ASU Scholarship Showcase

We study whether people became less likely to switch Medicare prescription drug plans (PDPs) due to more options and more time in Part D. Panel data for a random 20 percent sample of enrollees from 2006-2010 show that 50 percent were not in their original PDPs by 2010. Individuals switched PDPs in response to higher costs of their status quo plans, saving them money. Contrary to choice overload, larger choice sets increased switching unless the additional plans were relatively expensive. Neither switching overall nor responsiveness to costs declined over time, and above-minimum spending in 2010 remained below the 2006 and 2007 levels.

We argue that the strength with which the organization communicates expectations regarding the appropriate emotional expression toward customers (i.e., explicitness of display rules) has an inverted U-shaped relationship with service delivery behaviors, customer satisfaction, and sales performance. Further, we argue that service organizations need a particular blend of explicitness of display rules and role discretion for the purpose of optimizing sales performance. As hypothesized, findings from 2 samples of salespeople suggest that either high or low explicitness of display rules impedes service delivery behaviors and sales performance, which peaks at moderate explicitness of display rules and high role discretion. The findings also suggest that the explicitness of display rules has a positive relationship with customer satisfaction.

The impacts of information technology (IT) on total factor productivity (TFP) are assessed through an integrative framework of IT-induced externalities and IT-leveraged innovations. Based on network externalities and endogenous growth theory, our study aims to reconcile the seeming discrepancy between the recent observed evidence and the prediction by neoclassical growth theory. We argue that computerization has reshaped the competitive landscape into a network economy with IT-induced externalities that benefit not only IT purchasers but also other stakeholders. Moreover, IT is a platform technology that can leverage innovations to enhance the technological level of production process. Consequently, these two factors of IT-induced externalities and IT-leveraged innovations exert positive impacts on TFP, suggesting IT plays a more pivotal role than input consumption and accumulation that neoclassical growth theory assumes for IT. We use panel data from 30 Organization of Economic Cooperation and Development (OECD) countries over the period of 2000–2009 to empirically test hypotheses on this IT-TFP link. Implications are drawn from our findings for future research to measure IT׳s contributions at the macro level more accurately, and policymakers are urged to cultivate IT׳s positive impacts on TFP to help sustain long-term economic growth.

Mobile applications markets with app stores have introduced a new approach to define and sell software applications with access to a large body of heterogeneous consumer population. This research examines key seller- and app-level characteristics that impact success in an app store market. We tracked individual apps and their presence in the top-grossing 300 chart in Apple's App Store and examined how factors at different levels affect the apps' survival in the top 300 chart. We used a generalized hierarchical modeling approach to measure sales performance, and confirmed the results with the use of a hazard model and a count regression model. We find that broadening app offerings across multiple categories is a key determinant that contributes to a higher probability of survival in the top charts. App-level attributes such as free app offers, high initial ranks, investment in less-popular (less-competitive) categories, continuous quality updates, and high-volume and high-user review scores have positive effects on apps' sustainability. In general, each diversification decision across a category results in an approximately 15 percent increase in the presence of an app in the top charts. Survival rates for free apps are up to two times more than that for paid apps. Quality (feature) updates to apps can contribute up to a threefold improvement in survival rate as well. A key implication of the results of this study is that sellers must utilize the natural segmentation in consumer tastes offered by the different categories to improve sales performance.

We use Spain’s Equality Law to test for the existence of agency problems between party leaders and their constituents. The law mandates a 40 percent female quota on electoral lists in towns with populations above 5,000. Using pre- and postquota data by party and municipality, we implement a triple-difference design. We find that female quotas resulted in slightly better electoral results for the parties that were most affected by the quota. Our evidence shows that party leaders were not maximizing electoral results prior to the quota, suggesting the existence of agency problems that hinder female representation in political institutions.

