Third-party signals and sales to expert-agent buyers: Quality indicators in the contemporary visual arts market

Kackovic, Monika; Bun, Maurice J. G.; Weinberg, Charles B.; Ebbers, Joris J.; Wijnberg, Nachoem M.

doi:10.1016/j.ijresmar.2019.11.001

Cited by 8 publications

(14 citation statements)

References 65 publications

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“…This is in line with Rutherford and Buller (2007), who describe "chasing awards and recognitions" (page 89) as a strategy mentioned by new entrepreneurs to influence powerful stakeholders and cross the so-called legitimacy threshold. A study by Kackovic et al (2020) shows that in a market context similar to the one studied in this paper, third-party signals positively affect an entrepreneur's financial performance, and this relationship lasts far beyond the time when the signals were first conveyed. Implementing such a strategy could provide additional long-term benefits because it may help initiate selfreinforcing feedback mechanisms, such as the so-called Matthew effect (Merton, 1968), that increase the focal entrepreneur's competitive advantage ex ante (Azoulay et al, 2014;Merton, 1968), and in some cases ex post (Waguespack & Salomon, 2015).…”

Section: Discussionmentioning

confidence: 67%

Artists Finding Galleries: Entrepreneurs Gaining Legitimacy in the Art Market

Kackovic

Wijnberg

2020

Entrepreneurship Theory and Practice

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In many markets, there are mediators whose public evaluations mark that a new entrepreneur has gained legitimacy. Their decision may be influenced by third-party sources signaling about the entrepreneur. We quantitatively study these micro-level processes in the art market, where the artist is the entrepreneur and the art gallery is the mediator. Our results show that it is not the quantity but the diversity of signaling sources, especially highly credible ones, that influence a mediator’s decision. This allows entrepreneurs full access to the market under the consensus that “proper” legitimacy has been gained. Our conclusions are maintained under alternative analyses.

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Section: Discussionmentioning

confidence: 67%

Artists Finding Galleries: Entrepreneurs Gaining Legitimacy in the Art Market

Kackovic

Wijnberg

2020

Entrepreneurship Theory and Practice

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“…Evidence suggests that what may help overcome this asymmetry are the feelings followers have for influencers; people reciprocate the feelings held toward endorsers (e.g. trust) to the partner brand (Jain and Posavac, 2001;Kackovic et al, 2020;Kowalczyk and Pounders, 2016), even when they know the partnership is a paid endorsement for the brand (Chung and Cho, 2017). Accordingly, we propose increasing parasocial relationship strength builds favorable influencer efficacy perceptions.…”

Section: Follower-influencer Relationshipmentioning

confidence: 90%

“…If followers lack sufficient information about the partner brand though, they may rely only on their perceptions of the influencer (Jain and Posavac, 2001;Kackovic et al, 2020), which implies a mediating effect: Heightened perceptions of influencer efficacy increase perceived brand authenticity, leading to greater acceptance of the persuasion attempt. In this study, the persuasion attempt is the partner brand's message, and we use followers' attitudes toward a sponsored post and level of brand engagement as relevant measures of the success of the persuasion attempt.…”

Section: Follower-influencer Relationshipmentioning

confidence: 99%

Influencer marketing effectiveness: the mechanisms that matter

Hugh

Dolan²,

Harrigan³

et al. 2022

EJM

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Purpose The continued evolution of influencer marketing has created a need to better understand influencer marketing effectiveness. With brands increasingly partnering with influencers, research is yet to provide an integrated perspective examining the critical role of both parties. This study aims to draw on the source credibility model and signaling theory to explain the mechanisms that matter in influencer marketing effectiveness. Design/methodology/approach The proposed model of influencer marketing effectiveness is analyzed using partial least squares with data from 281 followers of social media influencers. Findings The authors establish influencer characteristics of popularity and attractiveness as heuristic cues that inform judgments of influencer efficacy. Further, category involvement and altruistic motives for collaboration are shown to moderate followers’ reliance on these heuristic cues. Then, a sequential mediating effect demonstrates the critical roles of the influencer and partner brand in three desired outcomes: enhanced perception of brand authenticity, enhanced brand engagement and positive attitudes toward influencer posts. Research limitations/implications Future research should consider other heuristic cues that could inform influencer efficacy judgments and switch the focus toward the partner brand’s impact on such judgments. Practical implications A step-by-step visual framework is presented to help marketers and influencers translate these findings into key responsibilities for developing more effective and collaborative partnerships. Originality/value Besides presenting an integrated perspective, signaling theory provides an original lens for explaining influencer marketing effectiveness, addressing the need to expand the theoretical boundaries of influencer marketing research.

