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The authors aim to explore whether and how variations on pitch levels of background music in audiovisual commercials affect consumers' judgments of the competence of the advertised brands and for which group of consumers such changes in ad backgrounds are more influential.

Consumers are presented with an audiovisual advertisement in which the pitch of background music is lowered or raised. They are subsequently asked to evaluate the music and traits of the advertised brand and indicate their predisposed styles of thinking.

Consumers tend to judge a brand in an audiovisual commercial as possessing a higher level of competence traits when the brand is accompanied by lower-pitched (vs higher-pitched) background music, which is mediated by levels of powerfulness they perceive from the background music. Consumers with holistic (vs analytic) thinking styles, who are known to devote more focused attention to background information, tend to be more (vs less) susceptible to the changes in pitch.

The current research approaches thinking styles as predisposed individual differences as in prior works in marketing. Provided that the predisposed thinking styles can be influenced by individuals' cultural backgrounds, the authors suggest cross-cultural studies as an approach to further validate the present findings.

Given the recent trends that consumers are increasingly exposed to audiovisual ads with the rapid growth of various video-based platforms (e.g. YouTube) and mobile advertising, this empirical study may assist contemporary marketers in considering an acoustic strategy for brand communication using the audiovisual advertisement. This study suggests that the pitch of ad background music can serve as a manageable strategic tool that can assist in establishing an image of a competent brand.

This research highlights a seemingly-trivial element in audiovisual advertisements, the pitch of background music, as a crucial determinant of the perceived competence of an advertised brand upon which further brand evaluations (e.g. brand trust, purchase intention) are based. An important yet overlooked effect of ad recipients' predisposed thinking styles on how consumers respond to the changes of background cues in audiovisual commercials is also proposed.

This paper addresses the emergence of strategic agility as adaptive capability to face the need to adapt to a constantly changing environment. Special emphasis is paid to governance mechanisms as a microfoundation of dynamic capabilities, investigating the dynamics and outcome in regards to the digitalization of supply chains and its socio-economic relations of its members.

A multiple-case study method is applied to explain the impact of a digitalization initiative in the form of an I4.0 implementation in a supply chain context. Building on qualitative in-depth interviews of experts in managerial positions, 16 cases from the manufacturing industry involving an I4.0 implementation across the supply chain were analyzed. Based on a conceptual design science approach, the CIMO logic (context, intervention, mechanisms and outcome) framework is used to investigate the interplay between agility as a dynamic capability and governance mechanisms.

The studied cases demonstrate an intensification of synergistic combinations of inter-firm resources to manage digitalization across the supply chain (SC). With the implementation of I4.0, competitive advantage along the SC takes higher priority over the competitive advantage in the individual or dyadic perspective. Strategic agility as a dynamic capability to cope with and adapt to the changing environment is hereby crucial emphasizing relational SC governance (SCG) as essential as a microfoundation to adjust the structure and management of SCs. Relationships, which allow competitive advantage as a SC balance out traditional power mechanisms within the SC hierarchy. Trust, collaboration and flexibility, aligned with common incentives in generating competitive advantages enable the SCs to mitigate uncertainty and risk while preventing opportunistic behavior.

The study offers SCM managers in-depth insights into strategic agility and how to address the recent challenge of digitalization successfully. Identifying crucial dynamics within SCG mechanisms based on first-hand use cases, practical success factors for implementing I4.0 to optimize effectiveness and efficiency can be derived how to structure and manage future SCs.

This paper contributes to the first insights examining the implications of digitalization and the role of strategic agility as a capability to adapt. Investigating the microfoundation of governance within this capability, this research provides insights on the socio-economic level, while discussing specific mechanisms how relationships of SCs evolve proposing relevant insights for future research.

The purpose of this paper is to explore the tendencies of liquid consumption in Muslim communities and analyse its impact on Muslims’ consumption practices from the holistic perspective. Liquid consumption refers to a transient and less-materialised mode of consumption that requires both minimal attachment to possessions and hybrid ownership.

This is a conceptual paper that is based on the distinction between Islam as a holistic perspective and Islamic practice as it is applied in different contexts and situations. The Continual Drift Adjustment (CDA) framework of Muslim consumers’ behaviour is developed to be deployed as an analysis framework.

The CDA framework maintains that some problematic cases of Muslim consumption behaviours indicate the drift towards disbalance. Depending on their nature, liquid consumption practices can have different impacts on the drift. Liquid consumption practices underscored by instrumental dissemblance, intellectual insecurity and spiritual scepticism intensify the drift, whereas the incorporation of spiritual sincerity, faithful submission and existential gratefulness into practices and behaviour helps to attenuate the drift.

