Enhancing memorability

Previous research on exposure to TV commercials and recall of the commercials has been done in conditions where viewers did not know the exact duration of commercial breaks. This study is the first to investigate the effects of prompting the remaining duration of embedded commercials in TV programmes on commercial exposure and recall. The study also examined the influence of interactions between the length of the commercial break, the number of advertisements in the break and the type of prompt on commercial exposure. The results show that the use of a prompt influences the effectiveness of the commercials. When viewers knew the exact duration of the commercial break, there were no differences in their commercial exposure irrespective of whether any prompt was used or not. For the same commercial exposure, when compared to not using a prompt, using a prompt giving either the remaining time or the number of remaining advertisements in the form of a duration countdown enhanced viewer commercial memory. These findings provide evidence that prompting the remaining duration during commercial break influences viewer commercial exposure and recall.     

Do online ad breaks clearly tell kids that advergames are advertisements that intend to sell things?

Advergames, blending advertising messages with interactive games, aggressively target young children online. Due to the immersive and embedded nature of commercial messages in advergames, it is important to provide a cue to trigger children’s persuasion knowledge of the marketplace and advertising. The purpose of this study was to analyse the format, content and characteristics of online ad breaks. The results showed that many websites do not provide any type of ad break. Furthermore, the content and characteristics of ad breaks revealed problems of low visibility, readability and deficiency in terms of stating the commercial intent of advergames.     

Time Orientation and Attitudes toward Advertising in a High-Context Culture: An Empirical Study of Macau

Each culture has its own dominant construct of time that influences the value placed on the use of time by individuals. This empirical study examines how time orientations influence attitudes toward advertising in a high-context culture of an Asian economy. Data was collected through surveys in Macau. Findings show that Macanese are more future orientated but less enthusiastic towards advertising; they switch to another channel and engage in other activities during commercial breaks. Results also show that past orientation has the strongest impact on advertising avoidance. The authors offer managerial implications for the development of effective advertising programs in this emerging market.     

Television Commercial Evaluation in the Context of Program Induced Mood: Congruency versus Consistency Effects

Abstract

This study examines the effect of the mood induced by television program content on subjects' evaluations of commercials. Specifically, happy or sad commercials are viewed in the context of a television program designed to induce these respective moods. The competing predictions of Mood Congruence Theory versus the Consistency Effect are examined to interpret the results. For all dependent measures considered, findings were in accordance with a Consistency Effect interpretation of the results. For two such measures (i.e., liking for the commercial and purchase intention) the Consistency Effect was statistically supported. Hence for these measures, it was found that a happy commercial viewed in the context of a happy program was evaluated more favorably than the same commercial viewed after exposure to a sad program. For the sad commercial, the reverse effects for these measures were evident as this commercial performed more favorably in the context of a sad program relative to a happy one. The dominance of a Consistency Effect interpretation of the results over that of Mood Congruence are interpreted in the context of advertising strategy.     

Capital Flows and Economic Growth in Ghana

ABSTRACT

The study examines the differential effects of capital flows on economic growth in Ghana over the period 1970–2014 using autoregressive distributed lag (ARDL). Breakpoint unit root tests are employed to cater for structural change and breaks in time series. Afterwards, these break dates are fed into the ADRL model as dummy variables to allow for the computation of a more robust cointegrating vector. The findings indicate that in both the short and long run capital flows (i.e. FDI, aid, and external debt) have negative effects on economic growth. However, remittances exhibit positive insignificant elasticity in all the regressions. Further, the empirical results show that while the impact of trade, gross capital formation and population growth on growth are mixed, that of inflation is negative. The results of the study are consistent with the idea that the impact of capital flows in Africa has been exaggerated.     

Earnings persistence,fundamentals, and anticipation of breaking earnings strings

Using a sample of firms with consecutive earnings growth for more than 20 quarters (earnings strings), I assess the relationship between earnings persistence and the extent to which investors are able to anticipate breaks of earnings strings. I find that firm‐specific earnings persistence exhibits a concave trend during earnings strings. Stock returns are significantly and positively associated with earnings persistence. Upon breaks of earnings strings, investors’ reactions are more negative for firms with higher earnings persistence—especially those with smaller institutional holdings and analyst coverage, and those with insider selling activities—before the break. Additional analyses show that variations in firms’ economic performance (fundamentals) explain the varying earnings persistence during earnings strings. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Economy suspended: the possibilities of a Badiouian business ethics

In the philosophy of Alain Badiou, ethics can only arise in relation to an evental truth procedure that breaks from the economic logic of a situation. Further, because for Badiou there cannot be economic truths per se – rather, economic matters must be understood in their relation to one or more truths in the domain of love, art, science or politics – a Badiouian business ethics would look entirely distinct from any ethics that simply places limits on certain kinds of economic activity. Although Slavoj ?i?ek, among others, has suggested that this marks an essential weakness in Badiou's economic/political theory, it may actually be the greatest strength of his position. Within a capitalist system, a Badiouian business ethics would then be a question of mobilizing economic resources in order to serve the ongoing construction of a truth procedure. For a business to be considered ethical on Badiou's terms, it must break – and continue to break – from the dominant logic of capitalism and its merely economic pursuit of profit maximization.     

