Advertising Functional Foods: The Effects of Physical Body Size and Appeal Type on Ad Credibility and Purchase Intentions

When advertising functional foods, whether these are in solid or liquid form, marketers can choose different appeal types in combination with different endorser characteristics. In this research study, the authors examine how the credibility of such an ad and purchase intentions for the advertised product are influenced by the physical body size of the endorser and the appeal type used. Based on a 2 × 2 full factorial design, they find that in an ad for an energy drink, endorser body size has an effect on both of these dependent variables, while no differences are found between a functional and an emotional appeal.     

Representations of coastal risk (erosion and marine flooding) among inhabitants of at-risk municipalities

As part of an interdisciplinary research programme on coastal risks, a combined environmental psychology–geography approach was used to study representations of coastal erosion and sea flooding among inhabitants of coastal areas. The relationship between these representations and place, or more specifically sense of place, will initially be examined, followed by individuals’ preferred risk adaptation strategies. Face-to-face interviews were conducted with 894 inhabitants from five coastal municipalities in Brittany. Results show that coastal risks are not a top priority for respondents. Paying particular attention to respondents who spontaneously cited coastal rather than other risks or no risk, we show that their relationship to place differs from the other respondents, as do their preferred adaptation strategies. These results lead to a better understanding of attitudes towards coastal risks among inhabitants of at-risk areas and provide more in-depth knowledge on coastal zone vulnerability.     

The influence of terrorism risk perception on purchase involvement and safety concern of international travellers

Abstract

Using a sample of 600 international tourists travelling in Portugal, Spain and Italy, this study identifies key issues related with terrorism, risk perception, involvement and safety concerns of international tourists. A structural equation model reveals that tourists are motivated to acquire information about terrorism in the media, revealing attention to and interest in news regarding this topic, which in turn influences directly their risk perception. This risk perception influences directly the tourist’s involvement in trip planning, specifically information seeking before and during the trip. Tourists’ risk perception and involvement finally influences their safety concern. Discussion centres on the implications of this model for both theory and tourism management strategies. Last, recommendations are proposed to tourism service and destination managers and promoters regarding ways to deal with terrorism and tourists’ safety concerns.     

Inflation uncertainty revisited: a proposal for robust measurement

Any measure of unobserved inflation uncertainty relies on specific assumptions which are most likely not fulfilled completely. This calls into question whether an individual measure delivers a reliable signal. To reduce idiosyncratic measurement error, we propose using common information contained in different measures derived from survey data, a variety of forecast models, and volatility models. We show that all measures are driven by a common component, which constitutes an indicator for inflation uncertainty. Moreover, our results suggest that using only one individual disagreement measure may be misleading, particularly during turbulent times. Finally, we study the Friedman–Ball hypothesis. Using the indicator, we show that higher inflation is followed by higher uncertainty. By contrast, we obtain contradictory results for the individual measures. We also document that, after an inflationary shock, uncertainty decreases in the first two months, which is traceable to the energy component in CPI inflation.     

Buchbesprechungen

Ohne Zusammenfassung     

Household Behaviour under Market Failures: How Natural Resource Management in Agriculture Promotes Livestock Production in the Sahel

Improved water harvesting and soil erosion control using theremarkably simple practice of contour stone bunding is shownto increase grain yields by 41% in low rainfall regions of BurkinaFaso. Empirical results show that yield increases in food cropshelp food-buying farm households import-substitute in food consumption,reduce livestock production and increase seasonal migration,which is more compatible with seasonal agriculture than withthe yearlong livestock activity. Self-sufficient households,by contrast, can take advantage of higher yields to free resourcesfrom food production and allocate these to expand their livestockeconomy, thus benefiting more from the region's comparativeadvantage. We also show that greater effectiveness in cooperationin the management of common property resources helps increaseincome derived from livestock for all categories of households.However, not all forms of cooperation are effective. When cooperationis only formal, individual activities such as crops, non-agriculturalemployment and seasonal migration are pursued, as opposed tolivestock activities that rely on effective community managementof common property resources.     

What to stabilize in the open economy*

We consider the question how “best” to maintain price‐level stability in an open economy, and evaluate three possible policy choices: (a) a constant money growth rate rule; (b) a fixed exchange rate; and (c) a policy of explicit commitment to a price‐level target. In each case we assume that policy is conducted by injecting reserves into or withdrawing reserves from the “banking system.” In evaluating the three regimes, we adopt the criterion that the “best” policy should leave the least scope for indeterminacy and “excessive” economic volatility. In a steady‐state equilibrium, the choice of regime is largely irrelevant; any steady‐state equilibrium under one regime can be duplicated by an appropriate choice of the “control” variable under any other regime. However, we show that the sets of equilibria under the three regimes are dramatically different. When all countries follow the policy of fixing a constant rate of money growth, there are no equilibria displaying endogenously arising volatility and there is no indeterminacy of equilibrium. Under a regime of fixed exchange rates, indeterminacies and endogenously arising fluctuations are impossible if and only if the country with the low “reserve‐to‐deposit” ratio is charged with maintaining the fixed rate. Finally, when one country targets the time path of its price level, under very weak conditions, there will be indeterminacy of equilibrium and endogenously arising volatility driven by expectations.     

Are Acquisitions Worthwhile? An Empirical Study of the Post-Acquisition Performance of Privately Held Belgian Companies

Few studies have addressed the performance of smaller unquoted companies involved in acquisitions, especially in Continental European countries. Therefore this study addresses the post-acquisition financial characteristics of privately held companies involved in 143 Belgian acquisitions between 1992 and 1994. Specifically, this paper examines the financial performance of the acquiring firm after the acquisition, using statistical analysis of industry-adjusted variables. Our findings show that following the acquisition, the profitability, the solvency and the liquidity of most of the combined companies decline. This decline is also reflected in the failure prediction scores. With respect to the added value, acquisitions are found to be accompanied by increases in the labour productivity, but this is caused by the general improvement of gross added value per employee of Belgian companies in the last 10 years. So it seems that, contrary to the general expectations and beliefs, acquisitions usually do not seem to improve the acquirer’s financial performance. This paper was presented at the European Financial Management Association Conference (June 2001, Lugano, Switzerland) and at the VVE day (October 2001, Diepenbeek, Belgium).     

Walras's tâtonnement : a reply to Rebeyrol and Costa

Abstract

About 50 years ago a lively discussion was started in the ‘Notes and Memoranda’ sections of the Economic Journal about the new welfare economics that had been initiated by Kaldor and Hicks 10 years earlier and was heavily criticized by Little in 1950. Altogether 18 Notes appeared dealing with questions of definition, of limitations, of practical relevance and theoretical details. This paper gives an overview of this discussion and presents it as a methodological approach of the past which that declined as a consequence of the spread of the referee process.