Lisa Bolton

Associate Professor of Marketing, Smeal College of Business, Pennsylvania State University

Contact Information

Primary Email:
boltonle@psu.edu
Office Phone:
(215) 898-5404
Office Fax Phone:
(215) 898-2534

office Address:
The Pennsylvania State University
Business Building 441
University Park, PA 16802

Research Interests: and marketing strategy., consumer finances, health marketing, judgment, prediction and decision-making by managers and consumers, pricing, with substantive interests in new products

Links: CV, Personal Website

Overview

Assistant Professor Lisa Bolton investigates how managers forecast the success of new products, how consumers estimate prices and judge price fairness, and how remedies alter risk perceptions and risky behavior, among other topics.

Professor Bolton’s research investigates “stickiness” in judgment, that is, judgments that persevere and are difficult to change. On the one hand, her research finds that scenarios and analogies lead to sticky new product forecasts by managers that may contribute to the failure rates of new products. On the other hand, product evaluations based on a consumer’s identity are difficult to change and can serve as a potential source of brand loyalty. In addition, Bolton’s research on price fairness points to a gap between how consumers and managers think: consumers tend to believe that prices are unfair, and reminding them of inflation and other costs does little to improve their fairness perceptions. Recent work also investigates how the marketing of “remedy” products such as nicotine replacement patches, the now-ubiquitous debt consolidation loan, and identity theft products affect consumer risk perceptions and risky behavior.

Professor Bolton’s research has been published in top-tier academic journals including the Journal of Consumer Research, the Journal of Marketing Research and the Journal of Consumer Psychology. Her teaching interests focus on Consumer Behavior, Marketing Research, and New Product Development.

Professor Bolton received her PhD in Marketing from the University of Florida, her Master’s Degree from the University of Toronto, and her Bachelor’s Degree from the Royal Military College of Canada.

Research

Lisa Bolton and Joseph W. Alba (Under Review), When Less is More: Consumer Aversion to Waste. Abstract
The present research investigates consumer aversion to waste. We propose that the anticipation of unused product utility (1) causes consumers to forfeit desired utility, (2) exerts unequal influence on consumers depending on whether the purchase involves a good or a service, and (3) has important implications for value-based pricing, inter-firm competition, and risk-seeking behavior.
Lisa Bolton (Under Review), Believing in First Mover Advantage. Abstract
This research investigates the origin of first-mover beliefs, arguing that the success of the idea of first mover advantage in the social marketplace of ideas is rooted in cultural beliefs and personal experience that favor “first-ness”. Beliefs in first mover advantage dominate the mainstream media despite mixed evidence in the academic literature (study 1A), and exposure to the business press is associated with increased belief in first mover advantage (study 1B). Indeed, first mover beliefs appear rooted in culture: first mover beliefs are enhanced by priming American culture (study 2A) and are more favorable among American versus Chinese respondents (study 2B). Subsequent experimental work confirms that even naïve subjects exhibit spontaneous beliefs in first mover advantage. Such spontaneous beliefs are as strong as beliefs reported after considering self-generated or presented exemplars favoring moving first (studies 3A and 3B), and exemplar-driven judgment produces stronger beliefs in first mover advantage than analytic reasoning (study 4). Moreover, such beliefs tend to persevere: first mover beliefs are neutralized but not reversed by considering exemplars of the disadvantages of moving first (studies 3A, 3B, and 4). In addition, providing contradictory evidence or labeling the opposing “rapid responder” counter-belief proved insufficient to overcome spontaneous beliefs in the advantages of moving first (study 5). Finally, the findings for personal and analogical experience also held for a professional sample with business experience (study 6). Taken together, these studies suggest that beliefs in first mover advantage are “sticky” and difficult to overcome, rooted as they are in personal experience and the cultural environment.

