SANDEEP KRISHNAMURTHY

Journal Publications Only [Books are here- 1,2]

[Read my vita for comprehensive information about me.

Full-length peer-reviewed papers unless otherwise noted.]

Knowledge Areas

GENERIC ADVERTISING Papers

Krishnamurthy, Sandeep, William P. Bottom and Ambar G. Rao(2003), "Adaptive Aspirations and Contributions to a Public Good: Generic Advertising as a Response to Decline", Organizational Behavior and Human Decision Processes (OBHDP), 92(1/2), 22-33.

Abstract

Generic advertising,the promotion of an entire product or service category,is a common form of inter-ﬁrm cooperation. Voluntary participation in such a campaign represents contribution to a public good.Based on the pattern of recent campaigns,we argue that this cooperation is dependent on adaptive aspirations and an increased willingness to consider alternative courses of action in light of declining sales within an industry.Three experiments are reported that tested these ideas.In each study,subjects assigned to four person groups chose how many resources to contribute to a generic advertising campaign the effectiveness of which depended on total funding levels.Each group member represented a different ‘‘store ’’in the same mall.The instructions framed the problem by presenting varying sales trends for the stores —Positive,Negative,or Neutral.The ﬁrst two experiments were one-shot games with a dominant strategy of non-contribution and free riding.The results showed that subjects confronting the declining trend contributed signi ﬁcantly more than those in either of the other two conditions.A declining sales trend also positively inﬂuenced their expectations that others would contribute as well.The third experiment demonstrated that a decline-induced equilibrium persisted over trials of a ﬁnitely repeated game with a known stopping point.Contributions remained high even in the ﬁnal round.Surprisingly,the speci ﬁc identi ﬁcation of a competitor mall as the cause of the decline in sales actually resulted in lower levels of contribution.The implications for research and practice are discussed.

Krishnamurthy, Sandeep(2001), “The Impact of Provision Points on Funding Generic Advertising Campaigns”, Marketing Letters, 12(4), 315-325.

Abstract

Generic advertising promotes the general qualities of a product category and, therefore, benefits all firms in the category. Recent examples of such campaigns organized through voluntary contributions by firms are found in the Life Insurance, ("It's 1998. You're Dead. What Do You Do Now?") and Steel industries ("The New Steel. Feel the Strength."). Free-riding is commonly observed in such campaigns when they use the Simple Voluntary Contribution Mechanism (VCM)- here the budget is obtained by simply adding up the voluntary contributions of firms. We propose a new mechanism called the Provision Point VCM that can help alleviate this free-riding problem. Here, a target budget called the provision point is announced with the condition that the campaign will be mounted if and only if the contributions equal or exceed this point. First, analytically we briefly describe the results for the Simple VCM. Here, free-riding will always result in equilibrium and the advertising budget never maximizes industry welfare. Then, we show that if the provision point is set equal to the Pareto Optimum, the industry welfare maximizing advertising budget is always a feasible equilibrium outcome and is a unique outcome in some cases. In fact, we show that no other Provision Point VCM can lead to welfare maximization. Then, we present results from experiments using MBA students that test these findings. Consistent with our analytical results, we show that when the provision point is set equal to the Pareto Optimum, it outperforms the Simple VCM in terms of overall contributions and free-riding behavior.

Krishnamurthy, Sandeep (2001), "Communication Effects In Public Good Games With And Without Provision Points", Research In Experimental Economics, Volume Eight, Editor: Mark Isaac, JAI(An Imprint of Elsevier Science B.V, Amsterdam, The Netherlands).

Abstract

In this paper, I report the results of thirty economic experiments investigating if the short-term and long-term impact of face-to-face communication is different in provision point and simple voluntary contribution mechanisms. This is an interesting issue in the experimental economics community because technically such communication is non-binding and should not impact the equilibrium prediction (i.e., observed behavior). My results show that communication does have short-term and long-term (it impacts contributions in periods immediately following it in which no communication is allowed) effects. However, in provision point mechanisms, the long term impact of communication is strikingly stronger and the short-term impact is affected more by the history of past interaction. Communication leads to a drop in the number of free-riders and cheap-riders in both mechanisms. I statistically test twenty seven hypotheses and find strong support for twenty three of them. I also investigate if the nature of communication has an impact on contributions. I find that, ceteris paribus, the magnitude of communication (e.g. the number of words spoken) is negatively correlated with efficiency. I found no significant correlation between the distribution pattern of communication within a group and contributions.

