Clever Marketing
Subjective Well-Being Enhances Experiential Perceptions
Hyewon Oh et al.
Personality and Social Psychology Bulletin, forthcoming
Abstract:
The experiential advantage refers to the well-being people derive from experiences over material goods. This research took a psychological needs approach and tested whether well-being predicts seeing purchases and products as being able to offer experiences. Five studies, using trait and state measures of well-being and sampling people in Asia and North America, supported this hypothesis. Controlled studies found that people higher in trait well-being viewed purchases as more experiential (Studies 1 and 5). Momentary well-being, whether measured or manipulated, showed a similarly positive impact of higher well-being on experiential perceptions (Studies 2-4). The effect was specific to perceptions of the experiential nature of products, not their materiality, and was most consistent for the positive affect component of well-being. Combined with prior findings, results suggest a self-reinforcing, benevolent cycle: experiences improve well-being, and well-being orients people to the experiential, need-satisfying aspects of products, which may then further support well-being.
The Luxury of Rounding: Heuristics and Private Information
Xiaowen Hu & Andreas Kraft
University of Chicago Working Paper, January 2026
Abstract:
We study how deviations from commonly used decision heuristics can reveal economically meaningful private information. In our empirical setting of loan amount choices on a major FinTech platform, we show that borrowers' non-rounding behavior predicts credit risk beyond standard observables used in screening and pricing. Using unique field data, a stylized model, and complementary evidence from a natural experiment and a laboratory experiment, we identify a mechanism in which financially constrained borrowers have stronger incentives to incur cognitive costs and choose more precise, non-heuristic amounts. These borrowers subsequently experience systematically worse repayment outcomes, yet this information is not reflected in the platform-set interest rates, exposing retail investors to disproportionate risk. Our findings highlight a general channel through which subtle deviations from heuristics transmit private information and help alleviate information frictions in economic decision-making.
The Color of Status: Color Saturation, Brand Heritage, and Perceived Status of Luxury Brands
Xinyue Zhou et al.
Journal of Consumer Research, April 2026, Pages 1232-1252
Abstract:
The elevation of brand status is a crucial goal for numerous luxury brands. Building on the framework of learned color associations, the current research suggests that using less saturated colors in products enhances consumers' perception of luxury brand status. This effect arises from consumers' association between less saturated colors and the passage of time, leading to perceptions of the brand as having a rich continuity heritage. Because continuity heritage confers a higher status on a luxury brand, consumers subsequently perceive the brand as having elevated status. Through seven experimental and field studies, we empirically demonstrate that low (vs. high) color saturation increases a luxury brand's perceived brand status, with perceived continuity heritage mediating this effect. However, this effect is mitigated when the brand highlights its recent (vs. old) foundation years and is even reversed when the brand positions itself as innovative. Additionally, we show that color saturation can affect consumers' willingness to pay and product choices. This work contributes to the literature on luxury branding, brand heritage, and color while offering valuable insights for luxury brand managers on effectively enhancing their brand's perceived status.
Visual Cues and Valuation: Evidence from the Housing Market
Puja Bhattacharya et al.
University of Arkansas Working Paper, December 2025
Abstract:
We examine the economic impact of non-consumable visual cues through home staging on high-stakes housing transactions. Using hand-collected listing photos for 15,777 transactions and a machine-learning algorithm to detect furniture, we provide the first large-scale evidence that staged homes sell for roughly 10% more and one week faster than comparable homes without furniture. Our pre-registered online experiment establishes causality and uncovers mechanisms. We find that furniture clarifies spatial use, while decor enhances emotional attachment, jointly driving the higher willingness-to-pay. These findings demonstrate how visual cues impact high-stakes decisions and systematically shape valuations in the largest asset market for households.
Look What You Made Me View: Taylor Swift and the Kansas City Chiefs' TV Ratings
Kerianne Rubenstein & Frank Stephenson
Journal of Sports Economics, April 2026, Pages 309-319
Abstract:
This paper uses ratings and viewership data from 247 NFL games played in the 2022 and 2023 seasons to assess the effect of Taylor Swift's relationship with Travis Kelce on the Chiefs' television audience. We find that Chiefs' viewership increases by about one-third beginning with Swift's first time attending a Chiefs' game in the third week of the 2023 season. Supplemental analysis suggests that the gain in the Chiefs' television audience can be explained both by new fans tuning in and existing fans substituting away from other games broadcast in the same time slot.
Algorithmic Lending, Competition, and Strategic Provision of Preapproval Tools
Qiaochu Wang, Yan Huang & Param Singh
Marketing Science, March-April 2026, Pages 472-489
Abstract:
Machine learning algorithms are increasingly used to evaluate borrower creditworthiness in financial lending, yet many lenders do not provide preapproval tools that could significantly benefit consumers. These tools are essential for reducing consumer uncertainty and improving financial decision making. This paper examines why symmetric lenders, with equal nonprice features and algorithmic accuracy, might asymmetrically reveal preapproval outcomes. Using a multistage game theory model, we analyze the strategic decisions of duopoly lenders in offering preapproval tools for unsecured financial products. Our findings suggest that high algorithm accuracy can sustain an asymmetric revelation equilibrium, with one lender revealing preapproval outcomes through preapproval tools whereas the other does not, even when there is no explicit cost of providing such preapproval tools. Conversely, low algorithm accuracy prompts both lenders to reveal preapproval outcomes. These findings diverge from traditional literature, which typically associates asymmetric revelation with differentiated products or revealing cost. Additionally, our results show that mandatory revelation policies could reduce lenders' incentives to improve algorithmic accuracy, potentially harming social welfare. These insights inform managerial strategies on the use of algorithmic transparency in lending and underscore the need for careful consideration of regulatory policies to balance market efficiency and consumer protection.