Americus Reed - Faculty Research in Knowledge@Wharton

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.

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.

Cents and Sensibility: Why Marketing to Multicultural Consumers Requires a Subtle Touch

Wed, 03 Mar 2010 15:50:03 EST

In an era of globalization and fluid national borders, advertising that appeals to cultural and ethnic identity has become a vital part of the corporate marketing arsenal. But new research shows how ethnic-oriented marketing can backfire and even turn multicultural consumers against a product or service if ad campaigns are perceived as aggressive or patronizing. The key? Tread carefully, says Americus Reed II, a Wharton marketing professor who teamed up for the research with Stefano Puntoni and Peeter Verlegh from Erasmus University's Rotterdam School of Management in the Netherlands.

Saturn: A Wealth of Lessons from Failure

Wed, 28 Oct 2009 17:19:29 EST

General Motors' decision earlier this month to scrap its Saturn brand triggered frequent retellings of the many ways in which GM missed an opportunity to recast itself and the auto industry. But other manufacturers did adopt some of Saturn's innovations, according to Wharton faculty. Indeed, they say, the Saturn story provides a roadmap for what to do --- and what not to do -- as the auto industry adjusts to the post-financial crisis world.

Available All the Time: Etiquette for the Social Networking Age

Wed, 30 Sep 2009 17:48:04 EST

As social networking sites and 24-hour Blackberry access blur the lines between business and personal lives, managers and employees are struggling to develop new social norms to guide them through the ongoing evolution of communications technology. Wharton faculty and other experts say the process of creating rules to cope with the ever-expanding reach of modern communications has just begun, but will be shaped largely by individuals and organizations, not top-down decrees from a digital Emily Post.

The Crowded, Caffeinated Soft Drink Sector: Who Will Bubble Up to the Top?

Wed, 02 Sep 2009 16:37:02 EST

The ritual is now a part of big-time, as well as small-town, football games. As the clock winds down, players grab an orange vat with a green label and douse the winning coach. This "Gatorade shower" has made the sports drink one of the world's best-known brands and helped pave the way for other niche products and beverage categories that now compete with traditional carbonated soft drinks. What marketing challenges do soft drink companies face, especially given health concerns and the recessionary economy? Wharton faculty and other experts weigh in.

Technological Evolution Stirs a Publishing Revolution

Wed, 05 Aug 2009 16:41:52 EST

According to Wharton faculty who follow the complicated, emotionally fraught subject of how we buy and sell literature, devices such as Amazon's Kindle and an on-demand book-printing machine called Espresso are helping to upend longstanding customs in the slow-to-change business of book publishing.

A Primer for Presidential Candidates in a Wired World: Be Cool, Consistent -- and Yourself

Wed, 19 Sep 2007 15:42:32 EST

Pop singer Britney Spears would seem to have little to teach candidates for the U.S. presidency. But her lame performance at the MTV Video Music Awards on September 9 -- she forgot the words to a lip-synched song -- is a cautionary tale about the speed with which news travels in a wired world. Indeed, news reports and video clips of political gaffes travel just as fast as bad music reviews, and elicit judgments just as quickly. For presidential candidates, it leaves little room for error in how they package themselves and their message.

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.

It's Not Easy Going Green: Environmentalism May Help Your Corporate Image, but Will It Keep You in the Black?

Wed, 07 Feb 2007 15:59:14 EST

On February 2, a long-awaited report from the Intergovernmental Panel on Climate Change (IPCC) was released citing "unequivocal" proof of global warming. Meanwhile, some of the biggest corporations in the world, including Wal-Mart, Ford, General Electric and BP, have adopted highly visible "green" strategies. But what does "going green" mean for the bottom line? Whether motivated by desire to do what is right, or to polish their public image and fend off government regulation, companies can profit from environmental initiatives, according to Wharton faculty and analysts.

Brand It Like Beckham: Can the Soccer Star Sustain the Hype?

Wed, 24 Jan 2007 15:12:24 EST

The sports world went into overdrive this month when it was announced that soccer star David Beckham had signed a landmark five-year sports contract worth an estimated $250 million to play soccer with the Los Angeles Galaxy. But what many Wharton sports and marketing experts are wondering is whether Beckham can live up to the hype surrounding the deal and produce enough star power to not only boost the team's revenue, but also raise the profile of Major League Soccer in the U.S.

