Measuring Organizational Legitimacy in Social Media

[We’re pleased to welcome author Michael Etter of the City University of London, UK. Etter recently published an article in Business & Society entitled “Measuring Organizational Legitimacy in Social Media: Assessing Citizens’ Judgments With Sentiment Analysis,” co-authored by Elanor Colleoni, Laura Illia, Katia Meggiorin, and Antonino D’Eugenio. From Etter:]

8583949219_f55657573e_z.jpgSocial media have given ordinary citizens the opportunity to freely express their opinions and feelings in any tone or style. The heated discussions around various topics from politics, sports, and corporations often evolve in parallel to news media coverage. Accordingly, we have developed the idea that a measurement of citizens’ judgment in social media can give researchers a new way to assess the legitimacy of organizations. Compared to existing measurements that, for example, assess judgments in news media coverage, a measurement based on social media would directly access the voices of ordinary citizens and therefore account for their heterogeneous norms and expectations.

In this article we describe and test how a measurement based on social media data can give indication for organizational legitimacy. We use the method of sentiment analysis that is based on computational linguistics and apply it to a case from the banking industry over a one year period.

Our findings show that, indeed, an analysis of 14’000 tweets reveals a different judgment than the analysis of 730 news articles. Compared to the news media, citizens judge the bank in a much more negative way. Also we find that the bank is discussed by 6000 citizens and for a broad variety of topics (around 400 hashtags). Clearly, social media data gives researchers access to different judgments than found in news media, which are written by a few journalists that adhere to professional norms and standards and are subject to various selection processes. We therefore encourage researchers to take into account social media, such as Twitter, in order to achieve a richer understanding of legitimation processes in a digital world. For practitioners, sentiment analysis of twitter data is a tool to monitor and identify issues and sentiment in a timely manner.

Cell phone photo attributed to Jason Howie (CC).

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How to turn a Cinderella product into a market queen

[The following post is re-blogged from the London School of Economics and Political Science Business Review. Click here to view the article from LSE. It is based on a paper recently published in Administrative Science Quarterly titled “How Cinderella Became a Queen: Theorizing Radical Status Change.“From LSE:]

The case of Italian grappa shows that more than marketing is needed to raise a product’s market status, write Giuseppe Delmestri and Royston Greenwood

Quality, we know, is often necessary, but it’s far from a sufficient condition for market status. Better technologies lose format wars — as Betamax did against the inferior VHS videotape in the 1980s, and as artisanal bakeries did to industrial mass producers.

Losing status, however, is much easier than gaining it. Ask law firms, accounting firms, even universities how they might break into the elite status group within their industry, and there is typically no response. Turning low into high status is profoundly difficult — irrespective of quality, and especially if the starting point is from the base of the market status pyramid.

In the case we discuss below — Italian grappa — several attempts by entrepreneurs to improve the status of grappa and of their artisanal production methods resulted in failures and even bankruptcy — even though the quality of the product was superb. But Italian grappa did achieve the dramatic status move from the bottom to the top of the status ladder. It rose from a plebeian underdog of whisky and cognac to become a lifestyle product served at eminent social gatherings and offered by starred restaurants. How did this happen?

Until the 1970s, Italian grappa was considered a cheap, almost stigmatized beverage consumed at the margin of society and as being only appropriate for workers, peasants and alpine soldiers. It was associated with stigmatized artisanal and even clandestine production in hidden shacks. At the time, artisanal family firms were considered primitive — paradoxical in a country that would later give rise to the Slow Food Movement that praised such organizations. It is intriguing, therefore, that it was a young lady, Giannola Nonino — the wife of Benito, an exceptional distiller but marginal entrepreneur in the North Italian Friulian province — who turned the savoury spirit from a social no go to an hedonic must of Italian after-dinner tasting.

Giannola and her family, thanks to their Grappa di Picolit, created a beachhead into the expensive high status category occupied by foreign spirits; other artisanal producers followed and, eventually, the whole meaning of grappa in Italian society turned on its head. Grappa became “lo spirito nazionale,” at equal level with whisky and cognac (see figure below).

