Brand Extension Effects and Core Attributes of Experience Product Franchises: A Bayesian Approach

An experience product's quality is difficult to assess prior to purchase, largely due to the limited availability of information before consumption. In the absence of perfect information, firms routinely use certain market signals to provide product quality information to consumers. Accordingly, drawing from signaling theory, this research aims to identify a collection of product core attributes in the form of signals and brand extension features to successfully manage experience product franchises. In doing so, we make use of Bayesian models with both deterministic effects via the use of predictor variables and probabilistic effects via the use of brand extension properties. Such models allow us to explore specifically the relative performance effects of the parent product of a franchise and of its extensions given the same level of product core attributes. The results of this study, based on the motion picture franchise data, indicate that there are critical product core attributes such as continuity, timing, and prior perception that collectively lead to successful successive generations. Furthermore, our study shows that brand features measured by the relationships between the parent product and its subsequent extensions at the infancy of the franchise are essential for the continuation of experience products. Similarly, our results indicate that the parent product's success on later extensions' performance starts to diminish, implying that the established “brand name” is what carries the franchise forward.     

Managerial values in the greater Middle East: Similarities and differences across seven countries

Our study of the cultural values of managers in the Greater Middle East uses a unique sample of 989 respondents across seven countries (Algeria, Egypt, Israel, Lebanon, Pakistan, Turkey, and the UAE). The primary focus of our paper is the assessment of the differences and similarities in collectivism, individualism, and universalism values within the region. While acknowledging that the empirical research foundation for the Middle East is minimal, we develop directional hypotheses based upon the historic socio-cultural influences and contemporary economic and political factors that may influence business ideology. In sum, our findings show significant between-country differences for all three of these values dimensions. We conclude with a discussion of these differences and why they may have occurred. We also provide suggestions for new avenues of research that our findings indicate are relevant.     

How often should a firm modify its products? A Bayesian analysis of automobile modification cycles

In this paper, we develop and estimate a series of Bayesian generalized gamma family and mixture family models of product modification timing that take into account both firm- and industry-specific effects that are time varying. Our models are capable of capturing non-standard modification behavior such as multi-modality and non-monotonicity in the hazard rates motivated by real data. Additionally, we explore the existence of latent groups with respect to product modification timing strategies. The models are estimated using Markov chain Monte Carlo (MCMC) methods using a panel data from the automotive industry that covers 50 years and contains 6598 car model-year observations for 683 car models. The results reveal the non-monotonic modification behavior over time and the existence of three latent groups. Larger product portfolios and higher industry product proliferation lengthen the modification time. Brand and competitive modification dynamism increases the frequency of major modifications.     

Turkey

The Turkish Republic was founded in 1923, following the fall of the Ottoman Empire. Turkey is strategically positioned at the crossroads of Europe, the Black Sea region, and the Turkic‐speaking republics of Central Asia. It is also situated on the Mediterranean coast at close proximity to the Middle East, the Gulf States, and North Africa. It thus offers an excellent base for economic activities throughout the region. The country was a gateway from the ancient Silk Road to new markets and today is becoming a powerful focal point as a cultural and political intermediary as well as a regional trade center of growing importance. Turkey is the 17th largest economy in the world (Economist, 2003; World Bank, 2001). Turkish culture, history, and people have always fascinated scholars. In recent years, the country also has captured the attention of Western companies and investors. Once highly insular, the Turkish economy has been transformed over the past two decades into a vibrant liberal market within a rapidly modernizing society. It is regarded by the U.S. Department of Commerce as one of the top emerging markets. This article will explore the foundations of the Turkish economy, business system, and business culture from the perspective of foreign companies. Following a brief overview of the economy, the country's market potential is discussed. Next, entry strategies—including potential partnerships with indigenous firms—are recommended. Finally, we offer insights into the business culture, and provide tips for working effectively with Turkish business people. © 2003 Wiley Periodicals, Inc.     

Nexus between economic risk and political risk in the United Kingdom: Evidence from wavelet coherence and quantile-on-quantile approaches

This study examines the linkage between economic risk and political risk in the United Kingdom. This linkage has attracted the attention of policymakers; however, there is no consequence of the linkage in the existing literature. The study aims to close this gap for the UK case by applying wavelet coherence (WTC) and quantile-on-quantile regression (QQR) approaches and using quarterly data between 1984/Q1 and 2020/Q4. The results of the WTC reveal that there is time–frequency dependency between economic risk and political risk majorly in the medium and low frequencies. Moreover, the direction of the causality changes over time. Furthermore, the outcomes of the WTC show that economic risk leads political risk between 1995 and 2005, whereas political risk leads economic risk from 2006 to 2019. The outcomes of the QQR approach disclose that in the higher tail (0.7–0.95) of political risk and lower and medium tail (0.05–0.60) of economic risk, the effect of political risk on economic risk is positive and strong. On the flip side, at all quantiles (0.05–0.95) of economic risk and lower quantiles (0.10–0.30) of political risk, the effect of political risk on economic risk is positive and strong. The results are also validated by the outcomes of partial wavelet coherence, multiple wavelet coherence, and quantile regression. Hence, the results highlight the importance of political risk (economic risk) for economic risk (political risk) in the UK case.