Money-Back Guarantees and Service Quality: The Marketing of In-Vitro Fertilization Services
By Shan Yu,, Mrinal Ghosh, Madhu Viswanathan
Journal of Marketing Research | June 2022
DOI
doi.org/10.1177/00222437211060733
Citation
Shan Yu,., Mrinal Ghosh., Viswanathan, Madhu. Money-Back Guarantees and Service Quality: The Marketing of In-Vitro Fertilization Services Journal of Marketing Research doi.org/10.1177/00222437211060733.
Copyright
Journal of Marketing Research, 2022
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Abstract
Marketing practices like Money-Back Guarantees (MBG) are prevalent in many expert service markets but are often decried for taking advantage of poorly informed consumers. In this research, conducted in the market for In-Vitro Fertilization services, we empirically test two contrasting views of MBG practices – the “light” theories, like signaling and insurance which advocate the positive impact of marketing practices and the “dark” theories, like firm sorting and aggressive treatment that postulate the negative impact of such practices. 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.

Madhu Viswanathan is Associate Professor of Marketing at the Indian School of Business (ISB) and Executive Director of the Srini Raju Centre for IT and the Networked Economy (SRITNE). His research examines how emerging technologies reshape markets and how firms, platforms, and policymakers can design institutions that foster innovation, trust, and sustainable economic growth.

Working at the intersection of marketing, economics, strategy, and information systems, his research seeks to understand how technological change transforms consumer behaviour, organizational incentives, market design, and public policy. He studies how technologies such as artificial intelligence, digital platforms, creator ecosystems, and data-driven decision systems influence the way markets function and evolve. Across these diverse settings, his work aims to develop insights that help organizations respond to technological change with strategies that are both economically effective and socially meaningful.

His research has been published in leading journals including the Journal of Marketing Research, Marketing Science, and the Journal of Economics & Management Strategy. He serves on the Editorial Review Boards of the Journal of Marketing Research and Production and Operations Management and has been recognized with the Outstanding Reviewer Award from the Journal of Marketing Research.

As Executive Director of SRITNE, Madhu leads the Centre’s research and engagement on artificial intelligence, digital markets, and technology-enabled growth. Under his leadership, SRITNE is building a multidisciplinary research agenda around AI, digital platforms, creator economies, and emerging technologies while strengthening collaborations across academia, industry, startups, and government. His vision is to position the Centre as a leading hub for research that bridges technological innovation with business strategy and public policy.

Alongside his research, he teaches MBA, doctoral, and executive education programmes on growth strategy, digital marketing, artificial intelligence, and technology-enabled business. His teaching combines rigorous research with practical decision frameworks that help managers navigate growth, digital transformation, and strategic decision-making in rapidly evolving markets.

Beyond academia, Madhu serves as an independent director and advisor to technology ventures, working with organizations on growth strategy, platform businesses, AI adoption, digital transformation, and technology-enabled market design. His advisory work reflects his broader commitment to translating rigorous academic research into practical solutions for business leaders, entrepreneurs, and policymakers.

Prior to joining ISB, he was on the faculty at the University of Arizona. He received his PhD in Marketing from the University of Minnesota and his undergraduate degree from BITS Pilani. His work seeks to bridge rigorous academic research with business practice and public policy, helping organizations harness emerging technologies to build more innovative, efficient, and inclusive markets.

Prof Madhu Viswanathan
Madhu Viswanathan