Stern Marketing 2020-2021 Newsletter

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STERN MARKETING: AT A GLANCE Through cutting-edge research and innovative teaching methods, Stern Marketing is shaping the business leaders of tomorrow.

Our mission as one of the world's top marketing departments continues to be excellence in research and in teaching, and to make significant contributions to the ever-evolving academic and business communities.

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FULL-TIME FACULTY DOCTORAL STUDENTS

EDITORIAL BOARD POSITIONS HELD

PUBLISHED 29 ARTICLES AY 2019-2020

DALLAS #2 UT RESEARCH RANKING* UNDERGRADUATE #3 BEST MARKETING PROGRAM MBA #9 BEST MARKETING PROGRAM †

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*Worldwide research ranking, 2015-2019, published April 24, 2020 †

Based on 2020 U.S. News & World Report Rankings

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LETTER FROM THE CHAIR

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t NYU Stern Marketing, with 27 full-time professors, 4 affiliated faculty, 50+ adjuncts and 14 PhD students, we are proud to be a diverse, inclusive, and innovative team.

We have consistently kept apace with the ever-evolving academic landscape, taking second place in the 2015 to 2019 Worldwide Research Productivity Rankings (published by UT Dallas on April 24, 2020).

Our programs and initiatives, including the Entertainment, Media and Technology Program, and the NYU Stern CBS Media Analytics Initiative, capitalize on our NYC location to foster a unique union of industry and academia.

Stern Marketing’s faculty is committed to creating space for new voices to be heard, and as a result, we have faculty from all corners of the globe.

We also continue to boast the highest percentage of female full-time tenure track faculty and the highest number of junior female tenure track quantitative marketing faculty among comparable marketing programs.

We are striving to change the face of a traditionally male-dominated field.

The wide variety of our faculty’s research interests is evident in the books they have authored, the lectures they have given, the research they have published, best paper awards they have won, and grants they have been awarded.

Stern Marketing facilitates the exploration of topics such as psychology, judgment and decision making, quantitative marketing, social media, technology, and more.

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We encourage collaboration and engagement in cross-disciplinary research, blurring traditional boundaries between "CB" and "Quantitative/Marketing Science" research.

The past few years have been an especially exciting time at Stern Marketing. In June 2019, Stern Marketing was pleased to host the AMA Sheth Foundation Doctoral Consortium, which had not been in New York City for 32 years. A week later, many of our faculty also attended the 2019 ISMS Marketing Science Conference in Rome, coorganized by Stern Marketing and Department of Business Studies, University of Roma Tre. With 1,312 conference registrants, the conference set a new registration record.

In 2019, we also welcomed back Bryan Bollinger as a tenured associate professor and Andrea Bonezzi as an associate professor without tenure.

Effective September 1, 2020, Masakazu Ishihara has been promoted to associate professor with tenure, while Adam Alter and Vishal Singh have been promoted to full professor. We welcome the newest member of our tenuretrack faculty, Joshua Lewis as an assistant professor, and we also have a retirement this year: Henry Assael will be retiring after 54 years at NYU Stern Marketing and will be gaining the title of Professor Emeritus. Henry joined NYU Stern as an assistant professor in 1966 and served as the Marketing Department chair between 19791991. We are very grateful for all his contributions to our department over the past 54 years. On page 8 you will find an interview with Henry where he reflects on his time at Stern.

We have also faced the challenges associated with the pandemic in spring 2020. All our faculty and instructors have risen to the challenge of switching to remote teaching in the middle of the semester. The student feedback at the end of the term indicated how appreciative students were of faculty commitment to providing the best possible teaching environment in the midst of a pandemic. We have had full attendance at our department meetings over Zoom and kept in touch through virtual social get-togethers. I am continually impressed by our department’s resilience and collegiality, both of which become even more important in hard times. We are lucky to have such a dedicated community of both full-time and part-time faculty, PhD students, and last but not least, such a terrific group of staff.

I am truly honored to continue guiding this department as its Chair in my second 3-year term starting in September 2020.

