Celebrity Endorsements in U.S. and Thai Magazines: A Content Analysis Comparative Assessment

SUMMARY

Celebrity endorsements have become a prevalent form of advertising. Hence, the purpose of the study was to determine the relationship between the use of celebrities and the types of products endorsed. Advertisements from one popular magazine in the U.S. and 2 popular magazines in Thailand were used. Results indicated that U.S. advertisements of beauty, dietary and health services, hospitals, and weight loss clinics categories utilized celebrity endorsements more often than other categories. In Thai advertisements, supplementary foods and medicines used celebrity endorsers more often than other categories. Results further support that a significant relationship exits between celebrity endorsers and product types.     

The anatomy of financial crises: Evidence from the emerging ADR market

We study the anatomy of recent financial crises in Mexico, East Asia, Russia, Brazil, Turkey, and Argentina by investigating the efficiency and pricing of the emerging American depositary receipt (ADR) market. We use a non-parametric technique to test for persistent regime shifts in two basic structural relationships for ADR returns in 20 emerging countries — identified via arbitrage and capital mobility considerations — that should always hold in efficient and integrated capital markets. We find that those “normal” market conditions were instead often violated in proximity of financial crises: The law of one price often weakened (by 54% on average) and domestic sources of risk became more important (often by more than 100%) for many emerging ADRs. We also find the likelihood of these regime shifts to be related to proxies for uncertainty among investors, exchange rate volatility, trade linkages, and liquidity (but not stock market trends, currency devaluations, capital flight, or capital controls).     

The Color of Choice: The Influence of Presenting Product Information in Color on the Compromise Effect

Consumers often find themselves challenged by the conflicting desires to seek uniqueness versus conformity, and thus seek some degree of balance. In a series of six studies we show that presenting each options’ product-related information in a unique color, as opposed to all product-related information presented in black-on-white, partially satiates the desire for uniqueness, thus amplifying the compromise effect. Consumers facing color presentation formats choose the middle, conforming option more often, yet perceive their choice as more unique. This color effect is not realized if each option's attributes are presented in different colors, but all options use a consistent color scheme, as is often the case in on-line retailing sites such as Amazon.com. Having to justify one's choice moderates the color effect. The practical take-away is that consumers’ choices can be influenced by using unique colors to present option-related product information, a variable that is entirely independent of the options’ performance characteristics. Two field studies confirm this finding, one using a plain background versus a colored background in a product display and the other using product containers that are either in plain white or wrapped in unique colors.     

Cue-recognition effects in the assessment of movie trailers

In the past, the role of recognition in inferential choice has often been investigated within the recognition heuristic (RH) that focuses on the recognition of options. In the present study I investigate instead whether the recognition of a cue influences the assessment of movie trailers. This extension of the RH to cues provides important and more comprehensive insights into recognition in everyday decision-making. One hundred and eighty-eight participants were randomly assigned to one paired comparison and had to decide which of two movie trailers (Epic and The Croods) was about to become more successful. All pairwise comparisons consisted of the same two unknown animated movie trailers. They differed merely from a fade-in of a short unknown or known movie title (e.g., “From the makers of Ice Age”). The central objective of this study was to test whether or not the participants judged movie trailers to be more successful and likeable when associated with the famous movie title and thus decide on the basis of the recognition of this cue. In fact, it was shown that people in this context often revert to this recognition cue. However, the prerequisite for this effect was that the faded-in title should be appropriate for the trailer. Furthermore the preference of animated films was identified as a key factor. Volunteers who liked animated films less, often decided due to the recognized cue. Moreover it is shown that participants increasingly use the recognized cue to decide if they specify a preference and high success for this faded-in movie.     