Figure 1. Category positions in the superordinate class of spirits in the Italian marketfigure-1-grappa-nonino

What can we learn from this story on how to elevate the status of a whole market category? We discovered that turning a weak low status position into a strong high status one is possible thanks to theorization by allusion — in other words, by performing a sort of cultural judo, never attacking directly the powerful market incumbents while relying on a perfect understanding of the cultural context of the market and of the own distinctive strengths.

Fundamentally, the strategy of allusion is based on three interconnected tactics:

  1. Detach yourself from the category in which customers put you. You should first confuse your customers and stakeholder. Giannola designed the bottle and presented herself in a way that contradicted restaurateurs’ and critics’ expectations on what grappa is and should be. When looking at the design and shape of the tiny minimalist bottle (see picture below) they wondered: ‘Is this grappa?’ When confronted with a young passionate lady dressed in Armani fashion, sommelier in restaurants were puzzled, but listened. Moreover, although the Noninos initially gave their precious bottles as gifts to prominent Italians, afterwards the price of Grappa di Picolit was set at an ‘astronomical’ level — again, as a way of distancing themselves from the low status traditional ‘grappa’ category. Finally they avoided any direct cooperation with grappa producers. They sought to avoid any risk of stigma by association. In the first stage of status elevation you should avoid bad company. All these tactics detached the product form the grappa category. But, puzzling your customers and stakeholders is not enough—you need a second tactic…small-grappa-nonino

    1. Emulate a proximate high status category. In other words, in addition to confusing potential clients and consumers you should provide a key by which to answer the confusion. The Noninos, supported by the anarchist maverick food and wine critic Luigi Veronelli, did so by adopting the vocabulary and practices of high status French wine (single grape, appellation of origin, cru). They also networked and convinced distinguished wine sales agent to distribute their grappa. And they directly addressed sommeliers in reputed restaurants. Doing so gave these stakeholders a language for talking about grappa in distinguished terms. Importantly, emulation is not the same as directly competing with high status members of the category in which you are located – the Noninos did not try and emulate and thus directly challenge premium cognac nor whisky.
    2. Engage in storytelling that connects tradition and cultural innovation. All of the previous tactics and efforts will be useless if you fail to engage in appropriate storytelling. It is necessary to embed and engage your product in stories beyond your immediate market, stories that resonate with wider cultural debates. Such cultural engagement is pivotal. Otherwise, why should a sommelier or a wine critic believe in the analogy between grappa and French wine? The Noninos used a kind of tightrope storytelling. On the one hand they reinterpreted and praised fading cultural traditions and national institutions: they fought for the preservation of traditional Friulian grapes, boldly presented themselves as a family business, promoted artisanal methods as authentic, and linked their bottles to traditional Venetian glass manufacturing. On the other hand, they connected grappa to the emerging Milanese art design and fashion movements and launched a Literary Award to anchor their story to an upward wave of national identity affirmation that resonated with the values of the Italian emerging elites.

    It is unlikely that the push for radical status elevation could be delegated to a PR agency. What we learned from this case is that unusual success only occurs when authentic messages are conveyed by authentic messengers that put their face and themselves at stake. And status dynamics of market categories are not important for consumer products only! Consider that institutional entrepreneurs are much needed in our organizations if we want to address the grand challenges of our times. Take these two examples: How to elevate the status of vegetarian meals in order to favour the reduction of carbon-intensive meat and dairy consumption? Or how to reduce the status of private in comparison to public transportation for the same aim?

    Notes:

    • This blog post is based on the authors’ paper How Cinderella Became a Queen Theorizing Radical Status Change published in Administrative Science Quarterly, December 2016.

    • The post gives the views of its authors, not the position of LSE Business Review or the London School of Economics.

    • Featured image credit: Nonino grappa distillery, by Riccardo Cattapan, ©Nonino 

    • Before commenting, please read our Comment Policy.

