Advertising to the masses: the effects of crowding on the attention to place-based advertising

Advertising situated in environments where people congregate or pass through on their way to somewhere else benefit from being placed in such high traffic areas. However, these strategically placed ads also suffer from conditions of human crowding that prevents them from being noticed and processed. We undertake a study of place-based advertising in a shopping mall using facial recognition software to determine the effect of human density on the attention directed to advertising. We find that as human density increases, attention to advertising decreases, but only to a point where it begins to increase again. Our research also finds that human density plays a moderating role on the motivation to process advertising.     

When and Why Do Takeovers Lead to Fraud?

This paper develops a model explaining how acquisitions of controlling block ownership can facilitate post‐takeover fraud by new managers when investor protection is poor. Based on disclosures of embezzlement or breach of fiduciary duty in Korean firms, we find that the probability of explicit looting in takeover targets is 13%, almost five times as large as a matched sample of non‐targets. Post‐takeover frauds are primarily driven by transfers of minority blocks, while the corresponding probability in majority acquisitions is statistically indistinguishable from the non‐targets. These findings may explain why minority acquisitions of controlling blocks are popular under poor investor protection.     

Sustainable Urban Landscaping: Consumer Preferences and Willingness to Pay for Turfgrass Fertilizers

Residential lawns provide diverse benefits, including social (e.g., enhancing humans’ physical and psychological well‐being), economic (e.g., increasing real estate values), and environmental (e.g., supporting local ecosystems) benefits. However, improper lawn fertilizer applications can cause adverse environmental consequences, such as excessive chemical runoff into adjoining watersheds leading to water contamination. Currently, the importance of eco‐friendly fertilizers to homeowners has not been assessed. This study uses a discrete choice experiment to test whether eco‐friendly fertilizer attributes influence homeowners’ preferences for sustainable landscape management. The findings show that eco‐friendly fertilizer attributes positively influence homeowners’ preferences and willingness to pay, supporting the premise that the promotion of eco‐friendly fertilizer features could improve local ecosystems through increased adaptation. Furthermore, this study tests whether certain fertilizer attributes influence homeowners’ preferences in states with and without fertilizer restrictions. Since the regulatory environment affects homeowners’ preferences for sustainable landscaping, this study compares the results between regulated and unregulated states. The findings reveal that homeowners are more likely to use and are willing to pay higher premiums for sustainable fertilizers in states with residential fertilization regulations. This suggests that with strict fertilizer ordinances, homeowners are more geared toward eco‐friendly landscaping options and that related educational programs should be made available. Les pelouses résidentielles offrent divers avantages, incluant les avantages sociaux (comme la valorisation du bien‐être physique et psychologique humain), économiques (comme la valeur immobilière), et environnementaux (comme l'appui des écosystèmes locaux). La mauvaise application des fertilisants a parfois des conséquences environnementales négatives comme le ruissellement chimique excessif dans les bassins hydrographiques attenants menant à la contamination des sources d'eau. En raison de l'importance des fertilisants respectueux de l'environnement pour la protection de ce dernier, cette étude emploie une expérience avec choix discrets pour évaluer si les attributs écologiques des fertilisants influencent les préférences des consommateurs et leur volonté de payer pour une gestion durable de l'aménagement. Les résultats indiquent que les attributs écologiques des fertilisants influencent positivement les préférences des consommateurs et leur volonté de payer, appuyant ainsi la prémisse selon laquelle la promotion des attributs écologiques des fertilisants de gazon pourrait améliorer les écosystèmes locaux. De plus, cette étude évalue l'influence des attributs de certains fertilisants sur les préférences des propriétaires résidentiels dans les états avec et sans restrictions sur l'application des fertilisants. Puisque le cadre règlementaire peut avoir un impact sur les préférences des consommateurs pour une gestion durable de l'aménagement paysager, cette étude compare les prévisions des états avec et sans cadre règlementaire. Les résultats démontrent que les consommateurs sont plus aptes à utiliser, et sont disposés à payer un surplus pour les fertilisants durables dans les états où des règlements concernant l'utilisation de fertilisants résidentiels sont en vigueur, portant donc à croire que les programmes éducatifs concernant l'aménagement paysager respectueux de l'environnement devraient être accompagnés d'ordonnances strictes en matière de fertilisants.     

Roadmapping for prioritisation of smartphone feature requirements based on user experiences

Since the life cycle of smartphones is becoming shorter, users are demanding new and improved smartphone features for updated smartphones, but it is difficult to know which features are the most important to users. In Internet user communities, users increasingly review smartphone functions and share information about their experiences such as complaints, problems, and satisfaction, and these user experiences have been fruitful sources for manufacturers that lead to smartphone improvements. Focusing on these user experiences, this paper proposes a systematic roadmapping process including prioritisation of smartphone feature requirements. By prioritising smartphone feature requirements, new and improved versions of smartphones that reflect user needs can be planned based on a product–market roadmap. The systematic approach consists of three parts: user-driven quality function deployment (QFD), a frequent pattern (FP)-tree algorithm, and a product–market roadmap. First, we collected data extracted from text mining in Internet user communities to construct a user-driven QFD. Second, using user experiences related to smartphone features, we applied the FP-tree algorithm to algorithmically derive a priority list of smartphone feature requirements. Finally, based on the result of the FP-tree of smartphones, we proposed guidelines to construct a product–market roadmap. It is expected that a versioning strategy can be formulated through this prioritised product–market roadmap. Furthermore, covering each step from data collection to roadmapping, this study suggests a systematic process for prioritisation of smartphone feature requirements based on user experiences.     