Description
This research examines the perseverance of beliefs in first-mover advantage. A media analysis indicates that beliefs in first-mover advantage dominate the mainstream media despite mixed evidence in the academic literature (Study 1). Moreover, exposure to the business press is associated with increased belief in first-mover advantage. Experimental work suggests that the success of the idea of first-mover advantage in the social marketplace of ideas is rooted in personal experience and cultural beliefs that favor “first-ness”. Even naïve subjects exhibit spontaneous beliefs in first-mover advantage that are neutralized but not reversed by considering exemplars of the disadvantages of moving first (Studies 2A and 2B). Moreover, providing contradictory evidence or labeling the opposing “rapid responder” counter-belief is insufficient to overcome a belief in first-mover advantage (Study 3). Taken together, these studies suggest that beliefs in first-mover advantage are “sticky” and difficul
Lisa Bolton, Hean Tat Keh, Joseph W. Alba (Under Review), Culture and Marketplace Effects on Perceived Price Fairness: China and the USA. Abstract
Perceived price fairness was examined in China and the United States as a function of their unique and shared cultural and marketplace characteristics. When comparing prices paid by another customer for the same good, Chinese consumers were more sensitive to their relationship with the referent (friend versus stranger) and to the nature of the vendor-customer relationship (loyal versus first-time buyer). These results, attributed to collectivist (individualist) cultural characteristics of Chinese (American) consumers that orient Chinese consumers toward the in-group, were supported by experimental manipulation of interdependent (independent) self-construal. Various transaction factors were shown to mitigate unfairness reactions to across-customer price comparisons in similar ways across cultures, except when the transaction factor was marketplace-specific (e.g., price-setting via negotiation). Moreover, fairness reactions to across-vendor price differences were similar across cultures, especially for those consumers familiar with a highly competitive urban marketplace. Thus, perceptions of price fairness can both diverge and converge across cultures in a predictable manner as a function of cultural and marketplace characteristics.
Wenbo Wang, Hean Tat Keh, Lisa Bolton (Under Review), Health Remedies: From Perceptions to Preference to a Healthy Lifestyle. Abstract
A conceptual framework is presented to understand consumer preference for health remedies. We argue that the interplay of three antecedents—remedy perceptions, illness perceptions, and individual/situational characteristics—drive remedy preference. In a series of studies, we test hypotheses based on this framework in an investigation of consumer preference for Traditional Chinese and Western medicines in China. Moreover, remedy perceptions and preferences are shown to have differential consequences for a healthy lifestyle. These findings shed light on the lay theories of medicine that guide consumer behavior.
Lisa Bolton, Americus Reed II, Katrina Armstrong, Kevin Volpp (Under Review), How Does Drug And Supplement Marketing Affect A Healthy Lifestyle?. Abstract
This research investigates consumer reactions to the marketing of drugs and supplements and the consequences for a healthy lifestyle. A series of experiments provides evidence that drug marketing undermines intentions to engage in health-protective behaviors (i.e., a boomerang effect). The boomerang arises from two psychological mechanisms: 1) drugs reduce risk perceptions and perceived importance of, and motivation to engage in complementary health-protective behaviors, and 2) drugs are associated with poor health that reduces self-efficacy and perceived ability to engage in complementary health-protective behaviors. A combined intervention accompanying a drug remedy that targets both motivation and ability mitigates the drug boomerang on a healthy lifestyle.
Lisa Bolton and Joseph W. Alba (2006), Price Fairness: Goods and Service Differences and the Role of Vendor Costs, Journal of Consumer Research, 33 (Sep), 258-265. Abstract
Prior research suggests that consumers are forgiving of a price increase that is commensurate with increased vendor costs. We argue that the perceived fairness of the price increase will also depend on the alignability of the cost and price increases, such that alignable increases will be perceived as more acceptable than nonalignable increases. Moreover, we predict that when a cost increase is nonalignable, consumers will be more receptive to a service price increase than a goods price increase. Evidence from a series of experiments supports both predictions.

Description
Prior research suggests that consumers are forgiving of a price increase that is commensurate with increased vendor costs. We argue that the perceived fairness of the price increase will also depend on the alignability of the cost and price increases, such that alignable increases will be perceived as more acceptable than nonalignable increases. Moreover, we predict that when a cost increase is nonalignable, consumers will be more receptive to a service price increase than a goods price increase. Evidence from a series of experiments supports both predictions.
Lisa Bolton, Joel B. Cohen, Paul N. Bloom (2006), Does Marketing Products as Remedies Create ‘Get Out of Jail Free’ Cards?, Journal of Consumer Research, 33, (June), 71-81. Abstract
Our research investigates the marketing of preventive and curative “remedies” (products and services that offer ways of mitigating risk by decreasing either its likelihood or severity). Examples include debt consolidation loans and smoking cessation aids. Like risk-avoidance messages, advertisements for remedies aim to reduce risk-by advocating the use of the branded product or service promoted by the marketer. In a series of experiments, we demonstrate that remedy messages undermine risk perceptions and increase risky behavioral intentions as consumer problem status rises. Ironically, remedies undermine risk avoidance among those most at risk–a boomerang effect with negative consequences for consumer welfare.