How Superstitions May Impact Risky Behavior

Superstitions, particularly in Eastern cultures, often inform decisions, from the mundane to the life-changing. Existing research links a superstitious mindset to 544623640_258eaf528a_ba higher likelihood of engaging in riskier behaviors, such as gambling. A new Social Marketing Quarterly article seeks to explore different styles of superstition and the way in which these styles may impact a tendency towards risk. In their paper “Exploring Different Types of Superstitious Beliefs in Risk-Taking Behaviors: What We Can Learn From Thai Consumers,” authors Sydney Chinchanachokchai, Theeranuch Pusaksrikit, and Siwarit Pongsakornrungsilp examine differences between passive and proactive superstitious consumers. Passive superstition involves a strong belief in fate or destiny; these individuals feel that their luck is beyond their control. Proactive superstitious individuals, however, may practice certain rituals for to attract good luck or ward off evil forces. The researchers summarize:

The impact of superstitious beliefs on decision making and how they affect both business and consumers has been observed for several decades. Chinese consumers are willing to pay premium for something that contains number “8” and Thai consumers will do the same for number “9”. Those numbers are considered good luck and prosperity in the cultures. There are times that consumers make irrational decisions based on superstitious beliefs. Our paper explores different types of superstitious beliefs and how they affect risk-taking behaviors. We chose Thailand as a context because Thai consumers are known for their superstitions. We found that people who are “passive superstitious” (meaning that they believe in fate and generally do not take any superstitious action to control the situation) make riskier decisions when they received superstitious objects (e.g., lucky charms). These people do not usually go out and seek superstitious objects or practice superstitious rituals. As online gambling, online financial investments, and other risk-taking activities become more accessible to consumers, knowing that individuals may be either proactive or passive superstitious, the marketing campaigns for these types of products should be carefully monitored and regulated as some promotional tactics may trigger risky decisions.

So while passive superstitious consumers may be highly influenced by magical objects, proactive superstitious consumers are less likely to modify their behavior based on such an object.

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*Image attributed to Tiago Daniel. (CC)

Breaking Bad Habits: How Marketing Incentives Can Lead to Healthy Food Choices

9153746729_9fb261fcdf_zThe rise of processed foods in the past century has brought with it a rising tide of health concerns. Obesity, heart disease, and diabetes have all been linked to diets high in fat, sodium, and sugar, leading many to seek out healthier alternatives. But making the switch from cookies and potato chips to broccoli and apples is easier said than done–so how can consumers start to make better food choices? A recent article from published in Cornell Hospitality Quarterlyentitled “McHealthy: How Marketing Incentives Influence Healthy Food Choices” delves into how certain marketing incentives can help consumers break their unhealthy habits and make better choices. Authors Elisa K. Chan, Robert Kwortnik, and Brian Wansink specifically compare the efficacy of behavioral rewards versus financial discounts in motivating individuals to change their eating habits. The abstract for the article:

Food choices are often habitual, which can perpetuate Current Issue Coverunhealthy behaviors; that is, selection of foods high in sodium, saturated fat, and calories. This article extends previous research by examining how marketing incentives can encourage healthy food choices. Building on research examining marketing incentives, temporal goals, and habitual behavior, this research shows that certain incentives (behavioral rewards vs. financial discounts) affect individuals with healthy and less healthy eating habits differently. A field study conducted at a corporate cafeteria and three lab studies converge on a consistent finding: The effects of marketing incentives on healthy food choice are particularly prominent for people who have less healthy eating habits. Results showed that behavioral rewards generated a 28.5% (vs. 5.5%) increase in salad sales; behavioral rewards also led to 2 pounds more weight loss for individuals with less healthy eating habits. The research offers important implications for scholars, the food industry, consumers, governments, and policy makers.

You can read “McHealthy: How Marketing Incentives Influence Healthy Food Choices” from Cornell Hospitality Quarterly free for the next two weeks by clicking here. Want to stay current on all of the latest research from Cornell Hospitality QuarterlyClick here to sign up for e-alerts!

*Image attributed to Sonny Abesamis (CC)

How to Grow the Impact of Your Paper: A Step by Step Guide to Using Kudos

[This post comes from the SAGE Connection blog. It was written by Rebecca Wray of Group Marketing Manager, SAGE Publishing. You can find the original blog post here.]

becky wrayAfter an intense period of researching, writing, re-writing, submitting, and proofing an article, authors are then able to experience the delight of seeing it published online. They can now relax, sit back and watch as the downloads and citations stack up. But wait! There are also over 2.5 million other articles publishing this year too. How will people find this paper among this increasing landscape of research output and what can be done to make the author’s article more visible?

