The sweet smell of advertising: the essence of matching scents with other ad cues

New technologies enable practitioners to communicate scents in advertisements on various media. The current research examines the importance of matching scent cues to the advertised product, and the joint effect of scent and other cues such as colour on consumer responses to advertising. A 4 × 2 experimental design was conducted, where participants (N = 603) were presented with scented colour print advertisements. Three hierarchical responses were measured: emotional response, attitude, and purchase intention. Findings reveal that higher congruence between scent and the advertised product heightens positive consumer response. Furthermore, this research stresses the significant joint effect of scent and colour cues, and supports the incongruence approach, suggesting that combining scents that are poorly congruent with other sensory cues enhance consumer response. Practical and theoretical implications are discussed.     

HETEROGENEOUS EFFECTS OF THE ACA MEDICAID EXPANSION ON HOSPITAL FINANCIAL OUTCOMES

This study examines the effect of the Affordable Care Act's Medicaid expansion on hospital financial outcomes. A key innovation relative to prior studies is that we explicitly account for heterogeneity across states in the timing and extent of the expansion as well as across hospital types. We find that Medicaid expansion led to a decrease in uncompensated care expenditures and an increase in average operating margins. The effects were larger in states where the Medicaid expansion led to a greater increase in program eligibility. Operating margins improved most for public hospitals and facilities located in rural areas. (JEL I11, I13, I18)     

Consumer Skepticism of Claims in Food Ads vs. on Food Labels: An Exploration of Differences and Antecedents

Considerable evidence shows that consumers are skeptical of advertising, that is, have a tendency to doubt the truth of advertising claims. The main focus of our paper is to explore, in the context of food products, whether this typically high level of skepticism is also exhibited for product labels. In addition, we look at consumer skepticism associated with health claims in food ads and labels as well as with the Nutrition Facts Panel on food packages. Finally, we examine some individual difference factors that might influence consumer skepticism. We report the results of a large‐scale survey designed to explore these issues, and we discuss the implications of our findings for public policy and future research.     

Income and Wealth Inequality in OECD Countries

This paper summarises some of the key findings and policy recommendations of the latest OECD report on income inequality - “In It Together: Why Less Inequality Benefits All”. In particular, the paper presents new findings regarding the trade-off between inequality and growth, as well as with regard to the impact of the economic crisis and of female employment on the distribution of income and the distribution of wealth. Key policy recommendations derived from these findings are the need to promote employment and good quality jobs, to further improve female participation, to invest in education and skills, and to foster well-designed redistribution policies.     

Offshoring Professional Services: Institutions and Professional Control

We examine the reasons why one might expect it to be more difficult to offshore professional work than manufacturing work in a globalized world. We then provide data on the variations in a specific case — the offshoring of diagnostic radiology from the USA, UK and Singapore. We show that existing theories on the ‘offshorability’ of jobs have not captured how national institutions and occupational regulations continue to define professional work. We then review the question of supply from India's perspective and report that both macro‐institutional and organizational contexts make it complicated for Indian doctors to supply much of this service.     

Community in a recreational setting

Abstract

The loss of community and of traditional communal ties characteristic of modern industrial society has caused many people to search for alternative sources of social identification and solidarity. Recreational sites may afford some people opportunities for constructing communities on the basis of common interests. As part of an ongoing investigation, data have been gathered over several years to discover whether elements of community can be found in a marina's social system; evidence is being sought through examination of patterns of social interaction, the system of social ranking, and ties of affection that characterize the marina's social network. Data reveal a social organization at the marina comprising subgroups with complex interaction patterns, affective ties, and communal solidarity. It appears, therefore, that at this recreational site the structure and dynamics of an alternative form of community have been constructed by boaters.