Advertising effects on consumer welfare: Prices paid and liking for brands selected

The effect of advertising on consumer welfare has been the subject of dispute among economists, arising largely from disagreement among scholars regarding the persuasive versus the informative role of advertising. This paper reports two experiments that explore the welfare implications of advertising effects. Experiment 1 shows that the same advertisements can either increase or decrease prices paid for selected brands, depending on the degree to which the choice situation requires brands to be recalled in order to be considered. However, an increase in prices paid caused by advertising does not necessarily imply detrimental effects on consumer welfare. Experiment 2 shows that, even under circumstances in which differentiating advertising leads consumers to select brands with higher average prices, it can provide useful information to consumers that allows them to make purchases that are more in line with their personal tastes than are the choices of consumers not exposed to the advertisements.     

Cultivating Moral Imagination through Meditation

The purpose of this article is to show how moral imagination can be cultivated through meditation. Moral imagination was conceived as a three-stage process of ethical development. The first stage is reproductive imagination, that involves attaining awareness of the contextual factors that affect perception of a moral problem. The second stage, productive imagination, consists of reframing the problem from different perspectives. The third stage, creative imagination, entails developing morally acceptable alternatives to solve the ethical problem. This article contends that moral imagination can be cultivated through three kinds of meditation: non-discursive, semidiscursive, and discursive meditation. Part one shows how the seed of reproductive moral imagination is planted during sessions of nondiscursive meditation. Productive moral imagination, as will be shown in part two, is nurtured through semidiscursive meditation. Part three will demonstrate the flowering of creative moral imagination through discursive meditation. Reflection and small group discussion on each form of meditation will help to show business people how to cultivate moral imagination.     

Consumer perceptions of refund depth and competitive scope in price-matching guarantees: effects on store patronage

The study investigates the effect of two characteristics of price-matching guarantees—the depth of refund offer and the scope of competitors eligible for price matching—on consumer perceptions of price-matching guarantee believability and value and consumer intentions to patronize the retailer. The results show that large refund offers built consumer patronage intentions by enhancing perceptions of the value of the price-matching guarantee, while simultaneously exerting a negative impact on patronage by reducing believability of the price-matching promise. The competitive scope also affected the patronage intentions by influencing the perceived value of the price-matching policy.     

An empirical investigation of corporate entrepreneurship intensity in the casual dining sector

The purpose of this study was to identify the perception and relationships between corporate entrepreneurship (CE) practices and management performance. The use of Morris and Kuratko et al.'s [2002. Sustaining CE: a proposed model of perceived implementation/outcome comparisons at the organizations and individual levels. Paper presented at the 2002 Academy of Management Conference, Denver] Corporate Entrepreneurship Assessment Instrument (CEAI) was used as the survey instrument for this study. A sample size of 1200 unit managers, middle managers, and top management teams (TMTs) within nine casual dining restaurant organizations were surveyed with a response of 522 subjects at a rate of 44%. Responses of the CEAI results were studied using regression analysis and conclusions were drawn to support four out of the six hypothesis originally proposed in determining CE activity and management reinforcement. A post test analysis was also conducted in order to reinforce the previous results of the original study. This study concluded with the determination through an empirical analysis that forms of CE activity and enforcement are currently present within the casual dining restaurant segment.     

Trends in the technology and economics of air transport

The past half-century of developments in air transport are assessed and the current state of air technology and the economics of air transport assessed, particularly the trends since the 1973 ‘oil crisis’. The role of government in the industry in viewed as critical for its future health.     

The political economy of tourism in the third world

When a Third World country uses tourism as a development strategy, it becomes enmeshed in a global system over which it has little control. The international tourism industry is a product of metropolitan capitalist enterprise. The superior entrepreneurial skills, resources, and commercial power of metropolitan companies enables them to dominate many Third World tourist destinations. This paper outlines the dynamics of this process, particularly in the context of the South Pacific.     

Neuregelung des bundesstaatlichen Finanzausgleichs: Umverteilungs- und Verbleibseffekte

The paper explores effects of the revision of the system of fiscal equalisation in Germany as recently agreed upon by the federal and state governments. More specifically, using a simulation analysis, it explores the distribution of gains and losses associated with changes in horizontal and vertical fiscal flows. In addition, the paper determines the degree of fiscal redistribution. While the degree of fiscal redistribution is found to be reduced for major revenue sources, local tax revenues are subject to much higher redistribution than under the status quo. Increases in local tax revenues might even result in total revenue losses for some states.     

Marked recovery in the world economy

With expansion accelerating strongly since last summer, the world economy has overcome an extended period of weakness. The USA, driven by highly expansive fiscal policies, is once again proving to be an important locomotive for global economic development. The strong fiscal stimulus will diminish sharply this year, however. Can the recovery continue nonetheless? This is of importance for the euro area in particular, where exports have so far been the primary foundation of economic resurgence. Is the substantial appreciation of the euro jeopardising prospects of catching up with the rest of the world?     

Removing the contextual lens: A multinational, multi-setting comparison of service evaluation models

Four service evaluation models are identified from the literature that are commonly offered to depict the relationships amongst the primary service evaluation constructs of sacrifice, service quality, service value, satisfaction, and behavioral intentions. We comparatively test the models using samples of service consumers in Australia, Hong Kong, Morocco, the Netherlands, and the United States, as well as across varied temporal and service settings. The results of the comparative analyses reveal that one conceptualization, the “comprehensive” model, best captures the identified relationships. This model is the best fitting across all countries and settings, which indicates it has the greatest external validity. These findings are discussed relative to the limitations associated with the use of less generalizable models.     

Organizational culture in a terminally ill hospital

This study analyzed an organizational culture in a community hospital in Texas to measure organizational culture change and its impact on Patient Satisfaction (PS). The study employed primary and secondary data, combining quantitative and qualitative methods for a case study. Participant observation was used and archival data were collected to provide a better understanding of the organizational culture and the context in which change was taking place. This study also applied a "Shared Vision" of the organization as the central process in bringing forth the knowledge shared by members of the community hospital who were both subjects and research participants. The results from the study suggest an increase in PS due to the shared vision of one subculture within the hospital. There were powerful subcultures in this organization based on occupation and specialization, and their interests and functional orientations were not conducive to a systems approach. Hospital management was conducted in "silos" and there was lack of feedback between organizational levels of the hospital, especially in financial management, with organizational dysfunctionality in reacting and adapting to the health care market.