This is where Kudos comes inkudos logo

We’ve partnered with Kudos, a service designed specifically for authors, to help them maximize the visibility of their work. SAGE has always put its authors and their content first through supporting both dissemination and accessibility, and we’re really excited by this new partnership that enables us to further achieve our aims.  I’m not a researcher, or an author of any kind (other than this, my first published blog post!), but I’ve been marketing scholarly journals for over 10 years. During this time, I’ve seen that authors can be powerful advocates for their own work, complementing and extending the discoverability, circulation and marketing services that the publisher already provides to ensure their article reaches the widest possible audience. So how can Kudos help authors grow the impact of their papers?

Getting started with Kudos

When an author’s paper is published online on SAGE Journals, they will receive an email from Kudos inviting them to register on the website and ‘claim’ their paper. Authors also have the option to go back and claim all of their past papers that have a CrossRef DOI. Another key thing to point out: Kudos is free for SAGE authors to use!

Once the author has completed the brief registration form, they will have access to their own private author dashboard. Here they will be able to see all of the articles they claim (including those from other publishers) listed out, and track their actions and results.

The 4 stages of Kudos

Kudos offers four author tools, and authors are free to mix and match from the below:

  • Explain: Add a lay summary, impact statement and personal perspective to their Kudos publications page. This will make their article stand-out to researchers within their field, as well as make it more accessible to a broader audience.
  • Enrich: Add supplementary data such as podcasts and videos to enrich their article. This helps to engage readers with their work, and provide them with more context for the research.
  • Share: Kudos generates a trackable URL for the author’s article page. Here they can sync their Twitter, Facebook, and LinkedIn accounts and post directly from Kudos using their trackable link. Kudos also provides a tool to share the link to their paper by email.
  • Measure: Authors can track clicks from their sharing link in step 3, and see the impact of their actions in the dashboard with official citations and Altmetric scores for their article.

Spare a few minutes for many downloads

Authors can spend as little or as long on Kudos as they like. Needless to say, the more time spent on the site, the more they are likely to get out of it. In a pilot program, authors using the Kudos tools saw 19% higher downloads than those in a control group. So, now over to you to get creative with your communications and get Kudos!

Looking for me information on Kudos? Read our interview with Kudos co-founders Charlie Rapple, David Sommer, Melinda Kenneway, along with Ann Lawson, Head of Business Development, on how the key features of the service can help you grow citations for your articles here.

Identity and Entrepreneurship in California’s Medical Cannabis Industry

3410000930_95fc2866fa_zCalifornia’s medical cannabis industry operates in a legal gray area–while state law allows for the operation of medical marijuana dispensaries, federal laws still list cannabis as a Schedule 1 controlled substance. As a result of the complex legal context, the medical cannabis industry stands as a unique underground market in California, defined by an attitude of defiance and disregard for the prohibition of cannabis. In the recent Journal of Macromarketing paper entitled “Entrepreneurship, Identity, and the Transformation of Marketing Systems: Medical Cannabis in California,” author Kenji Klein analyzes how medical cannabis entrepreneurs, who perceive cannabis prohibition to be unfounded, are able to enact their value identities by challenging prohibition. The abstract for the paper:

This paper examines how entrepreneurs operating in underground markets come to see laws governing marketing systems as illegitimate and explores the role identity plays in motivating entrepreneurs to challenge existing institutions. Analysis of Current Issue Coverinterviews with 27 cannabis dispensary founders showed that entrepreneurs came to reject medical cannabis prohibition as illegitimate after direct experience with both cannabis and traditional medicines convinced them the factual basis upon which prohibition rested was flawed. Perception of prohibition’s illegitimacy fostered entrepreneur identification as a member of a superior in-group constrained by an illegitimate institution. Pursuing opportunities in illegal markets then became a vehicle for entrepreneurs to enact valued identities by challenging and undermining prohibition. This analysis extends work on informal economy entrepreneurship by showing that dis-identification with formal institutions does more than enable entrepreneurs to recognize economic opportunities ignored by those working within institutional boundaries; it also opens existing marketing systems to decay by providing economic and psychological resources for dismantling the laws that govern them.

