Recent Publications

2025

• Ding, A. W. and Li, Shibo
  Generative AI Lacks the Human Creativity to Achieve Scientific Discovery from Scratch, Scientific Reports

  Abstract

  Abstract

  Scientists are interested in whether generative artificial intelligence (GenAI) can make scientific discoveries similar to those of humans. However, the results are mixed. Here, we examine whether, how and what scientific discovery GenAI can make in terms of the origin of hypotheses and experimental design through the interpretation of results. With the help of a computer-supported molecular genetic laboratory, GenAI assumes the role of a scientist tasked with investigating a Nobel-worthy scientific discovery in the molecular genetics field. We find that current GenAI can make only incremental discoveries but cannot achieve fundamental discoveries from scratch as humans can. Regarding the origin of the hypothesis, it is unable to generate truly original hypotheses and is incapable of having an epiphany to detect anomalies in experimental results. Therefore, current GenAI is good only at discovery tasks involving either a known representation of the domain knowledge or access to the human scientists’ knowledge space. Furthermore, it has the illusion of making a completely successful discovery with overconfidence. We discuss approaches to address the limitations of current GenAI and its ethical concerns and biases in scientific discovery. This research provides insight into the role of GenAI in scientific discovery and general scientific innovation.

2023

• Cao, J., Chintagunta, P., and Li, Shibo
  From Free to Paid: Monetizing a Non-Advertising Based App, Journal of Marketing Research

  Abstract

  Abstract

  Non-advertising-based mobile apps face several critical challenges when trying to monetize their free services; among them: the choice of pricing strategies (hard landing vs. soft landing, i.e., a “pay or churn” paywall or continue offering limited free services to existing users after monetization) and aspects of product design (whether to provide exclusive secondary offerings to paying users). We implemented a large-scale randomized field experiment with an app firm to test the causal effects of such pricing and product design strategies. Results show that both soft landing and exclusive secondary offerings decrease existing app users’ willingness to subscribe; but there is a positive interaction between these two strategies on subscriptions. We propose a theoretical framework, discuss potential mechanisms that might be at play, and conduct robustness checks to rule out several alternative explanations. A customer survey by the firm and an experiment on Prolific provide further support for the theoretical mechanism. To assess generalizability, we conducted a second field experiment and obtained consistent results. We also report the results from the actual implementation of the best performing strategy by the firm. Our research provides guidance on possible theoretical underpinnings of users’ responses and important managerial implications for app monetization.

• Zhang, X., Zhang, K., Li, Shibo, and Koenitz, D.
  Effects of Store Fixture Shape at Retail Checkout: Evidence from Field and Online Studies, Production and Operations Management

  Abstract

  Abstract

  Previous research from both marketing and operations management has shown that servicescape design, as an effective retail operations strategy, can significantly influence consumers’ purchases. We extend this literature by investigating how fixture shape, an important environmental factor that has received little attention in previous studies, can influence consumer purchase intentions at retail checkout. Findings from a field study and three online experiments consistently suggest that tower-shaped fixtures, in comparison to other conventional fixtures, can increase checkout purchase intentions. Moreover, the proposed effect is driven by the increased visual attention to products when displayed on tower fixtures. We also identify consumers’ information processing style (i.e., more vs. less reliant on visual processing) as a theoretically relevant moderator. Specifically, customers who rely more heavily on visual information processing are more susceptible to the influence of a tower fixture than those who rely less on visual information processing. Through this research, we contribute novel insights to the understanding of display fixtures and retail operation management. This study augments the design task from product shape to fixture shape for manufacturers, and sheds light on retailer merchandising strategy as well as retail space management at checkout.

2022

• Astvansh, Vivek and Jindal, Niket
  Differential Effects of Received Trade Credit and Provided Trade Credit on Firm Value, Production and Operations Management

