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Market-Based Solutions to Vital Economic Issues


Kenan Institute 2022 Grand Challenge: Stakeholder Capitalism
Market-Based Solutions to Vital Economic Issues



We quantify the causal effects of humorous banter among three rival fast-food brands on Twitter in the context of a new product launched by one of the rivals (viz, the focal or entrant brand). We argue that Twitter banter can cause a surge in online search that in turn leads to higher offline sales.

Adverse events, such as product recalls, transcend business-to-business (B2B) secondary markets (i.e., used product markets). Yet, little, if any, is known about the impact of such adverse events on purchase responses of B2B buyers (i.e., channel intermediaries). The current study addresses this research gap in the empirical context of product recalls in the U.S. automobile secondary market.

Brands seeking to achieve reduced sugar content in their products generally adjust their product line to include products (i) with lower sugar content, which decreases the brand’s relative sugar content, or introduce (ii) smaller package sizes, which lowers its sugar content per package. Such sugar reduction efforts can affect consumers’ taste, health, and/or convenience perceptions, which influence products’ sales, so the current study investigates the effects of sugar reduction efforts on both volume and sugar sales in the U.S. soda category. A uniquely compiled data set, pertaining to sugar reduction efforts involving almost 140,000 product additions by nearly 80 brands over 11 years in the United States, shows that on average, sugar content (package size) reductions perform worse (better) than similar, non-reduced products.

Soda taxes are an increasingly popular policy tool, used to discourage purchases of sugar-sweetened beverages. This study analyzes how marketing conduct and its effectiveness might change after soda tax introductions. Prior studies on the effect of soda taxes focus on price increases but neglect other, managerially relevant marketing conduct tools, such as promotional frequency, promotional discount depth, and feature promotion frequency. This study documents how the marketing conduct and its effectiveness changed with the introduction of the tax across more than 200 retail stores in five markets.

Standard private labels (PLs) have been the topic of multiple prior reviews. Having been leapfrogged by business practice, the marketing literature has only recently witnessed a surge in interest in multi-tier PL offerings. These typically include a budget and/or premium tier in addition to the omnipresent standard PL tier. This study offers a systematic review of recent empirical findings on budget and premium PLs.

The market for structured retail products (SRPs) has grown rapidly in sales volume and complexity over the last two decades. I examine extrapolative expectation to explain this phenomenon. Products with higher past returns have experienced higher sales growth and this effect is stronger for more complex products, leading to increasing popularity of

The essence of a brand is that it delivers on its promises. However, consumers’ trust in brands (CTB) has declined around the world in recent decades. As a result, CTB has become a major concern for managers. The authors examine whether CTB is influenced by marketing-mix activities (i.e., advertising, new product introduction, distribution, price, and price promotion) implemented by brands.

We study differences in the effects of prices, non-price promotions, and brand line length on brand shares at different retail formats. Our conceptual framework rests on the presence of trip level fixed and category level variable utility components and shows how the trade-off between these components results in (i) different formats visited on different types of shopping trips; and (ii) differential marginal sensitivities of brand shares to changes in marketing mix variables across trip types.

A consumer's decision to engage in search depends on the beliefs the consumer has about an unknown product characteristic such as price. In this paper, we elicit the distribution of price beliefs and explicitly study their role in a consumer's decision to search.

Channels have traditionally been viewed as intermediaries that facilitate the transfer of products from manufacturers to consumers. Innovations in digital technologies help firms to integrate the customer experience across channels and devices. This new phenomenon is referred to as “omnichannel marketing.”

This article’s objective is to inspire and provide guidance on the development of marketing knowledge based on the theories-in-use (TIU) approach.