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result(s) for
"field experiment"
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Field Experimentation in Marketing Research
2017
Despite increasing efforts to encourage the adoption of field experiments in marketing research (e.g., Campbell 1969; Cialdini 1980; Li et al. 2015), the majority of scholars continue to rely primarily on laboratory studies (Cialdini 2009). For example, of the 50 articles published in Journal of Marketing Research in 2013, only three (6%) were based on field experiments. The goal of this article is to motivate a methodological shift in marketing research and increase the proportion of empirical findings obtained using field experiments. The author begins by making a case for field experiments and offers a description of their defining features. She then demonstrates the unique value that field experiments can offer and concludes with a discussion of key considerations that researchers should be mindful of when designing, planning, and running field experiments.
Journal Article
When Corporate Social Responsibility Backfires: Evidence from a Natural Field Experiment
by
Momeni, Fatemeh
,
List, John A.
in
Behavior problems
,
Corporate governance
,
Corporate social responsibility
2021
This paper uses a natural field experiment to connect corporate social responsibility (CSR) to an important but often neglected behavior: employee misconduct and shirking. Through employing more than 1,500 workers, we find that our use of CSR increases employee misbehavior—24% more employees act detrimentally toward our firm by shirking on their primary job duties when we introduce CSR. Observed data patterns across the treatments are consonant with a model of “moral licensing,” whereby the “doing good” nature of CSR induces workers to misbehave on another dimension that is harmful to the firm.
This paper was accepted by Yan Chen, decision analysis
.
Journal Article
Gender Gaps in Equity Crowdfunding: Evidence from a Randomized Field Experiment
2021
Although prior research in traditional equity financing shows that male founders are preferred, emerging evidence in low-stakes crowdfunding (e.g., rewards-based crowdfunding) indicates that female entrepreneurs may have an advantage, particularly with female investors. We seek to examine whether investors in high-stakes equity crowdfunding, which includes elements from both traditional equity financing and low-stakes crowdfunding, respond differently to male and female founders. Specifically, we examine whether founder gender preferences, if they exist, vary based on the gender and the experience of the investor. Through a randomized field experiment, we find that inexperienced female investors are significantly more interested (138%) in ventures with female founders than those with male founders; however, we do not observe founder gender preferences among experienced female investors. For male investors, we do not observe differences in interest based on founder gender or investor experience. Thus, we confirm that the gender gaps observed in traditional equity financing are ameliorated in the equity crowdfunding context. Furthermore, we identify a boundary condition to the preference for female founders reported in earlier work involving low-stakes crowdfunding. In high-stakes crowdfunding, investor experience serves as a contingency that reduces female investors’ preference for female founders, potentially because of the weakening effects of activism homophily and the lower reliance on heuristics as investor experience increases.
This paper was accepted by Sridhar Tayur, entrepreneurship and innovation.
Journal Article
Social Media, News Consumption, and Polarization
by
Levy, Ro’ee
2021
Does the consumption of ideologically congruent news on social media exacerbate polarization? I estimate the effects of social media news exposure by conducting a large field experiment randomly offering participants subscriptions to conservative or liberal news outlets on Facebook. I collect data on the causal chain of media effects: subscriptions to outlets, exposure to news on Facebook, visits to online news sites, and sharing of posts, as well as changes in political opinions and attitudes. Four main findings emerge. First, random variation in exposure to news on social media substantially affects the slant of news sites that individuals visit. Second, exposure to counter-attitudinal news decreases negative attitudes toward the opposing political party. Third, in contrast to the effect on attitudes, I find no evidence that the political leanings of news outlets affect political opinions. Fourth, Facebook’s algorithm is less likely to supply individuals with posts from counter-attitudinal outlets, conditional on individuals subscribing to them. Together, the results suggest that social media algorithms may limit exposure to counter-attitudinal news and thus increase polarization.