The effects of salesperson mood, shopper behavior, and store type on customer service

This paper proposes that salesperson mood, shopper behavior, and store type have significant effects on the level of customer service provided by a store. Results from a laboratory experiment reveal that salespeople enjoy unpleasant shoppers less but serve them more. Salespeople in a good mood are more uniform in their delivery of customer service, while those in a bad mood are more likely to provide poor service to pleasant than to unpleasant customers. The study also reveals that department-store salespeople provide a more uniform level of customer service than discount-store salespeople. Conclusions and management implications are discussed.     

The Interplay of Mood and Regulatory Focus in Influencing Altruistic Behavior

Using the context of print advertising, this research examines how the effects of mood on altruistic behavior vary as a function of whether a promotion or prevention focus is involved in messaging for child sponsorship. The findings reveal that when an ad message is framed in promotion focus, a happy mood fosters more favorable attitude toward child sponsorship and willingness to sponsor than a sad mood. In contrast, the effects of mood on attitude toward child sponsorship and willingness to sponsor are attenuated when an ad message is framed in prevention focus. Further, the results shed light on the process underlying the interactive impact of mood and regulatory focus by demonstrating the mediating role of perceived elaboration and goal commitment in advertising persuasion.     

Gender differences in arousal priming effects on humor advertising

Numerous studies have observed arousal and mood effects on ad processing, but no study has examined the ways in which the core arousal effect in humor advertising, which could make or break humor advertising effectiveness, could be boosted or hindered. To address this gap, we investigated arousal priming effects and its influence on humor ad responses, using gender as a moderating variable. Two experimental studies tested the interaction between (a) low and high arousal priming effects and (b) gender on consumer responses to a subsequent humor ad. The results show that men and women responded differently to humor ads presented after low vs. high arousal level primes. A moderated mediation analysis revealed that felt arousal during humor ad exposure was an underlying mechanism. Theoretical and practical implications are discussed.     

Effects of Mood States on Variety Seeking: The Moderating Roles of Personality

Building upon previous research and in an attempt to better understand the influence of mood states on variety‐seeking (VS) tendency, two specific emotional states (sadness and happiness) are discussed. Furthermore, this article proposes that the effects of mood states on VS are moderated by individuals’ differences. In this article, optimum stimulation level, self‐monitoring, and need for cognition are used to examine the moderating effects of this relationship. Consistent with the proposed hypotheses, the results indicate that sad individuals tend to incorporate more VS than happy ones. In addition, the three personality types tested in this article moderate the effects of mood on VS. Finally, suggestions for future research are discussed.     

Testing the Martingale Difference Hypothesis (MDH) with Structural Breaks: Evidence from Foreign Exchanges of Nigeria and South Africa

ABSTRACT

This study tests for MDH in two prominent foreign exchange (FX) markets in Africa, Nigeria and South Africa using three benchmark currencies (euro, dollar and pound sterling). Data utilized cover time series closing rate data set of five-day weekly frequency spanning December 14, 2001 to September 26, 2014. The study considers both the linear and nonlinear measures for MDH with better size and power properties. We also capture structural break endogenously from the data stream using Perron (2006) unit root test with structural break. Three striking findings are discernible from our analyses. First, on average, the South African FX market appears to be more efficient than the Nigerian FX market. Thus, the latter may be more susceptible to speculations than the former. Second, ignoring significant structural breaks may render statistical inferences invalid. Third, the choice of methodology does matter when testing for MDH of foreign exchanges in Africa.     

Contributions from mood research

In this article definitions of mood and the behavioral effects of negative moods are reviewed and scrutinized. This is an important task for two reasons. First, in prior studies, consumer researchers have treated concepts such as affect, mood, feeling, and emotion vaguely and arbitrarily. This has resulted in confusion regarding the substance of mood. In an attempt to dispel a part of this confusion, this article offers a conceptual analysis of mood. Second, a large part of prior consumer behavior‐ and advertising‐related mood research has addressed the relation between mood and mental constructs. The relation between mood and actual consumer behaviors is a more neglected research area. The behavioral effects of negative moods are an especially interesting phenomenon, because past studies have produced mixed and contradictory results. Thus, to offer novel insights, the key conclusion of the conceptual analysis of mood is harnessed to explain the inconsistent findings regarding the negative mood–(consumer) behavior relation. Another theoretical contribution is the provision of starting points for conceptualizing mood‐alleviative consumer behavior. Suggestions for future research are also briefly outlined in the concluding section of this article. © 2000 John Wiley & Sons, Inc.     