Krishnamurthy, Sandeep (1999), “Enlarging the Pie vs. Increasing One’s Slice: An Analysis of the Relationship Between Product Class and Brand Advertising”, Marketing Letters, 11(1), 37-48.

Abstract

Generic advertising promotes the general qualities of a product category and, therefore, benefits all firms--regardless of who has contributed to the campaign (e.g. "Got Milk?"). Such campaigns are organized either by independent contributions by industry members or through government legislation. In this paper, we study the relationship between brand and generic advertising in these two cases. In the independent-contribution case, a free-riding or cheap-riding generic advertising equilibrium is predicted. Interestingly, in the free-riding equilibrium, we show that dominant firms in industries should be indifferent to free riding by lesser firms. They should incur the entire industry advertising expense and be better for it. In the cheap-riding equilibrium, a group of equally dominant firms foot the bill. In the government-sponsored case, we establish that industry spending on generic advertising is greater. But, we find that there is an increase in total spending on brand advertising as well.

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Knowledge Areas

OPEN SOURCE Papers

Krishnamurthy, Sandeep (2005), “The Elephant and the Blind Men: Deciphering the Open Source Puzzle”, First Monday, 10(10). HTML

Krishnamurthy, Sandeep (2005), “On the Intrinsic and Extrinsic Motivation of Open Source Developers”, Forthcoming in Knowledge, Technology & Policy.

Abstract

Motivation in the context of open source software may be seen as fundamentally different due to the presence of unpaid programmers, implicit rather than explicit forms of control and a different methodology for software development. Since software development is a creative task, the motivation of open source programmers can be compared to individuals in creative industries (Caves 2002). This paper summarizes the important trends in the research on motivation in open source and identifies variables that should be included in future research. Specifically, the current literature favors a taxonomy that considers two components of motivation- intrinsic (e.g. fun, flow, learning, community) and extrinsic (e.g. financial rewards, improving future job prospects, signaling quality). I make a case for incorporating both elements in developing an integrative theory about developer motivation. Three elements are identified as being unique to FLOSS development- diversity of project structures, co-existence of companies and communities and co-existence of creative and commercial elements. The important empirical evidence on FLOSS developer motivation is presented and analyzed. Four factors are identified as important mitigating and moderating factors in the conversation surrounding developer motivation- financial incentives, nature of task, group size and group structure. The role of these factors on developer motivation is discussed.

Krishnamurthy, Sandeep (2005), “About Closed-door Free/Libre/Open Source (FLOSS) Projects: Lessons from the Mozilla Firefox Developer Recruitment Approach”, Upgrade, Volume 6, Issue 3, Available at- http://www.upgrade-cepis.org/issues/2005/3/up6-3Krishnamurthy.pdf .

Abstract

In this paper, the notion of a "closed-door open source project" is introduced. In such projects, the most important development tasks (e.g. code check-in) are controlled by a tight group. I present five new arguments for why groups may wish to organize this way. The first argument is that developers simply do not have the disposable time to evaluate potential members. The next two arguments are based on self-selection- by setting tough entry requirements the project can ensure that it gets high quality and highly persistent programmers. The fourth argument is that expanding a group destroys the fun. The fifth argument is that projects requiring diverse inputs require a closed door approach.

Krishnamurthy, Sandeep and Arvind Tripathi (2005), “Bounty Programs in Free/Libre/Open Source Software (FLOSS): An Economic Analysis”, Forthcoming in The Economics of Open Source Software Development, Editors- Jurgen Bitzer and Phillip Schroeder, Elsevier Publications.

