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Article
Publication date: 18 June 2020

Jan F. Klein, Yuchi Zhang, Tomas Falk, Jaakko Aspara and Xueming Luo

In the age of digital media, customers have access to vast digital information sources, within and outside a company's direct control. Yet managers lack a metric to…

Abstract

Purpose

In the age of digital media, customers have access to vast digital information sources, within and outside a company's direct control. Yet managers lack a metric to capture customers' cross-media exposure and its ramifications for individual customer journeys. To solve this issue, this article introduces media entropy as a new metric for assessing cross-media exposure on the individual customer level and illustrates its effect on consumers' purchase decisions.

Design/methodology/approach

Building on information and signalling theory, this study proposes the entropy of company-controlled and peer-driven media sources as a measure of cross-media exposure. A probit model analyses individual-level customer journey data across more than 25,000 digital and traditional media touchpoints.

Findings

Cross-media exposure, measured as the entropy of information sources in a customer journey, drives purchase decisions. The positive effect is particularly pronounced for (1) digital (online) versus traditional (offline) media environments, (2) customers who currently do not own the brand and (3) brands that customers perceive as weak.

Practical implications

The proposed metric of cross-media exposure can help managers understand customers' information structures in pre-purchase phases. Assessing the consequences of customers' cross-media exposure is especially relevant for service companies that seek to support customers' information search efforts. Marketing agencies, consultancies and platform providers also need actionable customer journey metrics, particularly in early stages of the journey.

Originality/value

Service managers and marketers can integrate the media entropy metric into their marketing dashboards and use it to steer their investments in different media types. Researchers can include the metric in empirical models to explore customers' omni-channel journeys.

Details

Journal of Service Management, vol. 31 no. 3
Type: Research Article
ISSN: 1757-5818

Keywords

Content available
Article
Publication date: 2 January 2007

Abstract

Details

Business Strategy Series, vol. 8 no. 2
Type: Research Article
ISSN: 1751-5637

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Article
Publication date: 20 September 2011

Jaakko Aspara and Henrikki Tikkanen

The purpose of this paper is to contribute to the corporate marketing literature by examining how an individual's identification with a company influences their…

Abstract

Purpose

The purpose of this paper is to contribute to the corporate marketing literature by examining how an individual's identification with a company influences their willingness to invest in the company's shares.

Design/methodology/approach

A set of hypotheses was developed, based on theory, and survey data were obtained from 440 individuals in order to test the hypotheses. The data pertained to the individuals' recent decisions to invest in particular companies' shares, and to the degree of their identification with the companies' identities. The analysis method was PLS path modelling.

Findings

First, an individual's identification with a company was found to have a positive effect on their determination to invest in the company's shares rather than in other companies' shares that have approximately similar expected financial returns/risks. Second, company identification was found to elicit preparedness to invest in the company's shares with lower financial returns expected from the shares than from other shares. Both influences were partly mediated by the individual's willingness to give support to a company with which they identify.

Research limitations/implications

The study pertains to company identification of individual investors; institutional (and professional) investors are beyond the scope of the paper. Also, the sample focuses on investors in a single country (Finland), and the data may involve some self‐reporting and retrospection biases.

Practical implications

Considering corporate marketing in the stock markets, individuals who identify with the company are identified as worthwhile targets when the company seeks to attract new investors.

Originality/value

The paper provides theoretical grounding for and empirical evidence of the positive influence of company identification on individuals' willingness to invest in companies' shares. It is a novel finding for corporate marketing literature that individuals express their identification with a corporate brand also through investing in its shares.

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Article
Publication date: 11 September 2009

Jaakko Aspara

The purpose of this paper is to explicate the psychological motivations underlying this influence as well as to provide empirical evidence of it. Individuals' consumption…

Abstract

Purpose

The purpose of this paper is to explicate the psychological motivations underlying this influence as well as to provide empirical evidence of it. Individuals' consumption psychology and investment psychology have been traditionally viewed as rather separate realms. However, researchers have recently begun to imply that an individual's stock ownership in a company may positively influence his/her brand loyalty towards the company.

Design/methodology/approach

A survey study of 293 individual stockowners of three companies is presented.

Findings

The analysis shows that, for a large proportion of individuals, becoming a stockowner of a company leads to positive, increased motivation to exhibit brand loyalty towards the company, in terms of his/her personal purchases of the company's products. Second, the analysis shows how stock ownership often leads to increased motivation to engage in other brand‐supporting behaviors, such as positive word‐of‐mouth.