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“…More recently, Sepehri et al (2021) proposed a new dimension of classifying direct and indirect appeal depending on a message's delivery agent (self vs other). Expanding on this conceptualization, we define direct vs indirect appeal depending on whether a given ad is delivered directly by a company or indirectly by a TPO (Chen and Xie, 2005;Dean and Biswas, 2001;Kackovic et al, 2020). Extant research comparing direct and indirect appeals indicates that indirect appeals enhance message credibility, authenticity and brand recall (Hartnett et al, 2016;Kozinets et al, 2010;Okazaki et al, 2010;Wu and Shaffer, 1987).…”

Section: Indirect Appeal and Greedmentioning

confidence: 99%

Can we serve both God and Money? The role of indirect appeal and its limitation

Park

Kang²,

Markman³

2023

EJM

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Purpose Harmonizing religion and economic pursuits is treacherous because mixing the two rarely resonate with consumers, often resulting consumers’ greed perceptions. This paper aims to explore the antecedents and consequence of consumers’ greed perceptions in the context of for-profit religious-affiliated companies (FPRCs) and how they can harmonize religious and commercial missions by using different ad types (direct vs indirect appeal). Design/methodology/approach The authors conducted two experiments: Study 1 was an online experiment with participants from the USA collected through Amazon’s Mechanical Turk (n = 410) to reveal the overall mechanism. Study 2 was a field experiment (n = 292) to corroborate Study 1’s findings. The authors analyzed the data using a multigroup structural equation model. Findings First, consumers perceive greed against FPRCs’ dual identities incurred by their commercial activities. Second, when FPRCs obscure their religious identities by using third-party organizations (TPOs) as its promoter (i.e. indirect appeal), consumers’ greed perceptions decline, but this does not increase consumers’ future patronage intentions. Finally, in online and field experiments, consumers enhance their purchase intentions and behavior, respectively, under indirect appeal. Research limitations/implications First, further investigation of the cognitive dissonance mechanism when consumers face seemingly contradictory identities of organizations is crucial to identify bottlenecks in promoting FPRCs’ commercial offerings. Second, examining boundary conditions of indirect appeal is important to enhance our understanding of FPRCs’ advertising, such as consumers’ awareness of TPOs’ intentionality. Lastly, not every type of indirect appeal brings the same effects. Future studies may explore diverse forms of indirect appeal, such as using artificial intelligence-based algorithms without TPOs. Practical implications Despite heightened interest in supporting dual missions (i.e. purpose and profit), this study shows why doing well while doing good is inherently challenging in practice creating marketing liability. To deal with this, the present findings suggest that, first, rather than exposing an FPRC’s religious (or communal) identity upfront, providing subtle cues through a TPO of its religious affiliation can be persuasive to win the hearts of target customers. Second, given the short-term effectiveness of indirect appeal, FPRCs need to use both direct and indirect appeal flexibly, as each type of ad delivers a distinctive advantage. Lastly, indirect appeal is particularly effective in offline promotional activities in the context of FPRCs. Originality/value First, by meshing paradox theory, the authors show that dual identities of FPRCs expose them to a marketing liability that single-mission enterprises rarely face. Second, when FPRCs use indirect appeal, they face a tradeoff between mitigating greed perception and securing future patronage. Third, results from the online experiment and field experiment show when consumers’ intention and actual behavior align.

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Third-party signals and sales to expert-agent buyers: Quality indicators in the contemporary visual arts market

Cited by 8 publications

References 65 publications

Artists Finding Galleries: Entrepreneurs Gaining Legitimacy in the Art Market

Artists Finding Galleries: Entrepreneurs Gaining Legitimacy in the Art Market

Influencer marketing effectiveness: the mechanisms that matter

Can we serve both God and Money? The role of indirect appeal and its limitation

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