You can read “Entrepreneurship, Identity, and the Transformation of Marketing Systems: Medical Cannabis in California” from Journal of Macromarketing free for the next two weeks by clicking here. Want to know all about the latest research from Journal of MacromarketingClick here to sign up for e-alerts!

*Medical marijuana sign image attributed to Chuck Coker (CC)

Diversify and Conquer: An Argument for Reinvigorating Marketing Science with Behavioral Science and Humanities

[We’re pleased to welcome Gerald Zaltman of Harvard Business School and Olson Zaltman Associates. Dr. Zaltman recently published an article in Cornell Hospitality Quarterly with co-authors Jerry Olson and James Forr of Olson Zaltman Associates, entitled “Toward a New Marketing Science for Hospitality Managers.”]

In “Toward a New Marketing Science for Hospitality Managers,” published in the Cornell Hospitality Quarterly, Jerry Olson, James Forr, and I point out that much of CQ_57_1_Cover.inddmarketing research and a great deal of marketing thought and action is influenced by the ideas and methods of an old marketing science.  We argue that a New Marketing Science is needed in which scientifically sound ideas and methods from the behavioral sciences and humanities are integrated around a coherent scientific perspective.  We feel this is especially important since life in the marketplace is experienced holistically and not in the silo like ways that companies, universities, and specific professions are organized.

Although current marketing does explore new ideas and methods, including neuro/biometric methods and big data approaches, these ideas are often treated piecemeal — used in isolation or as independent add-ons to more traditional work.  In contrast, we advocate integrating the best ideas and approaches from diverse fields to develop a new marketing science.  In “Toward a New Marketing Science” we focus on how key ideas from the mind sciences can produce a deeper and richer understanding of the minds of customers and also the minds of managers.  Other fields containing equally exciting marketing related advances include, linguistics, anthropology, sociology, philosophy, ethnomusicology, and art therapy, to name a few.

We provide four examples of applying a New Marketing Science approach to create emotionally resonant hospitality experiences.  However, the principles of a NMS can be applied to any marketing problem in any industry.  Practicing the NMS requires bold, imaginative thinking that goes beyond simple borrowing of ideas and imitation of best practices.

The abstract:

A New Marketing Science (NMS) is proposed that can dramatically improve a firm’s marketplace performance. The NMS challenges managers to dare to think and act differently. It generates deep insights into the thoughts and actions of both customers and managers and how the two mind-sets interact. As several examples illustrate, it departs from the “old” marketing science by its emphasis on imagination, knowing how and why a practice works, understanding the total customer experience, and focus on effectiveness over efficiency. The NMS is grounded in principles from the behavioral sciences and humanities such as the importance of the unconscious mind, the way mental frames serve as interpretative lenses, the centrality of emotions, the reconstructive nature of memory, and the importance of metaphor for learning about and influencing choices.

You can read “Toward a New Marketing Science for Hospitality Managers” from Cornell Hospitality Quarterly free for the next two weeks by clicking here. Want to know all about the latest research from Cornell Hospitality Quarterly? Click here to sign up for e-alerts!


 
Gerald ZaltmanGerald Zaltman is Founding partner in Olson Zaltman Associates and the Joseph C. Wilson Professor of Business Administration Emeritus at Harvard Business School, where he also was co-director of The Mind of the Market Laboratory. He has authored over 20 books including: How Customers Think: Essential Insights into the Mind of the Market and Marketing Metaphoria: What Deep Metaphors Reveal about the Minds of Consumers.

Jerry OlsonJerry Olson is Founding Partner in Olson Zaltman Associates and Professor Emeritus at Penn State University’s Smeal College of Business where he was Earl P. Strong Professor of Marketing and Department Chair. He has published more than 60 papers on these topics in conference proceedings and academic journals , including Journal of Consumer Research, Journal of Marketing Research, and Journal of Marketing.

James ForrJames Forr is a director at Olson Zaltman Associates. He has led projects for Fortune 100 clients including IBM, Bank of America, PepsiCo, and P&G along with non-profit and public sector clients such as the AFL-CIO and the Funeral Service Foundation.  He also has led two projects that have helped clients win prestigious Ogilvy Awards from the Advertising Research Foundation.