In the mood to buy? Understanding the interplay of mood regulation and congruence in an international context

Literature reports different effects of mood on measures of consumer behavior. Either mood congruence or mood regulation theories serve to explain these effects, though the latter theory is perhaps more sophisticated. This research goes a step further: in a sequence of four studies, the authors consider different products (with and without mood-lifting capabilities) and consumers?? beliefs in the transience of their mood to illuminate the interplay between the two theoretical approaches. Culture (individualism vs. collectivism) emerges as an important driver of mood transience. Mood transience drives the likelihood of mood regulation through the consumption of products with mood-lifting capabilities. Willingness to pay serves as the dependent variable, in contrast with mood research that has focused almost entirely on nonmonetary forms of consumer behavior. Greater willingness to pay variance in bad moods, compared with good moods, offers evidence of the opposing effects of mood congruence and regulation.     

If you feel it now you will think it later: The interactive effects of mood over time on brand extension evaluations

While mood has been found to affect brand extension evaluations, the specific mechanisms by which it affects those evaluations remain largely untested. This study suggests that mood‐induced differences in cognitive processing style (relational vs. item‐specific elaboration) are possible explanations affecting brand extension evaluations. Results of two experiments showed that consumers in a positive (vs. negative) mood engaged in relational (vs. item‐specific) elaboration and consequently evaluated brand extensions and brand extension fit more favorably than consumers in a negative mood. The effects were found immediately after exposure (Experiment 1) and after a one‐week delay (Experiment 2). Theoretical and practical implications are discussed. © 2011 Wiley Periodicals, Inc.     

Positive Mood and Susceptibility to False Advertising

This paper examines the impact of mood on consumers' implicit and explicit responses to false advertising. In our first experiment, we find that those consumers in a positive (versus a negative or neutral) mood state are more likely to notice the false information in the advertising, but paradoxically, are also likely to develop positive feelings toward the brand. In that experiment, we used both a hedonic brand (Disney) and a hedonic/emotional ad (autobiographical). In our second experiment, we extend the ad stimulus context beyond Disney to Wendy's to more readily facilitate autobiographical versus informational manipulations. We find that, indeed, the hedonic advertising execution (autobiographical vis-à-vis informational) is associated with more elaborate processing (but only for those in a positive mood). The observed positive affect transfer continued, however, despite the greater detection of the false information in the positive mood condition. We propose that the negative feelings toward the ad associated with detecting the false information are momentary and are replaced by positive feelings toward the brand that are engendered by positive mood and the advertising, as suggested by the synapse model of memory. Our third experiment varies the timing of our measures to investigate this proposition and finds that timing does matter. We conclude with a discussion of the implications of the findings for research on mood, deceptive advertising, and implicit versus explicit effects of advertising response.     

The Cake Looks Yummy on the Shelf up There: The Interactive Effect of Retail Shelf Position and Consumers’ Personal Sense of Power on Indulgent Choice

This paper advances our understanding of consumer responses to retail product displays by examining the interplay between the vertical shelf position of choice options and consumers’ personal sense of power in determining their preference for indulgent options. Six experiments show that when consumers choose from assortments placed on a low shelf position, requiring them to lower their heads, those higher (vs. lower) in personal power are more likely to choose an indulgent option over its prudent counterpart. In contrast, when choosing from assortments placed on a high shelf position, requiring consumers to raise their heads, those lower (vs. higher) in personal power are more likely to choose an indulgent option. This effect hinges on a mismatch (vs. match) between consumers’ personal sense of power and that triggered by the products’ retail shelf position, increasing affective discomfort and guiding consumers, thus, towards indulgent choices.     

Possible effects of EMU on German long-term interest rates

It is often argued that long-term German bonds suffer from an inflation premium caused by EMU. A decomposition of long rates shows that factors besides inflationary expectations and conversion risk affect the long bond yield. The following paper therefore discusses a more complete set of channels through which currency union affects interest rates and argues that they do not all point in the direction of rising rates. Data generating processes for long-term bonds are specified and tested for structural breaks. Absence of a structural break is interpreted as evidence against a premium caused by EMU. The authors would like to thank the participants of the German American Academic Council (GAAC) workshop “The Political Economy of European Integration” in Bremen, August 1996, and especially Paul Bergin for their helpful comments. Financial support from the GAAC is gratefully acknowledged.     

Verticality in product labels and shelves as a metaphorical cue to quality

This study investigates how subtle visual cues related to the design of a product's package (i.e., label position) and the context (i.e., shelf orientation) influence consumer evaluation and behavioral intention. Extending research on metaphorical cues, Study 1 shows that consumers perceive a product as more powerful when the label on the package is placed in a higher (vs. lower) vertical position. Extending the focus from package design to the display context of packages, Study 2 shows that consumer perception of a product's power is similarly enhanced when the package is placed on a shelf that is vertically (vs. horizontally) orientated. Across both studies effects of enhanced power perception extend to positively influence product quality inferences and behavioral intentions. These findings add to current knowledge on metaphorical cues in package design and the package's presentation context and offer insights into the underlying mechanism.