Frame of reference rater training issues: recall,time and behavior observation training

This study investigated three controversial issues regarding frame of reference training (FOR), a type of rater training: (1) Does it improve behavioral recall, (2) Can it be improved by incorporating behavior observation training (BOT), and (3) Can its effects persist over time? Results suggested that even though FOR training increases the number of behaviors recalled, it does not necessarily improve the quality of the recalled behaviors, but a combined FOR + BOT program does improve recall quality. Lastly, results suggested that FOR training can improve rating accuracy, even after a two‐week delay between rater training and the rating task.     

Memory-Based Store Price Judgments: The Role of Knowledge and Shopping Experience

This paper investigates the processes underlying consumers’ memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store.Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the use of heuristic cues are also discussed.     

Preston,Ivan L., The Tangled Web They Weave: Truth,Falsity, & Advertisers,Madison: The University of Wisconsin Press, 1994

Abstract

In an experiment, children in three grade levels (second, fourth, and sixth) viewed four advertisements. The children were shown advertisements with either metaphors in both pictorial and verbal form or a literal equivalent. The sixth graders interpreted more metaphors correctly than the fourth and second graders. In terms of recall of advertised content, the sixth and fourth graders recalled brand names, products, and additional copy better than the second graders. Within each grade level, metaphors did not enhance children's recall of advertised content or perceptions of the understandability of the advertisements and liking of the advertised products. The authors speculate that metaphors are most likely to enhance recall under conditions in which the metaphor serves as a direct representation linking the metaphor to the advertised product. Their findings suggest that advertisers should be aware that young readers may have difficulty interpreting metaphors and that metaphors may not be more effective in terms of children's recall and perception of understandability than literal versions of advertisements.     

Adding Regret to Fear Appeals: When the Going Gets Difficult,Regret Gets Action

In accord with Protection Motivation Theory, this article finds fear appeals ineffective at motivating health protection behaviors perceived to be difficult; when task difficulty is high, there is a decrease in perceptions of self‐efficacy and a reduction in health protection behaviors. This research examines a novel way to motivate health protection when task difficulty is salient by adding regret to fear appeals. The inclusion of regret, an emotion that motivates corrective behavioral change, bolsters self‐efficacy and enhances health protection intentions. In fact, even when task difficulty is made salient, self‐efficacy and behavioral intentions remain strong in the fear plus regret condition. Thus, in contrast to straight fear appeals, adding regret to fear appeals results in a reversal effect enhancing self‐efficacy and behavioral intentions when task difficulty is made salient. This research highlights the independence of task difficulty, self‐efficacy, and the role of regret in motivating difficult health protection behaviors.     

Firm size and innovation

In an innovation survey in the Netherlands, we find considerably more SMEs which perform small scale R&D than are found in the official R&D surveys. Nonetheless, SMEs appear on average to be somewhat less R&D intensive than large firms. Only when we restrict our observations to firms which perform some R&D, there is no systematic relationship between size and R&D. Among the barriers to innovation the following are particularly important to SMEs: information deficits with respect to instruments of innovation policy; a lack of capital; a lack of management qualifications; problems in finding adequate technical information, and problems in finding qualified employees.     

I'll have what she's having: Gauging the impact of product placements on viewers

Product placement in TV shows is becoming increasingly common, yet little is known about its effectiveness nor even how to define and measure such effectiveness. This research examined the effectiveness of product placement with the use of two different types of measures: explicit measures that tap memory directly (with the use of a recognition and recall task), and an implicit measure that measures the effect of exposure on product choice indirectly. It was hypothesized that the ability of product placement to enhance memory and choice may be mediated by distinct mechanisms. The results showed an overall enhancement in product recall, recognition, and choice due to placement. Further, although products central to the plot were remembered and recalled more than products placed more subtly, no reliable effect of centrality of placement was observed on the choice measure. This dissociation also occurred with modality of placement—where seen‐only products most influenced choice but were least recalled. The present data conform to theories of memory, which predict that performance on explicit memory task can be dissociated or uncorrelated with performance on implicit performance or choice. This finding has significant implications for how product placements are designed and how their efficacy evaluated. © 2000 John Wiley & Sons, Inc.     