  Abstract

  Abstract

  With over half a trillion dollars in trade credit flowing between firms in the U.S., it is critically important for managers to understand how the trade credit that their firm receives and provides affect its value. Trade credit is a strategic investment in supply chain relationships that allows the recipient to make payment later rather than at the time of the sale. A firm provides trade credit to its downstream business customers and also receives trade credit from its upstream suppliers. Although research has shown that provided trade credit builds a firm’s shareholder value, it has not examined what effect, if any, received trade credit has on the firm’s value. As a result, one might assume that received trade credit affects firm value in the same manner as provided trade credit. We argue otherwise and show that received trade credit and provided trade credit have differential effects on firm value. Received trade credit has a negative direct effect and a positive indirect effect (through profit), whereas provided trade credit has a positive direct effect and a negative indirect effect. The difference in direct effects hinges on the disparate nature of dependence in the supply chain. Provided trade credit increases customers’ dependence on the firm, building the firm’s value. In contrast, received trade credit increases the firm’s dependence on its suppliers, destroying the firm’s value. Empirical results using a sample of 2,804 firms from 1986 to 2017 provide robust support for the hypotheses. They show that managers risk over-estimating the value of a 1 SD increase in received (provided) trade credit by $284.74 ($74.95) million, on average, if they do not consider both the direct and indirect effects it has on their firm’s value.

  SSRN Link

• Astvansh, Vivek, Ball, George, and Josefy, Matthew
  The Recall Decision Exposed: Auto Recall Timing and Process Dataset, Manufacturing & Service Operations Management

• Bu, Juan, Zhao, Eric, Li, Krista J., and Li, J. M.
  Multilevel optimal distinctiveness: Examining the impact of within- and between-organization distinctiveness of product design on market performance, Strategic Management Journal

  Abstract

  Abstract

  This research develops a multilevel framework to study optimal distinctiveness (OD) at two different levels. Specifically, we distinguish between within-organization distinctiveness and between-organization distinctiveness of product design and examine how they independently and interactively influence performance. Analyzing a unique data set of 2,203 model-year observations for automobiles sold in the U.S. market from 2001 to 2016, we found that while within-organization distinctiveness of product design hurts market performance, between-organization distinctiveness of product design increases market performance. Moreover, when between-organization distinctiveness of product design is high, the negative impact of within-organization distinctiveness of product design on performance is weakened. These findings contribute to OD research by improving the understanding of OD as a multilevel construct and elaborating on its contextual contingency.

• Cosguner, Koray and Seetharaman, S.
  Dynamic Pricing for New Products Using a Utility-Based Generalization of the Bass Diffusion Model, Management Science

  Abstract

  Abstract

  The Bass Model (BM) has an excellent track record in the realm of new product sales forecasting. However, its use for optimal dynamic pricing or advertising is relatively limited since the Generalized Bass Model (GBM), which extends the BM to handle marketing variables, uses only percentage changes in marketing variables rather than their actual values. This restricts the GBM's prescriptive use, for example, to derive the optimal price path for a new product, conditional on an assumed launch price, but not the launch price itself. In this paper, we employ a utility-based extension of the BM, which can yield normative prescriptions regarding both the introductory price, as well as the price path after launch, for the new product. We offer two versions of this utility-based diffusion model, namely the Bass-Gumbel Diffusion Model (BGDM) and the Bass-Logit Diffusion Model (BLDM), the latter of which has been previously used by Krishnan, Seetharaman and Vakratsas (2012). We show that both BGDM and BLDM handily outperform the GBM in forecasting new product sales using empirical data from four product categories. We discuss how to estimate BGDM and BLDM in the absence of past sales data. We compare the optimal pricing policy of the BLDM with the GBM and derive optimal pricing policies that are implied by the BLDM under various ranges of model parameters. We illustrate a dynamic pricing approach that allows managers to derive optimal marketing policies in a computationally convenient manner; and extend this approach to a competitive, multi-product case.

• Herd, K., Mallapragada, Girish, and Narayan, V.
  Do Backer Affiliations Help or Hurt Crowdfunding Success?, Journal of Marketing

• Khamitov, Mansur and Puzakova, M.
  Possessive Brand Names in Brand Preferences and Choice: The Role of Inferred Control, Journal of the Academy of Marketing Science

• Morgan, Neil, Jayachandran, S., Hulland, J., Kumar, B., Katsikeas, C., and Somosi, A.
  Marketing Performance Assessment and Accountability: Process and Outcomes, International Journal of Research in Marketing

• Venkatesh, S., Grewal, D., Sunder, Sarang, Fossen, Beth L., Agarwal, A., and Peters, K.
  Digital marketing communication in global marketplaces: A review of extant research, future directions, and potential approaches, International Journal of Research in Marketing