Star Blight: The Perils of Celebrity Endorsements

Wed, 06 Sep 2006 14:30:41 EST

Floyd Landis's potential as a product endorser dropped faster than a cyclist speeding down a mountain road when he tested positive for synthetic testosterone after winning this summer's Tour de France. Sports columnists denounced him even as the companies that had invested tens of millions in him and his team dropped their sponsorships. Landis, of course, isn't the only celebrity or athlete who managed to misbehave this summer. Consider sprinter Justin Gatlin, French soccer player Zinedine Zidane, actor Mel Gibson and Philadelphia Phillies pitcher Brett Myers. Yet as marketing experts and others note, celebrity wrongdoing is more than just fuel for gossip columns. Athletes and celebrities push all manner of products and services, and their downfalls can tarnish the brands and companies they endorse. "The perils of these endorsements are consistently underestimated," says one expert.

Will the New Nike+iPod Sport Kit Hit the Ground Running, or Hit the Wall?

Wed, 26 Jul 2006 12:03:13 EST

Music, physical movement, technology and being cool have long gone hand in hand. Now, two iconic brands, Apple Computer and Nike, are collaborating on a new system of gizmos that take exercising and digital-music players to a new level. The Nike+iPod Sport Kit allows runners and walkers to listen to songs and to record, store and share information (such as speed, distance covered and calories burned) with others about their exercise sessions. The system also "talks" to runners in real time, providing information as they jog along. Members of Wharton's marketing department say it's a winning combination that will bolster each company's image and open the door to other co-branding opportunities. But they disagree as to whether the joint effort will actually sell more iPods and Nike shoes.

What's in a Name? Consumer Reaction to Supplements Versus Drugs

Wed, 17 May 2006 15:28:37 EST

When consumers are diagnosed with a medical condition such as high cholesterol or obesity, they immediately begin a new regime of brisk walks and a diet of heart-healthy foods, right? Not necessarily, says Wharton marketing professor Lisa E. Bolton. If those consumers are taking a prescription or over-the-counter drug for their condition, they may actually toss back more chips and donuts. Those taking a supplement, however, may be more likely to eat broccoli and hit the treadmill. In a new research paper, Bolton, Wharton marketing professor Americus Reed II, and Penn medical school professors Kevin G. Volpp and Katrina Armstrong look at how consumer perceptions of supplements and prescription drugs can affect risk perceptions and intentions to diet and exercise.

Your Boss Won't Agree? Might Be "Identity-Induced Stickiness"

Wed, 14 Jul 2004 15:04:46 EST

Why do so many smokers keep smoking, despite decades of health warnings? Why do Harley Davidson motorcycles and Ralph Lauren clothing engender such loyalty among very specific types of people? Why do teens and parents always seem to fight, and never seem to hear what the other is saying? Wharton marketing professors Lisa Bolton and Americus Reed have found through their research that judgments linked to a person’s identity – from teenager to Republican, environmentalist or businessman – are virtually immovable. That has crucial implications for brand identity.

Getting Close to the Customer: Quantitative vs. Qualitative Approaches

Wed, 05 May 2004 13:10:03 EST

After adapting information technology to develop ever more sophisticated research methods, marketers are taking a second look at more human, qualitative approaches to tapping into the hearts and minds of consumers. As one Wharton marketing professor says: “We can put each customer’s order on a microchip, but as far as having a sense of what’s inside making him tick,” the answers remain elusive. He and others suggest that companies use both quantitative methods – such as data mining – and qualitative methods, ranging from “concept banks” to “brand communities” to customer advisory boards, always keeping in mind the cost-effectiveness of these varied approaches.

Exploring the Links between Brand Name and Consumer Identity

Wed, 06 Nov 2002 00:00:00 EST

What constitutes a successful identity-oriented marketing strategy? According to Wharton marketing professor Americus Reed II, it consists of three critical links � the consumer, the identity and the brand. If these links are forged, says Reed, who recently completed a research paper on this topic, �then they create connections that can lead to advantageous marketing outcomes for companies that are savvy enough to incorporate identity into their marketing strategy.� Think Harley-Davidson.