Investor sentiment and advertising expenditure

A strategic issue facing marketing managers is ‘how much and when’ to spend on advertising. We argue that investor sentiment in the stock market may influence advertising expenditure by affecting firms' ability to raise new funds. We show that during periods of low (high) investor sentiment, firms decrease (increase) their advertising expenditure, even though the effectiveness of advertising is greater (lower) during such periods. We also find that these results are stronger for financially constrained firms that rely more on external financing. Our findings suggest that marketing managers can improve the efficiency of their advertising expenditure by raising (reducing) it during periods of low (high) sentiment.     

Exploring the Role of Attitudinal Functions in Counterfeit Purchase Behavior via an Extended Conceptual Framework

Prior research on counterfeit purchase behavior focuses on two attitudinal functions (social‐adjustive and value‐expressive) and ignores the others (e.g., ego‐defensive, knowledge, and utilitarian), despite growing evidence that consumers’ attitudes toward a product category may serve multiple functions. We address this research gap with an extended conceptual framework that incorporates all the five attitudinal functions and explores their direct and indirect effects on counterfeit product evaluation and purchase intention. A field study with 890 shoppers in Hong Kong, a popular market for both genuine and counterfeit brands, supports most hypotheses and provides useful insights into the complex sociopsychological mechanism driving counterfeit purchase behavior.     

Multiproduct firms and antidumping duties: Evidence from India

ABSTRACT

With the growing availability of high-quality higher-dimension data in international trade, many new stylized facts have also emerged. One such stylized fact is that multiproduct firms play a significant role in international trade. In this paper, we investigate the effect of US antidumping duties on the exports of Indian multiproduct firms. In particular, we study whether US antidumping duties lead the Indian exporter to alter their product-scope to third country markets (aka to trade partners other than the US). Using a unique transaction-level data from India, we find that firms affected by US antidumping duties increased the number of products exported to other destinations by about 0.7 products, on average. This translates to a substantial 40% increase in the product-scope of these firms because a typical Indian exporting firm exported an average of 1.8 products to a given destination in our sample. We also find that firms whose products spanned multiple sectors drove most of this increase. However, we do not find any difference in the product-scope response of firms producing differentiated vs. those producing homogenous products. We find our results to be robust across various specification and sample size changes.     

Exploring impulse buying and variety seeking by retail shoppers: towards a common conceptual framework

Abstract

Impulse buying and variety seeking are both low-effort feelings-based behaviours with similar psychological origins. However, there is little research exploring the common sociopsychological processes regulating these behaviours. This gap is addressed with a conceptual framework incorporating the discrepancy between actual and optimum stimulation levels as the driver of both the behaviours, and self-monitoring as the moderator of interpersonal influences on these. Findings from a field-survey-based study with retail shoppers show that both the behaviours are responses to exploratory urges triggered by lower stimulation levels. Moreover, high self-monitors exhibit greater impulsiveness in private and seek greater variety in public compared to low self-monitors. The paper concludes with a discussion on its conceptual and managerial contribution along with some of its limitations and directions for future research.     

Impulse buying and variety seeking: A trait-correlates perspective

Impulse buying and variety seeking are low-effort feelings-based behaviors, yet the similarities and differences in their socio-psychological origin are under-explored. This article addresses this gap with a conceptual framework incorporating several individual and situational factors with a focus on three relevant consumer traits — consumer impulsiveness (CI), optimum stimulation level (OSL), and self-monitoring (SM). Findings from a survey with retail shoppers about their actual purchase decisions show that both CI and OSL have a positive association with the level of impulse buying and variety seeking. However, CI is more strongly associated with impulse buying and OSL with variety seeking. Moreover, SM relates negatively with impulse buying and positively with variety seeking; it also moderates the influence of CI and OSL on both the behaviors in opposite directions. Finally, the article discusses the contribution of this research, its limitations and some directions for future research.     

Brownfield risk communication and evaluation

Brownfield development is a risky business requiring specific knowledge and sensible judgement in order to create valuable real estate capital. This paper approaches brownfield risk in a multi-criterion, multi-actor interactive framework, taking into account the risks perceived and communicated by key actors. The paper begins with the development of a generic risk evaluation model using the analytical hierarchical process; this is followed by a primary purposive survey of experts’ stated-preference for weighting, ranking and scoring of risk factors developed earlier by the authors. The risk evaluation leads to a consistent hierarchy of risk factors influence brownfield decisions in the Melbourne context. Results indicate that site specific and project risks are the most important in brownfield development decision-making. Financial and market and planning risks are moderately important. Political and legal and socio-economic risks are relatively less important. The findings also indicate some inter sub-group variation in the relative importance of the risk factors. Developers rate financial and market and site specific risks most highly. Least of the developers’ concern is the socio-economic risk. Planners and consultants rate site specific and project risks highly. The AHP-based risk evaluation model is a new addition to the literature, and the findings may help improve explicit evaluation and communication in brownfield project financial decision and value reporting.     

Exploring impulse buying in services: toward an integrative framework

Prior research on impulse buying focuses mostly on goods, ignoring its incidence in services despite growing evidence about the prevalence of impulsive behaviors across diverse consumption contexts. This paper introduces an integrative conceptual framework to study impulse buying in both goods and services by using perceived risk as a focal construct in the impulse buying process and reports findings from two empirical studies. The first study uses a mall-intercept survey to show that perceived risk is lower and likelihood of impulse buying is greater for services with higher tangible (vs. intangible) attributes and higher search (vs. experience and credence) properties. The second study uses a lab-experiment to show significant differences in the influence of three relevant consumer traits (consumer impulsiveness, optimum stimulation level, and self-monitoring) on the level of perceived risk and impulsiveness in purchase decisions for six different services with varying levels of attributes (tangible vs. intangible) and evaluation properties (search, experience, and credence). Overall, the two studies provide substantial evidence of the presence of impulse buying in services and useful insights for researchers and services marketers.     

Dual Labor Markets and Trade Reform in China

This paper specifically models rigidities in the labor market in China and analyzes the effect of labor market liberalization on economic growth using a computable general equilibrium (CGE) model. Our results indicate that labor market reforms are essential to the realization of significant gains from China's accession in November 2001 to the World Trade Organization (WTO). In the absence of labor market reform, the gains to accession to the WTO are estimated to be minimal.     

Information Transmission Between NSE50 Spot and Derivative Platforms in India: An Empirical Study

In this study, we examine the information transmission process between spot, futures and options segments for the NIFTY 50 index. The data is used from 2003 to 2013. Empirical results show that the spot market leads the price discovery process followed by the futures market and then the options market. The spot market again leads in the volatility spillover process while options dominate the futures contracts. There is a univariate skewness spillover from spot as well as futures to the options platform. Further, long term bidirectional kurtosis spillover is observed between spot and futures with former playing a more dominant role.

     

A Computable General Equilibrium Analysis of Efficiency Improvements at Japanese Ports

In this paper we investigate the system-wide impact of increased efficiency of ports in Japan using a computable general equilibrium model developed for 1995. The Japanese Ministry of Transport has been implementing programs of the Ninth Seven-year Port Development Plan to improve port efficiency. The technological efficiency in the ports reduces the cost of shipping transportation, and the forward and backward linkages of imports and exports introduce some positive gains in the national GDP. Our analysis proves that the spillover effects are substantial on shipping transportation and to a lesser extent on the Japanese economy.