Best wishes,

Tülin Erdem 2020 -2021 NE WSLE T TER | 3

RECENT DEVELOPMENTS IN

STERN MARKETING RESEARCH Resistance to Medical Artificial Intelligence Journal of Consumer Research Professor Andrea Bonezzi & co-authors find that patients don't trust medical assessments made by AI, even when informed that medical AI is more accurate than a doctor, because they believe that AI offers one-size-fits-all solutions and is unable to account for each patients' unique characteristics.

Enhancing medical AI's perceived ability to tailor care to the unique characteristics of each patient will be key to building trust and receptivity among consumers.

Software Piracy and Outsourcing in Two-Sided Markets Quantitative Marketing and Economics Professors Masakazu Ishihara and Eitan Muller examine the role of software piracy in digital platforms where a platform provider makes a decision of how much software to produce inhouse and how much to outsource from a thirdparty software provider.

Search Duration Marketing Science Professor Raluca Ursu and co-authors study how much consumers search individual products (the intensive margin of search), by analyzing the time they spend searching (search duration).

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When Anger Boosts Status Journal of Experimental Social Psychology Professor Alixandra Barasch and co-authors analyze the effects of anger expressions and find that rather than boosting status, both the magnitude of expressed anger and context profoundly influence social perceptions and status conferral, and that high levels of anger expressions predictably harm status.

Preference Learning and Demand Forecast Marketing Science Professor Xinyu Cao and co-author argue that people do not automatically know their preferences, but can make an effort to acquire such knowledge when given sufficient incentives. By deriving a theoretical relationship between a subject's realization probability and their elicited prefences, they can forecast demand in real purchase settings.

The Vicarious Construal Effect: Seeing and Experiencing the World Through Different Eyes Journal of Personality and Social Psychology Professor Minah Jung, Fausto Gonzalez and Clayton Critcher explain why social experiences often differ from solo ones, illustrate a practical technique for breathing new life into old experiences and demonstrate how people can seemingly learn about themselves by trying to understand others.

Analyzing Bank Overdraft Fees with Big Data Marketing Science Professor Xiao Liu and co-authors build a dynamic structural model of consumer daily spending that incorporates inattention to rationalize consumers’ overdrafting behavior and suggest alternative pricing strategies that can increase both consumer welfare and bank revenue.

RECOGNITION & AWARDS Jared Watson received the "2020 Research in Practice Award" from AMA's Consumer Behavior Special Interest Group

Alixandra Barasch added to the Editorial Review Board at the Journal of Consumer Psychology

Geeta Menon elected as the next president of the Society for Consumer Psychology

Anindya Ghose listed as one of the world's most cited researchers (top 1% of citations in the field)

• Masakazu Ishihara was promoted to associate professor with tenure. Vishal Singh and Adam Alter were promoted to full professor.

• Adam Alter was named Stern's MBA Professor of the Year and received the Distinguished Teacher award.

• Alixandra Barasch and Andrea Bonezzi were selected as Top 50 Undergraduate Business Professors of 2020 by Poets and Quants.

• Xiao Liu and Anindya Ghose received a Marketing Science Institute research grant for their project, "Investigating the Effect of Voice AI on Consumer Purchase and Search Behavior.”

• Bryan Bollinger and co-authors received the AMA-EBSCO Responsible Research in Marketing Award for his paper “Credibility-enhancing displays promote the provision of non-normative public goods.”

• Tülin Erdem and Priya Raghubir have been chosen to be a part of the inaugural group of MSI Academic Fellows.

• Amy Webb was named to the BBC's 100 Women of 2019 list.

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WELCOME NEW FACULTY How did you become interested in marketing?

I realized that good marketing is crucial for any of my aspirations for the world to be realized! For example, if enough people substituted meat for plant-based alternatives, they could substantially reduce animal suffering and help to slow climate change. If enough people donate money towards effective charities that combat tropical diseases, they could save many lives. But, for people to take such actions, businesses and charities must come up with a compelling offer and a means of communicating it. They need marketing.

Josh Lewis

Assistant Professor of Marketing Joins us from Wharton

What are your research interests? What questions do you aim to answer?

