The effects of tolerance of negativity on consumers’ responses to comparative attack advertising

This paper focuses on ‘tolerance of negativity’ (TON) as a means of understanding and predicting consumers’ responses to negative marketing communications. The results of three empirical studies suggest that consumers who are low (as opposed to high) in TON (when measured and/or primed) find negatively framed comparative ads to be less fair, less useful, and have less favorable attitudes toward the ad and sponsor brand. Importantly, cognitive elaboration is shown to moderate these effects. Specifically, one’s TON is found to be more impactful when individuals are engaged with an ad (i.e. when cognitive elaboration is greater) as opposed to when cognitive elaboration is lower. Interestingly, TON’s moderating influence was not observed in any of the studies when attitudes toward the compared-to brand were the dependent variable.     

Correction to: Can your advertising really buy earned impressions? The effect of brand advertising on word of mouth

Quantitative Marketing and Economics - The table below should replace Table 1.     

The influence of the CEO’s business education on the performance of hybrid organizations: the case of the global microfinance industry

Microfinance institutions (MFIs) are typical examples of hybrid organisations, meaning organisations pursuing both a financial and social logic. This study examines the question of whether financial and social performance improves when an MFI’s chief executive officer (CEO) has a business education. We apply the random effects instrumental variable regression method to examine the influence of the CEO’s business education on the MFI’s financial and social performance. Our panel dataset that includes 353 MFIs from across the globe indicates that ‘only’ 55% of the MFIs have a CEO with a business education. The empirical results indicate that MFIs with CEOs who have a business education perform significantly better, financially and socially, than MFIs managed by CEOs with other types of educational backgrounds. The findings suggest that CEOs with a business education seem better at managing the much-debated tradeoff between providing small loans and producing healthy financial results.     

The impact of regulatory focus on adolescents’ evaluation of targeted advertising on social networking sites

This article examines whether individual differences in chronic regulatory focus (prevention vs. promotion focus) among adolescents influences the way they evaluate targeted advertising on social networking sites. Study 1 (survey) reveals that adolescents with a promotion focus (who are oriented toward achieving positive outcomes) have a more positive attitude and a higher purchase intention toward targeted advertising, as compared to prevention-focused adolescents (who are dispositioned toward avoiding negative outcomes). Study 2 (experiment) investigates how adolescents’ chronic regulatory focus can alter their attitude and purchase intention on a mock social networking site that includes a targeted advertisement. Results show that a low personalized targeted ad is better evaluated (in terms of a more positive attitude and higher purchase intention) among prevention-focused adolescents, whereas a high personalized targeted ad results in better advertising outcomes among promotion-focused adolescents. Contributions to theory and implications for advertising practice are discussed.     

The myth of big data: Chinese advertising practitioners’ perspective

A qualitative study was conducted to explore Chinese advertising practitioners’ perceptions and interpretations of big data in the Chinese market. Twenty-two in-depth interviews were conducted to collect the data. Four overarching themes emerged regarding the interviewees’ perception of the Chinese advertising market, the definition of big data, the application of big data and the future development of big data. Based on the themes, a theoretical framework was developed to demonstrate big data's application and development in the Chinese market. Theoretical and practical implications were offered.     

When I feel invaded,I will avoid it: The effect of advertising invasiveness on consumers’ avoidance of social media advertising

As companies increasingly use social media as the platform for promoting their products and services, it is critical for consumers to be receptive to social media advertising (SMA). However, consumers may feel invaded when viewing SMA. The literature on advertising invasiveness has focused primarily on consumers’ attention invasiveness (i.e., the interruption of their attention). We argue that such a focus is limited, and we propose space invasiveness as an additional dimension for understanding advertising invasiveness in social media. Data were collected from Chinese consumers, and the results show that space invasiveness had a stronger effect than attention invasiveness did on advertising irritation, and that irritation in turn led to advertising avoidance. Furthermore, psychological ownership moderated the relationship between social influence and space invasiveness. This study provides important guidelines for practitioners to reduce advertising avoidance in social media.     

