rss_2.0NIM Marketing Intelligence Review FeedSciendo RSS Feed for NIM Marketing Intelligence Review Marketing Intelligence Review 's Cover but not Naive: Leaders of Tomorrow Expect Limits to Digital Freedom to Preserve Freedom<abstract> <title style='display:none'>Abstract</title> <p>In a recent survey, about 900 “Leaders of Tomorrow” from more than 90 countries all over the world shared their opinions about “the impact of new technologies on human freedom of choice.” They take a very clear stance against unlimited freedom of speech on the Internet. The majority thinks platforms that until now have often taken a “hands off” approach, rejecting content filtering by claiming they are “just the messenger,” should be obliged to prevent and censor hate speech and fake news on the Internet. Platforms are expected to work hand-in-hand with state institutions to better prevent online manipulation and abuse and to protect personal data. The Leaders of Tomorrow also advocate that personal data should be controlled by their owners when they are used by online platforms. Applications that lack transparency and cannot be influenced by the customer are met with the highest extent of objection.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00The Illusion of Free Choice in the Age of Augmented Decisions<abstract> <title style='display:none'>Abstract</title> <p>In our augmented world, many decision situations are designed by smart technologies. Artificial intelligence helps reduce information overload, filter relevant information and limit an otherwise overwhelming abundance of choices. While such algorithms make our lives more convenient, they also fulfill various organizational objectives that users may not be aware of and that may not be in their best interest. We do not know whether algorithms truly optimize the benefits of their users or rather the return on investment of a company. They are not only designed for convenience but also to be addictive, and this opens the doors for manipulation. Therefore, augmented decision making undermines the freedom of choice. To limit the threats of augmented decisions and enable humans to be critical towards the outcomes of artificial intelligence–driven recommendations, everybody should develop “algorithmic literacy.” It involves a basic understanding of artificial intelligence and how algorithms work in the background. Algorithmic literacy also requires that users understand the role and value of the personal data they sacrifice in exchange for decision augmentation.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00Editorial Gone Wrong: What Managers Can Learn from the 2016 US Presidential Election<abstract> <title style='display:none'>Abstract</title> <p>In the 2016 presidential election, the vast majority of available polls showed a comfortable lead for Hillary Clinton throughout the whole race, but in the end, she lost. Campaign managers could have known better, if they had had a closer look at other data sources and variables that – like polls – show voter engagement and preferences. In the political arena, donations, media coverage, social media followership, engagement and sentiment may similarly indicate how well a candidate is doing, and most of these variables are available for free.</p> <p>Validating the bigger picture with alternative data sources is not limited to politics. The latest marketing research shows that online-consumer-behavior metrics can enrich, and sometimes replace, traditional funnel metrics. Trusting a single ‘silver bullet’ metric does not just lead to surprises, it can also mislead managerial decision-making. Econometric models can help disentangle a complex web of dynamic interactions and show immediate and lagged effects of marketing or political events.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00Illuminating the Dark: Exploring the Unintended Consequences of Digital Marketing<abstract> <title style='display:none'>Abstract</title> <p>Our relationship to technology is deeply paradoxical. On the one hand, we buy and constantly use more devices and apps, leaving our traces in the digital space. On the other hand, we increasingly fear the dark sides of being dependent on technology and of data abuse. Inadequate knowledge and errors make it difficult to predict unintended consequences, and often problems emerge due to deliberate choices to pursue some interests while ignoring others. Hot topics include data privacy, potentially biased or discriminating algorithms, the tension between free choice and manipulation, and the optimization of questionable outputs while ignoring broader effects.</p> <p>Fighting unintended consequences should get to the roots of the problems. As for personal data, users should get more control over what they share. Further, more transparency can help avoid dystopian outcomes. It concerns the use of data, in particular, by algorithms. The high concentration of power of a few global players should also be watched closely, and societies need to be critical towards their actions and objectives. Even seemingly noble motives come at a price, and this price needs to be negotiable.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00Instead of People Using Technology, Technology Is Using People<abstract> <title style='display:none'>Abstract</title> <p>The progress of artificial intelligence and new technologies triggers hot debates about the future of human life. While fans of the singularity say that artificial intelligence will become smarter than human beings and should take over the world, for others, such a vision is a sheer nightmare. Douglas Rushkoff is clearly part of the second group and takes a passionate pro-human stance. He explains why giving too much way to technologies is a mistake and why humans deserve a place in the digital future. Already today, technologies have a much stronger impact on our lives than most of us would believe. For him, being human is a team sport, and he asks for a more conscious use of technologies while keeping rapport with other people. To safeguard the humanness in a tech world, he advises to carefully select the values we embed in our algorithms. Rather than serving perpetual growth, technologies ought to help people reconnect with each other and their physical surroundings.