Invest or Harvest: Dilemma ReexaminedAug 29, 2019 Ashish Sood, Vijay Govindarajan, Anup Srivastava, and Birendra Mishra, 2019, 19-127-08
Analysis of companies listed on U.S. stock exchanges from 1971–2014 shows that companies' strategic shift from value creation (to produce future benefits) to value appropriation (to support current operations) is associated with negative stock returns. This finding runs contrary to the idea that shareholders are obsessed with current profits at the cost of long-term value.
Trade-offs in Online Advertising: Advertising Effectiveness and Annoyance Dynamics across the Purchase FunnelAug 22, 2019 Vilma Todri, Anindya Ghose, and Param Vir Singh, 2019, 19-126-08
When do display-ad exposures cross the line from effective to irritating? It depends on where the consumer is in the purchase funnel - the threshold of annoyance for shoppers in the "interest" stage is two times higher than for those in the "awareness" stage. Other findings: it's important to diversify ad creatives - and to steer away from animated display ads.
How Should Firms Onboard New Salespeople? The Relative Efficacy of Centralized Versus On-the-Job TrainingAug 2, 2019 Michael Ahearne, Phillip Wiseman, Zachary Hall, and Seshadri Tirunillai, 2019, 19-125-08
Digitally supported on-the-job training can offer cost savings over centralized training programs, and this quasi-experiment finds that such programs can improve performance as well – if the sales manager has the bandwidth to provide guidance early on in a new hire’s tenure.
The Impact of Device Used in Digital Paths on Deadline-Driven Purchase DecisionsAug 1, 2019 Meheli Basu, J. Jeffrey Inman, and Kirk Wakefield, 2019, 19-124-08
Based on three years of StubHub data, this study shows higher conversion rates for PC-only than for mobile-only consumer path. Device-switching spells trouble for purchase likelihood, but higher sales per transaction. One thing's for certain: as channels and devices evolve, marketing optimization is a moving target.
Selling in the Digital AgeJul 16, 2019 Michael Ahearne, Zachary Hall, Partha Krishnamurthy, and Mohsen Pourmasoudi, 2019, 19-123-07
Today, thanks to the internet, many people know a lot about what they want to buy. What happens when they encounter salespeople whose approaches assume that they are uninformed, uncertain, and undecided? Data from 356 sales encounters shows a drop in purchase likelihood, sales revenue, and customer satisfaction when salespeople deploy "classic" sales models.