Abstract

The motivation of FLOSS developers has been an enduring topic of research. The current scholarly thinking is that the motivation of a developer could be intrinsic (e.g. fun, creativity, flow) or extrinsic (i.e., tangible rewards such as maximization of future career prospects). In this paper, we focus on one mechanism for providing extrinsic financial rewards- bounty programs. Bounty programs are commonly used in FLOSS communities to motivate developers to create new programs, to improve the security of an existing product, to solve a specific bug, to obtain product improvement suggestions, to help maintain the codebase and to prepare documentation. We start by defining six characteristics of FLOSS bounty programs- financial benefit, task-specific, competitive, judgment by expert panel, deadline, public and open source. Bounty programs can be formal or informal, may be funded by individuals, corporations or non-profit organizations and may provide small to very large amounts. The winner-take-all feature of most bounties places undue pressure on developers and judges. The rational response to a bounty can be best modeled using Selby Jr. and Beranek(1981)’s seminal paper. Entry is determined by a cost-benefit analysis. Six potentially negative impacts on the software development process are identified. Future research is needed to understand the impact of bounty programs on FLOSS in general.

Krishnamurthy, Sandeep (2003), "A Managerial Overview of Open Source Software", Business Horizons, 46(5), September-October, 47-56. PDF

Abstract

Open-source software(OSS) programs (e.g. LINUX, Apache) provide access to the source code to any interested party. This leads to a distributed innovation model where users actively participate in the development of the product. The main purpose of this paper is to help managers who have to choose between OSS and commercial software. Not all OSS products are free. OSS products are distributed under a wide variety of public licenses. They are more reliable, provide greater flexibility and choice to the user and are frequently free. On the other hand, OSS leads to a proliferation of versions and may appeal only to the high-end user. Vendors of open-source products make money by selling the program on a CD, providing support services to enterprises and authenticating versions. The open source system leads to fascinating competitive and cooperative relationships among companies, between a company and a community and among communities.

Krishnamurthy, Sandeep(2005), "An Analysis of Open Source Business Models", Forthcoming in Making Sense of the Bazaar: Perspectives on Open Source and Free Software, Editors- Joseph Feller, Brian Fitzgerald, Scott Hissam and Karim Lakhani, MIT Press, Boston, MA. PDF

Abstract

Open-source software is not for hobbyists any more. Instead, it is a business strategy with broad applicability. Businesses can be built around this idea. In this paper, I want the reader to grapple with the specifics of how to build and grow such a business. To this end, I have proposed three fundamental business models- Distributor, Software producer [GPL and non-GPL] and the Third-Party Service Provider. These are sustainable models that can lead to robust revenue streams. The business models provided here can be enhanced by the addition of further revenue streams. For instance, we now know that certification of developers on an Open-Source product can lead to strong revenues. Not all products have the same profit potential. Therefore, not all Open Source Software products have the same profit potential. I have classified Open Source Software products into four categories- Stars, High-profile nichers, Low-profile nichers and Mainstream utilities. Businesses can be built around Stars. High-profile nichers can lead to robust revenue streams if properly marketed. The other two categories may not lead to high profits. Since many Open Source Software products are freely available, managers must scan public repositories to find out which products will be suitable for their business. The future of Open Source Software is bright. Increasingly, we will find that these products will take a central role in the realm of software and will find a larger place in all our lives.

Krishnamurthy, Sandeep(2002), "Cave or Community? An Empirical Examination of 100 Mature Open Source Projects", First Monday, 7(6). HTML

Abstract

Starting with Eric Raymond's groundbreaking work, "The Cathedral and the Bazaar", open-source software (OSS) has commonly been regarded as work produced by a community of developers. Yet, given the nature of software programs, one also hears of developers with no lives that work very hard to achieve great product results. In this paper, I sought empirical evidence that would help us understand which is more common - the cave (i.e., lone producer) or the community. Based on a study of the top 100 mature products on Sourceforge, I find a few surprising things. First, most OSS programs are developed by individuals, rather than communities. The median number of developers in the 100 projects I looked at was 4 and the mode was 1 - numbers much lower than previous numbers reported for highly successful projects! Second, most OSS programs do not generate a lot of discussion. Third, products with more developers tend to be viewed and downloaded more often. Fourth, the number of developers associated with a project was positively correlated to the age of the project. Fifth, the larger the project, the smaller the percent of project administrators.

Knowledge Areas

Spam/Permission Marketing Papers Papers

Krishnamurthy, Sandeep(2002), "The Ethics of Conducting E-Mail Surveys", Forthcoming in Readings in Virtual Research Ethics: Issues and Controversies, Edited by Elizabeth A. Buchanan. Hershey, PA: Idea Group.