2021

• Barney-McNamara, B., Peltier, J., Chennamaneni, P. R., and Niedermeier, Keith
  A conceptual framework for understanding the antecedents and consequences of social selling: a theoretical perspective and research agenda, Journal of Research in Interactive Marketing

• Bhattacharya, A., Morgan, Neil, and Rego, Lopo L
  Customer Satisfaction and Firm Profits in Monopolies: A Study of Utilities, Journal of Marketing Research

• Burke, Raymond R. and Leykin, Alex
  Identifying the Drivers of Shopper Attention, Engagement, and Purchase, The Routledge Companion to Marketing Research, Routledge

• Chen, M., Burke, Raymond R., Hui, S. K., and Leykin, Alex
  Understanding Lateral and Vertical Biases in Point-of-Purchase Product Considerations: An In-Store Ambulatory Eye-Tracking Study, Journal of Marketing Research

  Abstract

  Abstract

  Given the conventional wisdom that “unseen is unsold,” retail practitioners are keenly interested in understanding consumers’ attention to products in the store. Using in-store ambulatory eye-tracking, we investigate the extent to which lateral and vertical biases drive consumers' attention in a grocery store environment. Our dataset offers a complete picture of not only where the shopper is located, but also the shopper’s field of view and visual fixations during the trip. Using our novel dataset, we address two research questions:  First, do shoppers have a higher propensity to pay attention to products on their left or right side as they traverse an aisle (i.e., is the right side the “right side”)?  Second, do shoppers tend to pay more attention to products at their eye level (i.e., is eye-level “buy-level”)? We utilize the exogenous variations in the direction by which shoppers traverse an aisle (northward vs southward), obtainable from their shopping paths, to identify lateral bias. The exogenous variation of shoppers' eye-level positions, due to their differences in height, is used to identify vertical bias. We find that shoppers pay more attention to products on their right side when traversing an aisle, and this bias holds for both right- and left-handed shoppers. Contrary to many practitioners’ belief, we find that eye-level is not “buy-level”; rather, the product level that has the highest propensity to capture shoppers’ attention is about 14.7 inches below eye-level (which is around chest level). Further, this vertical bias becomes more prominent during the latter part of a shopping trip.

  SSRN Link

• Connors, S., Khamitov, Mansur, Thomson, M., and Perkins, A.
  They’re Just Not that into You: How to Leverage Existing Consumer-Brand Relationships through Social Psychological Distance, Journal of Marketing

• Das, D., Jain, S. P., Slotegraaf, Rebecca J, and Srinivasan, R.
  Pandemics and Marketing: Insights, Impacts, and Research Opportunities, Journal of the Academy of Marketing Science

• Fossen, Beth L., Mallapragada, Girish, and De, Anwesha
  Impact of Political Television Advertisements on Viewers’ Response to Subsequent Advertisements, Marketing Science

• Fossen, Beth L. and Bleier, A.
  Online Program Engagement and Audience Size during Television Ads, Journal of the Academy of Marketing Science

• Gu, Xian and Kannan, P. K.
  The Dark Side of Customer Mobile App Adoption: Examining the Impact on Their Multichannel Purchase, Journal of Marketing Research

• Li, Krista J.
  Behavior-Based Quality Discrimination, Manufacturing & Service Operations Management

  Abstract

  Abstract

  New technology enables firms to recognize customers from their purchase histories and then provide different quality levels of product features or services for repeat and new customers. Extant research has examined behavior-based price discrimination (BBP), that is, how firms set different prices for repeat and new customers. This research extends the literature by investigating behavior-based quality discrimination to reveal the unique effects of quality discrimination beyond the effects of BBP. Using a two-period game-theoretic model, we find that firms reward repeat customers on the quality dimension by offering them higher-quality product features or service than what new customers receive. Such quality discrimination dissuades competitive poaching, softens second-period price competition, and increases second-period profits. Meanwhile, firms reward new customers on the price dimension by offering them a lower price than what repeat customers pay. Therefore, firms should reward different types of customers with the right attribute (i.e., product features or services versus price). In addition, quality discrimination increases customer retention in the second period. Anticipating this outcome, forward-looking firms reduce first-period prices to compete aggressively for initial customers. This effect intensifies first-period competition and reduces first-period profits. Overall, behavior-based quality discrimination decreases firms' total profits but increases consumer surplus and social welfare.

