Consumer engagement with brands on social network sites: A cross-cultural comparison of China and the USA

To advance theoretical understanding of consumer engagement on social media, this cross-cultural study evaluates how culture influences consumers’ engagement levels and activities on brand pages of social network sites. It further evaluates the underlying motivations and engagement mechanisms in two culturally distinct countries, China and the USA. Specifically, social media dependency, parasocial interaction, and community identification are examined as the key antecedents of consumer-brand engagement. The results confirm the effects of the proposed antecedents and reveal both cultural differences and similarities between Chinese and American consumers’ engagement with brand pages on social network sites.     

Pricing Defaultable Bonds Using a Lévy Jump‐Diffusion Model

This paper uses a reduced‐form approach to derive a closed‐form pricing formula for defaultable bonds. The authors specify the default hazard rate as an affine function of multiple variables which follow the Lévy jump‐diffusion processes. Because such specification allows greater flexibility in the generation of a valid probability of default, their pricing model should be more accurate than the valuation models in traditional studies, which ignore the jump effects. This paper also proposes a new method for estimating the parameters in a Lévy Jump‐diffusion process. The real data from the Taiwanese bond market are used to illustrate how their model can be applied in practical situations. The authors compare the pricing results for the influential variables with no jump effects, with jump magnitudes following the normal distribution, and with jump magnitudes following the gamma distribution. The results reveal that the predictive ability is the best for the model with the jump components. The valuation model shown in this paper should help portfolio managers more accurately price defaultable bonds and more effectively hedge their portfolio holdings.     

An Integrated Group Decision Making Support Model for Corporate Financing Decisions

The essential goal of corporate finance is to maximize corporate value while reducing a firm’s financial risks. Corporate financing decision is a kind of multi-criteria based group decision making that embodies major approaches to handle qualitative criteria and quantitative limitations. However, in literature related to financing decision making, very little research uses decision making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) methods to consider the impact and dependency of its factors, or uses Goal programming (GP) to find the satisfactory financing decision under the related financial constraints. This study proposes an integrated group decision making support (GDMS) model to assist corporate financing group decision makers (DMs) in obtaining a satisfactory group solution. ANP, DEMATEL and GP are combined in this GDMS model. By using this model, the group DMs can systemically structure a multi-criteria network framework and derive priority weights of those criteria, and then deal with the quantitative financial constraints for a satisfactory group solution. An illustrative case is demonstrated for the effectiveness and practicability of this GDMS model.     

Political issues in advertising polysemy: the case of gay window advertising

This study draws on minority consumers’ interpretations of purposefully polysemic commercials to explore political issues in the consumption of advertising, and highlights the sociopolitical role of niche-targeted advertising as a powerful cultural institution in informing and defining identities. The study focusses on how lesbian, gay male, and bisexual consumers make sense of gay-oriented, yet strategically polysemic, gay window commercials. Findings suggest that participants understood these messages through the lens of their unique subcultural sensitivity and in relation to their closeted experience and consciousness of marginalization. The political meanings of niche-targeted advertising are accentuated as these minority consumers negotiate the cultural tensions of their subcultural identity and their struggle between seeking subcultural validation and seeking mainstream assimilation.     

Managing Opportunism in China: The Roles of Guanxi,Environmental Uncertainty,and Management Culture

ABSTRACT

This cross-cultural comparison aims to understand whether the influence of consumer ethnocentrism (CE) on consumer preference for domestic versus foreign products is product category and country-of-origin dependent. Three countries with dissimilar cultural orientation and economic status—China, South Korea, and the United States—were examined. American consumers were found to be more ethnocentric than Chinese and South Korean consumers. CE was found to significantly and positively predict American and Korean consumers’ preference for domestic products across product categories, while Chinese consumers’ CE did not translate into their preference for Chinese products. In addition, the relationship between CE and purchase preference varied across product categories as well as countries of origin.     

