PERCEIVED RISK AND CONSUMER DECISION MAKING

The home economist has long been interested in effective family and consumer decision making and has tended to take a holistic or macro approach to decision theory. Recently, some applications of normative decision theory to consumer decision making—including the creation of rules for dealing with risk and uncertainty—have been advanced in home management textbooks. Since the early 1960s, consumer behaviour researchers in other disciplines have been developing a behavioural, micro-decision perspective centring upon the presence of perceived risk in the purchase decision of any customer. The empirical literature in home economics does not appear to have dealt with either of these perspectives. This paper identifies perceived risk as a useful analytical variable in the study of consumer product and store decisions and presents empirical data depicting the dual components of perceived risk and its four dimensions. The relationship of the normative and behavioural approaches to decision risk is discussed and implications for future research and application in home economics are identified.     

Disclosure “Bunching”

This paper studies managers' preferences among information acquisition and disclosure policies when their firms are required to engage in “real‐time” or “continuous” financial reporting. The paper predicts that for many, but not all, processes describing the distribution of their firms' cash flows, when subject to such reporting requirements, managers will engage in disclosure “bunching,” that is, they will bunch the discretionary component of the information they acquire and disclose into a single point in time rather than spread the acquisition and disclosure of that information over time. We show that managers' preferred bunching period depends on managers' strategy for trading in their firms' shares, managers' risk aversion, the risk premium the capital market attaches to firms' shares, and the size of managers' initial ownership stakes in their firms. We also study and characterize how the equilibrium prices of firms' shares vary over time and also how managers' optimal trading strategies vary with their most preferred “bunching” strategies. Several extensions confirm the robustness of the optimality of disclosure “bunching.”     

The Impact of Post-School Joblessness on Male Black-White Wage Differentials

This study examines the employment undercurrents of the divergence in black-white wages for young males in the 1980s. By integrating school-to-work transition literature with black-white research on earnings differences, we establish a framework for linking employment during the school-to-work transition and subsequent wage differentials. We empirically confirm this link using the youth cohort of the National Longitudinal Surveys. Results suggest that the higher rates of joblessness among a subset of black youth directly translate into lower earnings for blacks and produce black-white wage divergence. Young black males with extremely high levels of joblessness during the school-to-work period face the greatest reduction in relative wages.     

Homeless Children: Coping with Material Losses

This study is part of a year long ethnographic investigation of a shelter for homeless women. The children who also live at this facility are accompanied by their mothers and other siblings and acclimate quickly to the shelter environment. However, the loss of cherished possessions due to their homeless condition as well as the inherent instability and uncertainty in their living arrangement lead these children to seek to restore a sense of self through friendships and fantasies. Social policy implications for improving their lives are briefly described.     

The Beauty Myth and Female Consumers: The Controversial Role of Advertising

Recently, a small number of consumer researchers have voiced concern regarding the question of how and to what degree advertising involving thin/attractive endorsers is linked with chronic dieting, body dissatisfaction, and eating disorders in American females. To explore the broader context of this important and controversial issue, this paper draws upon a variety of disciplines and suggests directions for future research. First is a discussion of problems associated with chronic dieting and the diet industry. Next is an exploration of the prevalence, concomitants, and origins of body dissatisfaction in American females. The paper discusses existing advertising research that gives rise to several important propositions regarding the nature of the link between advertising and body dissatisfaction. The conculsion consists of recommendations for research and a brief discussion of public policy implications.     

Declining Competition in Food Retailing: An Opportunity for Consumer Food Cooperatives?

Food cooperatives have become more popular among consumers during the past decade. Although consumers can organize cooperatives for several reasons, economic factors may be more important than indicated by previous research. Specifically, the recent growth in consumer food cooperatives may be associated with declining competition in local food markets. This article reports recent research results on market structure and performance by SMSA that address this hypothesis.