• Li, Krista J. and Zhang, J.
  How Does Customer Recognition Affect Service Provision?, International Journal of Research in Marketing

  Abstract

  Abstract

  We examine how channel members’ ability to recognize repeat and new customers affects service provision, profits, and welfare. In decentralized channels, when only retailers can recognize customers, customer recognition increases service levels. However, in centralized channels or decentralized channels when both manufacturers and retailers can recognize customers, customer recognition reduces (increases) service levels if service investment persists (diminishes) sufficiently over time. Moreover, in centralized channels, customer recognition reduces firm profits and consumer surplus, whereas in decentralized channels, when manufacturers and retailers can recognize customers, customer recognition increases channel members’ profits but decreases consumer surplus.

• Li, Krista J.
  Product and Service Innovation with Customer Recognition, Decision Sciences

  Abstract

  Abstract

  Product and service innovation is important for brands to succeed in a competitive marketplace. As information technology advances, customer recognition becomes a growing industry trend; that is, brands track customers’ purchase history, recognize and price discriminate between repeat and new customers. The trend of customer recognition has changed the nature and intensity of competition between brands. In this article, we examine how customer recognition and the associated changes in competition affect brands’ incentives to invest in product and service innovation. We find that when brands have similar equity, customer recognition increases brands’ incentives to invest in product and service innovation. However, when brands have sufficiently different equity, customer recognition leads the stronger brand to invest more and the weaker brand to invest less in product and service innovation. In addition, extant literature suggests that customer recognition reduces brand profits. In contrast, we find that customer recognition can increase the weaker brand’s profit but decreases it more for the stronger brand. Thus, collecting customers’ purchase history data for customer recognition can be beneficial for weaker brands but detrimental for stronger brands.

• McMullen, Jeffery S., Ding, A. W., and Li, Shibo
  From Cultural Entrepreneurship to Economic Entrepreneurship in Cultural Industries: The Role of Digital Serialization, Journal of Business Venturing

  Abstract

  Abstract

  Digitization has provided entrepreneurs direct access to consumers in cultural industries while offering intermediaries an alternative to critics’ reviews when deciding whether to invest in creative products. Using data from the Chinese online self-publishing industry, we examine whether and how intermediaries use popular acclaim when deciding to invest in self-published books. We then flip the script and examine whether cultural entrepreneurs generate intermediary investment through popular acclaim and to what extent they do so through a digital serialization strategy. We find that, by encouraging both popular acclaim and intermediary investment, digital serialization emancipates cultural entrepreneurs from the indirect and uncertain reciprocity historically described by cultural entrepreneurship theory. Instead, digital serialization allows cultural entrepreneurs to generate consumer attention directly through economic entrepreneurship and to alter the power and roles of intermediaries and entrepreneurs in the cultural production process.

• Wang, X. (S)., Lu, S., Li, X., Khamitov, Mansur, and Bendle, N.
  Audio Mining: The Role of Vocal Tone in Persuasion, Journal of Consumer Research

• Zhang, J. and Li, Krista J.
  Quality Disclosure under Consumer Loss Aversion, Management Science

  Abstract

  Abstract

  Consumers experience a sense of loss when a product's quality does not match their expectations. To alleviate consumer loss aversion (CLA), firms can disclose information to reduce consumers' uncertainty about product quality and the resulting psychological loss. In this paper, we investigate the implications of CLA on firm profit, consumer surplus, and social welfare when firms endogenously make quality disclosure decisions. We find that CLA leads symmetric firms to disclose quality more often. Given that CLA weakly reduces consumers' utility from buying a product and quality disclosure is costly, intuition suggests that CLA is detrimental to firms. We find that this intuition is only true in a monopoly. Surprisingly, CLA makes both firms in a competition better off. These effects are unique to CLA, while related emotion such as anticipated regret does not affect disclosure decisions or firm profits. Moreover, CLA increases firms' profit when they invest in quality disclosure instead of money-back guarantees to respond to CLA. We also find that CLA decreases consumer surplus and social welfare. Therefore, educating consumers to improve decision-making skills by deliberating on future outcomes and emotions can benefit firms at the cost of consumers and society. When firms disclose quality sequentially, CLA can discourage the follower from disclosing quality. A strong level of CLA increases the leader's profit over the follower's, thereby encouraging firms to be the first mover in quality disclosure.

