Mrinal G Ghosh

Interests

Research

Developing and expanding on the core theories of institutional design like transaction cost economics and the principal-agent models. These extensions are applied in a variety of substantive contexts in the domain of marketing strategy, business-to-business marketing, distribution channels, and sales force design and compensation.Currently I am working on two broad research programs - one on Product-Form Strategy decisions, i.e. "Where does the firm choose to locate it's products/services in the value-chain?" and the other on the role of marketing practices in the health-care service sectors.

Teaching

Marketing StrategyBusiness-to-Business StrategyMarketing CoreDistribution ChannelsMarketing of InnovationStatistical Methods in Business and Marketing

Courses

Scholarly Contributions

Chapters

• Ghosh, M. G., Ghosh, M. G., Viswanathan, M., Viswanathan, M., John, G., & John, G. (2016). A Transaction Cost Approach to Channel Design with Application to Multi-Channels Settings. In Handbook of Research on Distribution Channels. Edward Elgar.
• Ghosh, M. G., Lusch, R. F., & Frias, K. (2016). Choosing Value-Chain Locations in Marketing Channels: Integrating Service-Dominant Logic and Product-Form Strategy Perspectives. In Handbook of Research on Distribution Channels. Edward Elgar.
• Ghosh, M. G., & John, G. (2012). Progress and Prospects for Governance Value Analysis in Marketing: When Porter Meets Williamson. In ISBM B2B Handbook.
• Ghosh, M. G., Ha, L., Batra, R., & Zhang, J. (1999). Product Distribution Choices in China: A Transaction Cost Perspective. In Marketing Issues in Transitional Economies. Kluwer Academic Publishing.

