Effects of information format and similarity among alternatives on consumer choice processes

This study explores how similarity among alternatives and a new information format, branching, affect consumer choice processes. A branching format organizes real, physically present objects by attribute levels. Thirty-six female consumers made six choices from sets of products in a laboratory setting and provided concurrent verbal protocols. Compared to a brand format, a branching format elicited fewer comparisons, had no effect on cognitive effort other than comparisons, and had no effect on intention to choose the best. Compared to the similar set, the dissimilar set elicited more comparisons, lower levels of other measures of cognitive effort, and less intention to choose the best. These effects of similarity and information format were consistent across the two product classes tested. However, the effects of information format and similarity on comparisons differed from their effects on other measures of cognitive effort. She received her Ph.D. from Columbia University. Her research on consumer choice processes has been published in Advances in Consumer Research and Psychology and Marketing.     

Aviation Policy: Past and Present

Airline deregulation has been a symbol of the trend toward less expansive government over the past quarter century. The move from economic regulation to deregulation has delivered on its efficiency promises. There have been significant benefits to consumers in terms of lower prices and more convenient schedules. However, airline competition, particularly at hub airports, remains imperfect. The nature of these imperfections is explained better by models of oligopolistic behavior than by the contestability theory. Paradoxically for this industry, the terrorist attack of September 11, 2001, has ushered in an expanded role of government in aviation policy. This expanded role does not reinstate government intervention in airline economic decisions. Rather, it provides financial stabilization (bailout and loan guarantees) of the industry in the short run and long-term structural change in aviation security.     

Audit Reports in Australia during the Global Financial Crisis

The Global Financial Crisis reduced economic growth, impacted equity and credit markets, and increased business risk. To the extent that this increased risk translates into greater uncertainty of companies’ ability to continue as going concerns, this should be reflected in audit reports. This paper investigates how the crisis impacted auditor reporting in Australia by examining the period 2005–2009. It finds that the main reason for audit report modification is going concern and that modification rates increased from 12% in 2005–2007 to 18% in 2008 and 22% in 2009. Serious audit report qualification rates remain around 3%.     

How Segmented are Skilled and Unskilled Labour Markets: the Case of Beveridge Curves

This paper tests whether there is evidence that two distinct Beveridge curves for the skilled and unskilled aggregate markets exist. The results support the hypothesis and specifically find that the unskilled labour segment is less efficient at matching workers with jobs, primarily due to higher labour turnover rates. Higher turnover rates can be indicative of a poor match between employers' and jobseekers' expectations. The results also indicate that other shift variables, such as the replacement rate, the incidence of long-term unemployment, the immigration rate and the market circumstances in the skilled segment were only important for the unskilled segment.     

TAKEOVER RIGHTS AND THE VALUE OF RESTRICTED SHARES

The premium paid for superior voting shares relative to restricted shares in dual-class equity firms is well documented but not fully explained. In this paper, evidence that the premium reflects the expectation of higher cash flows in takeovers for superior shares is found by examining regulatory actions that changed the right of restricted shares to participate in takeovers. The extension of takeover rights to restricted shares resulted in a significant decline in the premium for superior shares, and the retraction of takeover rights had the reverse effect. This supports the hypothesis that the market expected the restricted shares to be treated less favorably in takeovers.     

Saying it like it isn't: The pros and cons of 360-degree feedback

In corporate America, the use of 360-degree feedback continues to rise. Is this tool, though, all it purports to be? Used with caution, the feedback process can provide meaningful information for both the organization and the individuals involved. Misuse of the process, however, can lead to hurt feelings, increased anxiety, and even loss of key personnel. This small case study showcases key research findings on best practices for using the 360-design feedback process, especially regarding intended use of feedback, aligning performance measures with organizational goals, and selecting and training participants.