The Achilles’ heel of the platform business model: Disintermediation

Multisided marketplaces have become fixtures in many contemporary industries. From Amazon to Google, platforms dominate entire markets and have become some of the world’s most valuable companies. Despite their success, these companies have a subtle but potentially fatal weakness: disintermediation. This occurs when buyers and sellers find each other on the platform and then bypass that very platform—and its commission—to complete their transaction directly, off of the platform. This article compiles and illustrates the causes of and remediations to platform disintermediation.     

The effectiveness of nutritional information on foodservice companies’ corporate social responsibility

The objective of this study is to investigate the effect of nutritional information disclosure and healthful menu context in the relationship of nutritional knowledge and consumers’ perceived CSR toward a foodservice company. Furthermore, the relationship among CSR, brand image, attitude and purchase intention was investigated. The study was designed with scenario experimental questionnaires: 3 (different nutritional information levels: no information, calorie only and content with six segments of nutritional information) X 2 (menu context: healthy or unhealthy menu context). Confirmatory factor analyses, structural equation modelling and analysis of variance analysis were used in order to examine the study hypotheses. The results of this study indicate that consumers’ nutritional knowledge helps increase consumers’ perceived CSR which has an impact on brand image, attitude and behavioural intention, however, no moderating effects of nutritional knowledge and healthful menu context were found. Furthermore, purchase intention was significantly affected by CSR, attitude and brand image. Therefore, disclosure of nutritional information and offering healthful menu would help restaurants gain a positive CSR which also would help them to expect consumers’ favourable purchase intention.     

Assurance of learning: The impact of business core course reviews on students’ scores on the comprehensive business exam for both internal and external comparative purposes

This study is the first to explore how business core course review sessions impact standardized test results. A statistically significant improvement in students’ overall scores of 16.5% was identified when core course reviews were conducted between Comprehensive Business Exam pre- and posttest dates. As a result, institutional results moved from slightly above average to the upper 15th percentile among institutions employing this exam. Additionally, scores for the economics, finance, management, and marketing core-course subject matter areas significantly improved. A review did not significantly improve scores in the accounting concept area. Implications for assurance of learning analysis are presented.     

The institutional determinants of private equity involvement in business groups—The case of Africa

This study examines the governance attributes of post-IPO (initial public offering) retained ownership of private equity in business group constituent firms in contrast to their unaffiliated counterparts, in 202 newly listed firms in 22 emerging African economies. We adopt an actor centered institutional-theoretic perspective in rationalizing institutional voids and the advantages of maintained governance by both business angels (BA) and venture capital (VC) private equity. Our findings reveal private equity retain higher post-IPO ownership in business group constituents compared to unaffiliated firms and that this is inversely moderated in the context of improving institutional quality – where this is particularly strong in case of foreign VC as opposed to domestic VC or BA. Our result adds to the literature on multifocal corporate governance mechanisms and the institutional determinants of private equity investment.     

Can your advertising really buy earned impressions? The effect of brand advertising on word of mouth

Quantitative Marketing and Economics - Paid media expenditures could potentially increase earned media exposures such as social media posts and other word-of-mouth (WOM). However, academic research...     

Europe’s Search for Superstar Firms: The Puzzle of European Champions

Intereconomics - Europe appears to be on a quest for so-called ‘European champions’. These firms have become a symbol and measure for European competitiveness. To date, we know little...     

The Impact of Export Promotion Programs on Firms’ Export Competencies and Performance in a Transition Economy: The Case of Russian Manufacturers

Abstract

This study evaluates the effects of export promotion programs (EPPs) in Russian manufacturers. It examines a multi-dimensional set of subjective and objective indicators including the level of awareness, use, the perception of usefulness, as well as different intermediate export marketing results, and final performance indicators. The results show that most EPPs are successful in attaining their goals as to improving firms’ export marketing competencies. Though, at the same time, they point to clear problems, regarding program awareness, availability, and accessibility. The paper concludes with a discussion about managerial and public policy implications.     

