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Journal Selections from MSI - April 2012

To help our members better understand and access that best current thinking in the marketing field, “Journal Selections from MSI”  highlights recent academic work from the top marketing journals. Twice a year, we select articles published in the previous six months that are noteworthy for their managerial relevance and potential to improve marketing practice.

Are you spending too little on keywords?
How much should online advertisers spend on keywords? The conventional rule is that they should buy paid search advertising as long as the cost is less than what they can earn from the traffic that the ads drive to their site. This may lead to underspending.

Topmost keywords may not be most profitable
While most advertisers aggressively seek the topmost positions in their keyword bidding, this study shows that buying consumers are more likely to visit lower ad positions.

Which customers will make the best referrals?
A customer’s value reflects not only their purchases, but the value of other customers acquired by their referrals. How can managers identify—and cultivate—the “best” customers for referral marketing campaigns?

Investing in referral programs pays off
This study suggests that marketers can earn substantial returns on referral program investment—60% over a six-year span.

How to seed your marketing campaign
Social network “hubs” make more referrals than less-connected customers, but those referrals may produce fewer new customers.

Can B2B partnerships stifle innovation?
Embedded ties between customer and supplier firms are usually a good thing, but suppliers need to manage the risks.

Overstating product use can backfire
It is tempting for a marketer to emphasize that a product or service is used frequently, but a consumer might conclude, “it’s not for me.”

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