Designing for Company Size (05-07-18)

Yang and Aggarwal investigated how company size influences people’s expectations/evaluations of firms; their findings can be used to create settings that support income-enhancing interactions.  The team studied “the effect of size on consumers’ expectations and evaluations of company behaviors.  Consumers expect higher communion [more personal/intimate interactions] from small compared to large companies, and consequently, small relative to large companies garner lower evaluations when they exhibit low communion behavior. These high communion expectations are driven by the relatively lower marketplace power of small companies. . . . . perceptions of power underlie the effect of company size on expectations for communion.”

Linyun Yang and Pankai Aggarwal. “No Small Matter:  How Company Size Affects Consumer Expectations and Evaluations.”  Journal of Consumer Research, in press, https://doi.org/10.1093/jcr/ucy042