How do you market an effective way of doing good? This can be a harder problem than it sounds. For example, when considering a charitable donation, a deliberative mindset is helpful for distinguishing effective opportunities from ineffective opportunities. Yet, relative to an impulsive or empathic mindset, a deliberative mindset is terrible for motivating altruistic action. Effective charities must find a way to communicate the effectiveness of a donation opportunity without undermining people’s urge to donate in the first place – and this is what I am working on!

In light of the Covid-19 epidemic, have your research interests shifted? If so, in what way?

To me, the pandemic underlines the importance of mitigating existential risk. The problem with efforts to do so is that there is usually no way of knowing what impact those efforts will have.

When faced with a choice between donating to provide mosquito nets that will each protect two children from malaria-infected mosquitoes, or donating to fund a lobbying group that works to promote pandemic preparedness, you can be much more confident of making a difference if you choose mosquito nets. Yet, there is some nonzero probability that donating to the lobbying group would avert the pandemic that would

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have otherwise ended humanity! So, how do people navigate these dilemmas? Both causes are clearly important, even if it is hard to compare them. I want to research how to help people overcome any indecision and invest their efforts one way or the other!

That said, I’ll research anything if it reduces the amount of advertisements saying, “now more than ever, buy our product,” over somber piano music.

What excites you most about joining the faculty at Stern?

Sharing a floor with some of the best and most influential thinkers in marketing in a city that is practically the center of the universe. This is the place to make a difference.

Where do your interests lie outside of academia and research?

I was actually asked this question in a job interview.

I responded much like a deer in the headlights.

Fortunately, the interview wasn’t for this job.

Let’s put it this way: I’m lucky enough to research what I’m interested in. I spend the rest of my time trying to make my friends and family laugh (and not just at my dreadful lack of hobbies).

STERN MARKETING PH.D. PROGRAM

RECENT PhD STUDENT ACHIEVEMENTS • Kurt Munz has joined Bocconi University as an assistant professor of marketing • Johann Melzner was awarded one of the five merit-based Fubon Center Doctoral Fellowships • Randy Gao and Tom Meyvis received one of the 2020 Center for Sustainable Business Faculty Research grants • Eunkyung An and Xiao Liu received one of the 2020 Center of Sustainable Business Faculty Research grants • Shoshana Segal and Jared Watson received a grant from the CBSIG Small Research Grant Competition • Nofar Duani, Alixandra Barasch, and Vicki Morwitz were runners up for the Best Working Paper at the Society for Consumer Psychology conference

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Celebrating Henry Assael!

Professor Henry Assael will retire following 54 wonderful years with the Stern Marketing department. Professor Durairaj Maheshwaran spoke with him about his career.

You have an illustrious career in academics spanning over 50 years. What made you choose academics as a career?

I went to work in the research department of a large ad agency, BBDO, after getting my MBA. I quickly grew frustrated by the lack of input and initiative afforded to trainees. So I decided to take a more independent route and entered the doctoral program at Columbia. Columbia did not afford doctoral students much of an opportunity to teach, so I taught as an adjunct to make ends meet and loved it.

You were the department chair for a significant period from 1979 to 1991 and the marketing department grew considerably during your time at Stern. What in your opinion are the significant changes in the department during your time?

Two major developments – the quality of the faculty and its diversity. Regarding quality, during my tenure we were fortunate to have Bruce, Kim, Mahesh, Eric, Joel, and Geeta join us in that order. It is safe to say that this group has changed the face of Stern with their contributions to learning, program development, and administration. This group created a tipping point that produced the momentum to allow the department to grow in stature and achieve national status. A central part of that momentum was, of course, the quality of research produced. It consistently improved over time to allow the department to increase its standards and demand more rigor. As a result, we are now hiring the best and the brightest.

Regarding diversity, my first departmental meeting was composed of about twelve white males. The first class I taught, the MBA core, was composed of 49 men and one woman. Besides Kim and Geeta, other women who joined the faculty during my tenure were Ann McGill (Chicago, Booth), Meryl Gardner (Univ. of Delaware) and Carol Pluzinski (currently an adjunct in our department.) I believe our department subsequently led the way as the most diverse at Stern, contributing to its strength, because diversity is strength.

