The Effect of Parent Brand Experience on Line Extension Trial and Repeat Purchase

This research analyzes how consumer experience with a parent brand affects trial and repurchase probabilities for a line extension. We develop and test the uncertainty hypothesis which is based on the premise that consumers use experience with the parent brand to infer the quality of the extension. Experience with the parent-brand increases consumers' expectation that the extension quality is high. Therefore, consumers with more parent-brand experience will be more likely to try the extension. However, they will be less likely to repurchase the extension because of the selection bias.We test the hypothesis with scanner panel data from three product categories. The results are consistent with our hypothesis. We also discuss the implications of our results on how to design market programs for new line extensions.     

MBAs' changing attitudes toward marketing dilemmas: 1981–1987

This study investigates the reactions of 561 MBA students to ethical marketing dilemmas. An analysis is conducted across time to determine how MBA students' attitudes about ethical marketing issues have been changing over the course of the 1980s. The findings show some support for the notion that MBA students in the late 1980s are somewhat less likely to use moral idealism when resolving an ethical dilemma and more likely to justify the decision in terms of its outcomes as compared with their counterparts at the start of the decade.George M. Zinkhan is Associate Professor of Marketing and the Conn Faculty Fellow at the University of Houston, which he joined in 1981. He has published over 50 articles in the areas of advertising, promotion, and knowledge development. Besides teaching at the University of Michigan, he has also been on the faculty at the University of Pittsburgh, Graduate School of Business. Michael Bisesi is an Associate Dean of the College of Business Administration. Prior to joining the University of Houston, he worked in the Florida university system. Dr. Bisesi is a member of the Business and Public Issues group in the College, and has particular interest in business-government relations, corporate political activity, regulation, and ethics. He also writes and researches in the areas of university-industry relations and business, education, and public policy. His work has appeared in such publications as the Journal of Policy Analysis and Management, Sloan Management Review, Planning and Changing, and the British Journal of Educational Studies. Mary Jane Saxton is an Assistant Professor of Management. She is co-editor of Gaining Control of the Corporate Culture, and co-author of the diagnostic instrument The Kilmann-Saxton Culture-Gap Survey which has been used extensively in private and public organizations to diagnose organizational culture. Saxton's research activities focus on organizational culture, organizational design and development, and individual reaction and adaptation to organizational change. She has lectured in graduate, associate and executive training programs. Her publications appear in such journals as the California Management Review.     

The Signaling Effects of the US Food and Drug Administration Fast‐Track Designation

Pharmaceutical firms are reluctant to disclose proprietary information about a drug's likelihood of approval by the U.S. Food and Drug Administration (FDA) for fear of losing their competitive advantage. Instead, firms may use signals, like the FDA fast‐track designation, to indicate to investors the likelihood of a drug's approval. This analysis uses an event study methodology, with stock and market data from the Center for Research in Security Prices. The results show that the fast‐track designation is a strong, positive signal to investors (1998–2015), but its strength has markedly decreased over time. Results also show that the signal is strongest for the smallest firms. Copyright © 2016 John Wiley & Sons, Ltd.     

Discretionary Loan Loss Provisions and Systemic Risk in the Banking Industry

This study examines the relation between earnings management through discretionary loan loss provisions (LLPs) and systemic risk in the U. S. banking sector using a large sample of commercial banks from 1996 to 2009. We find that earnings management increases a bank's contribution to systemic crash risk and systemic distress risk, consistent with the notion that earnings management increases information opacity, facilitates bad news hoarding, co‐moves with macroeconomic conditions, and exhibits cross‐sectional correlation and herding in earnings management. However, the effect of earnings management through discretionary LLPs on systemic risk disappears during the crisis period, consistent with weakened earnings management in crisis times. We also find that the same effect strengthens with bank uncertainty and homogenous loans, and weakens in the post‐SOX period, and when banks are audited by Big 4 auditors.     

Anger mediates the effect of ostracism on risk-taking

The present research tested the effects of being ostracized on risk-taking behavior and how emotional responses to ostracism mediate these effects. In two experiments, undergraduates were either ostracized or included during an Internet ball-toss game (Cyberball). In Experiment 1 (N = 52), ostracism increased self-reported risk-taking inclinations, and the relation between ostracism and risk-taking was mediated by feelings of anger, but not control. In Experiment 2 (N = 72), ostracism increased risky driving during a driving video game. The effect of ostracism on risk-taking was again mediated by post-ostracism anger (but not control or ostracism-induced sadness). This research suggests that anger elicited by ostracism may increase risk-taking.     

Envisioning and implementing new directions for health care

Across the entire health sector, federal analysts indicate that in 2006 approximately $2.1 trillion were spent on health care, over $7000 per person. With expenditures at this level, it is no surprise that people are asking whether the public receives value commensurate with the financial investment. While strides are being made on a number of quality of care fronts, given the financial resources being consumed, overall forward momentum is glacial. Educating the public is a particular challenge given amplified sound bites and attack ads designed to preserve the status quo. All of this underscores that nursing has a role not just in implementing new directions in health care but envisioning them as well.     

The Bridge to Practice Model: a collaborative program designed for clinical experiences in baccalaureate nursing

The Bridge to Practice Model provides undergraduate nursing students with continuity in medical-surgical education through placement in the same hospital for all medical-surgical clinical rotations. Hospitals that participate in the bridge model provide senior clinical nurse preceptors whose time is paid for by the university. The university provides an on-site nurse faculty member who works with nursing education to coordinate all clinical groups. Institutional continuity and university/hospital collaboration result in less orientation time for students and faculty, more involvement with clinical support services and care management, and more informed employment choices by senior students. Challenges include recruitment of interested senior clinical nurses, retention of clinical liaison faculty, and management of the trade-off between institutional stability offered by clinical site continuity and the variety of experiences offered by rotation across several clinical settings.     

A profit function approach to measuring productivity growth: The case of U.S. manufacturing

This article proposes a method of estimating productivity growth using an estimated profit function. The approach has the advantage of incorporating endogenous changes in profit-maximizing output levels that would result from productivity changes. As with the cost function, it can be easily adapted to accomodate the presence of quasi-fixed factors. The article first develops the methodology and shows the equivalence between the proposed measure and other measures of productivity based on cost or production functions. An empirical application to the measurement of productivity changes in the U.S. manufacturing industry is presented next. The profit-function measure is compared to a nonparametric measure based on the same data and to the results of other studies of U.S. manufacturing.The refereeing process of this paper was handled through J. deMelo.     

Personal Taxes and the underpricing of initial public offerings

The purpose of this paper is to propose an alternative explanation for the underpricing of initial public offerings (IPOs). The first section reviews the empirical evidence on underpricing IPOs in support of various alternative hypotheses that have been put forth in the literature. This is followed by our model which examines the effect of personal taxes paid by entrepreneurs on the choice of the issue price. We show that, in the presence of taxes and for certain levels of ownership retained by the entrepreneur, it may be preferable to underprice the issue. This theoretical result is reinforced by both the simulation and empirical tests.