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Conferences
Center for Complexity in Business
Fall Workshop
Friday, December 4
10:30 a.m. - 12:00 noon
1505 Van Munching Hall
Modeling and
Analyzing Network Data:
A hands-on workshop using NetLogo,
R and NodeXL
PRESENTERS:
Wolfgang Jank
Director, CCB
Associate Professor of Management Science and
Statistics
William Rand
Research Director, CCB
Assistant Professor of Marketing
Details:
This workshop is open to everyone, and it is especially
recommended for PhD students who are interested in understanding and modeling
complex networks. If interested in attending, we ask that you RSVP to Carrie
Baran at cbaran@rhsmith.umd.edu
2009 Marketing Research Camp
The Department of Marketing will host the 2009 Marketing Research Camp on
June 18 and 19 in Van Munching Hall. The audience will be Marketing
faculty and Marketing PhD students. There will be six presentations of
current research in the field -- four external presenters and two presenters
from Smith's Department of Marketing Faculty.
All presentations will take place in 1505 Van Munching Hall. Lunch will
be served from 12:30 - 1:30 p.m. in the Third Floor Atrium for the Marketing
Camp participants.
This is the complete schedule for June 18 - 19. The paper title
is a link to the abstract of the paper, located below the schedule.
Listed below, in order of presentation, are the presenters, their
affiliation, their
paper title, an abstract of their paper, and a link to their paper.
June 18 -
9:00 a.m.
K. Sudhir
Professor of Marketing and
Director, China India Consumer Insights (CICI) Program
Yale School of Management
Yale University
Do Bonuses Enhance Sales Productivity?
A Dynamic Structural Analysis of Bonus-Based Compensation Plans* |
Abstract: Using data on individual level sales force
performance over a 3 year period at a Fortune 500 firm, we propose
and estimate a dynamic structural model of sales force response to a
bonus-based compensation plan. We combine Arcidiacono and Miller's
new EM algorithm approach within a two step conditional choice
probability (CCP) estimator to allow for sales force response
heterogeneity, while preserving the computational advantage of the
CCP estimators. Further, in contrast to typical dynamic choice
applications estimated using real world data , where discount
factors cannot be non-parametrically identified, our bonus-based
compensation structure enables us to identify discount factors in a
hyperbolic discounting model.
We find evidence of present bias consistent with hyperbolic
discounting. Further, bonuses enhance sales productivity. The
current bonus-based plan that includes quarterly and annual bonuses
and an overachievement commission rates produces 18.5% higher
revenues relative to a simple linear commission-only plan. Even
adjusting for commission rates to allow for the same total
compensation cost as in the current plan, the current bonus-based
plan obtains 4.6% higher revenues. Eliminating over-achievement
commission rates for sales beyond quotas reduces revenues (and
profits) by roughly 6%.
The elimination of quarterly bonuses (holding the annual bonus and
overachievement rates constant) reduces total revenues by 13.6% and
December (year-end) revenues by 7%. Even if the eliminated quarterly
bonus amounts are added to the annual bonus, revenues fall by 4%.
Thus annual quotas or over-achievement commission rates have smaller
impact on performance without the quarterly quotas.
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June 18 -
11:00 a.m.
Anastasiya Pocheptsova
Assistant
Professor of Marketing
Robert H. Smith School of Business
University of Maryland, College Park
When Products Feel Special:
Low Fluency Leads to Enhanced Desirability |
Abstract: Most prior
research demonstrates that feelings of high fluency which signal
familiarity with an object improve its evaluation (e.g. Schwarz
2004, 2008, Winkielman et. al 2003). In a departure from those
findings, in the current paper we demonstrate that low fluency can
sometimes enhance evaluation of a product. In the context of
everyday objects, increased fluency is a positive cue that the
product is familiar and safe which leads to higher evaluation of
products, as demonstrated in existing research. However, we argue
that in the context of special occasion high-end goods, higher
fluency which indicates abundance of the product is a negative cue
because it makes the products feel less special, and this translates
into lower value. Across four studies we find that a decrease in
processing fluency increases preference for special occasion goods
and services. We therefore demonstrate that effect of fluency on
evaluation depends on naïve theory that people use at the time of
judgment that varies by different consumption contexts. |
June 18 -
1:30 p.m.
Olivier Toubia
David W. Zalaznick Associate Professor
of Business
Columbia Business School
Columbia University
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The Silver Lining Effect: Formal Analysis and Experiment |
Abstract: The
silver lining effect predicts that segregating a small gain from a
larger loss results in greater psychological value than does
integrating them into a smaller loss. Using a generic prospect
theory value function, we formalize this effect and derive
conditions under which it should occur. We show analytically that
there exists a threshold such that segregation is optimal for gains
smaller than this threshold. The threshold is increasing in the size
of the loss and decreasing in the degree of loss aversion of the
decision maker. Our formal analysis results in a set of hypotheses
suggesting that the silver lining effect is more likely to occur
when: (i) the gain is smaller (for a given loss), (ii) the loss is
larger (for a given gain), (iii) the decision maker is less loss
averse. We test and confirm these predictions in two studies of
preferences, both in a non-monetary and a monetary setting. We
analyze the empirical data in a hierarchical Bayesian framework.
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June 18 -
3:30 p.m.
Ayelet Fishbach
Associate Professor of Behavioral
Science
and Neubauer Family Faculty Fellow
Booth School of Business
University Chicago
Together or Apart: When Goals and Temptations
Complement Versus Compete |
Abstract: This
research examined how the presentation of items related to goals and
temptations influences the dynamic of self-regulation, as reflected
in evaluation and choice. The authors found that when items, such as
healthy and unhealthy foods or academic and leisure activities, are
presented together in a unified choice set (e.g., in 1 image) and
seem to complement each other, people express a positive evaluation
of and a preference for tempting items. Conversely, when the items
are presented apart from each other in 2 choice sets (e.g., 2
images) and seem to compete with each other, people express a
positive evaluation of and preference for goal items. |
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