Marketing

Abstract: We investigate extraordinary group experiences to better understand how highly stressed consumers gain and preserve long-term well-being from their associated memories. We report the results of three studies that use experiments, a survey, and organizational data from Make-A-Wish. We find that groups who are profoundly stressed and share an extraordinary experience (e.g., families with a critically ill child) create memories that improve their well-being via enhanced cohesion, the perception that the group is stable, bonded, and enduring. We show that highly stressed consumers recharge basic psychological needs through extraordinary experiences and the benefits of these experiences are prolonged by collectively rehearsing the associated memories, a process that causes consumers to come together and experience increased well-being even years after the experience. Through our investigation of special memories, cohesion, and well-being, our results suggest that investments in extraordinary group experiences by the charitable wish sector and stressed consumers is money well spent with long-term benefits.

Abstract: Debt accumulation has been linked to materialism, impulsivity, shortsightedness, self-control, and lifestyle preferences. However, applying stigma theory allows novel insights into debt accumulation for middle-class individuals who access a variety of credit-related products. The authors define anticipated stigmatization of debt as the negative judgment and discrimination an individual expects to experience because of their consumer indebtedness. Results from a series of studies demonstrate that although financial stress motivates behaviors designed to reduce debt, debtors who anticipate stigmatization perform a variety of concealment behaviors (secrecy, social spending, and help avoidance) that hinder debt reduction and have negative effects on well-being. To understand how to help these individuals, the authors collaborated with a financial education company, designing a field experiment to examine the efficacy of a behavior change course. Individuals who anticipated stigmatization and formed new social connections in a community-based condition reduced their consumer debt. Although the emotional effect of community-based support has been examined in other stigma contexts, this study is the first to investigate the effect on well-being in a debt context and link social benefits to actual behavior change in terms of debt reduction behaviors and debt repayment.

Abstract: When a consumer (a recommender) recommends a product to another consumer (a recommendee), it is not uncommon to learn whether the recommendee chose the recommended option (i.e., accepted the recommendation) or a different option (i.e., rejected the recommendation). Our research examines how rejected recommendations affect recommenders’ subsequent intentions toward the originally recommended product. We find that upon learning one’s recommendation was rejected, recommenders are less likely to repurchase or choose the product in the future. This negative effect emerges because recommenders question their knowledge about the recommended product (i.e., self-perceived expertise is reduced). Such questioning is more likely to occur when the recommendee is a close other and less likely to occur when the recommended product is perceived to primarily differ from alternatives due to subjective preferences (i.e., horizontal differentiation is salient). Importantly, this rejected recommendation effect is shown to be distinct from a social proof account. The current research contributes to WOM theory by identifying a novel outcome of recommendation interactions—rejected recommendations—and by demonstrating that this outcome can cause consumers to shift away from a product despite having felt positively enough about the product to recommend it to others.