The evolution of hierarchy toward heterarchy: A case study on Baosteel’s managerial systems

In recent years, the hierarchical nature of organizations is severely criticized. Will hierarchy be gradually replaced by networks? Or else, will it be revitalized through certain variations while remaining its distinct characteristics in the vertical relationship between upper and lower levels of an organization? Drawing upon research on “administrative organization” by Simon (1962), this research is based upon an in-depth case study on Baosteel, one of the “Fortune Global 500” Chinese iron & steel conglomerate. We find that heterarchy is a variation of hierarchy and applicable in both systems of operations management and strategic management. Moreover, the seemingly paradoxical decentralization of authority and concentration of business activities are discovered as the key driving forces in the formation of hierarchical structure. The existence of heterarchy adds variety to organizational world.     

Do feminists still respond negatively to female nudity in advertising? Investigating the influence of feminist attitudes on reactions to sexual appeals

To test the belief that feminism and sexualization of women in advertising stand in opposition, this study employed a large US national sample (N = 1298) to examine how consumers’ feminist attitudes differentiate and predict their ethical judgment and ad-related evaluations of sexual images of women in advertisements. The results indicate that (1) consumers with higher feminist attitudes evaluated sexual ads more favorably than those having lower feminist attitudes, and (2) consumers’ feminist attitudes positively predict ad-related evaluations with full mediation of ethical judgment. These findings, which diverge from previous research, may indicate that contemporary feminists view sexual images of women differently than in previous decades. Theoretical and practical implications are described.     

The value of business managers' ‘Information Technology’ competence

This study analyses the role of general managers and their competence in information technologies (ITs) in the integration of these technologies in knowledge-intensive businesses. From a resource-based view, it assesses the effect of managers' IT knowledge and vision on information management in their organizations. It focuses on two knowledge industries: telecommunication and biotechnology, with a final sample of 122 firms. Structural equations are used to assess the data. The findings show that the role of managers goes further than supporting and championing ITs. They are direct key actors in the IT–business integration. For this reason, managers should understand IT potential and information system management in order to combine this knowledge with their unique strategic vision of the business, foreseeing opportunities and needs.     

The Persistence of Profits,Sectoral Heterogeneity and Firms’ Characteristics

The analysis of the persistence of profits has long been a controversial issue within empirical industrial organisation literature. The aim of our paper is to provide new empirical findings that may account for patterns of both sectoral and firm profit persistence. The distinctive feature of our study is that we analyse a number of firms’ ergodic distribution in each sector according to their profit level; we then calculate the difference between such a distribution and that prevailing in manufacturing as a whole. Finally, we break down this distribution; the resulting breakdown highlights the impact of each transition probability on inter‐sectoral differences clearly, and it also emphasises the role of intra‐sectoral dynamics in determining different persistence patterns. We then apply this methodology to both innovating and non‐innovating firms, and conclude that among surviving firms innovation is indeed crucial to the persistence of profits. In addition, we set up an econometric test which enables us to estimate the impact of firm and sectoral characteristics on a firm’s profit condition.     

Beyond the corporation: Who represents business to the government and public?

A new kind of business leadership has emerged during the past decade, a leadership devoted to the public interest. What are the stages that characterize the development of these leaders?     

Multiple interpretations of “national culture” and the implications for International business: The case of Taiwan

This paper considers the implications for international business of cases whereby a country may have two, or more, conflicting interpretations of its “national culture”. A case study of the different ways in which Taiwanese self-initiated expatriates of the benshengren and waishengren social categories use their status as “Taiwanese” to do business in London suggests that the varying interpretations which people of the same national origin and ethnic group have of their “national culture”, as a symbol of identity, affects the social resources they can use. The paper concludes by considering new directions for studying national culture in international business, and for re-evaluating earlier research.