Boundedly rational consumers rely on their social environment as a source of information. Drawing upon psychological theories about social comparison processes, we hypothesize that social reference groups underlie market segments. New reference groups can emerge from social comparison processes,...

Funding pressures have forced many not-for-profit organizations to reduce their reliance on mass-marketing efforts, e.g., pledge drives, and increase the volume and sophistication of their direct marketing activities. The efficiency of direct marketing, however, is linked to an organization’s...