A strategic implementation of the Average Tree solution for cycle-free graph games

In this note we provide a strategic implementation of the Average Tree solution for zero-monotonic cycle-free graph games. That is, we propose a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the average hierarchical outcome of the game. This mechanism takes into account that a player is only able to communicate with other players (i.e., to make proposals about a division of the surplus of cooperation) when they are connected in the graph.     

Efficient online exchange via fiat money

In many online systems, individuals provide services for each other; the recipient of the service obtains a benefit but the provider of the service incurs a cost. If benefit exceeds cost, provision of the service increases social welfare and should therefore be encouraged—but the individuals providing the service gain no (immediate) benefit from providing the service and hence have an incentive to withhold service. Hence, there is scope for designing a protocol that improves welfare by encouraging exchange. To operate successfully within the confines of the online environment, such a protocol should be distributed, robust, and consistent with individual incentives. This paper proposes and analyzes protocols that rely solely on the exchange of fiat money or tokens. The analysis has much in common with work on search models of money but the requirements of the environment also lead to many differences from previous analyses—and some surprises; in particular, existence of equilibrium becomes a thorny problem and the optimal quantity of money is different.     

On the Role of Social Media in the ‘Responsible’ Food Business: Blogger Buzz on Health and Obesity Issues

To contribute to the debate on the role of social media in responsible business, this article explores blogger buzz in reaction to food companies’ press releases on health and obesity issues, considering the content and the level of fit between the CSR initiatives and the company. Findings show that companies issued more product-related initiatives than promotion-related ones. Among these, less than half generated a substantial number of responses from bloggers, which could not be identified as a specific group. While new product introductions led to positive buzz, modifications of current products resulted in more negative responses, even if there was a high fit with core business. While promotion-related press releases were received negatively in general, particularly periphery promotion (compared to core promotion) generated most reactions. Our exploratory study suggests that companies can increase the likelihood of a positive reaction if they carefully consider the fit between initiatives and their core business, while taking the notion of ‘controversial fit’, relating to the unhealthy nature of original products, into account. Further research avenues and implications, as well as limitations, are discussed.     

Deregulation in Services and the Marketing Challenge

This paper contributes to the literature on international firm activities by providing the first evidence on the link between productivity and both exports and foreign direct investment (FDI) in services firms from a highly developed country. It uses unique new data from Germany, one of the leading actors in the world market for services. Statistical tests and regression analyses indicate that the productivity pecking order found in numerous studies using data for firms from manufacturing industries – where the firms with the highest productivity engage in FDI while the least productive firms serve the home market only and the productivity of exporting firms is in between – does not exist among firms from services industries. There is evidence that firms with FDI are less productive than firms that export; this finding is in line with recent empirical results reported for software firms from India.     

Exploratory Study of the Measurement Scales for the Perceived Image and Advertising Effectiveness of Celebrity Endorsers in a Tourism Context

This article presents an exploratory study of the scales used to measure the perceived image and advertising effectiveness of celebrity endorsers in a tourism context. The respondents are tourists from mainland China who were exposed to manipulated tourism destination advertisements. The results indicate that the dimension of trustworthiness is not as distinct as has been proposed, and the framework was modified accordingly. The revised model achieved an acceptable fit and is deemed appropriate for follow-up studies.     

An Investigation of Spanish SME Innovation during Different Economic Conditions

This study investigates product, process, and management innovation among a sample of Spanish manufacturing small and medium‐sized enterprises (SMEs) during the current economic downturn and a period of economic growth. Tobit analyses examined whether the level of process, product, and management innovation changed during the recessionary period relative to the expansionary period; and MCO estimations were used to show whether the recession affected the relationship between SME innovation and performance. Three main findings are: (1) innovation among Spanish manufacturing SMEs declined during the recent economic crisis; (2) the type of innovation at Spanish manufacturing SMEs changed during different economic conditions; and (3) innovation was positively associated with firm performance during the economic expansion and recession years. The results demonstrate the importance of adopting innovation into SME strategy over the business cycle. The findings have relevance to SMEs, government policymakers, and providers of consulting services.     