Memory for implied versus directly stated advertising claims

An experiment tested young adults' memory for advertising slogans that either stated a strong claim directly or only implied the same claim by stating it in a much weaker form. Several advertising slogans were inserted into a story. There were two versions of each slogan, asserted and implied. The asserted version made a claim very directly and strongly (e.g.Alka-Seltzer stops common aches). The implied version only suggested the stronger claim (e.g. Alka-Seltzer helps lessen common aches ). Subjects read the story, which contained one of the two versions of each ad. After subjects finished reading the story, they were asked to recall all the brands and products. Then they performed a multiple choice task testing memory for the content of the advertising claims. While results showed no difference on the recall task, subjects on the multiple choice task frequently falsely recognized implied claims as asserted but seldom the reverse. Although they correctly recognized more asserted than implied claims, they were more confident in their correct memory for the implied claims. Results were applied to the problem of deceptive advertising.     

Processing and Retrieval of Inferences and Descriptive Advertising Information: The Effects of Message Elaboration

Abstract

Two issues make advertising effectiveness difficult to assess: (1) advertising effects occur both during ad processing and when ad information is retrieved, and (2) the information that consumers derive from advertisements is likely to be some combination of explicit information and inferences. The study reported in this paper addresses these issues, examining the effects of encoding and time delay on advertising processing. Results indicate that while some types of inferences (product features) are more likely to be made under strong than weak encoding conditions, other types of inferences (consumption situation) are not affected by encoding. In addition, at the time of a decision (after a time delay), memory information use depends both upon individual brand accessibility and the relative accessibility of alternative brands in the memory set. Implications for both advertising researchers and managers are offered.     

Fluency in Commercial Breaks: The Impact of Repetition and Conceptual Priming on Brand Memory,Evaluation, and Behavioral Intentions

Although sold by television channels for high fees, the effectiveness of tandem-spots and brand exclusivity has not been investigated so far. A 2?×?2 between-subjects experiment (N?=?325) was conducted to investigate the effects of repetition (tandem-spot) and conceptual priming (competing spot) on brand memory, evaluation, and behavioral intentions toward the brand, while applying the processing fluency construct as theoretical foundation. Tandem-spots improved brand recall, but no significant effects were found concerning brand evaluation or behavioral intentions. Competing spots meanwhile acted as conceptual primes, enhancing brand memory, evaluation, and behavioral intentions. These findings partially contradict offerings and recommendations made by television channels.     

R&D profitability: the role of risk and Knightian uncertainty

This paper provides the first empirical attempt of linking firms’ profits and investment in R&D revisiting Knight’s (Risk, uncertainty and profit, Hart, Schaffner & Marx, Boston, 1921) distinction between uncertainty and risk. Along with the risky profit-maximising scenario, identifying a second, off-setting, unpredictable bias that leads to heterogeneous returns to R&D investments is crucial to fully understand the drivers of corporate profits. Consistently with the Knightian theory that relates risk to profitability, we model the impact of risk and uncertainty on profits and provide a first empirical attempt to model the effect of ambiguity, a particular type of uncertainty, on R&D returns.     

Information Sensitivity Typology: Mapping the Degree and Type of Risk Consumers Perceive in Personal Data Sharing

Surveys show significant public concern regarding information privacy. To better understand how consumer concerns vary by type of personal data, the authors created a typology of information types based on perceived associated risks. In a national consumer survey, 52 information types were analyzed along four perceived risk categories (physical, psychological, monetary, and social), consumers' overall sensitivity regarding the information, and their willingness to provide it. This resulted in six highly distinctive clusters—Basic Demographics, Personal Preferences, Contact Information, Community Interaction, Financial Information, and Secure Identifiers—organized around similarities in perceived risk profile. Additionally, consumer segmentation analysis shows rank order of cluster risk perceptions to be stable, even when perceived magnitude and overall risk propensities change by segment. This research advances the conversation from an outdated PII/non‐PII framework to a more meaningful, consumer‐based understanding of the perceived risks associated with different types of personal information.     