This research contributes to the theory of liquid consumption by incorporating the religious perspective. Liquid consumption in Islam is a complex area of research, specifically considering the ambivalent meanings of liquidity in Islamic thought.

Marketers of liquid consumption solutions must be aware of these offerings’ double-edged impact on the well-being of Muslim communities. Muslim consumers should be guided towards spiritual sincerity, faithful submission and existential gratefulness in the best way possible, although it must be noted that the customary techniques of marketing would lean towards stimulating the disbalance.

This research is unique because it deals with a topic that has not been researched in the Islamic marketing discipline to this date.

Prior literature on online customer reviews (OCRs) suggests that individuals are socially influenced by information shared by others. Given that the online environment brings together users from different cultures, understanding how users differ in their processing and generation of OCRs across cultures is imperative. Specifically, this paper explores how cross-cultural differences influence OCR generation when there are inconsistencies between recent and overall review ratings.

The authors employ an empirical study and an experimental approach to test the predictions. For the empirical study (Study 1), the authors collected and analyzed actual review data from an online hotel review platform, Booking.com. This was followed by an experimental study (Study 2) in which the authors manipulated the thinking style represented by each cultural orientation to further explain how and why cross-cultural differences exist.

The results show that compared with the review ratings of users from collectivist cultures, those of users from individualistic cultures are more likely to follow recent review ratings. Based on the experimental study, the authors further find that such cross-cultural differences in OCR generation are driven by differences in thinking style.

This research extends the literature by demonstrating the cross-cultural differences in individuals' herding tendencies in OCR generation. The authors also add to the literature by showing in which direction OCR herding occurs when there is a discrepancy between overall and recent review ratings. From a managerial perspective, the findings provide guidelines for online platforms serving the global market on predicting customers' OCR generation and constructing appropriate response strategies.

Cross-selling becomes critical for business success as pent-up travel demand drives travelers to spend more on vacations. The primary purpose of this research is to identify if an unexpected discount leads to consumers' additional purchases online. This research proposes effective cross-selling strategies across hospitality sectors.

Two experiments were conducted to investigate factors that influence travelers' add-on spending. Study 1 determined the psychological mechanism of unexpected discounts on hotel customers' additional spending by individual thinking styles. A 2 (discount: none vs surprise) x 2 (thinking style: holistic vs analytic) quasi-experimental design was utilized. Study 2 applied the identified pricing strategy by individual thinking styles to cruise line add-on selling. A 2 (discount: none vs surprise) x 2 (product type: hedonic vs utilitarian) x 2 thinking style (holistic vs analytic) quasi-experiment was used.

The findings indicate that an unexpected discount increases holistic thinkers' overall travel spending, regardless of add-on types. Although the unexpected discount effect on analytic thinkers' overall spending was significant, an unexpected discount enhanced their intentions to purchase a hedonic add-on.

Hospitality operators can improve cross-selling strategies with a surprise discount offer. Offering add-on items in the same transaction with a cabin booking will increase add-on purchases. Hotels can make add-on purchases more appealing by emphasizing the experiential aspects of a hotel stay.

This research broadens knowledge of cross-selling by linking add-on purchases to discount pricing on a primary product. The findings provide new strategies to stimulate add-on purchases and maximize profitability.

With asymmetric investments in exchange (i.e. sourcing) relationships, both sourcing firms and suppliers invest but one party invests more than the other. This paper aims to examine the associations between asymmetric (i.e. unequal) investments in exchange relationships and the tendency of the strategic supplier base to shirk as perceived by the sourcing firm, as well as the moderation effects of cross-functional information sharing within a sourcing firm on these associations.

The authors analyzed survey data from 500 US middle-market manufacturers via ordinary least squares (OLS) estimation. Besides appropriate controls, the authors also employed the heteroskedasticity-based instrumental variable approach to ensure that analytical inferences are not influenced by endogeneity.

On average, when a sourcing firm invests more than its strategic supplier base into their exchange relationships, the perceived tendency of the strategic supplier base to shirk decreases. This negative association is more pronounced when a sourcing firm facilitates cross-functional information sharing. Conversely, when the strategic supplier base invests more than the sourcing firm into their exchange relationships, the perceived tendency of the strategic supply base to shirk is not detected unless the sourcing firm facilitates cross-functional information sharing.

Prior research reveals that investments by a sourcing firm or by suppliers influence supplier shirking. This paper provides new evidence as to how and why asymmetric investments in exchange relationships relate to the perceived tendency of the strategic supplier base to shirk and new evidence as to how and why cross-functional information sharing safeguards against this tendency when investments in exchange relationships are unequal.

