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MSI Reports 2008

Includes all working papers, research notes, and other material issued in the quarterly 2008 MSI Reports.

When Wal-Mart Enters: Retailer Reactions and Sales Outcomes
Kusum Ailawadi, Jie Zhang, Aradhna Krishna, and Michael W. Kruger, 2008  [08-122]
Examines retailers’ reactions to a Wal-Mart entry into their local market, and sales outcomes, using a dataset including seven first-time Wal-Mart entries, and weekly store movement data for 46 product categories.

Modeling Global Spillover in New Product Takeoff
Yvonne van Everdingen, Stefan Stremersch, and Dennis Fok, 2008  [08-121]
Examines international spillover of foreign product introductions and takeoffs on a focal country’s time–to-takeoff; investigates how foreign clout, susceptibility to foreign influences, and inter-country distances moderate spillover effects for eight high-tech consumer products across 55 countries.

Opinion Leadership and Social Contagion in New Product Diffusion
Raghuram Iyengar, Christophe Van den Bulte, and Thomas Valente, 2008  [08-120]
Studies how opinion leadership and social contagion within social networks affect the adoption of a new drug among physicians in three cities.

Do Mindset Metrics Explain Brand Sales?
Shuba Srinivasan, Marc Vanhuele, and Koen Pauwels, 2008  [08-119]
Analyzes the added explanatory value of including customer mindset metrics in a sales response model that already accounts for short- and long-term effects of the marketing mix.

Customer Search in Response to Sales Taxes: The Internet versus Catalogs
Eric T. Anderson, Nathan M. Fong, Duncan I. Simester, and Catherine E. Tucker, 2008  [08-118]
Assesses how opening a store in a high tax state affects Internet and catalog demand; extends analysis to a panel of multichannel firms.

The Role of Local Environments in Customer Acquisition Online
Jeonghye Choi, David R. Bell, and Leonard M. Lodish, 2008  [08-117]
Examines new buyer acquisition via search and word-of-mouth at an online retailer; links cumulative zip-level search and WOM sales data to zip-level market features, including local sales tax, shipping times, local market characteristics, and offline retail alternatives.

Innovation and the Ratchet Effect: How Firms Trade off Value Creation in Financial and Product Markets
Christine Moorman and Fredrika J. Spencer, 2008  [08-116]
Uses 12 years of data on firm innovations, firm stock returns, and estimated firm returns to examine the stock market and revenue implications of firms ratcheting levels of innovation over time.

Valuing Branded Businesses
Natalie Mizik and Robert Jacobson, 2008  [08-115]
Presents an approach for valuing branded businesses that enhances traditional multiplier-based valuation approaches by explicitly incorporating brand characteristics into the model.

Marketing and Shareholder Value: Sales Capitalization and Its Estimation
Oliver Kim, Steve C. Lim, and Robert F. Lusch, 2008  [08-114]
Proposes an approach to link customer value to shareholder value by measuring how sales changes are translated into earnings changes and ultimately into changes in earnings capitalization or share price.

Expanding the Role of Marketing: From Customer Equity to Market Capitalization
V. Kumar and Denish Shah, 2008  [08-113]
Develops a framework to link customer equity (as determined by the customer lifetime value metric) to market capitalization (as determined by the stock price of the firm); tests framework with two Fortune 1000 firms.

Does a Firm's Product Recall Strategy Affect Its Financial Value?
Yubo Chen, Shankar Ganesan, and Yong Liu, 2008  [08-112]
Examines the impact of proactive versus passive product recall strategies on stock returns; uses Consumer Product Safety Commission product recall data over a 12-year period from 1996 through 2007.

The Debate over Doing Good: Corporate Social Performance and Firm-idiosyncratic Risk
Xueming Luo and C.B. Bhattacharya, 2008  [08-111]
Develops a multivariate model linking corporate social performance, advertising, and R&D to firm-idiosyncratic risk, and tests it using data for a sample of Fortune magazine’s “America’s Most Admired Companies” and from Compustat and the Center for Research in Security Prices.

