Modelling with flexibility through the business cycle: using a panel smooth transition model to test for the lipstick effect

ABSTRACT

Consumer spending typically declines during periods of economic distress, but observers have noted that lipstick purchases appear to increase during recessions, which is often referred to as the lipstick effect. However, the existence of such effect has remained empirically unconfirmed. Using weekly retail scanner data on lipstick sales from 2006 to 2016 in the United States, we applied a Panel Smooth Transition Regression (PSTR) demand model to test the relationship between economic distress and lipstick sales. This flexible demand specification allows regression coefficients to vary as a function of an exogenous macroeconomic variables and fluctuate asymmetrically, non-linearly, and time-varyingly across an unlimited number of regimes. Empirical results show the income elasticity of demand for lipstick decreased rapidly from 0.31 to 0.05 during the 2007–2009 recession, then slowly rebounded to 0.31 by the second quarter of 2014, thus first empirically confirming the existence of the lipstick effect.     

Information on sellers and buyers characteristics: added value to explain price formation at primary fish markets in managed French scallop fisheries

The aim of this article is to explore, through a hedonic approach, the factors that might explain the price variability for the French-managed fishery of scallop at primary fish markets. In addition to factors classically identified in the current literature like intrinsic product characteristics or markets situation, the characteristics of operators are tested. The relationships of loyalty between sellers and buyers, and market assiduity are notably considered.     

Do Community Supported Agriculture programmes encourage change to food lifestyle behaviours and health outcomes? New evidence from shareholders

Community Supported Agriculture (CSA) programmes have recently received attention for their potential to influence food lifestyle behaviours and health outcomes, though studies have mostly drawn from small samples (n?t-tests assess if paired means are statistically different, and multiple regressions of paired differences on socioeconomic factors, self-reported health, and years of CSA enrolment estimate the effect of respondent characteristics on behaviour change. The results strongly suggest that CSAs have the potential to positively impact shareholders’ food lifestyle behaviours and health outcomes, and that those reporting ‘poor health’ prior to CSA enrolment exhibited the most change overall. These results should be taken as an initial, yet promising, analysis of the impact of CSA participation on shareholder food lifestyle behaviours and health outcomes.     

Voluntary carbon offsetting: Who does it?

Voluntary carbon offsetting was popularised during the last decade, particularly by airlines, as a tool to ‘neutralise’ emissions associated with travel. Although there is a wide range of carbon offsetting schemes for tourism, the uptake of these programs has been reportedly low. Regardless, little research has explored the visitor segments who voluntarily undertake carbon offsetting. Consequently, this research investigates the prevalence of carbon offsetting amongst international tourists to Australia between 2008 and 2010 and, using cluster analysis, segments the carbon offsetters into three distinct markets. Findings reveal a stable carbon offsetting market, despite a Global Financial Crisis occurring during the reference period. Further, travellers from the United Kingdom/Europe were more likely to carbon offset, while those from Asia were less likely to participate in the schemes. Thus, this could indicate that the social marketing, public discourse and substantial media coverage in the United Kingdom/Europe had enhanced climate change mitigation behaviours.     

Coaching and employee organizational citizenship behaviours: The role of procedural justice climate

This study investigates how the level of procedural justice climate (PJC) in a group may reduce or increase the impact of coaching behaviour of department managers on the organizational citizenship behaviours (OCBs) of their subordinates in the hospitality sector. The sample consists of 40 department managers and 176 employees of 12 five star hotels operating in Northern Cyprus. A multilevel analysis using hierarchical linear modelling (HLM) was utilized due to the nested nature of employees in their corresponding departments. Effective coaching is especially more important in departments where procedural justice climate is low. When the PJC is low, the role of effective coaching becomes imperative for OCBs of employees. In line with the substitutes for leadership theory, the higher levels of PJC serve as a substitute for coaching.     

