Carlos Alvarez College of Business Faculty Research
Permanent URI for this collectionhttps://hdl.handle.net/20.500.12588/251
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Browsing Carlos Alvarez College of Business Faculty Research by Department "Marketing"
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Item How Main Street Drives Wall Street: Customer (Dis)satisfaction, Short Sellers, and Abnormal Returns(SAGE Publications, 2020-10-21) Malshe, Ashwin; Colicev, Anatoli; Mittal, VikasAlthough previous studies have established a direct link between customer-based metrics and stock returns, research is unclear on the mediated nature of their association. The authors examine the association of customer satisfaction and abnormal stock returns, as mediated by the trading behavior of short sellers. Using quarterly data from 273 firms over 2007–2017, the authors find that short interest—a measure of short seller activity—mediates the impact of customer satisfaction and dissatisfaction on abnormal stock returns. Customer dissatisfaction has a more pronounced effect on short selling compared with customer satisfaction. In addition, customer satisfaction and dissatisfaction are more relevant for firms with low capital intensity and firms that face lower competitive intensity. The results show that a one-unit increase in customer satisfaction is associated with a .56 percentage point increase in abnormal returns, while a one-unit increase in customer dissatisfaction is associated with a 1.34 percentage point decrease in abnormal returns.Item Social Media and Customer-Based Brand Equity: An Empirical Investigation in Retail Industry(2018-09-19) Colicev, Anatoli; Malshe, Ashwin; Pauwels, KoenAs customer-brand engagement progressively shifts to digital domains, understanding social media effects in branding has become a vital issue. Social media effectiveness is especially important for the US retail sector due to intense competition among retailers for consumer attention and engagement on digital channels. Yet, the research on the effectiveness of social media in the retail industry remains sparse. Thus, the purpose of this paper is to investigate how social media affects US retailers’ customer-based brand equity (CBBE) which is an important indicator of brand success. Using a dataset of 15,717 retailer-day observations, the authors empirically test the dynamics between owned and earned social media and CBBE using panel vector autoregression (PVAR). The authors find strong impacts of owned and earned social media on CBBE across the board. However, they find that owned social media harms CBBE of retailers dealing in hedonic and high involvement products. Whereas owned social media helps general retailers in building CBBE, it reduces CBBE of specialty retailers.