Kick‐starting diffusion: Explaining the varying frequency of preferential trade agreements’ environmental provisions by their initial conditions

Most recent preferential trade agreements (PTAs) include environmental provisions. While a number of these environmental provisions remain rare and are incorporated in just a few PTAs, others are widely popular and are duplicated in more than 100 PTAs. We still lack a convincing explanation for this varying frequency. While the diffusion literature typically tries to explain how diffusion occurs, we investigate why certain provisions diffuse more often than others. We hypothesise that the initial conditions under which provisions first emerge determine the scope of their diffusion. Our results support this hypothesis and indicate that provisions originating from intercontinental agreements diffuse more often than others. At the same time, provisions first designed by economically powerful or environmentally credible countries are not related to more frequent occurrences of diffusion. These findings are of interest for the literatures on international institutions' design, interaction and diffusion.     

Will the frog change into a prince? Predicting future customer profitability

More and more companies have customer databases that enable them to analyze customer profitability over time. These companies often seek to determine the most important customers as indicated by their current or historical profitability and focus attention on them. Focusing on profitable customers can result in more efficient use of marketing resources, but this approach neglects the fact that customers can evolve over time. Some customers begin as low-profit customers but eventually develop into high-profit customers. Others may start out as high-profit customers but become unprofitable over time. Previous efforts to predict future profitability have been relatively unsuccessful, with relatively simple, naïve models often performing just as well as or better than more sophisticated ones. Our paper presents a new approach to predicting customer profitability in future periods that performs significantly better than naïve models. We estimate the models on data from a high-tech company in a business-to-business context and validate the models' predictive ability on a holdout sample.We show that a model based on simulation of customer futures provides large improvements over naïve extrapolation of average profits. By using the simulation model to select customers, ROI from marketing efforts is projected to increase by 58%.     

Gender Role Portrayals in Japanese Advertising: A Magazine Content Analysis

Abstract

The authors report a content analysis that assessed gender role portrayals in advertisements from highest circulation Japanese magazines. They found that, although some indigenous gender stereotyping was evident, several traits previously associated with Japanese women (devoted, obliging, rattle-brained, superstitious, thorough) were associated with men. Also, men were not linked with certain stereotypical male traits (autocratic, blustery, forgiving, generous, severe). Other findings included women being shown in a positive way as often as men. In terms of common international stereotypes, women were not associated with low priced products or portrayed as being more deferential than men. However, women still were portrayed as more concerned with appearance and as younger than men, were not depicted as product authorities, and were shown more often in sexist than in nonsexist depictions.     

Catching a wave: the formation of co-operatives in Finnish regions

This paper compares the formation rates of co-operatives and conventional firms in Finland using regional data. The Finnish co-operative “wave” that began in the mid-1990s provides a useful setting for testing the hypothesis that co-operative formation rates are higher in depressed economic conditions. The empirical results support this hypothesis. Co-operatives are formed more often in regions with high unemployment; in contrast, conventional firms are formed more often when unemployment is low and demand growth is high. Furthermore, the existence of dedicated advisory services boosts the formation of co-operatives. These results indicate that co-operatives may play a useful role in reducing unemployment and that the formation of co-operatives may be influenced by policy measures.     

Plugs versus placements: A comparison of alternatives for within‐program brand exposure

A study is presented that compares two forms of within‐program brand appearances: product placements and celebrity plugs. Evidence suggests that plugs may often have a retention advantage over placements. This advantage is hypothesized to arise from differences in the way plugs and placements are often presented. Specifically, differences in presentation contexts may create differences in how memory for plugs and placements is organized. This, in turn, may allow plugs to receive more frequent rehearsal during subsequent viewing of a show in which a brand has appeared. © 2004 Wiley Periodicals, Inc.     

Advertising and Product Quality: Are Heavily Advertised Products Better?

It is often conceded that heavily advertised products cost more than those that are not advertised extensively. But there is considerable disagreement concerning what this difference means. Advertising's critics often claim it is evidence of monopolistic control over supply and prices, while advertising's defenders generally contend it reflects the higher quality of advertised brands. Surprisingly, there has been almost no research into whether or not heavily advertised goods are of better quality. As a preliminary inquiry into this interesting question, this paper attempts to examine the relationship between advertising expenditures and product quality.     