Abstract

The prospect of using e-mail in survey research can be very exciting to academic researchers. However, it raises many ethical concerns. While many people have started to say that obtaining consumer permission is important, there is no clarity on how to obtain and maintain permission. Some academic researchers might argue that due to the low volume and infrequent nature of their surveys and the general positive perception of academia, their e-mail surveys do not add to the Spam problem. However, this is problematic from an ethical perspective since it changes the definition of what Spam is from any unsolicited e-mail to a subset of these e-mails which have certain predefined characteristics. There are ways to implement permission-based respondent contact if the academic community wants to. The only negative to keep in mind will be the statistical problem of self-selection and the "loss of complete randomness" to some degree. Regardless, the future legal landscape may force academic researcher to adopt permission as the standard.

Krishnamurthy, Sandeep (2001), “A Comprehensive Analysis of Permission Marketing”, Journal of Computer-Mediated Communication, 6(2). HTML

Abstract

Godin (1999) has proposed a new idea- permission marketing. Here, consumers provide marketers with the permission to send them certain types of promotional messages. This is seen as reducing clutter and search costs for the consumer while improving targeting precision for marketers. This paper makes three contributions: First, a critical analysis of the concept and its relationship to existing ideas in the marketing literature is discussed. Second, a taxonomy of four models used to implement permission marketing today, direct relationship maintenance, permission partnership, ad market and permission pool, is presented. Permission intensity is seen as a key differentiator among models. Finally, a comprehensive conceptual cost-benefit framework is presented that captures the consumer experience in permission marketing programs. Consumer interest is seen as the key dependent variable that influences the degree of participation. Consumer interest is positively affected by message relevance and monetary benefit and negatively affected by information entry/modification costs, message processing costs and privacy costs. Based on this framework, several empirically testable propositions are identified.

Krishnamurthy, Sandeep (2000), “Spam Revisited”, Quarterly Journal of Electronic Commerce, 1(4), 305-321. PDF

Abstract

Even though unsolicited commercial e-mail or Spam continues to be a major problem, very little academic research has focused on it. Notable exceptions include Shiman(1996), Cranor and LaMacchia(1998), Samoriski(1999) and Sheehan and Hoy(1999). The purpose of this paper is to provide a comprehensive overview of the Spam problem and a critical analysis of the solutions. We begin with a definition of Spam. This is followed by an analysis of the pernicious impact of Spam on the major stakeholder groups- consumers, Internet Service Providers, legitimate advertisers, e-commerce firms and employers. Since there is no “clean” solution to limiting the volume or nature of Spam, a variety of responses to Spam exist. These can be placed into four categories- laissez faire arguments, business-initiated solutions, third-party oversight, consumer education and legislative solutions. For the remainder of the paper, we focus upon one business-initiated solution- permission marketing (Godin 1999). Permission marketing envisages a world where consumers control the promotional messages targeted at them. Consumers provide a firm information about their interests and product preferences. The firm then sends the consumer promotional messages based on this information. We argue that, even though this idea has merit, there has been an inconsistent application of this idea. To support this, we discuss six variants of the original concept of Spam that purport to use permission marketing. Based on this discussion, we end by identifying six key elements that must be a part of every permission marketing campaign if it has to be clearly distinguished from Spam.

Krishnamurthy, Sandeep (2000), Review of Seth Godin's "Permission Marketing: Turning Strangers into Friends and Friends into Customers", 37(4), Journal of Marketing Research, 525-528. PDF [Book review]

No Abstract Provided

Privacy Papers

Miyazaki, Anthony and Krishnamurthy, Sandeep(2002), “Internet Seals of Approval: Effects on Online Privacy Policies and Consumer Perceptions”, Journal of Consumer Affairs, 36(1), Summer, 28-49. PDF

The use of Internet seal of approval programs has been touted recently as an alternative to potential legislation concerning consumer-related online privacy practices. Questions have been raised, however, regarding the effectiveness of such programs with respect to maintaining privacy standards and aiding online consumers. The authors examine these issues in a series of four studies, the first of which examines Internet seal of approval logo usage in the current marketplace. The next study applies Federal Trade Commission privacy standards to various online privacy policies in an effort to determine the ability of seal of approval program participation to act as a valid cue to a firm™s state privacy practices. The last two studies are experiments designed to ascertain how online firm participation in Internet seal of approval programs affect consumers. Implications for policy and industry are also discussed.