The impact of flood dynamics on property values

There is evidence that environmental amenities and dis-amenities may be nonlinearly related to property valuation. This would bring inconsistency in estimating environmental variables of the hedonic price model. To explore the linearity of the relationship this study analyses spatial and temporal variation impacts of the 2011 Brisbane flood on property markets using semi-parametric estimation. The results show that most environmental variables impacts on property values nonlinearly, and in particularly distance to the river, indicating that the amenity value of being close to a river outweighs the flood risks. The estimation of the combined impact of elapsed time and neighbourhood income indicates that the flood risk impact on property markets disappears over time.     

Reducing visitor car use in a protected area: a market segmentation approach to achieving behaviour change

This research uses a market segmentation approach to reducing transport-related environmental burdens from visitors, while maintaining economic benefit. The approach was tested in the Lake District National Park (UK). It aimed first to explore visitor transport behaviour using a social psychological framework, to understand what might best predict desired behaviour change (i.e. reduced visitor car use). Second, it developed and tested different types of marketing messages to reduce car use, based on persuasive communication theory, establishing marketing propositions appropriate to different visitor types and market segments. Third, it identified market segments with both a high propensity towards positive behavioural change and the highest economic contribution to the destination. The work is based on Ajzen's Theory of Planned Behaviour and on persuasive communication. Three hundred and ninety completed questionnaires were obtained. The paper emphasises the importance of context in successful communication to influence behaviour and shows that a market segmentation approach to behavioural change can be successful. Complex patterns of visitor mobility and modal choice emerge. For example “New Explorers” and “Familiar Families” are most likely to reduce their car use (45% and 48% respectively) and less likely to perceive this as difficult.     

A comparison of online and offline consumer behaviour: An empirical study on a cinema shopping context

The main objective of this study is to analyse online vs. offline differences in consumer behaviour. To this end, through a proposal applied to cinemas in shopping centres, this study considers values and lifestyles as major factors that influence behaviours and intentions. The partial least squares (PLS) approach is used to evaluate the model. A multi-group analysis is conducted to compare consumers who buy tickets online with those who do so at a box office. We consider 391 valid cases. The results obtained show a link between the use of technology and its effects on behaviour. The relationships between values and behaviour as well as between behaviour and future intent are stronger among online consumers than the effects of lifestyles on behaviour. We consider relevant theoretical and empirical perspectives and offer critical recommendations of use to shopping centre managers, movie theatres, and intermediaries of this sector.     

Unintended consequences in demarketing antisocial behaviour: project Bernie

Unintended consequences are recognised as a potential risk for well-intentioned social marketing interventions and as a comparatively under-researched topic in the field. This case study uses an intervention tackling deliberate grassfires to explore the application of social marketing in a novel context, its potential effectiveness in demarketing antisocial behaviours and the potential of such interventions to generate positive and negative unintended consequences. The intervention’s evaluation confirms social marketing’s potential value in tackling ingrained antisocial behaviours within communities. It also revealed unexpected benefits accruing from changes within the target community, within the sponsoring fire service and in the relationship between the two. The paper concludes by discussing the implications of potential unexpected and unplanned consequences for intervention planning, conduct and evaluation.     

Factors influencing theme park visitor brand-switching behaviour as based on visitor perception

With the development of theme parks, which represent a multi-million-pound industry worldwide, research investigating the factors affecting theme park visitor brand-switching behaviour is an important method for improving theme park competitiveness. In the present work, models and research hypothesis are constructed based on visitor perception, and the survey data are collected and analysed to assess the hypothesis and to revise the conceptual model in this paper. The results indicate that there are seven factors influencing visitor brand-switching behaviour: ‘visitor variety-seeking', ‘visitor satisfaction', ‘switching cost', ‘perceived value', ‘competitor attraction', ‘theme park image' and ‘visitor involvement'. The perceived value and visitor satisfaction strongly influence brand-switching behaviour as intermediate variables. Visitor variety-seeking and competitor attraction are positively related to visitor brand switching behaviour, whereas the other five factors are negatively related to visitor brand-switching behaviour.