Did households’ time preference change due to the Great Recession?

Household time preference for US households, as measured by the planning horizon, was fairly stable for many years, but sharply changed with the onset of the Great Recession. Based on an analysis of a combination of the 1992–2013 Survey of Consumer Finances (SCF) datasets, time preference increased in 2010 and remained high in 2013, indicating households were less patient after the onset of the recession. This pattern held up even after controlling for household characteristics.     

The Antecedents and Consequences of Affordable Value Innovations for Emerging Markets

Emerging markets offer tremendous growth opportunities for firms. While established multinational firms typically focus on premium segments in emerging markets, they often fail to leverage additional growth opportunities in so‐called good enough or low‐income segments in emerging markets. Customers in these low‐income markets have substantially different requirements and are very price sensitive. Theoretical and case‐based research suggests that innovating for these low‐income segments in emerging markets differs significantly from innovating for premium or traditional Western markets. We argue that tapping successfully into low‐income segments in emerging markets requires the development of new products that meet the low price expectations while at the same time offering also value to customers in these segments. We refer to these new products as affordable value innovations. We analyze the antecedents of affordable value innovation for emerging markets. We draw on institutional theory to derive three potentially relevant antecedents of affordable value innovation for emerging markets. These are bricolage, local embeddedness, and standardization. We test our hypotheses using multiple informant data from 47 multinational corporations involving 103 innovation projects that target low‐income customers in emerging markets. Our empirical analysis shows that all three antecedents have significant effects on the level of affordable value innovation: while bricolage and local embeddedness are positively related to the level of affordable value innovation, standardization has a negative impact. We also examine the relationship between the level of affordable value innovation and performance. We find evidence for our basic assumption that a firm's capability to develop and launch affordable value innovations is key to success in emerging markets. It indicates that a firm's investments in affordable value innovations for emerging markets pay off financially. Finally, a cross‐regional comparison of our data shows that the key findings on antecedents of affordable value innovation and its impact on performance do not vary across various emerging markets. Overall, our findings offer important implications for research on and the practice of innovation for low‐income segments in emerging markets.     

Corporate association strategies and consumer responses: The relative effectiveness of CA versus CSR communication strategy by industry type

Given the importance of communication in the realm of corporate associations, this study analyzes the roles that communication strategies play in the formation of corporate associations. The study examines (1) whether particular types of associations (corporate ability or corporate social responsibility associations) can be developed through CA- or CSR-based communication strategies, and (2) the relative effectiveness of these two association types at amplifying favorable consumer responses across three different industries (consumable goods, durable goods, and stigmatized goods). An experiment was conducted to test the proposed model with six Fortune 500 companies. The results demonstrate that communication strategies can effectively facilitate a particular type of association. Differing levels of association effectiveness were found within each industry. For the consumable goods industry, CA associations are found to be more effective than CSR associations. For the durable goods industry, CSR associations are more influential at enhancing consumer attitudes and purchase intent than CA associations, while CA associations have a larger impact on supportive communication intent. In the case of the stigmatized industry, CSR associations play a determinant role in fostering positive consumer responses. This study provides managers and communication specialists with more concrete guidance for choosing a particular corporate positioning and communication strategy.     

‘You really are a great big sister’ – parasocial relationships,credibility, and the moderating role of audience comments in influencer marketing

ABSTRACT

This study examines the moderating role of audience comments in influencer marketing. A YouTube vlog entry by a social media influencer featuring the endorsement of a brand was studied, and an experimental design featuring two conditions related to audience comments was created. The results indicate that a parasocial relationship with the influencer builds the perceived credibility of the influencer, while comments by other audience members moderate the effect. Influencer credibility positively affects brand trust and purchase intention. The findings enhance the understanding of the role of an active audience in influencer marketing.     

Intermediary roles in local mobile advertising: Findings from a Finnish study

This research examines the intermediary roles that advertising agencies perform between small local advertisers and a mobile advertising service provider. The intermediary roles have been left unexplored, although the agencies have influence on their client's decisions to use new media. A real-life experiment of new mobile advertising system was conducted, and interview data from eight advertising agencies were collected. The findings show that agencies may play three types of roles. In playing connecting, mediating, and inhibiting roles, agencies influence the value created not only for their clients' but also for themselves and the advertising media provider.     

Open Innovation in Emerging Markets: A Business Model Perspective

There has been significant contribution to the management literature on open innovation and partnership strategy, detailing their nature and impact in a wide range of business environments. However, “strategic positioning” of the business model based on their interactions with other business entities has not received enough academic attention despite its implications for the new generation of start-ups in emerging markets who do not have any prior business models to emulate. This research conceptualizes a framework that would help strategists position their firm in the market by carefully analyzing its interactions with other business and social entities in the business eco-system.     

Bridging the Gap Between Strategy and Performance: Using Leadership Style to Enable Structural Elements

Successful leaders create structural elements in order to achieve the performance objectives set forth by organizational strategy. Supply chain oriented structural elements are reflected in an organization's relationships, both within the firm and with supply chain partners. In this research effort, we examine how such structural elements can be created as a means through which to enhance performance. Our hypothesized model is rooted in strategy‐structure‐performance theory and integrates elements of servant leadership theory and social exchange theory to explain how building organizational commitment via servant leadership behaviors can ultimately impact performance. We use a survey method to collect data from 158 motor carriers. The results of our structural equation model support our hypotheses and serve to extend the discussion of supply chain structural elements and the role of leadership style in achieving organizational performance.     

Pre‐school staffs’ attitudes toward foods in relation to the pedagogic meal

The aim of this study, with the pedagogic meal in focus, was to identify pre‐school staff members’ attitudes to the role of food and meals as part of daily activities at pre‐school. Interviews were carried out at 12 pre‐schools and a total of 34 pre‐school staff participated. The staff revealed strong opinions as well as ambivalence towards how food and meals should best be integrated into their daily work and pedagogic activities. The pre‐school staffs’ lack of or insufficient education and knowledge regarding food and nutrition resulted in an ambivalent and uncertain situation with respect to how they should see themselves as teachers in the meal situation. Nevertheless, most of the staff had a clear perception of what it meant to practice a pedagogic meal. It meant helping and encouraging the children to help themselves and serving as an adult model for the children at table, though this pedagogic activity was uncommon. While the staff were satisfied with the pre‐schools’ role of catering for the children, they expressed concern about or even mistrust towards the children's parents. Despite, or perhaps due to, their inadequate knowledge about food and nutrition and the lack of specific aims for the pedagogic meal, they assumed that the public sector was a better educational institution regarding foods and a better guarantor for children's food habits and dietary intake. As the teachers’ identities have changed over the past years they have not yet found a solid ground for determining how food and meals could be integrated into their everyday work as pre‐school teachers and childminders.