Let’s Get Real (Time)! The potential of real-time marketing to catalyze the sharing of brand messages

Abstract

Social media are increasingly populated with brand messages that are linked to timely events, a practice that is also known as real-time marketing (RTM). In this study, we examine whether RTM is an effective strategy to boost sharing behaviour, and if so, what moment- and content-related characteristics contribute to its effectiveness. A content analysis of brand tweets from Nielsen’s top-100 advertisers (n?=?1500) shows that RTM positively affects word of mouth. RTM is especially a more effective strategy when brand messages are linked with unpredictable events (vs. predictable). This can be explained by the meaningfulness dimension of creativity; brands make a more meaningful connection to timely moments in unpredictable RTM than in predictable RTM. Furthermore, we found support for the beneficial effects of moment-driven visuals; RTM messages are shared more when public events are visually integrated with those messages. No such effect was found for moment-driven hashtags.     

Making ads less complex,yet more creative and persuasive: the effects of conventional metaphors and irony in print advertising

Rhetorical tropes like metaphors and irony are widely used in print advertising. Current advertising literature assumes that these different tropes (metaphor, irony) are persuasive when they are sufficiently novel and complex to increase advertising elaboration. However, we propose that, in some cases, tropes can also be persuasive when they present conventional and concrete images of abstract product qualities. To test if conventionality can explain the persuasiveness of various tropes (metaphor, irony), we conducted a 2 (conventional metaphor vs. no metaphor) × 2 (conventional irony vs. no irony) multiple-message experiment. Results demonstrate that conventional metaphors are persuasive by reducing complexity and increasing creativity and ad appreciation. Conventional irony, in contrast, has little effect on persuasiveness. Thus, differentiating between various tropes (metaphor, irony) is important in predicting persuasion effects: advertisers should refrain from using conventional irony, but including conventional metaphors about abstract product qualities in print advertising is advisable.     

A Comparison of Western Business Instruction in China With U.S. Instruction: A Case Study of Perceived Program Emphases and Satisfaction Levels

This research presents a case study of a joint business degree program between an Association to Advance Collegiate Schools of Business International (AACSB‐I) accredited business school in the United States and a Chinese PhD granting partner university. The case investigates the impact of a U.S.‐based curriculum, taught by U.S. instructors and which uses all English instruction on Chinese student perceptions of program emphases and satisfaction. It compares these perceptions with those of U.S. sister students. The comparison reveals program dissatisfaction among Chinese students when contrasted to U.S. students and for the most part a failure to attend to the program emphases of the West. Reasons for the departures are explored and strategies for improvement are developed.     

The viability of cotton-based organic farming systems in India

Cotton farmers in many developing countries are facing decreasing marginal returns due to stagnating yields and high input costs. Conversion to organic management could offer an alternative. In a two year comparative study in central India covering 170 cotton fields, organic farms achieved cotton yields that were on par with those in conventional farms, whereby nutrient inputs and input costs per crop unit were reduced by half. Due to 10–20% lower total production costs and a 20% organic price premium, average gross margins from organic cotton fields were 30–40% higher than in the conventional system. Although the crops grown in rotation with cotton were sold without premium, organic farms achieved 10–20% higher incomes from agriculture. In addition to these economic benefits, the organic farming system does not burden soil and groundwater with synthetic fertilizers and pesticides. However, in this study only minor differences were detected in soil fertility parameters of organic and conventional fields. Altogether, the results suggest that conversion to organic farming can improve livelihoods of smallholders while protecting natural resources. Income loss due to reduced yields in initial years of transition, however, constitutes a major hurdle, especially for poorer farmers. It is thus important to support farmers in overcoming the obstacles of the conversion period.