Image feedback effects of brand extensions: Evidence from a longitudinal field study

This paper examines the issue of image feedback effects and potential drivers of these effects by analyzing real-world extensions that have been introduced successfully in the market, using a longitudinal field study. Within the context of typical FMCG extensions, the authors find strong evidence that even for successful extensions, negative image feedback effects can occur, particularly when the perceived quality of the extension fails to meet the quality level of the parent brand. Strong brands tend to be more vulnerable to negative image feedback effects because consumers have a higher reference level for their extensions than for those of weaker brands. The likelihood of negative feedback effects decreases as the level of perceived fit and consumers’ perceptions of the general extendibility of the parent brand increases. But managers cannot, at least in the short run, mitigate negative image feedback effects through increased advertising support. Finally, the findings demonstrate that the feedback effects of a new extension product on parent brand image diminish over time.

In search of management development in Europe: from self-fulfilling prophecies to organizational competence

This paper gives an overview and a critical analysis of the concept of High Flyer programmes in management development. Based on a discussion of the need for management development in modern knowledge- and service-based organizations, strengths and weaknesses of traditional management development programmes are discussed. In particular, the so-called ‘fast-track’programmes for high-potential employees are presented. This analysis shows that, although management development is supposed to be a vital contributor to organizational competence, learning, and change, High Flyer Programmes are (still) mainly an instrument for individual and personal career development. An alternative interpretation of management development is presented which emphasizes the match between personal growth and organizational learning and which links career, organization development and competitive advantage of the organization. In conclusion, implications for practice and research are discussed.

Quantitative results from the most recent Cranfield Network on European HRM Survey are presented and analysed.     

Different open book accounting practices for different purchasing strategies

Extant studies of open book accounting focus primarily on data disclosure in long-term, committed purchasing arrangements. We extend research beyond that context by exploring the association between open book practices (in terms of nature and uses of disclosed data as well as conditions of data disclosure) and two different purchasing strategies. Three case studies are performed. Results indicate that within market procurement characterized by a transactional purchasing strategy, cost data primarily serve to reduce purchase price. Therefore, data disclosure is limited in scope and scale, occurs primarily during supplier evaluation and selection, and is characterized by an adversarial atmosphere. Incentives for suppliers to open their books focus on short-term tangible gains. Within a hybrid exchange arrangement characterized by a relational purchasing strategy, data disclosure supports cost reduction, e.g., through joint product development, and is more comprehensive. The atmosphere is less adversarial and suppliers reap long-term benefits.     

The effectiveness of personalized marketing in online banking: A comparison between search and experience offerings

This study reports the results of personalized online promotions in a context where personalization has not been researched before – in online banking. Genuine online bank customers were shown personalized banner advertisements when they logged in to their online bank account. Three financial offerings consisting of different search and experience attributes were promoted to three groups of customers. We examined the attention, elaboration and choice measures, and compared the effectiveness of personalized banners to default banners, and the online promotions to direct-mail promotions. Despite the goal-directed routines that reflect the dominant customer behaviour in online banking, personalized banners attracted more attention than default banners. Furthermore, messages that promote fairly simple search-type offerings that are easy to apply and are linked to the context in which the promotion occurs are more effective than messages that do not fulfil these criteria. The results offer implications both for research and practice.     

Why do insiders trade? Evidence based on unique data on Swedish insiders

In this paper, we examine if corporate insiders have other motives for trading besides exploitation of private information. Our results show that insiders’ portfolio re-balancing objectives, tax considerations and behavioral biases play the most important role in their trading decisions. We also find that insiders who have allocated a great (small) proportion of their wealth to insider stock sell more (less) before bad news earnings disclosures. Finally, insider selling is informative for future returns among those insiders who have the greatest proportion of wealth allocated to insider stocks.     

Equilibrium youth unemployment

In a model with continuous entry and exit to the labor market, it is shown that workers exploit their monopoly power by adopting a seniority system implying youth unemployment or an age determined insider-outsider distinction. The incentives of young outsiders to unberbid are curtailed by their expectation of becoming insiders in the future.     

Incentive-based regulation of CO2 emissions from international aviation

We explore the possibilities of using incentive-based environmental regulations of CO₂ emissions from international civil aviation. In theory incentive-based instruments such as an emission charge or a tradable emission permit system are better regulations than so-called command-and-control regulations such as emission limits or technology standards. However, the implementation of these instruments is a complex issue. We therefore describe and discuss how an emission charge and a tradable emission permit system for international aviation should be designed in order to improve efficiency. We also compare these two types of regulations. In brief, we find that an emission charge and a tradable emission permit system in which the permits are auctioned have more or less the same characteristics. The main advantage of a tradable emission permit system is that the effect, in terms of emission reductions, is known. On the other hand, we show that under uncertainty an emission charge is preferred. The choice of regulation is a political decision and it does not seem likely that an environmental charge or a tradable emission permit system would be implemented without consideration of the costs of the regulation. Revenue-neutral charges or gratis distribution of permits would, for this reason, be realistic choices of regulations. However, such actions are likely to result in less stringent regulations and other negative welfare effects.