Another point of progress was our doctoral program, which became increasingly more rigorous over time with closer research collaboration between our faculty and doctoral students.

One other note. The Marketing department has always maintained a level of collegiality and support that also defines its strength. There was never a distinction between junior and senior faculty in terms of status. It was always in the context of support. And the interest in quant vs.

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behavioral was never one of ideology. There was always a desire among our faculty to work with one another across fields of interest. The faculty who joined us during my watch in large part initiated and sustained this departmental culture.

You have published several leading text books in Consumer Behavior and Marketing. How did you decide to start writing textbooks?

I decided to start gathering material for a Consumer Behavior book in the late 1970s. Two factors representing gaps in current CB textbooks at the time motivated me.

First, there was no representation regarding the issue of involvement. The traditional AIDA model of decision making still held sway, with little regard that exposure may not lead to attention and interest and yet still result in purchase behavior. I devoted a chapter to Low Involvement Decision Making and proposed four hierarchy of effects based on high vs. low involvement decisions and significant vs. few differences between brands that seems to have had some traction when the first edition of the book came out in 1981. Petty and Cacioppo’s Elaboration Model came out shortly after, proposing two routes to persuasion, a high and a low involvement route, and confirmed the emphasis on involvement as a key topic in CB. The other area in CB that was new in my text was Situational Determinants. Russ Belk was in the forefront of emphasizing that consumer decisions were make in the context of the situation, and I felt the area deserved more attention and devoted a chapter to it. This was the first CB text to represent these two key areas. The first edition was well received and subsequently went through seven editions up to 2004.

After the CB book, I decided to write a Principles book to compete with Kotler that came out in 1988. It went through two editions, but the first mover advantage Kotler had was hard to overcome, Kotler being the Samuelson of marketing.

My book did not have a significant defining advantage like the CB book, and after two editions it died out.

What would be your advice for the junior faculty and doctoral students as they embark on an academic career?

Have a fire lit early on in terms of research and keep it lit, always maintaining high standards of validity and reliability.

But do not maintain that fire in the context of ideology.

Always be open minded to other ideas and respectful of other opinions. Never be presumptuous and dismissive of others’ ideas. In doing so, you may be denying other pathways to your research. Passion and collegiality should go hand in hand.

Stern Marketing Goes Virtual

ON SPORTS

From the desk of Deputy Chair Russ Winer On March 9, 2020, NYU announced that as of Wednesday, March 11, all classes would switch from in-person to remote instruction via Zoom. Virtually overnight, all NYU faculty had to reconfigure their classes using a technology with which few were familiar. The NYU campus shut down shortly after the first remote class, but thanks to the guiding hand of the Stern Learning Science Lab, instructors changed their classes to remote from their own home offices.

While some of our Marketing Department instructors had used Zoom for meetings, hardly any had ever used it to teach. Almost immediately, the Department asked instructors to pass along helpful Zoom hints to me and Anne Rodeman which we then distributed to all of the faculty in a sort of remote learning FAQ email thread.

Any questions were sent out to the instructor email list and received immediate responses.

We asked for backup instructors for all of the courses in case someone became ill. The response was gratifying although, thankfully, no backups were required.

The student response was very positive with the course evaluations being as good if SternMarketing

not better than normal. One of our faculty members, Professor Xiao Liu, was singled out by the Stern administration for the number of favorable comments they received about her MBA course on Data Driven Decision Making.

Although no instructor felt that remote teaching was the equivalent of an in-class experience, there were some unforeseen benefits. First, it turned out to be easier to get guest speakers since they did not have to physically come to campus and could participate from their desks. Second, given that everyone was adversely affected, a unique bond developed between student and instructor. We were all participating from our homes which were often crowded apartments with kids, dogs, and other potential distractions. Finally, I think it was an excellent opportunity for us to show the students how much we were concerned about their welfare by the amount of dedicated time spent preparing for class, holding office hours at unusual times to accommodate students in very different time zones, and giving extra consideration to students who had difficulties fully participating in the classes due to timing, family concerns, or poor internet connections.