Knowledge Areas

E-Commerce/E-Marketing Papers

Krishnamurthy, Sandeep and Nitish Singh, “The International E-Marketing Framework (IEMF)- A Guiding Template for Future Global E-Marketing

Research”, Forthcoming in International Marketing Review.

Purpose: International E-Marketing is emerging as an important area for marketers, as global online markets expand. This special issue is an attempt to encourage, showcase,

and guide research in the area of International E-Marketing.

Research/Practical Implication: In the editorial, we introduce the International Emarketing Framework (IEMF) as a guiding template for future research in international e-marketing. The IEMF should help shape scholarly inquiry in the domain of international E-Marketing, classify current intellectual contributions in this area and delineate the gaps in the literature.

Originality/Value: The editorial presents the International E-Marketing Framework and classifies various papers in this issue using this framework. Finally, the editorial concludes with several compelling research questions to motivate future research in this area.

Krishnamurthy, Sandeep (2005), “Introducing E-MARKPLAN- A Practical Methodology to Plan E-Marketing Activities”, Business Horizons, Forthcoming.

Even though E-Marketing is highly prevalent, there is no template for managers who wish to use the Internet/Web and related information technologies to market their products and services. The purpose of this paper is to provide managers with a comprehensive, actionable, and practical methodology (E-MARKPLAN) to plan, enact, and analyze E-Marketing activities. Five case studies are used to illustrate the diversity of E-Marketing actions. E-MARKPLAN consists of five parts- Goals, Actors (i.e., those who take E-Marketing actions), Spaces (i.e., theaters of engagement), Actions, and Outcomes. E-MARKPLAN is versatile and is not limited to companies who have an Ecommerce operation.

Krishnamurthy, Sandeep(2003), "A Comparative Analysis of Amazon and eBay", Forthcoming in Intelligent Enterprises Of The 21st Century, Editors: Jatinder N. D. Gupta and Sushil K. Sharma, Idea Group Publishing, Hershey, Pennsylvania, USA.

Abstract

Even though Amazon.com has received most of the hype and publicity surrounding E-Commerce, eBay has quietly built an innovative business truly suited to the Internet. Initially, Amazon sought to merely replicate a catalog business model online. Its technology may have been innovative- but its business model was not. On the other hand, eBay recognized the unique nature of the Internet and enabled both buying and selling online with spectacular results. Its auction format was a winner. eBay also clearly demonstrated that profits do not have to come in the way of growth. Amazon was intially focused on BN.com as a competitor. Over time, Amazon came to recognize eBay as the competitor. Its initial foray into auctions was a specacular failure. Now, Amazon is trying to compete with eBay by facilitating selling and strengthening its affiliates program.

Krishnamurthy, Sandeep (2003), "Is E-Commerce E-ssential? Results from a short E-Commerce Educators Survey", Biz/Ed. PDF [Short article]

No Abstract Provided

Krishnamurthy, Sandeep (2001), “Understanding Online Message Dissemination: An Empirical Analysis of Send-This-Message-To-Your-Friend Data”, First Monday, 6(5). HTML

Abstract

Our goal in this paper was to analyze "send-this-story-to-a-friend" data. Encouraging consumers to send stories to friends is an application of viral marketing which envisions message dissemination through customer-to-customer communication rather than firm-to-customer communication. It makes sense for a publisher to include this feature since individuals are more likely to accept the recommendations of their friends and this may increase theit probability of reading the story by making it more salient. We collected publicly available data from ESPN.com over an 11-day period. Using this data, our findings are: first, the number of times stories are sent out represent a miniscule proportion of visits to the site; second, if the top story is very influential, it may increase the total visits to the site and there may be spillover effect; third, there is an interesting weekend effect with a drop in the number of stories sent out; and, finally we observe an interesting floor effect when we analyze the ratio of the top and bottom stories.