Wisdom—The Pinnacle of Human Virtues and a Central Foundation for Macromarketing
David Glen Mick, Thomas S. Bateman, and Richard J. Lutz, 2008  [08-110]
Examines wisdom in marketing contexts via pertinent literature and interviews with leading executives; suggests that wisdom in marketing is characterized by the recognition and management of five central paradoxes.

A New Dynamics-based Segmentation Approach for Maximizing Long-term Marketing Impact
Catarina Sismeiro, Natalie Mizik, and Randolph E. Bucklin, 2008  [08-109]
Develops an approach for modeling the coexistence of multiple dynamic behavioral patterns within a single product market; applies model to data from an anonymous panel of 5,000 U.S. physicians tracked monthly over a period of approximately two years for a single drug.

Generalized Long-term Price Effects: Are They Asymmetric, Nonmonotonic, and Time Dependent?
Shijin Yoo and Koen Pauwels, 2008  [08-108]
Develops a generalized model to measure the long-term impact of price changes, testing for asymmetry in positive and negative changes, nonmonotonicity in the magnitude of changes, and time variance; applies model to dataset for five brands in 18 U.S. city markets.

Order in Product Customization Decisions
Jonathan Levav, Mark Heitmann, Andreas Herrmann, and Sheena S. Iyengar, 2008  [08-107]
Examines whether order of product attributes influences consumers as they make customization decisions, based on experiments involving major durable products (a men’s suit or an automobile).

Do Innovations Really Pay Off? Total Stock Market Returns to Innovation
Ashish Sood and Gerard J. Tellis, 2008  [08-106]
Demonstrates that stock markets react positively to innovation projects, using Fama-French Momentum Four-Factor Model on 5,481 announcements from 69 firms, during the period 1977-2006.

Online User Comments versus Professional Reviews: Differential Influences on Pre-release Movie Evaluation
Anindita Chakravarty, Yong Liu, and Tridib Mazumdar, 2008  [08-105]
Examines the influences of online user comments and reviews by professional critics on moviegoers’ evaluation of to-be-released movies; segments movie audiences into frequent and infrequent moviegoers.

Getting Marketing Back in the Boardroom: Understanding the Drivers of Marketing’s Influence within the Firm
Peter Verhoef and Peter Leeflang, 2008  [08-104]
Investigates marketing's influence in the firm, and assesses its determinants and consequences, based on interviews of 25 executives from Dutch firms and a large-scale Internet-based survey of several hundred managers.

A New Approach to Modeling the Adoption of New Products: Aggregated Diffusion Models
Olivier Toubia, Jacob Goldenberg, and Rosanna Garcia, 2008  [08-103]
Combines traditional aggregate approach with the agent-based approach to describe and forecast the diffusion process of new products; uses model to enable a major consumer packaged goods (CPG) manufacturer to develop a theory-driven aggregate diffusion model and to calibrate this model shortly after launch using survey data.

Feeling Superior: The Impact of Loyalty Program Structure on Customers’ Perceptions of Status
Joseph Nunes and Xavier Drèze, 2008  [08-102]
Assesses the impact of loyalty programs' hierarchical structures (number of tiers and relative size of each tier) on consumers' perceptions of status.

Building with Bricks and Mortar: The Revenue Impact of Opening Physical Stores in a Multichannel Environment
Koen Pauwels and Scott A. Neslin, 2008  [08-101]
With data from a retailer of durables and apparel, assesses the revenue impact of adding bricks-and-mortar stores to existing catalog and Internet channels (frequency and size of purchases, returns, exchanges, and customer acquisition); investigates the role of the firm’s marketing efforts; uses a multivariate baseline approach.

A Meta-analysis of Personal Selling Elasticities
Sönke Albers, Murali Mantrala, and Shrihari Sridhar, 2008  [08-100]
Analyzes estimates from 46 empirical studies published during the past four decades to provide quantitative generalizations about the effects of personal selling.

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