Journals/Publications

• Chen, Y., Ghosh, M. G., Liu, Y., & Zhao, L. (2019). Media Coverage of Climate Change and Sustainable Product Consumption: Evidence from Hybrid Vehicle Market. Journal of Marketing Research, 56(6), 995-1011.
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  As sustainable consumption becomes increasingly important, firms must better understand the drivers behind the consumption of these products. This paper examines the effects of mass media in the context of U.S. hybrid vehicle market. Based on monthly sales data, we provide evidence that the general coverage of climate change or global warming by major media outlets exerts an overall positive impact on the sales of hybrid vehicles. This impact mainly comes from the media reports that admit climate change or global warming. In contrast, media coverage that either denies climate change or holds a neutral stand on the issue has little impact. We provide preliminary evidence that social norm, which advocates for environmentally-friendly consumption, plays an important role in how media coverage affects consumer purchase. The paper provides implications for theory and practice, and calls for future research that examines the causal impact of media in general on consumer decisions, especially in domains that are crucial for the society.
• Ghosh, M. G., & Carson, S. (2019). Reconciling Power and Efficiency Theories of Marketing Channel Governance. Journal of Marketing, 83(4), 101-120.
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  Power theories (like social exchange theory and resource dependence theory) and efficiency theories (like transaction cost analysis) offer very different perspectives on the design of contractual governance in marketing channels. Whereas power theory suggests that observed governance will reflect the preferences of powerful firms, efficiency theories argue that governance will reflect the desire to maximize joint value. In this research, we provide an integrative framework that reconciles power and efficiency perspectives in the context of contractual marketing channel relationships. Our framework discriminates between two methods of exercising power: Ex ante (via a tightly specified, efficient contract that rewards the powerful firm through the price mechanism while providing strong safeguards for the weak firm) or ex post (through a loosely specified, inefficient contract that allows the powerful firm to exploit its power during ex post renegotiations). We argue that power will cause channel governance to deviate from the efficient choice, but only to the extent that the powerful firm cannot price-out, i.e. extract, the value it offers to the weaker firm ex ante. As exchange conditions become more uncertain, power will demonstrate stronger effects on governance. The theory is supported with data from two studies, the first concerning contractual R&D relationships and the second addressing procurement contracts for customized industrial products. We conclude by drawing implications for theory and practice related to formal and informal channel governance and anti-trust regulation.
• Ghosh, M. G., Lo, D., Dessein, W., & Lafontaine, F. (2016). Price Delegation and Performance Pay: Evidence from Industrial Sales Forces. Journal of Law Economics and Organization.
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  Decision Letter attached
• Sande, J., & Ghosh, M. G. (2018). Endogeneity in Survey Research. International Journal of Research in Marketing.
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  Endogeneity is a crucial problem in survey-based empirical research on marketing strategy (MS) and inter-organizational relationships (IORs); if not addressed, it can cause researchers to arrive at flawed conclusions and to offer poor advice to practitioners. Although the field is increasingly cognizant of endogeneity-related issues, many authors fail to properly address it, particularly in survey-based research. Emphasizing the role of essential heterogeneity, this article develops an overarching framework to help improve the understanding of endogeneity problems and how to tackle them when researchers use cross-sectional survey-based data. The authors provide explanations of and advice for how MS and IOR researchers can address six “painful” and sometimes hidden decisions: 1) Do you have an endogeneity problem? 2) What technique/estimator is appropriate? 3) What instrumental variables (IVs) should be chosen? 4) How should IVs be evaluated empirically? 5) How should the results be interpreted and evaluated? and 6) What results should you report? The authors provide a practical flowchart to guide researchers in their efforts to address endogeneity-related concerns.
• Zhao, L., Liu, Y., Ghosh, M. G., & Chen, Y. (2019). Media Coverage of Climate Change and Sustainable Product Consumption: Evidence from the Hybrid Vehicle Market. Journal of Marketing Research, 56(6), 995-1011.
• Gao, W., Ghosh, M. G., & Qian, L. (2017). How Does Influence Strategy Work? The Moderating Role of Cognitive Institutional Profile and Mediating Role of Commitment. Industrial Marketing Management.
• Ghosh, M. G., Lo, D., & Frias, K. (2012). Pricing Formats for Branded Components in Industrial Markets: An Integration of Transaction Cost Economics and the Resource-Based View. Organization Science, 23(5), 1282-1297.
• Ghosh, M. G., Lo, D., & Lafontaine, F. (2011). The Incentive and Selection Roles of Sales Force Compensation Contracts. Journal of Marketing Research, 43(3), 781-798.
• Mooi, E. A., & Ghosh, M. (2010). Contract Specificity and Its Performance Implications. JOURNAL OF MARKETING, 74(2), 105-120.
• Ghosh, M., & John, G. (2009). When Should Original Equipment Manufacturers Use Branded Component Contracts with Suppliers?. JOURNAL OF MARKETING RESEARCH, 46(5), 597-611.
• Rindfleisch, A., Antia, K., Bercovitz, J., Brown, J. R., Cannon, J., Carson, S. J., Ghosh, M., Helper, S., Robertson, D. C., & Wathne, K. H. (2009). Transaction costs, opportunism, and governance: Contextual considerations and future research opportunities. MARKETING LETTERS, 21(3), 211-222.
• Ghosh, M., Dutta, S., & Stremersch, S. (2006). Customizing complex products: When should the vendor take control?. JOURNAL OF MARKETING RESEARCH, 43(4), 664-679.
• Ghosh, M. G., & John, G. (2005). Strategic Fit in Industrial Alliances: An Empirical Test of Governance Value Analysis. Journal of Marketing Research, 37, 346-357.
• Ghosh, M. G., & John, G. (2000). Experimental Evidence for Agency Models of Salesforce Compensation. Marketing Science, 19, 348-365.
• Ghosh, M. G., & John, G. (1999). Governance Value Analysis and Marketing Strategy. Journal of Marketing, 63, 131-145.
• Ghosh, M. G., Caucutt, E., & Kelton, C. (1999). Durability Versus Concentration as an Explanation for Price Inflexibility. Review of Industrial Organization, 14, 27-50.
• Ghosh, M. G., Caucutt, E., & Kelton, C. (1998). Robustness of the Relationship Between Price Variability and Inflation for United States Manufacturing. Applied Economics, 30, 513-519.
• Ghosh, M. G., Caucutt, E., & Kelton, C. (1994). Pricing Behavior in United States Manufacturing Industries: A Statistical Study using Disaggregated Data. Review of Industrial Organization, 9, 745-772.