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00Algorithm-Based Advertising: Unintended Effects and the Tricky Business of Mitigating Adverse Outcomes<abstract> <title style='display:none'>Abstract</title> <p>Some algorithms may have similar discriminatory tendencies to humans. The presented study investigates gender bias in social media advertising in the context of STEM careers. Results suggest that advertising algorithms are not gender-biased as such, but that economic forces in the background might lead to unintended, uneven outcomes. Spillover effects across industries make reaching some consumer segments more likely than others. A gender-neutral strategy is less likely to reach women because women are more likely to react to advertising. Therefore, targeting them is more expensive and economic forces unintentionally favor men. One potential solution could be running separate campaigns for men and women to target both demographic groups equally. However, anti-discrimination legislation in many countries does not allow companies to target employment ads to only one gender. So ironically, laws that are designed to avoid discrimination actually rule out a fairly simple way to correct the bias in online targeting on Facebook and other platforms, illustrating further need for policy guidance in this area.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00Ghosts in the Dark: How to Prepare for Times of Hyper-Privacy<abstract> <title style='display:none'>Abstract</title> <p>Even the dark web has its bright sides because it can be used as an unregulated testbed for technologies that will eventually appear on the surface. Also, it is a useful place to study consumer privacy and have a view of what the surface world might look like under an extreme level of consumer data protection. In such a world, even our best customers might look like never-before-seen individuals, until they decide to reveal themselves. If there is trust, and a worthwhile value exchange, consumers might be willing to share their data and not enact all of the hyper-privacy available to them. To seize the opportunities, companies should take stock of their customer relationships, hone their data needs, and learn what information is critical, advantageous, or irrelevant for their context. They should implement initiatives that drive choice carefully, in a trustful relationship.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00Marketing Automation: Marketing Utopia or Marketing Dystopia?<abstract> <title style='display:none'>Abstract</title> <p>Automated and personalized interactions may increase the relevance of marketing offers, but they also have less positive economic and psychological consequences for consumers. Machine learning-based prediction algorithms can approximate individuals’ preferences and their willingness to pay at ever greater levels of precision, and companies can use this knowledge to charge higher individual prices. Typically, consumers freely hand over all the information necessary to reveal their preferences and it seems that they underestimate the value of their personal data. And there is another discomforting aspect of giving away personal data. It means giving up privacy and as a result loosing autonomy.</p> <p>Preventing negative outcomes is typically a task for regulators but finding solutions can be difficult. Therefore, companies need to address consumer concerns in their policies as well. To avoid dystopia, managers need to take consumer psychology into account and resist the temptation to maximize short-term profits at the cost of consumers. Avoiding marketing dystopia is in the best interest of all market participants – at least with a longer-term perspective.</p> </abstract>ARTICLE2021-05-05T00:00:00.000+00:00Reaching for the Stars: The Role and Value of Digital Reputation<abstract> <title style='display:none'>Abstract</title> <p>In the old economy, reputation was considered an important but somewhat underestimated intangible asset. In the digital economy, the significance of reputation is expanded in scope. It enables the building of trust among “quasi-strangers” who engage in an economic transaction. Reputation scores, usually in the form of feedback, ranking and rating systems, facilitate the building of trust in the absence of a direct relationship between sellers and buyers. Concomitantly with the rise of social network sites and the proliferation of metrics and analytics of all kinds, the era of the “reputation economy” has dawned. A good reputation usually brings further good evaluations. On the other hand, a bad reputation can be a long-term setback for a company. Having no reputation means virtual non-existence in the eyes of today’s consumers. Professional reputation management is therefore a core task that makes a decisive contribution to the success of a company.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Tales from the Land of Consumer Reviews: Taking a Closer Look at Lurkers and Writers<abstract> <title style='display:none'>Abstract</title> <p>While most consumers routinely read online reviews to inform their purchase decisions, the number of consumers who actively post reviews is astonishingly small. To find their way in the review jungle, readers process the information presented very selectively and pursue different objectives. They use different informational cues for their own decision-making, which often reflects rather stable patterns. Writers, too, are often less interested in presenting their experience as objectively as possible as contextual factors play an important role. Similar to the review readers, they act neither uniformly nor without biases. Whether they take up the pen at all depends, among other things, on whether they represent a majority or minority opinion and what image of themselves they want to convey. A profound understanding of the motives of readers and writers is important to improve one’s own rating system and requires special skills in the management of online ratings. Managers need to find ways to convert more lurkers into posters to get a more realistic picture of the experiences.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Playing the Trust Game Successfully in the Reputation Economy<abstract> <title style='display:none'>Abstract</title> <p>Hunting for “stars”, the icons of the reputation economy, is a prerequisite for survival in e-commerce in general and on sharing platforms in particular. The key to understanding the rise of reputation is trust, and the ability of a platform to provide this trust has become crucial in the past decade. Social media managers are now key players in marketing departments. One of their most important jobs is the careful curation of digital reputations. Marketers need to engage in diverse forms of reputation management and master several challenges in designing the right systems and utilizing reputation information in optimal ways. Engendering trust is more complex than gaining star ratings or positive reviews on owned or third-party platforms. How platforms are designed – in terms of how people can make bookings or orders and how users rate each other – is the key issue. It needs to be managed in a sophisticated way, especially in an era when topics such as racial and ethnic justice are key societal concerns.