Inattentive Consumers in Markets for Services

In an experiment on markets for services, we find that consumers are likely to stick to default tariffs and achieve suboptimal outcomes. We find that inattention to the task of choosing a better tariff is likely to be a substantial problem in addition to any task and tariff complexity effect. The institutional setup on which we primarily model our experiment is the UK electricity and gas markets, and our conclusion is that the new measures by the UK regulator Ofgem to improve consumer outcomes are likely to be of limited impact

Friends with Benefits: Social Coupons as a Strategy to Enhance Customers’ Social Empowerment

Businesses often seek to leverage customers’ social networks to acquire new customers and stimulate word-of-mouth recommendations. While customers make brand recommendations for various reasons (e.g., incentives, reputation enhancement), they are also motivated by a desire for social empowerment—to feel an impact on others. In several multi-method studies, we show that facilitating sharing of social coupons (i.e., coupon sets that include one for self-use and one to be shared) is a unique marketing strategy that facilitates social empowerment. Firms benefit from social coupons because customers who share spend more and report greater purchase intentions than those who do not. Furthermore, we demonstrate that social coupons are most effective when the sharer’s brand relationship is new versus established. For customers with an established relationship, sharing with a receiver who also has an established relationship maximizes potential impact. Together, these studies connect social empowerment to relationship marketing and provide guidance to managers targeting social coupons

Donor misreporting:conceptualizing social desirability bias in giving surveys

Although survey research is one of the most frequently used methods for studying charitable giving, the quality of the data is seldom stated or known. In particular, social desirability bias (SDB) has been found to distort data validity where respondents tend to over-report what is socially desirable and vice versa. We argue that this phenomenon has not been fully understood in the nonprofit context as existing social desirability scales are not appropriate to be used in giving surveys. Thus, this paper is the first to extend understanding of SDB to the nonprofit context and to explore its motivating factors. Based on a multidisciplinary literature review and qualitative interviews with various senior practitioners from the fundraising and marketing research sectors, it is suggested that SDB is a multidimensional construct yielding five dimensions, namely, impression management, self-deception, level of involvement, perceived benefits and social norms. The paper then discusses the implications for nonprofit researchers and concludes with directions for future research