Research limitations/implications

The self‐reported data used on individuals' motivations somewhat restrict the results, which can be dealt with in further research.

Practical implications

The findings imply opportunities for managers to benefit from the tendency of individual stockowners to engage in repeat purchasing of the company's products and word‐of‐mouth, so as to increase the sales of the company.

Originality/value

The paper explicates the individual psychology motivations underlying the influence of a consumer's stock ownership in a company on his/her brand loyalty towards the company – and provides empirical evidence of the motivations.

Details

Journal of Consumer Marketing, vol. 26 no. 6
Type: Research Article
ISSN: 0736-3761

Keywords

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Article
Publication date: 13 April 2010

Jaakko Aspara and Henrikki Tikkanen

The purpose of this paper is to examine the links between individual investors' subjective evaluations of certain companies' products and brands, on one hand, and their…

Abstract

Purpose

The purpose of this paper is to examine the links between individual investors' subjective evaluations of certain companies' products and brands, on one hand, and their willingness and decisions to invest in those companies' stocks, on the other. The authors aim to challenge the traditional assumption that individuals would make stock investment decisions purely on the basis of expected financial returns and risks.

Design/methodology/approach

Survey data were collected from 293 individuals who invest in the stock market of a European country and analyzed with PLS path modeling.

Findings

In the clear majority of the consumers' stock investment decisions that were analyzed, the consumers exhibited some willingness to invest in a chosen stock beyond its expected financial returns/risk. Two variables are found to elicit willingness to invest in a company's stock beyond its financial returns: the personal relevance that the individual attaches to domains (activities or areas of interest; ideas or ideals) supported or represented by the company's products; and the individual's affective evaluation of the company's product brand.

Research limitations/implications

Replicating the study with different companies from different industries and with consumers from different countries will be important. Overcoming a potential retrospection bias in the reported study is also a task for further research.

Practical implications

The findings provide insights that can serve segmentation, targeting, and positioning when it comes to marketing a company in the stock market so as to attract investors.

Originality/value

The paper provides new evidence on the influence of product and brand evaluations in consumers' stock investment decisions – suggesting that positive product evaluations elicit extra willingness to invest in a company's stock, over and beyond its financial returns.

Details

International Journal of Bank Marketing, vol. 28 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

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Article
Publication date: 11 May 2015

Jaakko Aspara and Amitav Chakravarti

This article aims to focus on product-featuring advertising targeted to stock investors – that is, ads that provide investors with impressions about the company’s…

Abstract

Purpose

This article aims to focus on product-featuring advertising targeted to stock investors – that is, ads that provide investors with impressions about the company’s products, over and above financial information. The purpose is to explicate and test the psychological mechanisms by which such ads may exert influence on investors.

Design/methodology/approach

An experiment is conducted with a representative sample of real investors, to test the effect and explore the underlying mechanisms. Two additional laboratory experiments reveal moderating factors of this effect.

Findings

The results show that highlighting the company’s product features in an investor ad increases investors’ interest in investing in the company’s stock, by enhancing investors’ subjective evaluations of the company’s products. This effect emerges independent of factors related to preexisting brand perceptions (e.g. brand recognizability and likeability) and is mediated by dual causal channels: by increasing expectations about the company’s financial returns and by increasing affective attachment with the company’s products.

Research limitations/implications

The findings identify and confirm different mechanisms of the effect of investor ads, but the relative magnitude of the effects is not generalizable.

Practical implications

The results provide corporate marketing, corporate communications and investor relations professionals insights into how investors may be attracted by product-featuring advertisements.

Originality/value

The study is the first to explicate the different channels of influence through which product-featuring ads may affect investors’ willingness to invest in companies.

Details

European Journal of Marketing, vol. 49 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 13 July 2015

Jaakko Aspara, Amitav Chakravarti and Arvid O. I. Hoffmann

This study aims to examine the interplay between focal and background goals in consumer financial decision-making and identify conditions that lead individuals to…

Abstract

Purpose

This study aims to examine the interplay between focal and background goals in consumer financial decision-making and identify conditions that lead individuals to trade-off financial returns for background goals.

Design/methodology/approach

The current research reviews the relevant literature on consumer financial decision-making and goal systems theory to develop a set of hypotheses that is tested using three experiments.

Findings

The experiments show that individuals who have been subtly primed with self-expressive background goals, or experienced progress toward the focal goal of financial returns, accept lower financial returns for the opportunity to invest in stocks that allow for increased self-expression. Further, while subtly primed background goals exert a non-normative influence on investment decisions, explicit cues about an investment’s background goal-instrumentality create a backlash effect, and decrease individuals’ willingness to trade-off financial returns.