Innovation success of non-R&;D-performers: substituting technology by management in SMEs

This paper investigates the impact of in-house R&D and innovation management practices on innovation success in small and medium-sized firms (SMEs). While there is little doubt about the significance of technology competence for generating successful innovations, in-house R&D activities may be a particular challenge for SMEs due to high risk exposure, high fixed costs, high minimum investment and severe financial constraints. SMEs may thus opt for refraining from R&D and relying more on innovation management tools in order to achieve innovation success. We analyse whether such a strategy can pay off. Based on data from the German CIS, we find that R&D activities are a main driver for innovation success if combined with external R&D, using external innovation sources or by entering into co-operation agreements. SMEs without in-house R&D can yield a similar innovation success if they effectively apply human resource management tools or team work to facilitate innovation processes.

Do Mature Firms Gain Higher Economic Value from R&D Investment?

Despite the significance of economic value indicators in the measurement of firm value, not much attention has been dedicated to how research and development (R&D) influences firms’ economic value. This study examines the relationship between R&D investments and firms’ economic value and considers the moderating role of age in the relationship using a dataset from manufacturing and information and technology firms in China. The results show that R&D investments impact firms’ economic value positively. This suggests that firms that invest in R&D are rewarded with a monopoly, which increases their market shares, thereby increasing economic value. Again, we find that older firms increase their economic value more than younger ones when they both invest in R&D. Thus, younger firms in China suffer from the liability of newness when they invest in R&D. It is recommended that these younger firms should strive to shorten the time to reap the returns from R&D investments.

     

Differential effects of pre- and post-acquisition R&D expenditures on post-acquisition performance

Drawing from the behavioral theory of the firm and the resource-based view, we argue that different types of R&D (explorative and exploitative) and the timing of R&D investments (pre- and post-acquisitions) have differential effects on post-acquisition performance. By using a sample of 396 technology acquisitions, we find that pre-acquisition explorative and post-acquisition R&D expenditures are more beneficial for post-acquisition performance than are pre-acquisition exploitative and post-acquisition explorative R&D expenditures. Our results also show that firms investing in explorative R&D in the pre-acquisition stage and then exploitative R&D in the post-acquisition stage have better post-acquisition performance than firms that do otherwise.     

Privacy versus accessibility: The impact of situationally conditioned belief

The information age we are living in and the technology that supports it, raises new ethical concerns. Among these concerns are privacy — the rights of individuals to withold information they consider sensitive, and accessibility — the rights of individuals to obtain information that is relevant to the decisions they must make. Arguments about potential impacts of information technology on privacy and accessibility mask and underlying conflict — that one person's beliefs about their right to relevant information is likely to conflict with another person's belief's about their right to withold information they consider sensitive. This paper proposes that the conflict is likely to be a function of the role the individuals plays in the decision making situation — situationally conditioned belief (SCB) — rather than a function of the person's underlying ethical values.This paper presents an empirical study involving information privacy and accessibility in routine business and market decisions, designed to reveal the presence of SCBs. The results indicate that SCBs cause a gap in beliefs about information accessibility and privacy. Impacts of the SCB gap are discussed. A negotiation technique called information exchange is suggested as a means of closing the SCB gap in routine business and market transactions. Dr. Laura Lally received her Ph.D. in Information Systems. Dr. Lally pursues research on the impacts of information technology on a nation's culture, on business profitability, and on the ethical choices faced by individuals. She has published articles in Decision Sciences, the Information Society, the Journal of Global Information Management and in the Journal of End User Computing. She is currently investigating the risk factors involved in process reengineering under a grant from the National Science Foundation.     

