Effects of a regulatory match in sunk-cost effects: A mediating role of anticipated regret

People are more likely to invest their money, time, and efforts to attain a desired outcome if they have already devoted resources to its attainment than if they did not. This ??sunk cost effect?? is robust and has been demonstrated in a wide range of settings. Four experiments in the present research show that the effect is significantly smaller under regulatory mismatch, i.e., when there is a mismatch between the decision makers?? regulatory focus and the characteristics of the desired outcome, than under regulatory match. This difference is not attributable to the operation of value-from-fit but mediated by differences in future regret that people anticipate experiencing when they fail to devote additional resources to the attainment of the outcome, and consequently fail to realize it.     

When distraction may be a good thing: The role of distraction in low-fit brand extension evaluation

This study examines the effect of distraction after being exposed to information on low-fit brand extension evaluation. We show that when consumers are distracted (vs. engaging in deliberate thinking) after encoding extension information they evaluate low-fit brand extensions more favorably. Findings suggest that distraction can help establish connections of remotely associated information between a parent brand and a low-fit extension. We also find that the effect of distraction is contingent on the individual characteristic of consumers' agency–communion orientation. The core effect holds strongly for consumers high in communion orientation, but not for those with an agency orientation. Finally, we examine how marketing communication strategies (i.e., manipulating product message construal level) interact with distraction to influence consumer perceptions of low-fit brand extensions. Theoretical and practical implications of these findings are discussed.     

Contingent valuation in Korean environmental planning: A pilot application to the protection of drinking water quality in Seoul

This paper describes the application of the contingent valuation (CV) or willingness to pay (WTP) survey technique to a problem of public policy evaluation in Seoul, Korea. Matters of principal interest include: the definition of the problem and policy — protection of Seoul's drinking water supply from disruption by slugs of contaminants in the source river (the Han); adjustments to standard CV techniques and assumptions required by the cultural and physical reality of Seoul; the representativeness of the spatially-drawn sample; estimation of the willingness to pay equation as a check on theoretical validity; and the policy implications of the results. The bottom line is asserted to be that CV may be especially valuable in countries such as Korea that have serious environmental problems and a history of not producing data that might be used in alternative (indirect) benefit estimation exercises. Further, it appears that if care is exercised in adjusting to local reality, the method can be made as successful as it has been in the U.S. and northern Europe.Assoc. Res. Fellow, Korea Research Institute for Human Settlements, Seoul, Korea; and Professor of Economics and of Public Policy, Vanderbilt University, respectively. The authors gratefully acknowledge the advice and assistance of their colleagues, Professors Georgine Pion and Junsoo Lee; and the financial support of the Korean Environmental Protection Agency. The usual disclaimer, of course, applies.     

Consumer ethnocentrism offline and online: The mediating role of marketing efforts and personality traits in the United States, South Korea, and India

Consumer ethnocentrism is an important concept that is used to understand international marketing phenomena. In this article, the authors conduct two empirical studies. Using consumer data from the United States, South Korea, and India (three diverse cultural and economic environments), they explore six hypotheses. In Stage 1, the results suggest that across all three countries, consumer ethnocentrism provokes negative attitudes toward both foreign advertisements and foreign products. The authors identify a set of consumer variables (i.e., consumers’ global mind-set) that may mediate consumers’ unfavorable attitudes toward foreign advertisements and products derived by consumer ethnocentrism. In Stage 2, the authors find that consumer ethnocentrism dampens consumers’ online consumption activities on a foreign Web site. Finally, the authors find that marketers’ e-mail communications to foreign consumers mediate consumer ethnocentrism in online environments. Hyokjin Kwak (hkwak@drexel.edu) is an assistant professor of marketing at Drexel University. His research interests include advertising effects, consumer communications, and strategic marketing. He has publications in theJournal of Consumer Psychology, theJournal of Advertising Research, theJournal of Current Issues and Research in Advertising, theJournal of Consumer Marketing, and other marketing journals. Anupam Jaju (ajaju@gmu.edu) is an assistant professor of marketing in the School of Management at George Mason University. His main research interests are in marketing strategy, marketing-technology interface, and international marketing. His work has been published in theJournal of International Management, Marketing Theory, andMarketing Education Review. Trina Larsen Andras (published as Trina Larsen, larsent@ drexel.edu) is a professor and the head of the Marketing Department at Drexel University. Her research has been published in many of the major professional journals in her field, includingHarvard Business Review, theColumbia Journal of World Business, International Marketing Review, Industrial Marketing Management, Management International Review, theJournal of Global Marketing, and theJournal of International Marketing, among others. Her research is focused on international marketing, specifically, cross-cultural behavioral and relationship issues in international marketing management.     