Research limitations/implications

Future research could confirm the robustness of the findings of the present research by using different priming tasks and alternative ways of making the background goal explicit to individuals.

Practical implications

To achieve greater attraction among individual investors, it helps to frame a financial product or stock in communications materials in a way that sends subtle signals with which investors can identify. Such signals could include stressing the product/company’s home country (addressing individuals’ patriotism) or a particular product domain (addressing individual investors’ desire for interesting/exciting current/future products).

Originality/value

While previous research suggests that investment choices may be influenced by self-expressive motivations, to date, it remains unclear whether and when individual investors are actually willing to trade-off the focal goal of maximizing financial returns for the opportunity to satisfy alternative background goals.

Details

European Journal of Marketing, vol. 49 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 5 April 2011

Jaakko Aspara, Henrikki Tikkanen, Erik Pöntiskoski and Paavo Järvensivu

Long‐run corporate success requires engagement in two types of innovative activities: exploitation and exploration. However, earlier research has focused on exploration…

Abstract

Purpose

Long‐run corporate success requires engagement in two types of innovative activities: exploitation and exploration. However, earlier research has focused on exploration and exploitation concerning a firm's technologies. The purpose of the present article is to explicitly examine exploration and exploitation related to customers and markets.

Design/methodology/approach

The article is conceptual in nature, based on marketing, strategic management, and organization literatures.

Findings

The article explains the logic of exploration‐exploitation with respect to two market‐related resource classes – the firm's knowledge of markets and customers (market/customer intelligence) and market actors' knowledge of and bonds to the firm (brands/bonds) – as viewed in combination with the resource class of technologies, processes, and products (technologies/processes). The distinction of these three resource classes enables a three‐dimensional conceptualization of the ideal types of a firm's business development projects, which are seen as combinations of exploration and exploitation of resources across the three classes. The article also introduces the notions of multidimensionality of exploration‐exploitation within the resource classes and relativity of resource newness.

Originality/value

The article explicates how firms can orient their exploration and exploitation strategies not only on the technology dimension but also on the dimensions of market/customer intelligence and brands/bonds.

Details

European Journal of Marketing, vol. 45 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

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Article
Publication date: 26 July 2013

Petri Parvinen, Jaakko Aspara, Sami Kajalo and Joel Hietanen

The purpose of this paper is to study the impact that systematization of sales activities through sales process management has, at the firm level, on profitable sales…

Abstract

Purpose

The purpose of this paper is to study the impact that systematization of sales activities through sales process management has, at the firm level, on profitable sales growth in business‐to‐business (B2B) companies. The research aims to compare companies focusing on service offerings to those focusing on product offerings.

Design/methodology/approach

The study is based on survey data.

Findings

Despite the emergence of service‐dominant logic, B2B service and product companies still differ in how sales process management contributes to firm performance.

Research limitations/implications

The findings suggest that differences between service and product firms in their sales process management stem from the different underlying modes of interaction. The findings are generalizable to B2B companies.

Practical implications

The findings help businesses differentiate between productive sales process management practices in product and service firms.

Originality/value

The study contributes to the wider need of operationalizing ideas about sales process management at the level of organizations and business units.

Details

Journal of Business & Industrial Marketing, vol. 28 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 3 May 2011

Jaakko Aspara, Juha‐Antti Lamberg, Arjo Laukia and Henrikki Tikkanen

This paper aims to offer a conceptualization of how and why corporate level strategic change may build on historical differentiation at business unit level.

Abstract

Purpose

This paper aims to offer a conceptualization of how and why corporate level strategic change may build on historical differentiation at business unit level.

Design/methodology/approach

Methodologically, an historical case study of Nokia Corporation's drastic business model transformation between the years 1987 and 1995 is reported.

Findings

The conceptual and historical work results in a process model of business model change, demonstrating how central business units feed strategic alternatives and capabilities to the corporate‐level transformation process.

Practical implications

The results highlight the importance of corporate level “market mechanisms' that allow promising strategic alternatives to emerge and select out inferior options. In this process, a key mechanism is the exchange of executives and cognitive mindsets between business units and corporate headquarters (CHQ).

Originality/value

The reported research offers an original contribution by showing the dynamic interplay of cognitive and organizational change processes, and highlighting the importance of building on existing capabilities and competencies despite the pressure to demonstrate strong turnaround activities.

Details

Management Decision, vol. 49 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

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