Effective demand and the terms of trade in a dual economy: a Kaldorian perspective

Along the line suggested by Nicholas Kaldor, the paper incorporatesinto the analysis of a dual economy effective demand as a problemof generation of agricultural surplus and its realisation intopurchasing power for industrial goods. Through this approach,it is shown how one obtains empirical predictions about unevensectoral growth rates, as well as an effect of the movementin the terms of trade on long-term industrial growth which iscontrary to that suggested by Lewis. The paper also specifiesthe process of dynamic adjustment of industrial growth in aself-reinforcing circular flow under conditions of sufficientlyhigh agricultural growth, extending the effective demand argumentin a dual economy.     

The mode of corporate diversification: Internal ventures versus acquisitions

This study investigates empirically the underlying motives for selecting the mode of corporate diversification and attempts to match the form of capital investments with a corresponding theoretical rationale for diversification. The empirical results seem to support both the transaction-costs rationale for diversification and the motive that arises from a firm's prior experience with each form of capital investment. However, the empirical findings are inconsistent with the explanation that is based on the owner-manager conflict of interest.     

Online information search termination patterns across product categories and consumer demographics

While accessing information online, consumers exhibit differences in their patterns of search, that is, time spent per search episode and search frequency. The search patterns vary across both consumer characteristics and product categories. We empirically investigate consumer online information search termination patterns, and relate the differences to product categories and consumer characteristics. Findings of such an empirical study would be useful for planning communication strategies, website design, etc. The model is calibrated on empirical data collected through online surveys. We find that consumer learning occurs when consumers search across search goods, but not when they search across experience goods.     

Economics, Psychology, and Social Dynamics of Consumer Bidding in Auctions

With increasing numbers of consumers in auction marketplaces, we highlight some recent approaches that bring additional economic, social, and psychological factors to bear on existing economic theory to better understand and explain consumers' behavior in auctions. We also highlight specific research streams that could contribute towards enriching existing economic models of bidding behavior in emerging market mechanisms. This paper is based on the special session at the 6th Triennial Invitational Choice Symposium, University of Colorado Boulder, June 2004 (co-chaired by the first two authors).     

The Impact of User-Generated Content and Traditional Media on Customer Acquisition and Retention

Customer acquisition and retention are central components of customer relationship management (CRM) and the key drivers of a firm’s long-term profit. However, our understanding of the relative impact of user-generated content (UGC) and traditional media and their synergies on customer acquisition and retention is still underdeveloped. Thus, the purpose of this research is to address two key questions: What is the effect of UGC relative to that of traditional media on customer acquisition and retention? Is there any interaction effect between UGC and traditional media on both customer acquisition and retention? To understand the differential impacts of these media, we develop a conceptual framework and propose several hypotheses. We test our hypotheses using data from the automobile and mobile game industries. Our findings indicate that UGC is much more effective in acquiring customers, while traditional media is more important for customer retention. Moreover, the volume of UGC and traditional media have a synergistic effect on customer retention. This research therefore contributes to the acquisition-retention literature while also providing important insights to managers.     

From Elicitation to Persuasion: Assessing the Structure and Effectiveness of Differential Emotions in Anti-Drunk-Driving Campaigns

In this paper, we test whether the DES III structure of emotions as described by Izard (1977) can be found in self-report data collected in the context of a campaign to deter drunk driving. Indeed, when exposed to a shocking advertisement about the consequences of drunk-driving, young adults express a range of emotions from surprise to contempt. The purpose of this research is to study and understand the structure of these emotions and their impact on persuasion.

126 social drinkers aged between 20 and 28 years old, who were also students belonging to different French universities, were exposed to a dramatic printed advertisement about drinking and driving. After viewing the ad, subjects answered a survey including different measures of emotions using Izard's DES III scale, and measures of self-efficacy and persuasion.

Factor analysis results reveal a four dimensional structure of the original DES III. Both “primary emotions” and “repulsion” have direct effects on persuasion. However, the effect of “repulsion” on persuasion is negative. This paper is, to our knowledge, the first to show that surprise comes ahead of all other emotions elicited by a shocking advertisement. It is the precursor for all other emotional responses. This research also tests an original model explaining how people respond to shocking advertisements along two distinct pathways: one leading to persuasion and another one leading to resistance to persuasion.     

Local Banking Market Frictions and Youth Crime: Evidence from Bank Failures

Journal of Financial Services Research - This paper examines the impact of local banking market frictions measured by bank failures on youth crime. Using a difference-in-differences framework, we...     

Price sensitivity,government green interventions,and green product availability triggers intention toward buying green products

In the 21st century, environmental problems are wreaking havoc, and sustainability is now of primary importance. Several external factors like population growth, industrialization, development, and overexploitation of natural resources play a crucial role in environmental degradation. Thus, the present study endeavors to explore the impact of price sensitivity, governments green interventions and green product availability on green buying intention through the lenses of the theory of planned behavior and the theory of consumption values. It also intends to examine the moderating effect of demographic factors on green buying intention. A cross-sectional study was carried out. Responses were gathered through a self-administered questionnaire-based survey. The final data set of 708 respondents were subjected to structural equation modeling for hypothesis testing. Price sensitivity, government green interventions, and green product availability show negative and significant interaction effects. Perceived behavioral control shows a relatively more substantial impact on green buying intention. Indian consumers from the age group of 41–50 years relatively have higher intention toward green buying. Overall, gender does not reveal any different approaches to environmentally friendly products. Green marketers must focus on communicating the availability of green products to reduce perceived difficulty.