Five trademark law strategies for managing brands

This installment of BUSINESS LAW & ETHICS CORNER offers business professionals a selection of five trademark law strategies for more effectively protecting and managing brand names. The legal strategies profiled herein introduce readers to a variety of trademark issues that are often overlooked in the management and protection of brand names, even by sophisticated and savvy business people.     

The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development

Customer satisfaction with a company's products or services is often seen as the key to a company's success and long-term competitiveness. In the context of relationship marketing, customer satisfaction is often viewed as a central determinant of customer retention. However, the few empirical investigations in this area indicate that a direct relationship between these constructs is weak or even nonexistent. The overall purpose of this article is to develop a conceptual foundation for investigating the customer retention process, with the use of the concepts of customer satisfaction and relationship quality. The article involves a critical examination of the satisfaction–retention relationship, and the development of a more comprehensive view of the customer's quality perception. © 1997 John Wiley & Sons, Inc.     

A Content Analysis of Whistleblowing Policies of Leading European Companies

Since the introduction of the U.S. Sarbanes-Oxley Act in 2002 and several other national corporate governance codes, whistleblowing policies have been implemented in a growing number of companies. Existing research indicates that this type of governance codes has a limited direct effect on ethical or whistleblowing behaviour whereas whistleblowing policies at the corporate level seem to be more effective. Therefore, evidence on the impact of (inter)national corporate governance codes on the content of corporate whistleblowing policies is important to understand their indirect impact on whistleblowing behaviour. This study analyzes the contents of whistleblowing policies, and parts of corporate codes of conduct and codes of ethics, describing such policies of 56 leading European companies. By classifying the contents in seven categories, an exploratory framework was created. General contents often identified were: applicability to all employees, a group-wide scope and an authoritative tone. The most common general violations to report were breaches of internal policies and external regulations or laws. The more specific violations most frequently mentioned were criminal offences and dangers to health and safety or the environment. Contacts to report to were the direct or indirect supervisors, a compliance officer or a confidential “hotline” facility. A confidentiality guarantee was common and anonymous reporting was often possible, though sometimes discouraged. Protection against retaliation is stated by ensuring that retaliation will not happen, prohibiting it or making it punishable. The requirement of good faith was frequently given. Finally, investigation of the report was often guaranteed. Surprisingly little information is given on the treatment of whistleblowers reporting an unfounded complaint in good faith, or reporting a violation they were involved in. The study’s findings are most relevant to companies without a whistleblowing policy or those that intend to benchmark their policies, and to pan-European standard setters.     

Loyalty,naivety and powerlessness among Norwegian retail bank customers

The quantitative analysis presented in this paper builds on a qualitative focus group study of mobility among bank customers. The main finding from the focus group study was that mobile bank customers had a reflective – often critical ? relation to their banks, while the immobile bank customers had an unreflective – often trusting – relation to their banks. The study also resulted in a typology identifying different bank customer orientations. In the present paper, this typology has been operationalized and modified for further quantitative estimation and investigation. Nine different bank orientations are distinguished, and the results indicate that at least two of three bank customers do not regularly monitor their banking terms and conditions. In other words, it is reasonable to believe that the ordinary bank customer is not acting as expected according to the theory of well‐functioning market mechanisms. Resourceful consumers, with high incomes and education levels, tend to be more financially oriented than others. When people with meagre financial resources tend to end up in the more unfavourable banks, this is not solely a result of the banks’ own discrimination of the poor; it is also due to the fact that people with high incomes and education levels are more likely to monitor their banking conditions than people with low incomes, irrespective of whether or not they have bank loans. The quantitative material analysed was collected in February 2007 by computer‐assisted telephone interviews. One thousand randomly selected respondents answered the questions.     

Differences in consumer price knowledge between Germany and Finland

Abstract

Price knowledge studies are a key to understanding behavioural pricing strategies. Consumer price knowledge is an ongoing concern in the literature. It is also generally acknowledged that price awareness is subject to cross-cultural differences. This is important because the retailer market is dominated by global players who use standardized marketing-mix instruments. However, there are no studies about price knowledge between countries. This study examines differences in price knowledge between German and Finnish consumers. The results show that Finnish consumers were able to give at least some price estimate for a product more often, but the estimates of German consumers were more accurate. Due to data limitations of our study more research is needed about cross-cultural price knowledge.     