Drivers of R&D investment: The interaction of behavioral theory and managerial incentives

This research explores the interaction of behavioral theory and agency theory, investigating their joint effects on firm-level R&D investment. Based on the logic of organizational routines driving R&D investment, we rely on the effects of organizational slack, performance relative to aspirations and distance from bankruptcy as the foundation for our research model. We argue that managerial incentives moderate the relationships between these behavioral theory variables and R&D investment, albeit in contrasting directions. Specifically, we hypothesize that stock option pay positively moderates these relationships while managerial stock ownership has a negative moderating effect. Using panel data for 573 publicly-traded manufacturing firms, we find support for several of our hypotheses, highlighting the interdependence of these two perspectives on R&D investment.     

Memory for advertising and information content: Comparing the printed page to the computer screen

An experiment was used to test memory for two forms of information—ad copy (persuasive) and consumer information (nonpersuasive) presented in print and screen media. For both forms of information, print outperforms screen on recall but not on recognition. The results suggest that print information is easier to retrieve but also that screen information is available in memory. Differences between print and screen media are persistent and not readily explained by any of the obvious individual factors—comfort/familiarity, preference, and reading time. Other results with implications for marketing communication decisions show that brand name is poorly recalled from the screen relative to the printed page and that the nonpersuasive consumer information is better remembered than is persuasive ad information. © 2005 Wiley Periodicals, Inc.     

Building brand knowledge structures: Elaboration and interference effects on the processing of sequentially advertised brand benefit claims

Two experiments are reported that examine the effects of an ad campaign designed to link two different benefit claims to a brand. The findings indicated that recall for a subsequently advertised claim depended on the strength of existing brand–benefit links in memory. If prior advertising strongly established a benefit claim in memory, then proactive interference effects inhibited the recall of subsequently advertised benefit claims unrelated in meaning. Additional analyses suggested that these interference effects appeared to be a result of difficulties with encoding the newly advertised claims. If the original benefit claim was not as strongly established in memory, however, then unaided recall of the subsequently advertised benefit claims was actually higher than if there had been no prior advertising at all. In fact, less accessible and memorable claims, whether they preceded or followed more accessible and memorable claims, enhanced recall of the stronger claims. Additional analyses suggest that these elaboration effects occurred because prior or subsequent advertising improved brand awareness and thus later brand claim recall as a result.     

Transformational leadership and R&D workers' multiple commitments: Do justice and span of control matter?

This study examines how transformational leaders influence research and development (R&D) workers' commitment to their organizations and leaders. The study investigates the mediating role of organizational justice (i.e., procedural and interactional) based on social exchange theory and the moderating role of span of control in this relationship. In a sample of 445 Turkish R&D personnel, the study finds that transformational leadership significantly influences followers' organizational commitment partially through procedural justice and their supervisory commitment partially through interactional justice. Second, the findings reveal that transformational leaders boost perceptions of procedural justice and organizational commitment when the span of control is relatively narrow. Interestingly, when the span of control is large, transformational leadership has significant positive effects on supervisory commitment, but no significant effects on organizational commitment among R&D workers.     

The effects of an advertising retrieval cue on young children's memory and brand evaluations

Young children's memory for television advertising is important in order for children to recognize brands in stores and/or to recall the brand name in making a purchase request. Two experiments showed that the use of visual advertising retrieval cue (a green frog as the brand character) improved memory performance and brand evaluations. Study 1 (n = 40) showed promise in the cue's assistance in children's recalling the brand name (cued recall) from the ad memory trace. Study 2 (n = 40) contained multiple exposures to the ad, which resulted in greater free recall and in support for the cue's assistance in better access of the brand name from the ad memory trace (cued recall). Affected ad memory resulted in more favorable brand evaluations and intent to request the brand's purchase. © 1994 John Wiley & Sons, Inc.