Overall, I am incredibly proud of the way the Marketing Department responded to this hopefully once-in-a-lifetime event.

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The Entertainment, Media & Technology Program The Entertainment, Media & Technology program gives undergraduate and MBA students a unique perspective and understanding of the entire entertainment and media business spectrum from its impact on the economy and the digital revolution to the global opportunities that technology creates across the industry. With a focus on both the business and content aspects of the industry, the program offers students a range of courses with practical and real-life applications. As of 2020, there are over 100 EMT courses with over 4,500 enrollments across all levels. The undergraduate BEMT minor remains the most popular minor at NYU.

2019-2020 Highlights 1. EMT Director Paul Hardart welcomed Mark Shriver and business icon Tom Murphy to his class for a conversation about Tom's illustrious career in television.

2. Business of Video Games professor Joost Van Dreunen will publish One Up: Creativity, Competition, and the Global Business of Video Games in October 2020.

3. Professor Greg Coleman hosted tech business journalist Kara Swisher as part of his Digital Media Innovation course.

4. The 2019 EMT Alumni Summit featured a keynote address by Scott Galloway who did a special live presentation of his famed No Mercy/No Malice blog.

5. The Entertainment, Media, Sports Association held a virtual summit in April 2020 which featured a keynote from Jon Steinlauf (Discovery Inc) and looked ahead to the future of the business.

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STERN MARKETING IN THE NEWS "Discounts can lead to perceptions of reduced quality...

Multiple discounts can also put a buyer in a position of strength, because they now know a seller needs to sell."

Professor Priya Raghubir explains how positivity bias leads people to believe their homes are immune from market problems. LINK

Professor Amy Webb comments on the capabilities of MindMeld, an artificial intelligence-powered, voice-enabled app. LINK Professor Paul Hardart illustrates how The New York Times' decision to make most of its coronavirus coverage free to all readers has put its journalism front and center for a potentially new audience. LINK Professor Xiao Liu is interviewed about her joint research examining customer responses to banks' overdraft fees and alternative fee structures.

LINK Professors Geeta Menon and Tina Kiesler discuss brand authenticity and present a framework to help companies understand how authentic their brand actions will appear to consumers. LINK Professor Andrea Bonezzi's joint research on consumers’ receptivity to medical AI is spotlighted. LINK

"Short-term, e-commerce will benefit, long-term, in person retail will offer the type of entertainment everyone will crave."

Professor Thomaï Serdari weighs in on consumer demand for retail products in the wake of the coronavirus pandemic. LINK 12 | 2020 -2021 NE WSLE T TER

“The way to get people to go to stores is to give them an experience, something they can't get online."

Professor Tom Meyvis explains how independent booksellers are adapting to business in the age of Amazon. LINK

Professor Adam Alter comments on a new study suggesting a causation between smartphone reliance and depression. LINK Professors Alixandra Barasch and Tülin Erdem offer commentary in a story on Facebook's decision to air its first-ever Super Bowl ad. LINK

"Being 'woke' is going where the money is."

Professor Scott Galloway shares his perspective on Procter & Gamble's focus on socially conscious advertising. LINK

Joint research quantifying how sticky store prices exacerbate hoarding from Professor Vishal Singh is highlighted. LINK

Professor Bryan Bollinger's joint research on contagion in solar panel adoption is spotlighted. LINK

"Necessity is the mother of invention. I believe we’re all surprising ourselves with our abilities to adapt to teaching online in ways we wouldn't have imagined as recently as 2 weeks ago, and finding it more satisfying than expected."

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Professors Michelle Greenwald and Ronni Burns lay out tips to increase attentiveness, engagement and success in online meetings.

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CHECKING IN WITH A STERN GRAD What do you value most from your time at Stern?

Ryan Day Castle Brand Strategy Director, Scent Creatives NYU Stern MBA, 2015

I value the lifelong relationships built during my time at Stern, especially those I’ve been able to nurture as a friend or mentee since.

