Paul E. Green Marketing Camp 2022

Wharton’s annual Paul E. Green Marketing Camp brings four leading scholars in the field of Marketing together to share their cutting-edge research, and interact with our faculty, students, and researchers. The day celebrates the diversity of the marketing field, with talks spanning the wide spectrum of marketing research topics, and with guests joining us from around the world. By bringing some of the most brilliant minds in the field together with our Wharton Marketing scholars, we aim to foster creativity, spark new research, and continue pushing the frontiers of marketing knowledge. This year’s Camp will be held on campus in person.

We are excited to announce that Paul E. Green’s first PhD student, and long-time Professor of Marketing at Cornell University, Vithala R. Rao, and his wife Saroj have endowed Wharton’s Marketing Camp and named it in Paul’s honor.

If you have any questions, please contact Professor Wendy De La Rosa, Professor Gideon Nave or admin Beth McCarthy.

Speakers

Friday, February 11, 2022

Sandra Matz

David W. Zalaznick Associate Professor of Business, Columbia University, Columbia Business School

Columbia University, Columbia Business School

Sandra Matz is the David W. Zalaznick Associate Professor of Business at Columbia Business School in New York. As a computational social scientist, she studies human behavior and preferences using a combination of Big Data analytics and traditional experimental methods.

Her research aims to understand how psychological characteristics influence real-life outcomes in a number of business-related domains (e.g. financial well-being, consumer satisfaction or team performance), with the goal of helping businesses and individuals to make better decisions.

She was named as one of the Poets & Quants 40 under 40 Business School Professors in 2021.

Using Big Data to Study Individual Differences in Spending Behavior

Spending is an essential part of our daily lives. Yet, we all spend money in different ways. This talk explores the role of personality traits in people’s real-life spending behaviors. Building on the theory of self-congruity, I will show that personality fit between consumers and products/marketing messages impacts (i) people’s spending on an individual and geographic level, (ii) the satisfaction and happiness consumers derive from their purchases, and (iii) the efficiency of psychologically-tailored interventions.

Daniel McCarthy

Assistant Professor of Marketing, Emory University, Goizueta School of Business

Emory University, Goizueta School of Business

Daniel McCarthy is an Assistant Professor of Marketing at Emory University’s Goizueta School of Business. His research specialty is the application of leading-edge statistical methodology to contemporary empirical marketing problems. His research interests include customer-based corporate valuation, which he popularized, customer lifetime value, limited data problems, data privacy, and the marketing/finance interface. He is also actively researching the causal effect of actions and events on customer purchase behavior.

His research has been accepted and published in top-tier academic journals, including Marketing Science, the Journal of Marketing Research, and the Journal of Marketing. His work has won numerous research awards, including the Lehmann, MSI Clayton, Gary Lillien Practice Prize, and MSI Young Scholar, and been a finalist for many others, including the Paul Green, Hunt/Maynard, MSI/Root awards. His work has been featured in major media outlets such as the Harvard Business Review, Wall Street Journal, FT, Fortune, Barronís, Inc Magazine, the Economist, and CNBC.

Persistence of Consumer Lifestyle Choices: Evidence from Restaurant Delivery During COVID-19

We study the impact of the COVID-19 pandemic on customer purchasing behavior in the restaurant delivery category in the United States and, particularly, the extent to which pandemic-driven shocks to purchasing behavior have persisted even as consumers’ lifestyles are returning to a “new normal.” We apply age-period-cohort (APC) models, commonly used in sociology but with limited adoption in marketing, to nonparametrically decompose customer behavior into acquisition cohort, tenure, and calendar time effects. This approach, in conjunction with an event study approach, allows us to flexibly estimate the time-varying effects of ubiquitous events such as COVID, where no contemporaneous “control group” is available, by comparing the behavior of cohorts acquired at different times. We estimate that pandemic-related disruptions initially more than doubled customers’ aggregate spending. As of Summer 2021, the lift in sales was still approximately one-third of its early pandemic peak, despite evidence that the pandemic-driven shocks driving the initial lift had abated, due to a sizeable segment of customers continuing to purchase at elevated rates. This persistent behavior is consistent with some consumers having formed habits around delivery. However, this persistence appears to gradually decay over time, suggesting that habits acquired during COVID may not last indefinitely.

Elie Ofek

Malcolm P. McNair Professor of Marketing, Co-Unit Head, Marketing, Harvard Business School Department of Marketing

Harvard Business School

Elie Ofek is the Malcolm P. McNair Professor of Marketing at the Harvard Business School. Professor Ofek’s research explores relationships between product/service development and marketing decisions and looks at how companies integrate customer input when formulating innovation strategy. His research also examines the implications of digital technologies and emerging consumer trends on firms’ marketing mix decisions. His work has appeared in top management and marketing journals, he is the author of numerous HBS cases and teaching materials as well as a book on valuing innovations.

At HBS he has taught the first year MBA required marketing course (also served as the course head), an MBA elective on the relationship between marketing and innovation and in a variety of executive-education programs. He currently serves as the marketing co-unit head.

Professor Ofek received his Ph.D. in Business from Stanford University and holds an M.A. in Economics and a B.Sc. in Electrical Engineering. He has worked with companies from a range of industries including high-tech, consumer goods, media, telecommunications, financial services, pharmaceuticals, and personal-care.

