All that glitters is not gold: The dual effect of activation technique in advertising

The research examines the two paths of influence of activation technique in advertising, defined as engaging in motor activity required to reveal the advertising message. Under the first path, activation technique enhances the perceived creativity of the advertisement, via its structural and design aspects; whereas under the second path it influences processing fluency via its compatibility with the message. In the latter, activation technique may detract from overall evaluations of the advertisement, especially when the motor activity is incompatible with the message. Two experimental designs demonstrate this dual effect and its underlying mechanism.     

The impact of visualizing use versus acquisition of a product on the appeal of its complement

Prior work on consumer visualization has focused on how visualization increases the appeal of the imagined product itself. Instead, the present work examines the effects of visualization on the appeal of the imagined product's complement. The authors distinguish between two visualized consumption actions: use and acquisition. Both are predicted to increase the appeal of the complement, but this increase is expected to be asymmetric, with imagined acquisition leading to a greater increase than imagined use. Specifically, the authors propose that imagining use evokes consideration of how one would interact with the product, which increases the salience of the imagined product's attributes. Conversely, imagining acquisition evokes consideration of why one would purchase the product, which increases the salience of the imagined product's goals. As complementarity is defined by products’ shared goals (not physical attributes), it is predicted and shown that imagining acquisition results in a greater increase in the appeal of the complement than imagining use. Four studies demonstrate the asymmetric effect of imagined use versus acquisition on preference, choice, and willingness‐to‐pay for a complement. The studies also provide evidence for the proposed process and rule out several alternative explanations. Implications for theory and practice are discussed.     

Thinking or Feeling the Risk in Online Auctions: The Effects of Priming Auction Outcomes and the Dual System on Risk Perception and Amount Bid

The present research sheds new light on the antecedents and outcomes of bidders' perceived risk. It examines the role of the two-system model in the context of activating the potential to either win or lose an online auction. This study demonstrates that when a bidder's affective system is primed, concern about losing the item is greater and ultimately the bid amount is higher when the bidder expects to lose rather than win. Conversely, when the cognitive system is primed, the anticipated goals of winning the auction – rather than the fear of losing – drive the bidder's actions. In the latter case, the bidder pays a higher amount if the expectancy of winning is primed, as opposed to the expectancy of losing. A field study on eBay and two lab studies confirm this phenomenon.     

An Examination of International Retail Franchising in Emerging Markets

There has been an urgent call from both the franchise industry and the academic community for research on world franchising markets, specifically in the retail sector. This article is an attempt to summarize the main research that has been conducted thus far on international retail franchising. The article begins with an overview of the development of the literature and then discusses the nature and scope of emerging markets, with particular reference to their impact on the stakeholders of international retail franchising. Next, the article develops a conceptual model relating international retail franchising to its stakeholders. Then, a review of the research is divided into the areas of emerging world market: Central and Eastern Europe, Mexico and South America, Asia, and other areas that include India, Kuwait, and South Africa. The article concludes by discussing the next step to developing a research base for further understanding of emerging markets in addition to the opportunities and challenges for retail franchising and future research.     

Sudden stops and the Mexican wave: Currency crises,capital flow reversals and output loss in emerging markets

Sudden stops are the simultaneous occurrence of a currency/balance of payments crisis with a reversal in capital flows. We investigate whether sudden-stop crises are a unique phenomenon and whether they entail an especially large and abrupt pattern of output collapse (a “Mexican wave”). Using a panel data set over 1975–1997 and covering 24 emerging-market economies, we distinguish between the output effects of currency crises, capital inflow reversals, and sudden-stop crises. Sudden-stop crises have a large negative, but short-lived, impact on output growth over and above that found with currency crises. A currency crisis typically reduces output by about 2–3%, while a sudden stop reduces output by an additional 6–8% in the year of the crisis. The cumulative output loss of a sudden stop is even larger, around 13–15% over a 3-year period. Our model estimates correspond closely to the output dynamics of the ‘Mexican wave’ (such as seen in Mexico in 1995, Turkey in 1994 and elsewhere), and out-of-sample predictions of the model explain well the sudden (and seemingly unexpected) collapse in output associated with the 1997–1998 Asian Crisis.     

Chinese RMB exchange rate and local currency price stability in ASEAN trade

The article uses trade data between China and ASEAN countries to test hypotheses related to pricing to market (PTM) and consequent local currency price stability (LCPS). The degree of price discrimination associated with real RMB exchange rate changes between China and ASEAN + 2 shows evidence of local currency price stability in some industries in which exporters may be less competitive. China's trade policy may have also played a role in the local currency price stability. The article finds no evidence that RMB appreciation creates a larger impact on price adjustment than RMB depreciation.