There is not a week that goes by that I am not in touch with a fellow Sternie. I cherish that.

How did Stern help you prepare for your current role?

What led you to pursue an MBA, and what made you choose Stern?

I knew that an MBA at NYU Stern would allow me to better leverage my capacity to influence while transitioning into fashion and luxury.

Following five years in corporate finance, I wanted to hone my analytical strength in creative fields. Every current student and alum I reached out to candidly answered any questions I had about the curriculum and experience. Their warm response, and Stern’s distinctive Luxury Marketing concentration, were huge differentiators during my MBA program research.

What had the greatest influence on your professional and academic development while at Stern?

The CFDA Fashion Incubator Program led

by Professor Jeff Carr was a transformative experience, showing many of us the immediate value business strategy, fiscal responsibility, and consulting methodologies aid in the acceleration of extremely talented, emerging designers. It was confirmation in a crucial skillset, we as MBAs, bring to the table.

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I can best describe my preparation at Stern given the core values of IQ + EQ. We learn that non-traditional industries which lead art, entertainment and fashion are not about product specs and features, rather communities with shared aesthetic and personality (IQ). And not only in the market, but also in our careers, we must fill a need.

Identifying problems is great, but providing the solution is 1000x better (EQ). As the Brand Strategy Director for Scent Creatives, a B2B fragrance consulting firm based in Dubai, I continually keep these lessons top of mind.

That superior craftsmanship and resonate messaging must be in lockstep, while signaling an inimitable service or product that satiates a need many don’t realize they have.

What advice would you give to current Stern MBA students?

You don’t have to be a manager of people or given a high-profile project in order to lead.

Your character will shine through ethical decision making, innovative creativity, and the ability to adapt and grow with humility. In an age of tremendous social media influencing power, remember that great leaders don’t ensure they have a followership, they give rise to future leaders.

EDITORIAL BOARDS ACADEMIC YEAR 2019-2020 City, Culture and Society

Journal of Consumer Psychology

Journal of Marketing Research

Adam Alter, Associate Editor

Bryan Bollinger

Information Systems Research

Alixandra Barasch

Tülin Erdem, Advisory Board

Eric Greenleaf

Eric Greenleaf

Anindya Ghose, Senior Editor

Durairaj Maheswaran

Eitan Muller

Geeta Menon, Publications

Russ Winer, Advisory Board

C. Samuel Craig

International Journal of Advertising

Tom Meyvis

C. Samuel Craig

Priya Raghubir, Co-Editor

Committee

Journal of Personality and Social Psychology Yaacov Trope

International Journal of Research in Marketing Adam Alter Tülin Erdem, Area Editor Eitan Muller, Policy Board Member Russ Winer, Area Editor

Journal of the Academy of Marketing Science Tülin Erdem Russ Winer

Journal of Advertising Research Henry Assael, Senior Advisory Board C. Samuel Craig Russ Winer

Journal of Consumer Research

Journal of Retailing

Adam Alter

Vishal Singh

Alixandra Barasch

Joel Steckel

Andrea Bonezzi

Russ Winer, Executive Board

Geeta Menon, Policy Board Tom Meyvis

Management Science

Russ Winer, Associate Editor

Anindya Ghose, Department

Journal of Experimental Psychology: General Yaacov Trope

Editor for Information Science Dept

Marketing Letters Adam Alter

Journal of Experimental Social Psychology

Kim Corfman

Adam Alter

Eric Greenleaf

Yaacov Trope

Tom Meyvis

Tülin Erdem

Joel Steckel, Policy Board

Journal of Marketing Bryan Bollinger

Marketing Science Yuxin Chen, Senior Editor

Journal of Marketing Behavior Tülin Erdem, Associate Editor

Tülin Erdem, Advisory Board Xiao Liu

Quantitative Marketing and Economics Bryan Bollinger

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Stern Marketing Department Tisch Hall 40 West Fourth Street New York, NY 10012 (212) 998-0500

@NYUSternMktg @NYUSternMarketing Find us online at stern.nyu.edu/marketing