social sites (sWOM) such as Facebook and traditional face-to-face word-of-mouth (WOM). We find that consumers are less willing to engage in sWOM than WOM. Such a difference in willingness to offer word-of-mouth can be explained by social risk associated with different communication modes. We show that the difference between people’s desire to engage in sWOM and WOM is mediated by perceived social risk and amplified when social risk is made salient. Furthermore, we show that consumers’ need to self-enhance mitigates the difference in willingness to offer sWOM versus WOM.Chun11_Why_recommend_a_brand.pdf: 4475 downloads, before Aug. 1, 2020