Adaptive conjoint analysis for the vitalisation of angel investments by entrepreneurs

In order to promote angel investments, attracting those who have entrepreneurial experience is necessary because their capital, unique managing experience, and business insight are highly beneficial to the performance of the investment. This can be accomplished by providing a preferred investment environment for potential angels who have entrepreneurial backgrounds. In this paper, we use an adaptive conjoint analysis to identify preferred investment environments represented as a combination of support policies for business angels who have entrepreneurial experience in Korea. Of particular interest is a preference for angel insurance. This insurance is newly proposed based on prospect theory, which explains that people tend to be more sensitive to a loss than to a gain. The value of the angel insurance is compared to those of tax policies and matching funds for business angels. The empirical results are expected to contribute to promoting angel investments by attracting entrepreneurs to become business angels.     

Microstructure-based manipulation: Strategic behavior and performance of spoofing traders

We examine how investors strategically spoof the stock market by placing orders with little chance of being executed, but which mislead other traders into thinking there is an imbalance in the order book. Using the complete intraday order and trade data of the Korea Exchange (KRX) in a custom data set identifying individual accounts, we find that investors strategically placed spoofing orders which, given the KRX's order-disclosure rule at the time, created the impression of a substantial order book imbalance, with the intent to manipulate subsequent prices. This manipulation, which made use of specific features of the market microstructure, differs from previously studied forms of manipulation based on information or transactions. Roughly half of the spoofing orders were placed in conjunction with day trading. Stocks targeted for manipulation had higher return volatility, lower market capitalization, lower price level, and lower managerial transparency. We also find that spoofing traders achieved substantial extra profits. The frequency of spoofing orders decreased drastically after the KRX altered its order-disclosure rule.     

Do Consumption Goals Matter? The Effects of Online Loyalty Programs in the Satisfaction‐Loyalty Relation

This study investigates the effects of online loyalty programs in the customer satisfaction‐loyalty relationship. It is proposed that loyalty programs may induce loyalty toward programs (program loyalty), which may then influence loyalty toward stores (store loyalty). According to the results of a two‐wave survey, consumption goals matter in the effects of program loyalty on online store loyalty. For consumers with hedonic goals, hedonic program loyalty (e.g., free gifts) has a significant effect on online loyalty. For consumers with utilitarian goals, however, utilitarian program loyalty (e.g., coupons) has a significant influence on online loyalty. Theoretical and managerial implications are also discussed.     

A multi-level investigation of international marketing projects: The roles of experiential knowledge and creativity on performance

This study, using a sample of Korean multinational corporations, focuses on testing the relationships between the constructs of experiential knowledge, creativity, and performance in the context of international marketing projects. Relying on a multi-level conceptualization of experiential knowledge and creativity, our findings suggest that process-based creativity is enhanced when the team members have a higher level of experiential knowledge, but outcome-based creativity is not significantly influenced by either team- or firm-level experiential knowledge. It is concluded that, in the context of international marketing projects, the domain-relevant knowledge of the actors (i.e., the team-level experiential knowledge in the foreign markets) largely governs the level of their process-based creativity. The findings also suggest that project performance is directly influenced by firm-level experiential knowledge and process-based creativity, and is indirectly influenced by team-level experiential knowledge through the mediation of process-based creativity.     

Reassessing Firm Size in International Marketing Research

This study investigates the relevance and importance of firm size as a current research variable in international marketing while being cognizant of the reasons behind previous researcher's focus on firm size. Utilizing two different databases and analyses, this study integrates existing research on the effects of firm size variables on decisions in international marketing and draws a general conclusion. The main research questions center on whether firm size matters in internationalization decisions and whether firm size is a meaningful proxy for specific firm resources. Our results suggest that the effect of size on internationalization becomes less significant over time and that the effect of firm size on choice of ownership is significantly less than that of other firm-specific variables such as R&D intensity and advertising intensity, suggesting that strategic international marketing decisions are more related to a firm's unique assets than to its size.     

Currency hedging failure in international equity investments and an efficient hedging strategy: The perspective of Korean investors

Korean fund investors suffered significant financial losses from their international equity investments during the recent global financial crisis. Contrary to expectations for improved investment performance, the currency position for hedging purposes worsened performance. In this paper, we critically assess currency-hedging practices for international equity investments from the perspective of Korean investors. We find that international equity portfolios are concentrated in a limited number of emerging market regions; most international equity funds employ near-fixed and near-perfect currency-hedging policies; the minimum-variance currency-hedging strategy performs the best in emerging market regions and its relative gains over the current hedging policy are significant; the no-hedging strategy provides the best performance for the investments into the US and Europe during a turbulent period.