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Understanding the influence of mobile promotions

Michelle Andrews, assistant professor of marketing, and coauthors Jody Goehring (RetailMeNot), Sam Hui (U Houston), Joseph Pancras (U Conn), and Lance Thornswood (JCPenney) cull together divergent streams of research to provide a framework to better understand how mobile promotions influence the in-store shopping behavior of consumers. Online promotions allow merchants to reach shoppers easier and faster, enabling traditional stores to text out online discounts or highlight specific products. Merchants can also use geolocation on mobile phones to text and target shoppers once inside of their store to feature merchandise or advertise a special offer. The authors identify a number of key areas for additional research to “enable long-term, value enhancing relationships between consumers and marketers.” For instance, they note the need for a better understanding of the role of privacy concerns on personal data collection via mobile devices. Andrews and coauthors also find that a deeper investigation of such things as return on investment, loyalty programs, upselling, proximity to purchase, and global promotions are required to get a true sense of the effectiveness of mobile promotions. Source:

Managers’ performance measures and their work behavior

Management accounting literature devotes considerable attention to the “controllability principle.” This principle stipulates that managers should only be held responsible for the results they directly control through their actions. The literature argues that the use of less controllable performance measures reduces managerial motivation and causes stress. However, Karl Schuhmacher, assistant professor of accounting; Michael Burkert (U Fribourg); Franz Fischer (independent researcher); and Florian Hoos (HC Paris) argue that there can also be positive effects associated with a lack of controllability. The researchers conducted a survey with 432 business managers, asking questions related to the measures used for their performance evaluations. They concluded that less controllable measures do create stress but also induce proactive work behaviors. In fact, the lack of controllability stimulates managers to cope with stress by interpreting their roles more flexibly and cooperating with peers to seek solutions for organizational problems they cannot control individually. The authors suggest further research to determine how organizations modulate between the positive and negative effects of disregarding the controllability principle. Source:

The role of behavior in managing mergers

Despite corporate interest in M&As as a growth strategy, research indicates that financial returns on such deals often fall short of expectations. Corporate leaders spend considerable time looking at the financial and quantitative aspects of mergers and acquisitions; however, Sandy Jap, Sarah Beth Brown Professor of Marketing; A. Noel Gould (Texas State U); and Annie H. Liu (Texas State U) argue that factoring in people should also be a major consideration when it comes to a proposed deal. Their research indicates that better employee and customer management is especially critical to an organization’s M&A strategy and implementation success. The trio analyzed ANZ New Zealand’s horizontal merger with the National Bank of New Zealand to better understand the impact of employee and customer behavior on the deal. They contend that this brand and technology merger succeeded due to ANZ’s commitment to ensuring customer satisfaction and addressing employee concerns about the merger. ANZ New Zealand also focused on business efficiencies and rebranding efforts. Jap, Gould, and Liu note that collaboration became a big key to the success of the merger with ANZ’s financial, IT, marketing, and communications personnel working closely together to retain customers. Source:

Markdown Management and Shopping Behavior

Consumers face the trade-off of immediately paying tag price for an item or waiting for a time when it might be marked down but out of stock. In new research, Nikolay Osadchiy, assistant professor of information systems & operations management, Manel Baucells (U of Virginia), and Anton Ovchinnikov (Queen’s U) argue that retailers can better optimize markdowns by paying more attention to this particular type of consumer behavior. The researchers approach the consumer waitor-buy decision as a “multidimensional trade-off between the delay in getting an item, the likelihood of getting it, and the magnitude of the price discount.” Those dimensions need not be independent; for example, the consumer patience (or sensitivity to delay) could depend on the magnitude of markdown. By optimizing the model, they find that retailers can substantially increase revenues by offering larger markdowns than the current state of the art suggests. In the experiments involving business school students as well as Amazon Mturk participants, which is an on-demand, scalable workforce, the trio found that the expected revenue gains are between 1.5% and 2%. Source:

Baylor Media Expert Shares Thoughts Re: Charges of Biased Media Coverage of Minorities

Early this week, 18-year-old Nia Wilson was stabbed to death on a platform while transferring trains in Oakland, California. Authorities said the attack was unprovoked. Media coverage of Wilson's death included photos from her social media accounts. One California television station chose to share a photo of Wilson, who was African American, holding what appeared to be a gun. The decision to run that particular photo sparked outrage, with many saying the photo added to a trend of a biased media portrayal of minorities. Mia Moody-Ramirez, Ph.D., professor of journalism, public relations and new media at Baylor University, is an expert on mass media representations of women, minorities and other underrepresented groups. "This incident brings back memories of the shooting deaths of Trayvon Martin and Michael Brown. Media outlets used various photos to portray them as menacing. It also brings to mind the hashtag: #IfTheyGunnedMeDown, which asks the question: 'If they gunned me down, what photo would media use?'" Moody Ramirez said. "Historically, media outlets have used such photos to: 1) frame the individuals a certain way, 2) add interest to the story, 3) stir up conflict. Awareness that this is happening is the best way to stop it in the future. Black Twitter has taken on this cause. In the 'clap back' culture of Black Twitter, news outlets are very likely to get called out for such behavior." Moody-Ramirez is the co-author of the new book "From Blackface to Black Twitter: Reflections on Black Humor, Race, Politics, & Gender." In 2013, she co-authored "The Obamas and Mass Media: Race, Gender, Religion, and Politics." She also authored "Black and Mainstream Press’ Framing of Racial Profiling: A Historical Perspective." Source:

