DOI: https://doi.org/10.1177/1094670518795054 

Abstract: In the service literature, churn is primarily attributed to customers who are dissatisfied with a service. However, in several industries, such as health care, weight loss services, and online dating, satisfied customers also churn because the service delivers on its promise, for example, by providing a cure, facilitating weight loss, or creating the circumstances that allow a person to meet their partner. Considering these dual churn pathways, it is necessary for companies in these markets to create awareness of what drives positive and negative churn to address the corresponding challenges for managing customer relationships. This study defines and theoretically discusses the concept of positive churn and outlines its consequences for companies in the short- and long term. Based on an analysis of combined observational and survey data from 1,369 customers, we empirically demonstrate the necessity of accounting for positive and negative churn by analyzing this phenomenon in online dating. Furthermore, this article discusses opportunities for future research on positive churn.

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DOI: https://doi.org/10.1509/jm.16.0057 

Abstract: Geographic proximity has become increasingly relevant due to the growing number of marketing services that use consumers’ geographic locations, thus increasing the importance of gaining insights from this information. In five studies (both field and experimental), the authors analyze the effect of geographic proximity on social influence and demonstrate that not only social proximity but also perceived homophily can trigger social influence. They find that this effect holds under alternative representations of geographic distance and is confirmed for a range of different services and even for physical goods. Furthermore, the authors show that geographic proximity has a relative effect because the social influence of a closer sender is stronger than that of a more distant sender, regardless of the absolute distances. They present managerially relevant conditions under which the influence of geographic proximity not only is comparable to other types of information such as age or gender but also provides sufficient informational value for customers to offset differences among alternatives (e.g., due to higher prices) in trade-off decisions.

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DOI: https://doi.org/10.1016/j.ijresmar.2016.11.005 

Abstract: Rewarding existing customers for the recruitment of new ones has become an increasingly popular acquisition tool for companies. However, when a company rewards the recruitment of a new customer, managers are unaware of whether the rewarded referral was actually necessary or whether “reward-scrounging” has occurred because the referral receiver would have converted anyway. As a consequence, companies risk overestimating the effectiveness of their referral programs, which is why gaining insights into how and when reward-scrounging occurs is crucial. In this study, we employ a large data set from the telecommunications industry to analyze the drivers of reward-scrounging. The results indicate that reward-scrounging reduces the effectiveness of referral reward programs over time and that its likelihood depends on both the referral sender's network position and the company's marketing activities. The findings are used to develop managerial means to alleviate the negative effects of reward-scrounging.

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DOI: https://doi.org/10.1016/j.ijresmar.2015.05.005 

Abstract: When companies launch new products, they need to understand the impact of publicity and advertising on sales. What is their relative effectiveness? Do they strengthen each other (have a positive interaction effect) or weaken each other (have a negative interaction effect)? Further, does the timing of these activities (before or after launch) affect their impact on sales? This paper develops hypotheses regarding the elasticities of pre- and post-launch publicity and advertising on sales. The hypotheses are tested on a large-scale empirical data set that tracks sales, publicity, and advertising for 3336 video games across 52 weeks covering the pre- and post-launch phases. The results demonstrate that pre-launch publicity is more effective than pre-launch advertising but that the reverse is true post-launch. Surprisingly, the analysis reveals a negative interaction effect between pre-launch advertising and publicity, which means that publicity becomes less effective when it is accompanied by higher levels of advertising for the same product. Simulations indicate that companies can gain most sales by focusing on publicity pre-launch, and that there is little benefit from increasing publicity and advertising during the same phase, which is consistent with negative (pre-launch) and zero (post-launch) interaction effects.

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DOI: https://doi.org/10.1509/jm.10.0088 

Abstract: Seeding strategies have strong influences on the success of viral marketing campaigns, but previous studies using computer simulations and analytical models have produced conflicting recommendations about the optimal seeding strategy. This study compares four seeding strategies in two complementary small-scale field experiments, as well as in one real-life viral marketing campaign involving more than 200,000 customers of a mobile phone service provider. The empirical results show that the best seeding strategies can be up to eight times more successful than other seeding strategies. Seeding to well-connected people is the most successful approach because these attractive seeding points are more likely to participate in viral marketing campaigns. This finding contradicts a common assumption in other studies. Well-connected people also actively use their greater reach but do not have more influence on their peers than do less well-connected people.

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