2020

• Feng, H., Morgan, Neil, and Rego, Lopo L
  The Impact of Unprofitable Customer Management Strategies on Shareholder Value, Journal of the Academy of Marketing Science

  Abstract

  Abstract

  A significant proportion of many firms’ customers are unprofitable. The question of how unprofitable customers should be managed has recently received increasing research attention from the customer and manager angles, but the effects of unprofitable customer management (UCM) strategies on shareholder value is unknown. Using an event study methodology, we examine stock market reactions to disclosures of firms’ UCM strategy decisions. Results from a sample of UCM strategy disclosure events reveal an average short-term abnormal stock return of −0.53%. Drawing on signaling theory logic, we explore a number of signal (UCM strategy), signaler (firm engaging in UCM), and signaling environment characteristics that may affect the shareholder value effects of firms’ UCM approaches. Our analyses show that investors respond more favorably to indirect UCM strategies than to direct customer divestment strategies. We also find that particular types of indirect UCM strategy approaches and strategic intent in UCM strategy adoption, stronger firm marketing capabilities and, and positive publicity can help mitigate the generally negative abnormal stock returns observed. Overall, our findings have important implications for marketing theory and provide actionable new insights for managers into how to approach the management of unprofitable customers.

• Ho-Dac, N. N., Kumar, M., and Slotegraaf, Rebecca J
  Using Product Development Information to Spur the Adoption of Continuous Improvement Products, Journal of the Academy of Marketing Science

• Jo, W., Sunder, Sarang, Choi, J., and Trivedi, M.
  Protecting Consumers from Themselves: Assessing Consequences of Usage Restriction Laws on Online Game Usage and Spending, Marketing Science

• Kidwell, B., Lopez Kidwell, V., Blocker, C., and Mas, Erick
  Birds of a Feather Feel Together: Emotional Ability Similarity in Consumer Interactions, Journal of Consumer Research

• Li, X., Li, Krista J., and Wang, S.
  Transparency of Behavior-Based Pricing, Journal of Marketing Research

  Abstract

  Abstract

  Behavior-based pricing (BBP) refers to the practice in which firms collect consumers' purchase history data, recognize repeat and new consumers from the data, and offer them different prices. BBP is a prevalent practice for firms and a worldwide concern for consumers. Extant research has examined BBP under the assumption that consumers observe firms' practice of BBP. However, consumers do not know this for specific firms and are often unaware of how firms collect and use their data. In this paper, we examine how firms make BBP decisions when consumers do not observe whether firms perform BBP and how the transparency of firms' BBP practice affects firms and consumers. We find that when consumers do not observe firms' practice of BBP and the cost of implementing BBP is low, a firm indeed practices BBP, even though BBP is a dominated strategy when consumers observe it. When the cost is moderate, the firm does not use BBP; however, it must distort its first-period price downward to signal and convince consumers of its choice. A high cost of implementing BBP serves as a commitment device that the firm will forfeit BBP, thereby improving firm profit. By comparing regimes in which consumers observe and do not observe a firm's practice of BBP, we find that transparency of BBP increases firm profit but decreases consumer surplus and social welfare. Therefore, commanding firms to disclose collection and usage of consumer data could hurt consumers and lead to unintended consequences.

• Musarra, G. and Morgan, Neil
  Outside-in marketing: Renaissance and future, Industrial Marketing Management

• Park, H., Lalwani, Ashok K., and Silvera, D. H.
  The Impact of Resource Scarcity on Price-Quality Judgments, Journal of Consumer Research

• Rixom, J. M., Mas, Erick, and Rixom, B. A.
  Presentation Matters: The Effect of Wrapping Neatness on Gift Attitudes, Journal of Consumer Psychology

• Rodriguez-Vila, O., Bharadwaj, S., Morgan, Neil, and Mitra, S.
  Is Your Marketing Organization Ready for What’s Next?, Harvard Business Review

• Schrift, Rom and Zwebner, Y.
  On My Own: The Aversion to Being Observed During the Preference-Construction Stage, Journal of Consumer Research

• Wang, J. J., Torelli, C. J., and Lalwani, Ashok K.
  The Interactive Effect of Power Distance Belief and Consumers' Status on Preference for National (vs. Private-label) Brands, Journal of Business Research