Strategic Versus Tactical Nature of Sales Promotions

Sales promotions (SP) are short‐term instruments usually designed to yield an immediate sales effect. Previous research has suggested that SP can be seen as detrimental to a brand's consumer franchise/equity as, in the long term, SP deteriorates brand value. In this paper, we theoretically broaden the scope of SP research relation to the following topics: strategy concept, marketing strategy, the Integrated Marketing Communication (IMC) concept, the specific nature of each SP instruments and the underlying processes associated with consumer uptake of SP. We present findings that illustrate managers' perceptions of the positioning of SP instruments. We argue that the strategic nature of SP needs to be incorporated into marketers' research agendas.     

Improving workplace productivity--it isn't just about reducing absence

Employers must get more aggressive in their health and productivity strategies. A comprehensive strategy includes data analytics across health and lost-time programs, absence policies that meet today's needs for both employer and employee, health and wellness programs targeting modifiable health behaviors, and absence program administration that is aligned to operational goals. This article targets key aspects of a comprehensive long-term health and productivity strategic vision. An organization can use these aspects independently to address immediate tactical issues while it develops its broader strategy. The target areas include a view from the perspective of data management, absence program design and management, employee health and wellness, and behavioral health.     

The Ethics of Carbon Neutrality: A Critical Examination of Voluntary Carbon Offset Providers

In this article, we explore the world’s response to the increasing impact of carbon emissions on the sobering threat posed by global warming: the carbon offset market. Though the market is a relatively new one, numerous offset providers have quickly emerged under both regulated and voluntary regimes. Owing to the lack of technical literacy of some stakeholders who participate in the market, no common quality or certification structure has yet emerged for providers. To the contrary, the media warns that a relative “cowboy” atmosphere prevails in the current environment, and that there are “widespread instances of people and organizations buying worthless credits that do not yield any reductions in carbon emissions” (Harvey and Fidler, Financial Times, 2007). At this point in the evolution of the market, only a handful of offset provider-rating schemes exist; and, even these systems leave consumers with few answers when they seek to find a means by which to ensure that the said systems are having their intended impact. The purpose of this article is, first, to provide a grounded understanding of the nature of the offset market, a tendency toward carbon neutrality as a possible point of equilibrium, and the ethical tensions that surround it from the perspective of the consuming public. Second, we outline the standards environment for offset providers to illustrate most effectively the need for a single set of criteria among providers that is readily understandable by the common consumer stakeholder. We then explore the differences among the providers and articulate the specific criteria upon which providers may be evaluated by this particular stakeholder constituency, by bringing together best practices based on currently available analyses. Finally, we share the results of preliminary data collection in connection with 117 offset providers and highlight early findings. These findings allow us comparing providers effectively and efficiently on a common scale that services both providers, who thereby have greater guidance for self-assessment purposes, as well as consumer stakeholders, who then have the ability to make useful and more informed choices about carbon emission reduction in the future.     

An Exploratory Study of the Tourism,Migration–Immigration Nexus: Travel Experiences of Chinese Residents in New Zealand

This paper examines the hitherto undeveloped research area which examines the relationship between tourism and migration. Despite the emergence of a number of new studies in this area that have evolved from the interest in 'ethnic tourism', visiting friends and relatives and the relationship of tourism to migration, particularly immigration and emigration, many of these relationships remain tenuous and vague within existing conceptualisations of the area. As a result this paper explores the literature on tourism and migration, seeking to provide a cohesive synthesis of the field from publications within the realms of tourism studies, migration studies, sociology and the effect of globalisation of working lives and patterns of migration and tourism. The paper examines one specific ethnic group within New Zealand, Chinese immigrants, and establishes the travel patterns of the group, the principal motivating factors for travel, significant relationships with their recent immigration experiences and the effect of family and relatives on their travel patterns. The paper uses a hitherto neglected technique to assess the strength of these relationships - correspondence analysis.     

Institutional Investors and Firm Efficiency of Real Estate Investment Trusts

This study investigates the effect of institutional ownership on improving firm efficiency of equity Real Estate Investment Trusts (REITs), using a stochastic frontier approach. Firm inefficiency is estimated by comparing a benchmark Tobin??s Q of a hypothetical value-maximizing firm to the firm??s actual Q. We find that the average inefficiency of equity REITs is around 45.5%, and that institutional ownership can improve the firm??s corporate governance, and hence reduce firm inefficiency. Moreover, we highlight the importance of heterogeneity in institutional investors??certain types of institutional investors such as long-term, active, and top-five institutional investors, and investment advisors are more effective institutional investors in reducing firm inefficiency; whereas hedge funds and pension funds seem to aggravate the problem. In sub-sample analysis, we find that these effective institutional investors can reduce inefficiency more effectively for distressed REITs, and for REITs with high information asymmetry, and with longer term lease contracts. Lastly, we find that the negative impact of institutional ownership (except for long-term institutional investors) on firm inefficiency reduces over time, possibly due to strengthened corporate governance and regulatory environment in the REIT industry.     

New entrants in a mature market: An empirical study of the detergent market

An analysis of the UK and German detergent markets provides useful evidence for the development of a model to predict the share changes that occur when a new product enters the market. A simple share order effect (SOE) model based on Luce's Axiom of the Independence of Irrelevant Alternatives (IIA) is tested on four different new product launches. Of these, only the product with both a new brand name and a new product format is consistent with the model. In the remaining three cases, all line extensions, the empirical data deviate from the model's predictions. The two UK line extensions appear to be affected by product format; the German line extension cannibalizes the parent. From these studies, it is suggested that radical line extensions do not cannibalize whereas line extensions that have a close fit with the parent are more likely to take sales from the core brand.     

The band marches on... but with fewer resources

Consumers have split preferences for education between the types of education services that they would like to experience and the types of educational services that they want for others using the system. The primary or secondary educational institution acts as a complete agent to provide services in an environment where a smaller group of taxpayers actually funds the institution. The taxpaying group has split preferences for the funding of these services. The budget is endogenous and depends on the choices of educational services offered by the institution. The focus is, therefore, on the division of the budget of the institution between knowledge-based activities and spillover activities. Educational institutions emphasize the knowledge-based activities and the spillover activities are left underfunded.     

The Value Relevance of Equity Method Fair Value Disclosures

We assess the valuation implications of the fair value disclosures made for publicly traded securities accounted for under the equity method. We test the association between investors' stock price metrics and fair value disclosures while controlling for book values on a sample of 172 investor firm-years during 1993–1997. Our results indicate that the information in the fair value disclosures is incremental to the information provided by both an investment's equity method book value and equity method reported income. This suggests that there is nothing unique about investments in publicly traded common stock that involve significant influence that makes the fair value disclosures irrelevant for firm valuation.