Presentations

• Ghosh, M., Yu, S., & Viswanathan, M. (2017, Spring). Money-Back Guarantees and Service Quality: The Marketing of In-Vitro Fertilization. Eleventh Annual Frank M. Bass UTD-FORMS Conference. Dallas: University of Texas - Dallas and INFORMS.
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  Marketing practices like Money-Back Guarantees (MBGs) are prevalent in many non-traditional consumer markets but are often decried for taking advantage of poorly informed consumers. In this research, we empirically test two contrasting views–“light” theories, like signaling and insurance which advocate the positive impact of marketing practices and “dark” theories, like firm sorting that postulate the negative impact of such practices in the In-Vitro Fertilization market. Our analysis is conducted on a large and unique longitudinal dataset that includes clinic-level treatment and outcome statistics for almost all IVF clinics in the U.S., fertility clinic characteristics, and information on state-level insurance mandates and demographic characteristics. Using an instrument variable approach to account for the endogeneity of MBG decisions made by fertility clinics, we find more support for the “light” and positive impact of marketing practice. Our results suggest that MBGs can work as signals of quality despite the incentives for clinics to engage in opportunistic behaviors.
• Ghosh, M. G., Carson, S., Lo, D., & Yu, S. (2016, Spring). How to Price” versus “How Much to Price”? Evidence from Industrial Procurement Contracts. American Marketing Association Winter Conference. Las Vegas, NV: AMA.
• Ghosh, M. G., Dutta, S., & Frias, K. (2016, Fall). Product-Form Strategy: Selling Systems versus Components in Industrial Markets. Invited Presentation. Iowa State University, Ames, Iowa: Iowa State University, Ames, Iowa.
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  Considerable research in organization design has focused on organizing the production of a given output or an activity related to that output. This however presupposes that the logically prior question about what output to produce has been addressed. The authors address this question of key importance to marketing strategists by asking “What product-form does a firm choose to sell?” In the context of engineered industrial products, the authors develop an efficiency-based rationale to explain conditions under which firms would sell intermediate product-forms (i.e., components) versus final product-forms (i.e. systems). The theory argues that key technological attributes and firm-resource factors are key determinants of this decision. Micro-level data from 259 firms in 4 industry sectors are used to test the descriptive hypotheses and their normative implications. The results provide the first systematic evidence on why firms choose a particular product-form location in a value chain. The authors draw implications of this research for theory and practice.
• Ghosh, M. G., Viswanathan, M., & Yu, S. (2016, Fall). Money-Back Guarantees & Service Quality: The Marketing of In-Vitro Fertilization. Filene Research Institute. Eller College of Management: Filene Research Institute.
  More info

  Marketing practices like Money-Back Guarantees (MBGs) are prevalent in many non-traditional consumer markets but are often decried for taking advantage of poorly informed consumers. In this research, we empirically test two contrasting views–“light” theories, like signaling and insurance which advocate the positive impact of marketing practices and “dark” theories, like firm sorting that postulate the negative impact of such practices in the In-Vitro Fertilization market. Our analysis is conducted on a large and unique longitudinal dataset that includes clinic-level treatment and outcome statistics for almost all IVF clinics in the U.S., fertility clinic characteristics, and information on state-level insurance mandates and demographic characteristics. Using an instrument variable approach to account for the endogeneity of MBG decisions made by fertility clinics, we find more support for the “light” and positive impact of marketing practice. Our results suggest that MBGs can work as signals of quality despite the incentives for clinics to engage in opportunistic behaviors.
• Ghosh, M. G., Viswanathan, M., & Yu, S. (2016, Spring). Money-Back Guarantees and Service Quality: The Marketing of In-Vitro Fertilization. Center for Management Innovations in Health Care Research Presentation. Eller College of Management: Center for Management Innovations in Health Care.
• Liu, Y., Ghosh, M. G., & Wang, P. (2016, June). Modeling the Impact of Digital Piracy on Quality Competition. INFORMS Marketing Science Conference.

Others

• Carson, S., & Ghosh, M. G. (2019, 1). Reconciling Power and Efficiency Theories of Marketing Channel Governance. 3rd Round at Journal of Marketing.
• Ghosh, M. G., Chen, Y., Liu, Y., & Zhao, L. (2019, 1). Media and Sustainable Product Consumption: Evidence from the Hybrid Vehicle Market. 5th Round of Review, Journal of Marketing Research.