Consumer behaviour of Brazilian primary school students: findings from focus group interviews

Children worldwide are becoming avid consumers of virtually every type of product and service, which qualifies them as an important primary market. The purpose of this study was to obtain primary data about the consumer behaviour of a group of Brazilian children using a qualitative approach. Twelve focus group interviews were conducted with primary school students (7–10 years, n = 57), and results were processed through content analysis. Many, but not all students, received an allowance, mostly from parents and grandparents. Many students spent the money immediately or after just saving only enough to buy a desired item; others preferred to save their money for the sake of saving it or for a specific future endeavor. Money was spent mainly on food, toys and clothes; sometimes on the impulse of the moment and associated with later guilt. Television was considered a big source of information on new products, but regarded as untrustworthy. When they could not get what they wanted, most children appealed to negotiation strategies; many also reported feeling sad or cross. Results showed a situation of late socialization as consumers, suggesting the children could benefit from consumer education strategies targeted at them.     

Does the Precision of News Affect Market Underreaction? Evidence from Returns Following Two Classes of Profit Warnings

We evaluate whether the market reacts rationally to profit warnings by testing for subsequent abnormal returns. Warnings fall into two classes: those that include a new earnings forecast, and those that offer only the guidance that earnings will be below current expectations. We find significant negative abnormal returns in the first three months following both types of warning. There is also evidence that underreaction is more pronounced when the disclosure is less precise. Abnormal returns are significantly more negative following disclosures that offer only qualitative guidance than when a new earnings forecast is included.