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Tit for Tat? The Difficulty of Designing Two-Sided Reputation Systems<abstract> <title style='display:none'>Abstract</title> <p>In a two-sided reputation system, it is in the interest of both buyers and sellers to be a good transaction partner. What sounds wonderful in theory is unfortunately not so easy to implement in reality. Reputation systems can have flaws due to factors such as reciprocity and retaliation, selective reviewing, and reputation inflation. These flaws cause the ratings collected on the platform to diverge from the actual experiences that marketplace participants are having. When reputation systems are not thoughtfully designed, it can be hard to distinguish between the “high quality” and “low quality” interactions. This makes it difficult to identify and remove bad actors and increases the chances of a “bad match”. Innovations in reputation system design, such as simultaneous reveal of information, review incentives, and greater reliance on private feedback, are making it easier to implement two-sided systems while avoiding the common pitfalls.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Detecting and Mitigating Discrimination in Online Platforms: Lessons from Airbnb, Uber, and Others<abstract> <title style='display:none'>Abstract</title> <p>Research has documented racial or ethnic discrimination in online marketplaces, from labor markets to credit applications to housing. Platforms should therefore investigate how platform design decisions and algorithms can influence the extent of discrimination in a marketplace. By increasing awareness of this issue, managers can proactively address the problem. In many cases, a simple but effective change a platform can make is to withhold potentially sensitive user information, such as race and gender, until after a transaction has been agreed to. Further, platforms can use principles from choice architecture to reduce discrimination. For example, people have a tendency to use whatever option is set as the default. If Airbnb switched, for instance, ist default to instant book, requiring hosts to actively opt out of it, the company could reduce the scope for discrimination. It is important that discrimination and possible solutions are discussed transparently.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00It’s the Story, Stupid: The Consumer Reviews Most Likely to Influence Purchasing Decisions<abstract> <title style='display:none'>Abstract</title> <p>Helpful reviews are like good movies or a good novel: if you’re hooked right away, you stay and remember. No matter how short, a review tells a story in much the same way as a novel. If you want to persuade, it should start with something dramatic and sensational or the key takeaway, rather than saving the best elements for the end. Narrative elements can change the way reviews influence people, and media literacy can go a long way. Social media influencers and professional reviewers should now also know that they are better off investing in creative writing or storytelling courses than choosing to analyze experiences factually. Further, software developers should learn to distinguish useful reviews from less helpful or relevant ones. With such skills, they can structure platforms in ways that make writing transporting, helpful, persuasive reviews as easy as possible and can develop algorithms that favor real and useful reviews.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Thrilled or Upset: What Drives People to Share and Review Product Experiences?<abstract> <title style='display:none'>Abstract</title> <p>What drives people’s decisions to share product and service experiences? Several studies show that a sender’s emotional arousal is a relevant factor for social sharing. Experimental studies by the Nuremberg Institute of Market Decisions (NIM) confirm that increased arousal is associated with higher levels of social sharing. The results show that the emotional state of arousal, which was determined by voice analysis, should be a relevant variable for marketing managers to estimate whether or not consumers will share their experiences in social media. At least for spoken reviews, there is also an indication that higher arousal can even increase persuasiveness. To increase the chances of sharing positive reviews of a product or service, marketing managers should charge their brands and products with emotions, such as joy or surprise, as these activate more than pure satisfaction.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Navigating by the Stars: Current Challenges for Ensuring Trust in the Sharing Economy<abstract> <title style='display:none'>Abstract</title> <p>Today, virtually all e-commerce and sharing-economy platforms rely on star ratings or similar systems to build trust between anonymous buyers and sellers. However, star ratings can be quite tricky as a navigation aid. Platforms and users face several challenges in making sure that reputation systems remain credible. Skewed ratings and low rating variance, however, make it difficult for users to differentiate good from bad products and services. To tackle the issue of retaliation, most platforms use so-called simultaneous review schemes, only publishing ratings once both parties have committed. Furthermore, platforms may offer individuals the opportunity to leave text reviews as a complement to numeric ratings. A growing number of platforms also use complex technical systems and algorithms to automatically identify, mark or delete fake news. To maintain legitimacy, platform operators need to design reputation systems with minimal negative side effects and make crucial decisions about the level of control they seek to enact.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Hosting Bags Instead of People<abstract> <title style='display:none'>Abstract</title> <p>For many travelers, the problem is familiar: You check out from Airbnb and your flight is not till later. So you have time to still enjoy a city, but you’re stuck with your luggage, which stops you from really taking advantage of it. At this point, Stasher comes in. Stasher is the world's first international luggage storage network. Customers in many cities, mainly in the UK and Europe but also in North America, can now easily and inexpensively book short-term storage for their luggage 24/7 on the platform via the app. What’s more, they can do this locally, and not only near a train station or airport, with the chance for a nice chat plus insider advice on the area.</p> </abstract>ARTICLE2020-10-23T00:00:00.000+00:00Editorial