Japanese Corporate Groupings (Keiretsu) and the Characteristics of Analysts' Forecasts

This study examines differences in the characteristics of analysts' forecasts of earnings for keiretsu and non-keiretsu firms in Japan. Japanese industrial organization is characterized by enterprise groupings, keiretsu, composed of firms in different industries, but interrelated through cross-holdings of ownership. The strong interrelations of the Japanese keiretsu have been shown to increase the monitoring of managerial performance. An alternative view of keiretsu stewardship suggests the exclusionary environment within a keiretsu creates an information monopoly, resulting in greater information asymmetry between inside and outside constituents. These two views provide opposing predictions on how keiretsu groupings potentially affect the characteristics of earnings forecasts made by analysts: increased monitoring will improve the forecast characteristics of earnings, while the opposite is true under an information monopoly.Our results suggest that forecast accuracy (dispersion) is higher (lower) for keiretsu firms than non-keiretsu firms, supporting a monitoring role by keiretsu. The results also show that keiretsu firms' forecast characteristics are related to the strength of the keiretsu relationship, providing further evidence that it is indeed the keiretsu relationship that increases the monitoring of management, which ultimately improves the accuracy and dispersion of analysts' forecast.     

Availability‐impact analysis of project management trends: Perspectives from allied disciplines

The goal of this research was to analyze current and future trends of the allied management disciplines that influence project management. We asked academicians and practitioners about the availability of knowledge and the potential impact of allied disciplines on project management. We were able to assess where the allied disciplines currently stand in terms of availability and impact as well as make predictions about the future. The thoughts and visions collected from this research provide valuable insights for identifying trends in the allied disciplines and their impact on the future of project management, as well as opportunities, challenges, and obstacles.     

An alternative solution method for goal programming problems: The lexicographic goal programming case

This article provides an example of the use of an alternative goal programming solution procedure. The solution procedure is applied to solve a lexicographic goal programming problem. In the process of illustrating the problem, a number of unique technical problems and their solution procedures are discussed. This study provides a flowchart as a procedural guide to aid in its use. This article also provides a comparative analysis of GP algorithms. The results demonstrate the tableau element reduction capabilities of the proposed alternative goal programming solution procedure.     

History,practices, and future of earned value management in government: Perspectives from NASA

The goal of this research is to explore the history, practices, and future of the earned value management (EVM) method in government, and seek opportunities and suggestions for wider implementation of EVM for managing, measuring, and controlling project performance and progress. First, this study reviews the historical background and evolution of EVM implementation in government. Then, current practices for implementing EVM are discussed through examination of EVM adoption and implementation at NASA. The research shows that NASA receives substantial project management value from its implementation of EVM, promotes consistent practices across the agency, and provides effective training on leadership, scheduling, EVM, and data analysis. This study also provides recommendations to improve and broaden the applications of current EVM and project management practices to other government programs and projects. Findings of this research contribute to the management of performance of future projects and programs and encourage the project management community to review and advance the application of EVM.     

Taxation and Durable Goods Monopoly*

This paper studies the role of taxation in durable good markets with dynamic monopolies. By conditioning the marginal tax rate on the volume of trade, the regulator can provide incentives for the monopolist to accelerate trade. When marginal cost pricing generates a loss for the monopolist, strategic delay cannot be avoided under regulatory budget constraint and the effects of tax policy depend on the monopolist's ability to commit. In the context of binary consumer types, we find a tax policy involving “back-loaded subsidy” that achieves the second-best outcome with commitment. In contrast, without commitment, a “front-loaded subsidy” improves welfare.