Krishnamurthy, Sandeep (2001), “Person-to-Person Marketing: Marketing and the New Consumer Web”, Quarterly Journal of Electronic Commerce, 2(2), 123-138. PDF

Abstract

We propose a new form of marketing called, person-to-person(p2p) marketing. This is characterized by three elements- consumer collectives (both private social networks and public communities) conducting tasks usually performed by firms, diminished firm control on the marketing process and customer empowerment due to the end of isolation. We see the impact of consumer collectives in virtually all marketing processes- product development(e.g. Linux, Slashdot), message dissemination, i.e., viral marketing(e.g. Hotmail, Paypal), product evaluation(e.g. ePinions), (digital) product sharing(e.g. Napster, Gnutella), product purchase(e.g. eBay, Mobshop) and customer feedback(e.g. eComplaints). Our main objective in this paper is to identify P2P marketing as a major event in the marketing landscape and to place its impact in the context of the literature.

Krishnamurthy, Sandeep (2001), “An Empirical Study of the Causal Antecedents of Customer Confidence in E-tailers”, First Monday, 6(1). HTML

Abstract

Why is it that consumers are very confident with an e-tailer such as Amazon.com and lack the same confidence when it comes to a smaller e-tailer such as supremevideo.com? In this paper, we attempt to answer this important question by examining the antecedents to customer confidence in e-tailers, using secondary data. Our findings indicate that the ease of use of a site, the level of online shopping resources, and the presence of a trusted third party seal all positively impact the level of customer confidence. Interestingly, online relationship services did not have an impact on consumer confidence. Larger firms may have a small edge. We also find that there are no large differences in the results across different product categories.

Krishnamurthy, Sandeep(2001), "Viral Marketing- What Is It And Why Must Every Service Marketer Care?", Journal of Services Marketing, 15(6&7), 422-424. PDF [Invited Editorial]

No Abstract Provided

Krishnamurthy, Sandeep (2000), “Deciphering the Internet Advertising Puzzle”, Marketing Management, 9(3), 34-39. PDF

Abstract

Internet advertising presents a puzzle to advertisers. On the one hand, total spending on Internet advertising has exploded and everybody (including your competition) seems to be advertising on it. On the other, click-through rates on banners have dropped to about 0.5% and the most basic measures of ad viewership and effectiveness have been called into question. In this article, our goal is to provide you with some guidelines on how to think of Internet advertising. We summarize the measurement problems with banners and introduce you to the concepts of permission and viral marketing. We end with six prescriptions to keep in mind when you are putting together your campaign. The Internet is evolving rapidly and managers interested in advertising on it must be prepared to adapt in real-time if they are to be successful.

Power Law and the Internet

Krishnamurthy, Sandeep(2004), "An Analysis of Power Law Phenomena on the Internet and World Wide Web.", Journal of Marketing Research , Forthcoming. PDF [Book review]

No Abstract Provided

Impact of the Internet on Education

Krishnamurthy, Sandeep (1999), "The Impact of the Internet on Student Plagiarism", Marketing Educator, 18(1), Winter. PDF [Short article]

No Abstract Provided

Non-Profit Marketing

Krishnamurthy, Sandeep (2001), “The Microsoft Challenge Case”, International Journal of Non-profit and Voluntary Sector Marketing, 6(2), 105-115.

Abstract

Graduate students are integral to the mission of a research university. Yet, due to increased numbers of such students and the decreased number of jobs available to them, they face huge financial challenges. Universities have been unable to fund all their graduate students. In this case, I propose that striking creative alliances with for-profit corporations is one avenue to meet these funding needs. Specifically, I discuss the Microsoft Challenge- a unique arrangement where Microsoft challenged the faculty at the University of Washington to pay for graduate students. I present the rules and the results of this challenge. Lessons learned from this challenge have important implications for all universities faced with pressures to fund graduate students.

Krishnamurthy, Sandeep(2002), “The Washington Combined Fund Drive Case”, International Journal of Non-profit and Voluntary Sector Marketing, 7(1), 45-55.

Abstract

This is the case of a large workplace giving program- the Washington Combined Fund Drive. This program is different in many ways from most workplace giving programs- it provides individuals a large choice of charities(e.g. single charities, federations, United Ways) and payment options(e.g. check, payroll deduction). In most workplace giving programs, United Way has strong monopoly power. Extensive data on the performance of the program is provided. The program has grown steadily and is now leveling off. The director of the program is trying to identify the most effective way to improve the program.

Knowledge Areas