Integrating conceptual perspectives from social exclusion, thinking style and context effects, this study aims to examine how different types of social exclusion influence attraction and compromise effects.

Eight studies were conducted. To establish the causal relationship between social exclusion types and context effects, this study uses experimental designs in all studies.

The attraction effect is stronger when consumers feel rejected than ignored, whereas the compromise effect is stronger when they feel ignored than rejected. Consumers who feel rejected increase their propensity to think holistically, which in turn leads to their choice preferences for asymmetrically dominant options. Conversely, those who feel ignored increase their propensity to think analytically, which in turn leads to their choice preferences for compromise options.

The findings show that consumer preferences for one option over the other alternatives in choice contexts are susceptible to subtle differences in the manner that exclusion is communicated. The studies are limited to recall tasks and scenarios that previous research has shown to be effective. Future research may use actual exclusion to corroborate this study’s findings.

Marketing practitioners may benefit from this study’s findings when it comes to an increase in the relative share of their target brand against their competitor brands by introducing a third option.

To the best of the authors’ knowledge, this research is the first to provide evidence that exclusion communicated in an explicit manner produces the attraction effect, whereas exclusion communicated in an implicit manner produces the compromise effect. Given that threatening situations often influence individuals’ preferences and choices, how social exclusion shapes cognitive processes is an empirical question worthy of investigation.

The purpose of this integrative review is to develop a holistic behavioral framework on capital allocation decisions.

The article first structures, maps and synthesizes the prevalent cognitive biases that are present during capital allocation decisions. It then seeks to offer a robust understanding on how firms can mitigate the effects of cognitive biases.

Not only do several cognitive biases interfere with a decision-makers ability to make adequate capital allocation decisions but firms already have a number of tools at their disposal to mitigate them.

Besides identifying cognition- and repair-based implications to extend the literature, this article outlines key methodological challenges for future research conducted along the lines of capital allocation.

Since the paper structures cognitive limitations in one of the most important managerial decision-making processes and discusses what firms can do to counteract them, it is of high relevance for practitioners. Managers need to know what drives successful capital allocation and what not.

The article provides a rare integrative review on the impact of cognitive biases on capital allocation and addresses the need to build linkages to the ongoing conversation on how to design strategic decision processes.

As one of the most influential theories in strategic management, Hambrick and Mason’s Upper Echelons Theory has yielded significant conceptual and empirical advancements linking executive characteristics and perceptions to decision-making. Specifically, work on this theory consistently shows that CEOs’ decisions are biased by personal characteristics to the benefit and detriment of firms. While this stream of research links executive decision processes to outcomes such as executive dismissals, analyst evaluations, and press coverage, surprisingly little is understood about if and whether the information CEOs convey is subject to the same filtering process by a firm’s key evaluators. Thus, in this chapter, we aim to extend Upper Echelons Theory by positing that a double filtering process occurs whereby the cognitive aids CEOs use can be informed by not only their cognitive base and values but also the characteristics and priorities of those who evaluate the nonverbal and verbal signals they send. To do so, we build on recent conceptual and empirical advancements to make a case for the decision-making biases and tendencies that influence signal interpretation by three key evaluator groups internal and external to the firm: boards of directors, financial analysts, and the media. We conclude by considering the implications of evaluators’ information filtering and how this more holistic view of Upper Echelons decision-making can enable executive teams to be strategic with the cognitive aids they use to influence evaluations.

Corporate philanthropy is increasingly a vital decision-making basis for consumers to purchase and establish relationships with enterprises. However, few studies have examined corporate philanthropy from the perspective of community evolution. To address this gap, this study aims to provide a more in-depth and holistic investigation of corporate philanthropy by examining the evolution of social media brand communities caused by corporate philanthropy and the characteristics of consumer interactive behavior.

Web crawlers developed by Python were employed to collect data of ERKE from Sina Weibo (the Chinese equivalent of Twitter). A total of 2,736 posts and 7,774 comments were collected and investigated using social network and sentiment tendency analyses.

The results showed that the evolution of the social media brand community presented a prominent three-stage characteristic influenced by corporate philanthropy. The findings not only support the benefits of corporate philanthropy but also show the possible disadvantages. Besides, this study further concluded the characteristics of consumer interactive behavior in the social media brand community.

This paper addresses an attractive and practical issue related to the impact of corporate philanthropy. Moreover, this study is one of the first studies to examine the impact of corporate philanthropy in the context of the social media brand community. The findings of this study will provide a valuable reference for community operations and practitioners of brands.