Journal Article
An Experimental Investigation of the Effects of Retargeted Advertising
by
Narayanan, Sridhar
,
Kalyanam, Kirthi
,
Sahni, Navdeep S.
in
Advertising
,
Electronic commerce
,
Online advertising
2019
In collaboration with an online seller of home-improvement products, the authors conduct a large-scale randomized field experiment to study the effects of retargeted advertising, a form of internet advertising in which banner ads are displayed to users after they visit the advertiser's website. They find that switching on experimental retargeting causes 14.6% more users to return to the website within four weeks. The impact of retargeting decreases as the time since the consumer first visited the website increases—indeed, 33% of the effect of the first week's advertising occurs on the first day. Furthermore, the authors find evidence of the existence of complementarities in advertising over time: the effect of advertising in week 2 of the campaign is higher when the user was assigned to a nonzero level of advertising in week 1. The authors discuss mechanisms that can explain their findings and demonstrate a novel low-cost method that can be applied generally to conduct valid online advertising experiments.
Journal Article
Customer Acquisition via Display Advertising Using Multi-Armed Bandit Experiments
by
Bradlow, Eric T.
,
Schwartz, Eric M.
,
Fader, Peter S.
in
A/B testing
,
Acquisition
,
adaptive experiments
2017
Firms using online advertising regularly run experiments with multiple versions of their ads since they are uncertain about which ones are most effective. During a campaign, firms try to adapt to intermediate results of their tests, optimizing what they earn while learning about their ads. Yet how should they decide what percentage of impressions to allocate to each ad? This paper answers that question, resolving the well-known “learn-and-earn” trade-off using multi-armed bandit (MAB) methods. The online advertiser’s MAB problem, however, contains particular challenges, such as a hierarchical structure (ads within a website), attributes of actions (creative elements of an ad), and batched decisions (millions of impressions at a time), that are not fully accommodated by existing MAB methods. Our approach captures how the impact of observable ad attributes on ad effectiveness differs by website in unobserved ways, and our policy generates allocations of impressions that can be used in practice. We implemented this policy in a live field experiment delivering over 750 million ad impressions in an online display campaign with a large retail bank. Over the course of two months, our policy achieved an 8% improvement in the customer acquisition rate, relative to a control policy, without any additional costs to the bank. Beyond the actual experiment, we performed counterfactual simulations to evaluate a range of alternative model specifications and allocation rules in MAB policies. Finally, we show that customer acquisition would decrease by about 10% if the firm were to optimize click-through rates instead of conversion directly, a finding that has implications for understanding the marketing funnel.
Data is available at
https://doi.org/10.1287/mksc.2016.1023
.
Journal Article
How Transparency into Internal and External Responsibility Initiatives Influences Consumer Choice
2021
Amid growing calls for transparency and social and environmental responsibility, companies are employing different strategies to improve consumer perceptions of their brands. Some pursue internal initiatives that reduce their negative social or environmental impacts through responsible operations practices (such as paying a living wage to workers or engaging in environmentally sustainable manufacturing). Others pursue external responsibility initiatives (such as philanthropy or cause-related marketing). Through two experiments conducted in the field and complementary online experiments, we compare how transparency into these internal and external initiatives affects customer perceptions and sales. We find that transparency into both internal and external responsibility initiatives tends to dominate generic brand marketing in motivating consumer purchases, supporting the view that consumers take companies’ responsibility efforts into account in their decision making. Furthermore, the results provide converging evidence that transparency into a company’s internal responsibility practices can be at least as motivating of consumer sales as transparency into its external responsibility initiatives, incrementally increasing a consumer’s probability of purchase by 6.40% and 45.85% across our two field experiments, conducted in social and environmental domains, respectively. Our results suggest that it may be in the interest of both business and society for managers to prioritize internal responsible operations initiatives to achieve both top- and bottom-line benefits while mitigating social and environmental harms.
This paper was accepted by Charles Corbett, operations management.
Journal Article
Which Healthy Eating Nudges Work Best? A Meta-Analysis of Field Experiments
2020
The effectiveness of healthy eating nudges in field settings increases as they shift from focusing on influencing cognition to affect to behavior.
We examine the effectiveness in field settings of seven healthy eating nudges, classified according to whether they are (1) cognitively oriented, such as “descriptive nutritional labeling,” “evaluative nutritional labeling,” or “visibility enhancements”; (2) affectively oriented, such as “hedonic enhancements or “healthy eating calls”; or (3) behaviorally oriented, such as “convenience enhancements” or “size enhancements.” Our multivariate, three-level meta-analysis of 299 effect sizes, controlling for eating behavior, population, and study characteristics, yields a standardized mean difference (Cohen’s
d
) of 0.23 (equivalent to −124 kcal/day). Effect sizes increase as the focus of the nudges shifts from cognition (
d
= 0.12, −64 kcal) to affect (
d
= 0.24, −129 kcal) to behavior (
d
= 0.39, −209 kcal). Interventions are more effective at reducing unhealthy eating than increasing healthy eating or reducing total eating. Effect sizes are larger in the United States than in other countries, in restaurants or cafeterias than in grocery stores, and in studies including a control group. Effect sizes are similar for food selection versus consumption and for children versus adults and are independent of study duration. Compared with the typical nudge study (
d
= 0.12), one implementing the best nudge scenario can expect a sixfold increase in effectiveness (to
d
= 0.74) with half the result of switching from cognitively oriented to behaviorally oriented nudges.
Journal Article
The Value of Pop-Up Stores on Retailing Platforms: Evidence from a Field Experiment with Alibaba
by
Liu, Xiaofei
,
Wu, Qian
,
Zhang, Dennis J.
in
Consumer behavior
,
Consumers
,
Corporate management
2019
We study the value of short-lived and experientially oriented pop-up stores, a popular type of omnichannel retail strategy, on both retailers that participate in pop-up store events and retailing platforms that host these retailers. We conduct a large-scale, randomized field experiment with Alibaba Group involving approximately 800,000 customers. We randomly assign customers to either receive a message about an upcoming weeklong pop-up store event organized by Alibaba’s business-to-consumer platform (Tmall.com) or not receive any message about the event. We find that our message increased foot traffic to the pop-up store and in turn boosted expenditure at participating retailers’ online stores at Tmall after the event ended. Furthermore, we use advanced Wi-Fi technology to track customers’ visits to the pop-up store—a missing component from past research that commonly relies on point-of-sale data. We find that pop-up store visits substantially increased customers’ subsequent expenditure at participating retailers’ Tmall stores. In addition, from a platform perspective we show that pop-up store visits increased customers’ purchases at retailers that sell related products on Tmall but did not participate in the pop-up store event. Additional analyses shed light on possible mechanisms underlying the cross-channel and spillover effects of pop-up stores and demonstrate that these effects were concentrated on prospective consumers.
This paper was accepted by Vishal Gaur, operations management.
Journal Article
Fostering Public Good Contributions with Symbolic Awards: A Large-Scale Natural Field Experiment at Wikipedia
2017
This natural field experiment tests the effects of purely symbolic awards on volunteer retention in a public goods context. The experiment is conducted at Wikipedia, which faces declining editor retention rates, particularly among newcomers. Randomization assures that award receipt is orthogonal to previous performance. The analysis reveals that awards have a sizeable effect on newcomer retention, which persists over the four quarters following the initial intervention. This is noteworthy for indicating that awards for volunteers can be effective even if they have no impact on the volunteers’ future career opportunities. The awards are purely symbolic, and the status increment they produce is limited to the recipients’ pseudonymous online identities in a community they have just recently joined. The results can be explained by enhanced self-identification with the community, but they are also in line with recent findings on the role of status and reputation, recognition, and evaluation potential in online communities.
Data, as supplemental material, are available at
http://dx.doi.org/10.1287/mnsc.2016.2540
.
This paper was accepted by John List, behavioral economics
.
Journal Article