Entrepreneurship and Risk Aversion

Evans and Jovanovic (1989, Journal of Political Economy 97(4), 808–827) find that wealth is an important determinant of business startups due to liquidity constraints. However, Cressy (2000, Economic Letters 66, 235–240) argues that if risk aversion is a negative function of wealth, Evans and Jovanovic’s empirical results could be spurious and the positive effect of wealth could be due to the omission of risk aversion in the regression equation. In other words, according to Cressy, one’s wealth does not have any effect on business startups once the degree of risk aversion is accounted for. This paper attempts to investigate the validity of Cressy’s conjecture. We empirically examine the effect of wealth on the transition into self-employment, while allowing for the effect of risk aversion. Our empirical findings show that Evans and Jovanovic’s (1989) results are robust, i.e., wealth has a positive effect on business startups even allowing for the confounding effects of risk aversion.     

Integrated marketing as management of holistic consumer experience

In a bid to combine the two major perspectives (strategic communications and strategic brand management) of Integrated Marketing Communications (IMC), this article proposes a Holistic Consumer Experience Management framework. According to the framework, the key mission of IMC is to effectively manage the mediated impression of and the direct encounter with the brand, so that synergism ensues among all the interrelated elements of IMC, including research and development, manufacturing, price formulation, channel arrangement, consumer service management, marketing message construction, and communication program execution. As such, IMC is capable of enhancing the holistic consumer experience and creating a holistic brand value structure, which can unite the consumer's sensory, emotional, social, and intellectual experiences in a new and positive way.     

Fostering international brand loyalty through committed and attached relationships

The relationship-building approach, focused on the building of brand-to-consumer relationships conducive to brand loyalty formation, has become an extensively investigated topic in international brand management studies. However, the theoretical development of this approach manifests obvious diversities, causing managerial uncertainty about how to take appropriate strategic actions to put the relationship-building approach to best use. The current study, orchestrating the main concepts derived from three relationship-building paradigms with necessary adaptations and modifications, develops and validates the Relationship-Building for Strategic Brand Management Model. Its most noteworthy contribution lies in the coalescence of pragmatic utilitarianism, emotionalism and social symbolism, orienting the relationship-building approach to correspond to the principle of holistic consumer experience management. As explicated by the model, committed and attached relationships built upon the relationship foundation mirroring the holistic essentiality of holistic consumer experience are convertible into powerful driver of international brand loyalty. The model structure and causal path pattern prove to be applicable to different international product brand categories in different regions. Strategic implications are deduced from the research findings, which the international brand manager may take into consideration to maximize the effectiveness of relationship-building strategies for fostering brand loyalty in the international market.     

Social capital,strategic relatedness and the formation of intraorganizational linkages

This paper investigates the evolutionary dynamics of network formation by analyzing how organizational units create new interunit linkages for resource exchange. Using sociometric techniques and event history analysis, this study predicts the rate at which new interunit linkages are created between a newly formed unit and all the existing units in a large multinational organization. Two important constructs: social capital, derived from the literature on social structure and network formation, and strategic relatedness, derived from research on diversification and the resource‐based view of the firm, are used to explain the rate of new linkage creation. Results show that the interaction between social capital and strategic relatedness significantly affects the formation of intraorganizational linkages. Copyright © 2000 John Wiley & Sons, Ltd.     

Development of hybrid fuzzy multi-criteria decision approach to evaluate key factors for marketing strategic alliance formation based on multiple theories

This study integrates three methods for evaluating the interaction and importance of key factors, while mapping the differences between development and maintenance stages during the formation of marketing strategic alliances in the telecommunications industry. A systematic, quantitative, integrated measurement is proposed to evaluate the importance of factors. Moreover, it provides a holistic picture of similarities and differences across stages for establishing marketing strategic alliance relationships. The factors' evaluation results show that the maintenance stage is critical for the relationship as it relates to sustaining the collaboration and can determine whether a marketing strategic alliance will continue or terminate.