When consumers find that something critically out of the ordinary has occurred, they direct attention to evaluate such a critical incident more closely. The results of this evaluation may put consumers on a switching path or it might lead them to engage in unfavorable behaviors from the perspective of the organization, such as engaging in negative word-or-mouth online. The negative consequences of some product (goods or services) failures go beyond simple product attribute defects, leading customers to terminate the relationship with the organization. This dissertation, which is composed of three essays, investigates how consumers engage in negative word-of-mouth on social media channels in response to their various product failures and explores an important relationship event of betrayal, which can be triggered by certain product failures. It investigates how betrayal is perceived by customers and influences a range of their behaviors across business-to-consumer and business-to-business contexts.

It is well understood that innovation drives productivity growth in agriculture. Innovation, however, is a process that involves activities distributed throughout the supply chain. In this dissertation I investigate three topics that are at the core of the distribution and diffusion of innovation: optimal licensing of university-based inventions, new variety adoption among farmers, and consumers’ choice of new products within a social network environment.

University researchers assume an important role in innovation, particularly as a result of the Bayh-Dole Act, which allowed universities to license inventions funded by federal research dollars, to private industry. Aligning the incentives to innovate at the university level with the incentives to adopt downstream, I show that non-exclusive licensing is preferred under both fixed fee and royalty licensing. Finding support for non-exclusive licensing is important as it provides evidence that the concept underlying the Bayh-Dole Act has economic merit, namely that the goals of university-based researchers are consistent with those of society, and taxpayers, in general.

After licensing, new products enter the diffusion process. Using a case study of small holders in Mozambique, I observe substantial geographic clustering of new-variety adoption decisions. Controlling for the other potential factors, I find that information diffusion through space is largely responsible for variation in adoption. As predicted by a social learning model, spatial effects are not based on geographic distance, but rather on neighbor-relationships that follow from information exchange. My findings are consistent with others who find information to be the primary barrier to adoption, and means that adoption can be accelerated by improving information exchange among farmers.

Ultimately, innovation is only useful when adopted by end consumers. Consumers’ choices of new products are determined by many factors such as personal preferences, the attributes of the products, and more importantly, peer recommendations. My experimental data shows that peers are indeed important, but “weak ties” or information from friends-of-friends is more important than close friends. Further, others regarded as experts in the subject matter exert the strongest influence on peer choices.

Customers today, are active participants in service experiences. They are more informed about product choices, their preferences and tend to actively influence customer and firm related outcomes. However, differences across customers become a significant challenge for firms trying to ensure that all customers have a `delightful' consumption experience. This dissertation studies customers as active participants in service experiences and considers three dimensions of customer participation -- in-role performance; extra-role performance-citizenship and elective behavior; and information sharing -- as its focal dependent variables. This study is grounded in services marketing, customer co-production and motivation literatures. The theoretical model proposes that customer behaviors are goal-directed and different consumers will have different reactions to the service quality because they have different assessments of progress towards their goals and (consequently) different levels of participation during the service experience. Customer role clarity and participation behavior will also influence the service experience and firm outcomes. A multi-step process was adopted to test the conceptual model, beginning with qualitative and quantitative pretests; followed by 2 studies (one cross-sectional and other longitudinal in nature). Results prove that customer participation behaviors are influenced by service quality directly and through the mediated path of progress towards goals. Assessment of progress towards goals directly influences customer participation behaviors cross-sectionally. Service quality from one service interaction influences customer in-role performance and information sharing in subsequent service interactions. Information sharing influences service quality in subsequent service interactions. Role-clarity influences in-role and extra-role performance cross-sectionally and influences these behaviors longitudinally only in the early stages of the customer-firm relationship. Due to multi-collinearity, the moderating effect of customer goals on assessment of progress towards goals could not be tested. The study findings contribute to the understanding of customer participation behaviors in service interactions for both academics and managers. It contributes to the literature by examining consumption during the service interaction; considering customers as active participants; explaining differences in customer participation; integrating a forward-looking component (assessment of progress towards goals) and a retrospective component (perceptions of service quality) to explain customer participation behaviors over time; defining and building measures for customer participation behavior.