Identity and the digital world

According to research from Jagdish Sheth, Charles H. Kellstadt Professor of Marketing, and Michael Solomon (UNC), the idea of identity is evolving, impacted by the growing influence of the digital world. The authors’ groundbreaking study builds on a seminal paper from Russell Belk, written in 1988, which identified the role that possessions play in an individual’s life and how external elements are critical to how people self-identify. The duo uses Belk’s findings on consumer behavior, taking it a step further by applying his concepts to current day, with the online world in mind. Sheth and Solomon found that traditional boundaries between an individual’s offline and online life are increasingly blurred, resulting in what they term the “digital extended self.” People are creating a new sense of identity, courtesy of the information posted, the persona created, and the relationships developed online. They write, “A social footprint is the mark a consumer leaves after she occupies a specific digital space (e.g., today’s Facebook posts), while her lifestream is the ongoing record of her digital life across platforms (e.g., registrations in virtual worlds, tweets, blog posts).” Not surprisingly, the notion of just what defines a consumer is changing. User-generated content and online consumer reviews have altered the nature of relationships between the producer and consumer. The authors’ findings have critical implications for marketers looking to get a better understanding of consumer behavior. Source:

Repo transactions and bank risk

In a research study from Edward Owens, assistant professor of accounting, and Joanna Shuang Wu (U of Rochester), the authors examine bank reporting of short-term borrowings in the repo market. Repo borrowings, otherwise known as sale and repurchase agreements, are essentially collateralized loans known for their short-term nature. The authors note that repo borrowings are typically associated with risky trading behavior, especially due to their opaque nature and role in the recent financial crisis. Owens and Wu found that current financial reporting requirements for banks might not adequately capture a full accounting of the risks associated with a bank’s repo liabilities. Specifically, end-of-quarter balance sheets may not correctly show the risk levels from repo borrowings exhibited throughout the quarter. The researchers analyzed quarter-end deviations in bank repo borrowings to better study the risk they represent. The primary research sample for the study was pulled from “13,548 bank-quarter observations across 573 unique publicly traded bank holding companies.” The authors attribute some of the deviation to what is termed “window dressing,” a step banks might take “to temporarily reduce the reported level of repo borrowings around quarter-end reporting dates.” Expected fluctuations in bank depositor and borrower activity around the end of the quarter did factor into the deviation as well. Source:

Understanding self-serving behavior in leaders

In a new research paper, Melissa Williams, assistant professor of organization & management, developed a framework to better understand when and why leaders use their power for personal gain. She discovered that a variety of traits, characteristics, and values, such as feeling less of a sense of guilt, made leaders more likely to exhibit self-interested behaviors. Individuals who were more narcissistic, less humble and honest, and generally less agreeable also had an increased chance of abusing their power. Leaders with an individualistic and competitive streak as well as those with a lower sense of morality were also more likely to act on self-interest. Threats to power especially increased self-serving behavior for those with a propensity for it. Williams added that “because positions of leadership are desirable and hedonically pleasurable, leaders facing threats to their power will prioritize self-interested actions that secure their own power over behaviors that serve shared goals.” Interestingly, for the individuals who did not have self-interested traits and values, power actually decreased the likelihood that they would become self-interested. Source:

The brain, human behavior, and accounting

Accounting is essential to market economies, setting up what is basically a moral code for financial transactions. Drawing from new and related research, Gregory B. Waymire, Asa Griggs Candler professor of accounting, argues that accounting does have a moral basis because it is designed to encourage and promote ethical behavior. To support the point, he used existing functional MRI research showing how the brain responds to accounting information. Studies show a clear link between earnings news and increased brain activity, as well as accounting information and changes in human behavior. Waymire notes that accounting has the ability to create trust in economic exchange and establishes a way to benefit from it. Additional neuroscience research will play a critical role in furthering our understanding of the relationship between accounting and human behavior. The research is particularly salient for auditors as they work to improve investor trust. Source:

The effect of multitasking on worker performance

Diwas KC, associate professor of information systems & operations management, completed an in-depth investigation of the impact of multitasking in a complex work environment by analyzing patient flow and clinical data of physicians in a large hospital ER. The study provides important findings for understanding multitasking and its “implications for a knowledge economy, where attention and focus are significant drivers of productivity and quality.” The research indicated that multitasking starts out as a positive influence on work, giving physicians the “ability to utilize idle time between tasks.” Additionally, lower levels of multitasking actually improved the quality of care, since “low levels of stress can aid cognitive function.” Once multitasking behavior became excessive, productivity declined dramatically due to a variety of factors, including work interruptions and coordination costs. A higher level of multitasking also led to a drop in detected diagnoses and an increased rate of revisits in a 24-hour period for patients initially treated in the emergency department. Physicians spent less time with patients and their overall focus suffered. Source: