Jonah Berger - Faculty Research in Knowledge@Wharton

'Drinking from a Fire Hose': Has Consumer Data Mining Gone Too Far?

Tue, 22 Nov 2011 14:27:39 EST

Today's ever-expanding cache of online data is a store in more ways than one. Every tweet tweeted, badge unlocked, website searched and "Like" button clicked adds to the growing inventory of user information. Data miners then sort it, package it, market it -- and companies use it to better target customers. But how much sharing is too much, especially when consumers are not given a say over how their data is used? And is the exploding availability of information actually making companies less adept at predicting consumer behavior?

Research Roundup: Online Product Reviews, Happiness and Choice, CEO Stock Options and the Hunger for Distinctiveness

Wed, 26 Oct 2011 14:21:51 EST

Online product reviews have become ubiquitous -- but does the text of these critiques tell a story that a star system can't? How does a consumer's definition of happiness affect buying habits? Are stock options always the best way to encourage risk-averse CEOs to invest in unpredictable but potentially value-creating projects? Can the desire for one reward be fulfilled with another? Professors Anindya Ghose, Cassie Mogilner, Christopher Armstrong and Jonah Berger, respectively, examined these issues -- and what they mean for business -- in recent research papers.

Different Worlds: Do Recommender Systems Fragment Consumers' Interests?

Wed, 31 Aug 2011 15:20:29 EST

The rise of computer-driven recommendation systems designed to help consumers navigate a growing ocean of choice is prompting concerns that the hyperpersonalization of information sources will lead to harmful divisions throughout society. A new study on consumer purchasing patterns in the music industry suggests the opposite. The paper, by Wharton researchers Kartik Hosanagar, Andreas Buja and Daniel M. Fleder, is titled, "Will the Global Village Fracture into Tribes: Recommender Systems and their Effects on the Consumer."

More Than Virtual: Marketing the Total Brand 'Experience'

Tue, 07 Jun 2011 14:37:10 EST

Forget volatile weather wreaking havoc on shopping patterns, a shaky economic recovery and ultra-cutthroat promotions. According to speakers at a recent conference co-sponsored by Wharton's Jay H. Baker Retailing Center, what is causing retail executives the most sleepless nights is the onslaught of new communication and social media platforms. But while companies' advertising campaigns are becoming increasingly complex, marketers would do well to remain focused on all the touch points between their companies and consumers.

Research Roundup: Fiscal Fatal Attraction, the Idiosyncrasies of Entrepreneurs and the Value of Luxury Hiding in Plain Sight

Wed, 27 Apr 2011 14:51:52 EST

Are big spenders attracted to the stingy -- and does it lead to blissful matrimony? Why are certain people more likely to take the entrepreneurial leap? How can subtle branding help retailers attract a high-end niche customer base? Wharton professors Deborah Small, Nikolai Roussanov and Jonah Berger, respectively, examined these issues -- and their broader implications -- in recent research papers.

A Teakettle with Star Power? The Upsides and Pitfalls of Celebrity Brands

Wed, 27 Apr 2011 14:51:52 EST

In an otherwise price-driven economy, retailers are increasingly relying on a stable of private labels and exclusive brands. These lines differentiate stores, give them more say about the marketing of their merchandise and offer retailers control over pricing. But there are pitfalls to these partnerships, experts warn, including higher production costs and the risk that a line will burn out when the celebrity designer's star power begins to dim.

Nickeled and Dimed: Is It Possible to 'Over-fee' Consumers?

Wed, 13 Apr 2011 15:12:20 EST

When a business faces extra costs or other hits to the bottom line, these costs are often passed on to the consumer. Increasingly, in industries such as financial services and the airlines, the hits take the form of ancillary fees. And in some cases, the charges are for services that were once free, such as checking baggage on a flight or opening a checking account. Yet businesses that impose fees need to tread carefully, experts say, because customers will quickly revolt if the extra costs are perceived to be unreasonable.

Research Roundup: The Upside of Bad Publicity, Skill vs. Luck for Hedge Fund Managers and Aligning Pricing with Value

Wed, 16 Mar 2011 15:44:15 EST

Is the famous truism "any press is good press" actually true? Is it more important for hedge fund managers to be lucky or skilled when it comes to offering new products? What is the best pricing structure to align optimal profits with consumers' perception of value? Wharton professors Jonah Berger, Evan Rawley and Raghuram Iyengar, respectively, offer answers to these questions, and identify the implications for the business world, in recent research papers.

Logo Overhaul: Will Customers Still Answer the Siren Call of Starbucks?

Wed, 02 Feb 2011 15:51:26 EST

Starbucks has emerged over the last 20 years as one of the premier consumer brands in the world. Now, the company has decided to give that brand a facelift by revamping its ubiquitous logo. While logo overhauls can successfully communicate a company's evolution and growth, they can also trigger a backlash among loyal customers. In the case of Starbucks, the new logo highlights a strategic shift for the company, but has sparked criticism from outspoken fans as well.

Can You Spare a Quarter? Crowdfunding Sites Turn Fans into Patrons of the Arts

Wed, 08 Dec 2010 16:38:32 EST

The Internet age has made distribution easy. These days, anyone can upload a video to YouTube or otherwise post their creative work online. But getting paid for that work is another matter. Crowdfunding is one solution to the problem, and websites such as IndieGoGo, Spot.Us, Pledge Music and Kickstarter have sprung up in response to the trend. By letting fans finance the work of artists directly, these sites have democratized support of creative endeavors, including music and filmmaking, that were formerly dominated by record labels, movie studios and other more traditional players.

Surviving Silly Bandz: Prolonging the Shelf Life of Fads

Wed, 21 Jul 2010 15:16:28 EST

Fads are hard to miss. Whether it's this summer's craze -- Silly Bandz, the rubber-band bracelets that have become a must-have accessory for children -- Beanie Babies or the Rubik's Cube, they take off like a rocket in popularity and then seem to fizzle out just as quickly. You might think fads are kids' stuff. But adults aren't immune to the fad machine -- remember all those grownups sporting Crocs a few years ago? And while fads present challenges to businesses riding that wave, they can also spell opportunity if managers take the cash generated by these crazes and use it to build a sustainable business.

To Boycott or Not: The Consequences of a Protest

Wed, 09 Jun 2010 16:48:25 EST

The call for a boycott of BP in the wake of its ongoing disastrous oil spill in the Gulf of Mexico is hardly surprising. The boycott, which in BP's case was proposed by consumer group Public Citizen, is a tactic that has been used for centuries by consumers as a way to express outrage. While research shows many boycotts come up short in forcing their targets to give in to the demands of protest organizers, they can have real impact in terms of lost sales and a damaged reputation. In the case of BP, however, experts say a boycott is likely to be only a nuisance when compared to the outsized legal liability the company is facing from the Gulf spill.

Be There or Be Square: The Rise of Location-based Social Networking

Wed, 14 Apr 2010 11:36:17 EST

To find the hottest restaurant, bar or concert venue in town, many young adults are no longer checking in with their friends. They're "checking in" virtually via Foursquare, a location-based social networking site. While Foursquare is being touted as the Next Big Thing, experts say the true potential lies in companies knowing exactly where customers are and pitching offers or services based on the spots these customers frequent. The challenge for Foursquare and others, observers suggest, is transitioning beyond buzz and finding uses for geo-targeting that are both profitable and practical.

Too Much of a Good Thing? How Assortment Size Influences Healthy Consumer Choices

Wed, 09 Dec 2009 17:18:52 EST

Imagine you are at a restaurant debating whether to order a healthy salad or an artery-clogging hamburger. What would lead you to choose the salad? New research suggests your decision might not be dictated by fear of retribution from your doctor or any other factor offered up by conventional wisdom. Rather, what may matter most is the length of the menu. In a study titled, "Variety, Vice and Virtue: How Assortment Size Influences Option Choice," Wharton marketing professor Jonah Berger and his co-authors found that increasing the number of goods or services available to consumers can lead them to make sensible choices, because they are easier to justify than more indulgent ones.

The Long-term Downside of Overnight Success

Wed, 05 Aug 2009 16:41:52 EST

Marketers may dream of coming up with a product that skyrockets in popularity as soon as it is introduced to the public. New Wharton research, however, indicates that products which catch on too quickly may end up being less successful overall. "We often see products, ideas and behaviors ... spread like wildfire," says marketing professor Jonah Berger, co-author of the research paper. "But we know less about why once-popular things become unpopular."

Advertising Yourself: Building a Personal Brand through Social Networks

Wed, 15 Apr 2009 15:21:37 EST

With the economy mired in a recession, even some full-time employees are joining independent consultants, writers and musicians in learning how to use online social networking tools such as Facebook and Twitter to increase their contacts and tap into possible customers or clients. Indeed, according to Wharton experts and others, developing a personal brand can be as important for a financial advisor as for a rock musician.

Is This Madness? How Losing by Just a Little Can Help a Team -- or Company -- Win

Wed, 18 Mar 2009 16:34:51 EST

Pay attention to the first-half scores in the early rounds of the NCAA basketball tournament, which began yesterday with 64 college teams vying for the National Collegiate Athletic Association championship. According to recent research by a pair of Wharton professors, teams that trail by a little at the half actually have a better chance of winning the game than the squad in the lead. The findings, they say, apply to the business world, too.

Getting Engaged: Advertisers Search for Their Voices on YouTube

Wed, 02 Apr 2008 17:52:07 EST

The video-sharing site YouTube is currently running a comedy sketch contest sponsored by Toyota's 2009 Corolla. It's just one of the latest examples of companies using this advertising hot spot to target customers who spend a lot of their time watching online videos. But finding a home in the medium is not so easy, Wharton professors say. In a digital world of instant feedback and ruthless honesty, a company can either score major brand points or look as ridiculous as any adult trying to hang with the cool kids.

Pumas, Planets and Pens: How Cues in the Environment Influence Consumer Choice

Thu, 27 Mar 2008 16:03:40 EST

In a new research paper titled, "Dogs on the Street, Pumas on Your Feet: How Cues in the Environment Influence Product Evaluation and Choice," Wharton marketing professor Jonah Berger suggests that what you see in your everyday world can influence what you buy. For example, participants in one study who were shown more images of dogs liked sneakers from the Puma brand more than those who had not seen the images -- because dogs are associated with cats, and cats with Puma. "Marketers ... think they have to come up with a catchy slogan or slick advertisement to create a buzz," Berger says. Instead, companies can get a payoff by creating a link between their product and a cue in the environment.

'Dead-tree Medium' No Longer: For Many Marketers, Print Outperforms Digital

Wed, 19 Mar 2008 14:57:40 EST

Paper costs are rising, mail rate hikes are looming and competition from new media continues to grow. Yet marketers' use of direct mail and other printed materials is stronger than it's been in years. Thanks to variable-data printing, companies can now tap purchase-history databases to design, create and print entirely personalized catalogs that cross-sell products and services to individual consumers. They can also combine print with other media in the evolving discipline known as cross-channel marketing. But whatever strategy a company adopts, experts note, the challenge is the same: Finding the right way to communicate with customers.

Marketing Presidential Candidates on the Web Goes Mainstream: But Does It Get Votes?

Wed, 09 Jan 2008 15:30:15 EST

The January 3 Iowa caucuses and the January 8 New Hampshire primary showcased the 2008 presidential campaign's ongoing political dogfight as candidates battled for their parties' nominations. Under the surface, however, the scrum represents a tipping point in the use of the Internet as a campaign tool, say experts at Wharton. In many respects, the 2008 race resembles any sophisticated Internet marketing campaign that lets consumers swap information, connect with friends and perhaps make a purchase -- or, in this case, a donation. Indeed, selling a candidate may not be much different than selling any other high-end item, although possibly less effective.

Social Marketing: How Companies Are Generating Value from Customer Input

Wed, 12 Dec 2007 14:42:27 EST

Fansumers, viral videos and social computing -- these are just some of the many buzzwords pinging around the marketing world today. While making sense of them isn't easy, the concept behind them is clear: Online technologies allow customers to communicate in new ways with one another, and companies must decide whether to ignore, co-opt or dive into these new waters of interactivity. "Consumers want to feel they are being heard, and they love having an impact on the future development of products," says one Wharton professor. "To the extent that they can air grievances, or understand the company's position, that can be beneficial for the company itself."

The Holiday Shopping Outlook: I Saw Mommy Dissing Santa Claus

Wed, 14 Nov 2007 15:20:43 EST

When Wal-Mart starts its holiday markdowns three weeks before Thanksgiving, you know it will be a tough Christmas season. The Arkansas-based discount chain, a bellwether for U.S. retailing, usually holds off on its "door buster" sales until the day after Thanksgiving, traditionally the year's busiest shopping day. This year, Wal-Mart decided that it couldn't afford to wait. No wonder, say scholars at the Wharton School and retail analysts. A host of economic worries -- plus concerns over toy recalls -- has this year shaping up to be a lump-of-coal shopping experience. Here is what retailers -- and shoppers -- can expect.

Move Over, Beanie Babies, Webkinz Are Coming to a Store -- and Virtual World -- Near You

Wed, 19 Sep 2007 15:42:32 EST

If you don't yet know about the Webkinz craze, you soon will, especially if you have children of your own or at least know one or two on your block. Webkinz are essentially stuffed animal "pets," but what makes them different from other hot toys of years gone by -- Cabbage Patch Kids, Beanie Babies, Tickle Me Elmo and even the century-old teddy bear -- is the business model behind them. By melding the old-fashioned bricks-and-mortar world of toy retailing with an opportunity to participate in an online community, Webkinz taps into the kiddie zeitgeist and shows a deep understanding of how to use the concept of virtual worlds to full advantage, according to marketing experts at Wharton and elsewhere.

From Cool to Passé: Identity Signaling and Product Domains

Wed, 05 Sep 2007 15:46:23 EST

The quest for cool is never-ending. Accountants rev up their Harleys to the dismay of hard-core bikers. Soccer moms trade in minivans for hipper Land Rovers. Yellow rubber wristbands appear instantly, then just as quickly disappear. There is a fine line between cool and not-so-cool -- a topic explored in a new paper, Where Consumers Diverge from Others: Identity Signaling and Product Domains, by Wharton marketing professor Jonah Berger and co-author Chip Heath from Stanford. The researchers look at how consumers use products to signal membership in social groups, but swiftly abandon those same products when the original message is diluted as other groups co-opt the trend.

When a Black Tee Shirt Is More than a Black Tee Shirt: Why Brands Aren't Losing Their Luster

Wed, 05 Sep 2007 15:46:23 EST

As sales of Apple's iPod, Coca-Cola and North Face clothing show, despite serious challenges from private label manufacturers and low-price global production, branding remains an important way for consumers to choose among products in a crowded marketplace. Brands are a short-hand means of conveying quality and lower risk, according to Wharton faculty and marketing analysts, and they also play a growing role in building consumers' identities. But, these experts add, with little room to compete on cost, brands will need to be vigilant when it comes to differentiating themselves from increasingly sophisticated competitors.