This study examined the impact of three alternative types of goals (specific learning, general “do your best” learning, and specific performance) on team performance. Eighty-four-person teams engaged in an interdependent command and control simulation in which the team goal and task complexity were manipulated. Contrary to research at the individual level, teams with specific learning goals performed worse than did teams with general “do your best” learning goals or specific performance goals. The negative effects of specific learning goals relative to general “do your best” learning goals and specific performance goals were amplified under conditions of increased task complexity and were explained by the amount of coordination in the teams.

Buyers often make supplier selection decisions under conditions of uncertainty. Although the analytical aspects of supplier selection are well developed, the psychological aspects are less so. This article uses supply chain management and behavioral decision theories to propose that attributes of the purchasing situation (category difficulty, category importance, and contingent pay) affect cognition that, in turn, affects a supply manager's choice. We conducted a supplier selection behavioral experiment with practicing managers to test the model's hypotheses. When the context involves an important or difficult sourcing category, higher risk perceptions exist that increase preference for a supplier with more certain outcomes, even when that choice has a lower expected payoff. However, the presence of contingent pay decreases risk perceptions through higher perceived supplier control. We also find that a manager's risk propensity increases preferences for a supplier with less certain outcomes regardless of perceived risk. Our model and results provide a theoretical framework for further study into the cognitive aspects of supplier selection behavior and provide insight into biases that influence practicing supply chain managers.

We report the results of an ethnographic study of a natural food cooperative in which we found an inherent tension in its mission between idealism and pragmatism, and we explore the dynamics through which that tension was managed and engaged in day-to-day governance and activities. Insights from participant observation, archival data, semi-structured interviews, and surveys provide a detailed and holistic account of the intergroup and intragroup processes through which the co-op negotiated its dualistic nature, as embodied in its hybrid organizational identity. The findings suggest that the value of each side of the duality was recognized at both the individual and organizational levels. Members’ discomfort with the duality, however, led them to split the mission in two and identify with one part, while projecting their less-favored part on others, creating an identity foil (an antithesis). This splitting resulted in ingroups and outgroups and heated intergroup conflict over realizing cooperative ideals vs. running a viable business. Ingroup members favoring one part of the mission nonetheless identified with the outgroup favoring the other because it embodied a side of themselves they continued to value. Individuals who exemplified their ingroup’s most extreme attributes were seen by the outgroup as prototypical, thus serving as “lightning rods” for intergroup conflict; this dynamic paradoxically enabled other ingroup members to work more effectively with moderate members of the outgroup. The idealist–pragmatist duality was kept continually in play over time through oscillating decisions and actions that shifted power from one group to the other, coupled with ongoing rituals to repair and maintain relationships disrupted by the messiness of the process. Thus ostensible dysfunctionality at the group level fostered functionality at the organizational level.

Consumers often face situations in which their feelings of personal control are threatened. In such contexts, what role should products play in helping consumers pursue their goals (e.g., losing weight, maintaining a clean home)? Across five studies, we challenge the traditional view that low control is detrimental to effort and demonstrate that consumers prefer products that require them to engage in hard work when feelings of control are low. Such high-effort products reassure individuals that desired outcomes are possible while also enabling them to feel as if they have driven their own outcomes. We also identify important boundary conditions, finding that both the nature of individuals' thoughts about control and their perceived rate of progress toward goals are important factors in the desire to exert increased effort.

The current research examines how the price of a medication influences consumers’ beliefs about their own disease risk—a critical question with new laws mandating greater price transparency for health care goods and services. Four studies reveal that consumers believe that lifesaving health goods are priced according to perceived need (i.e., communal-sharing principles) and that price consequently influences risk perceptions and intentions to consume care. Specifically, consumers believe that lower medication prices signal greater accessibility to anyone in need, and such accessibility thus makes them feel that their own self-risk is elevated, increasing consumption. The reverse is true for higher prices. Importantly, these effects are limited to self-relevant health threats and reveal that consumers make inconsistent assumptions about risk, prevalence, and need with price exposure. These findings suggest that while greater price transparency may indeed reduce consumption of higher-priced goods, it may do so for both necessary and unnecessary care.