Description
Our research investigates the marketing of preventive and curative “remedies” (products and services that offer ways of mitigating risk either by decreasing its likelihood or severity). Examples include debt consolidation loans and smoking cessation aids. Like risk-avoidance messages, advertisements for remedies aim to reduce risk—by advocating the use of the branded product or service promoted by the marketer. In a series of experiments, we demonstrate that remedy messages undermine risk perceptions and increase risky behavioral intentions as consumer problem status rises. Ironically, remedies undermine risk-avoidance among those most at risk—a boomerang effect with negative consequences for consumer welfare.
Lisa Bolton, Luk Warlop, Joseph W. Alba (2003), Explorations in Price (Un)Fairness, , Journal of Consumer Research, 29, (Mar.) 474-491. Abstract
A series of studies demonstrates that consumers are inclined to believe that the selling price of a good or service is substantially higher than its fair price. Consumers appear sensitive to several reference points—including past prices, competitor prices, and cost of goods sold—but underestimate the effects of inflation, overattribute price differences to profit, and fail to take into account the full range of vendor costs. Potential corrective interventions—such as providing historical price information, explaining price differences, and cueing costs—were only modestly effective. These results are considered in the context of a four?dimensional transaction space that illustrates sources of perceived unfairness for both individual and multiple transactions.
Lisa Bolton (2003), Stickier Priors: The Effects of Nonanalytic and Analytic Thinking in New Product Forecasting, , Journal of Marketing Research, XL, (Feb.) 65-79. Abstract
The author investigates scenario generation and analogical reasoning as potential sources of bias in new product forecasting. In a series of studies, scenarios and analogies are shown to have persistent effects on judgment, despite subsequent use of corrective analytic techniques (e.g., counterfactual reasoning, counterscenarios, counteranalogies, decomposition, accountability). These findings demonstrate the robustness of nonanalytic processes on judgment and the need to be aware of their seductive effects.

Awards And Honors

AMA Sheth Foundation Doctoral Consortium Faculty, 2007 Description
AMA Sheth Foundation Doctoral Consortium Faculty
MSI Young Scholar’s Program, 2005 Description
MSI Young Scholar’s Program
Journal of Consumer Research Outstanding Reviewer Award, 2005
Procter & Gamble Marketing Innovation Research Award, 1999 Description
Procter & Gamble Marketing Innovation Research Award
John A. Howard AMA Doctoral Dissertation Award, 1999 Description
John A. Howard AMA Doctoral Dissertation Award
AMA Doctoral Consortium, University of Georgia, 1998 Description
AMA Doctoral Consortium, University of Georgia
Doctoral Internationalization Consortium, University of Texas at Austin, 1997 Description
Doctoral Internationalization Consortium, University of Texas at Austin
Dissertation Summer Scholar, Tilburg University, The Netherlands, 1997 Description
Dissertation Summer Scholar, Tilburg University, The Netherlands
Grinter Fellowship, University of Florida 1995-1997, 1997 Description
Grinter Fellowship, University of Florida
Social Sciences & Humanities Research Council of Canada Doctoral Fellowship 1996-1998, 1996 Description
Social Sciences & Humanities Research Council of Canada Doctoral Fellowship
Natural Sciences & Engineering Research Council of Canada Graduate Scholarship 1987-1990, 1990 Description
Natural Sciences & Engineering Research Council of Canada Graduate Scholarship
Association of Professional Engineers of Ontario Undergraduate Scholarship 1983-1987, 1987 Description
Association of Professional Engineers of Ontario Undergraduate Scholarship
RMC Club of Canada Scholarship 1983-1987, 1987 Description
RMC Club of Canada Scholarship
T.R. Meighen Memorial Scholarship 1983-1987, 1987 Description
T.R. Meighen Memorial Scholarship
Military Leadership and Management Awards 1983-1987, 1987 Description
Military Leadership and Management Awards
Governor-General of Canada Medals for First-Place Standing at RMC 1983-1986, 1986 Description
Governor-General of Canada Medals for First-Place Standing at RMC
Mathematics, Civil Engineering, Chemistry, Physics and English Awards 1983-1985, 1985 Description
Mathematics, Civil Engineering, Chemistry, Physics and English Awards
Canadian Federation of University Women’s Award 1983-1984, 1984 Description
Canadian Federation of University Women’s Award

Activity

Latest Research

Lisa Bolton and Joseph W. Alba (Under Review), When Less is More: Consumer Aversion to Waste.

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Awards and Honors

AMA Sheth Foundation Doctoral Consortium Faculty 2007

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