What Influences Trader Choice of Electronic versus Intermediated Execution?

We examine the determinants of US equity trader choice of electronic versus intermediated execution. While traders exhibit a strong overall preference for automation, when the market is less liquid at order submission time, traders seek market maker automated and human order‐matching services more often. Traders' overall tendency to choose intermediaries is highly correlated with their demand for liquidity. Market maker participation rates are higher for more active and larger size traders. Traders who choose intermediaries more often trade more stocks, execute orders quicker, price orders more aggressively, and disperse their trading over longer periods of time. Although US stock intermediaries continue to lose market share, our results highlight the important role these firms can play in an increasingly automated, electronically driven marketplace.     

A Content Analysis of Animation and Animated Spokes-Characters in Television Commercials

Abstract

This study employed content analysis to examine animation and animated spokes-characters in television advertising. The majority of spokes-characters observed in this study were humans, animal personifications, or product personifications. Characters were more likely to speak for the product than provide visual demonstration although they did both in more than half the cases. There were far more non-celebrity than celebrity spokes-characters, and a large majority of them were male. Significant differences were found in the use of animation across dayparts, program types, product classes and product categories. Although no increase was evident in the use of animation since the last study was completed, there was evidence to suggest that the role of animation has been changing in the past decade. Findings indicate that animated spokes-characters are being used more often to present high involvement products to adult audiences.     

A comparison of Japanese and U.S. firms completing initial public offerings

We set out to examine firms breaking into the top tier of for-profit companies in the U.S. and Japan to find differences across the two groups. To accomplish this, we conducted a questionnaire survey of companies that had recently undergone an initial public offering (IPO) in each country and compared them on characteristics frequently associated with new firms.As we expected, even when the different sizes of the two economies were taken into account, there were considerably fewer listings in Japan than in the U.S. One reason for this is that the listing requirements for young Japanese firms, although not stricter, are much more strictly enforced. Hence, fewer Japanese firms are able to list.Our results show that the Japanese firms were markedly different from their U.S. counterparts on several characteristics. They tended to be older and larger, which is consistent with more stringent listing requirements in Japan. They were also much more often led by their original founders. This is a surprising result given that the Japanese firms, being older, had longer to lose their founders. When a successor to the founder was president, it was much more often a relative of the founder than in the U.S. The Japanese founders rated themselves higher on relatively emotional characteristics, such as aggressiveness, paternalism, and charisma than did either the U.S. presidents or the Japanese nonfounder presidents.The Japanese firms relied solely on the president for decision-making prior to the IPO more often than the U.S. firms did. However, the Japanese firms also moved in greater numbers to group decision-making around the time of the IPO.The post-IPO investment strategies of the Japanese firms were characterized by a focus on new product development, an increase in R&D spending, and investment in the company's capital plant. In contrast, the U.S. firms reported more interest in exploiting their existing market and buying other companies, usually leaving R&D spending at its pre-IPO level.Overall, it is surprising that on many characteristics, the Japanese IPOs tended to fall more to the extreme associated with new companies than did the U.S. firms. They were dominated by founder influence, the founders were apparently highly emotional, their management style was initially autocratic, and their strategies targeted innovation and internal development as avenues to growth. This pattern is consistent with a prior hypothesis that the lack of structural support for new firms in Japan results in only the most extreme personalities pursuing and succeeding in company formation.For researchers, a significant implication of this research is that Japanese ventures may not behave according to the same rules as U.S. ventures. Research samples that fail to distinguish nationality may obscure cross-regional variations.For practitioners, the major lesson is that a Japanese venture is likely to be much different from one in the U.S. Dealing with one is probably even more unlike dealing with an established company than working with a U.S. start-up might be.