I Don’t “Recall”: The Decision to Delay Innovation Launch to Avoid Costly Product Failure

Innovations embody novel features or cutting-edge components aimed at delivering desired customer benefits. Oftentimes, however, we observe the need to recall new products shortly after their introduction. Indeed, a firm may rush an innovation to market in an attempt to pre-empt rivals and capture early demand, yet in so doing forgo rigorous testing; thus subjecting itself to the risk of a product recall. To shed light on this phenomenon, we construct a dynamic model in which firms plan to launch their innovations. Each firm must decide whether to conduct time-consuming quality assurance testing, which ensures no defects or safety problems but delays the launch. If the innovation is released without such testing and a recall occurs, the firm incurs pecuniary costs and faces future reputation damage in marketing the recalled innovation. We investigate the strategic forces behind firms’ testing and launch-timing decisions in this context. The analysis uncovers a novel mechanism, linked to the possibility of a rival going bankrupt, that causes firms to become more inclined to rush to market and take on the risk of product failure as the negative consequences of a recall increase. The results further demonstrate how firms’ desire to forgo testing exhibits an inverse-U pattern as consumers become more heterogeneous; and how competitive forces may induce both firms to forgo testing, even though the resulting profits are lower than had they both committed to conduct testing. The framework is extended to examine how product recall considerations affect firms’ research and development (R&D) investments. Although, in general, post-innovation product failure discourages R&D effort, we identify conditions under which an increase in the recall probability stimulates firms to innovate. Several model extensions are presented and managerial implications are discussed.

San Diego State University, Fowler College of Business

Eesha Sharma is assistant professor of marketing at the Fowler College of Business at San Diego State University. Professor Sharma received her Ph.D. in marketing and a dual B.Sc. degree in finance and marketing from NYU’s Stern School of Business. She studies consumer behavior and financial well-being and is interested in how psychology and marketing can be used to understand and improve both. She is particularly interested in how people react to perceived financial scarcity in their lives and in the lives of others. Using a combination of behavioral experiments and field studies, she examines topics such as: how people form perceptions of their wealth, how people behave when they feel poor, why people give to charity, and what factors may improve and/or worsen consumer financial decision making. Professor Sharma’s research has been published in journals such as Journal of Consumer Psychology, Journal of Consumer Research, Journal of Marketing Research, Organizational Behavior and Human Decision Processes, and Proceedings of the National Academy of Sciences, and it has received attention at media outlets such as Forbes, The Huffington Post, Marketplace, Men’s Health, The New Yorker, Psychology Today, Science Daily, and Vanity Fair. Prior to joining SDSU, she was a marketing professor at Dartmouth’s Tuck School of Business, and prior to academia, she worked as an investment banking analyst in the financial institutions group (FIG) at Goldman Sachs.

Spending and Happiness: The Role of Perceived Financial Constraints

Perceived financial constraints are ubiquitous, and prior research suggests that consumers who feel financially constrained are especially likely to engage in compensatory consumption to signal positive attributes or offset the aversiveness associated with their state. However, it is unclear whether spending confers greater happiness when consumers feel financially constrained. Seven high-powered studies (N = 7,228) demonstrate that perceived financial constraints decrease the happiness consumers derive from their purchases. This effect is robust across several purchase types and occurs in part because consumers who perceive greater financial constraints are more likely to consider opportunity costs when evaluating their purchases (studies 2A and 2B). Consistent with this mechanism, the effect attenuates when all consumers are prompted to consider opportunity costs (study 3) and when consumers consider planned purchases (study 4). The negative effect of perceived financial constraints on purchase happiness results in an important behavioral outcome: less favorable consumer reviews (studies 5A and 5B). The authors conclude by meta-analyzing their file drawer (25,765 participants; 42 studies) to explore how the effect differs across several purchase types and discussing theoretical and practical implications for consumers and marketers.

Agenda

Friday, February 11, 2022

TimeSpeakerLocation
11:30 AM – 1:00 PMLunch with Junior Faculty & Guests Shiri Melumad, Assistant Professor of Marketing Ron Berman, Assistant Professor of Marketing Marissa Sharif, Assistant Professor of Marketing Ryan Dew, Assistant Professor of MarketingMeet in the lobby of the Inn at Penn, Lunch is at Louie Louie Boxed Lunches will be available on the 7th floor in the large conference room for students.
1:00 PM – 1:05 PMEric Bradlow The K.P. Chao Professor; Professor of Marketing; Vice Dean of Analytics; Chairperson, Wharton Marketing Department; Professor of Economics; Professor of Education; Professor of Statistics and Data ScienceJon M. Huntsman Hall (JMHH) 8th Floor 3730 Walnut Street Philadelphia PA, 19104
1:05 PM - 1:10 PMVithala R. Rao - Special Guest Professor Emeritus, Cornell University, Johnson Graduate School of ManagementIntroduced by: Eric Bradlow Chair and Professor of Wharton Marketing
1:15 PM – 2:05 PMSandra Matz David W. Zalaznick Associate Professor of Business Columbia University, Columbia Business SchoolIntroduced by: Gidi Nave Assistant Professor of Marketing, Wharton
2:05 PM – 2:20 PMBREAK
2:20 PM – 3:10 PMDaniel McCarthy Assistant Professor of Marketing Emory University, Goizueta School of BusinessIntroduced by: Ryan Dew Assistant Professor of Marketing, Wharton
3:10 PM – 3:25 PMBREAK
3:25 PM – 4:15 PMEesha Sharma Assistant Professor of Marketing San Diego State University, Fowler College of BusinessIntroduced by: Shiri Melumad Assistant Professor of Marketing, Wharton
4:15 PM – 4:30 PMBREAK
4:30 PM – 5:20 PMElie Ofek Malcolm P. McNair Professor of Marketing; Co-Unit Head, Marketing Harvard Business School, Marketing DepartmentIntroduced by: Ron Berman Assistant Professor of Marketing, Wharton
5:20 PM – 5:30 PMClosing Remarks Wendy De La Rosa Assistant Professor of Marketing, Wharton & Gidi Nave Assistant Professor of Marketing, Wharton