Can advertising elements improve consumer evaluations of brand extensions with a moderate or low fit?

The focus of this paper is on analyzing how consumer evaluations of brand extensions with a moderate or poor fit to the core brand can be enhanced using advertising cues such as a fit prime and advertisement elements that are typically associated with the core brand. The results of the empirical study show that using a fit prime in advertisements is beneficial for moderately fitting brand extensions, but disadvantageous for poorly fitting extensions. Moreover, the results show that advertisement elements that are typically associated with the core brand can build links between the extension and the core brand and thus enhance the perceived fit. These findings imply that the options for extending a brand should not be considered as limited to product categories similar to the category of the core product because perceived fit can be influenced by communication. © 2011 Wiley Periodicals, Inc.     

Transition on the spot: Historicity, social structure, and institutional change

Why do some countries in transition perform quite well while others still struggle with institutional reform, experiencing economic hardship and political disintegration? This paper suggests that this question can only be answered if the processes behind institutional change are well understood. Within the framework of a micro-macro model, it will be argued that historic experience shapes both mental models and the effectiveness of social learning. The historicity of economic development is behind differing development paths. Moreover, it will be shown that understanding the forces that bring about institutional change allows the political advisor to suggest strategies better adapted to the specific needs of different countries than the strategies currently employed. These findings will be applied to the problem of institutional change in rural Russia where the failure of existing reform strategies is eminent.     

The Link between Poverty and Undernourishment: Uncovering a Methodological Flaw

In their Food Security Assessment , the U.S. Department of Agriculture uses income data and a cross-country Engel curve for food energy (energy–income curve) to estimate distribution-sensitive food gaps of developing countries. In a recent Review of Agricultural Economics paper, Senauer and Sur use the same methodology to estimate headcount ratios of undernourishment. We show that the estimated Engel curve underestimates individual food consumption and, hence, overestimates food gaps and headcount ratios due to a serious flaw in the methodology.     

Religiosity and household income in Sekhukhune

Literature analysing the interrelation of religion and economic performance suggests religion to explain differences in household income. Religious communities foster economically conducive attitudes and are important sources of social capital, particularly under weak economic structures. This paper targets at investigating effects of religiosity on rural household income using survey data from Greater Sekhukhune in the Limpopo Province of South Africa. Using insights from religious studies within a conceptual framework of rural household decision-making, the authors estimate an income equation that includes measures for religious affiliation. While church membership per se does not reveal a significant effect on household income, the results show a positive and robust relationship for membership in the Zion Christian Church and the practice of African traditional religion.     

Ethical and Unethical Leadership: A Cross-Cultural and Cross-Sectoral Analysis

Current literature on ethical leadership and unethical leadership reflects a Western-based private sector perspective, pointing toward a compliance-oriented understanding of ethical and unethical leadership. As today’s executives increasingly have to ethically lead across different cultures and sectors, it becomes vitally important to develop a more holistic picture how ethical and unethical leadership is perceived in the Western and Eastern cultural cluster and the private and the public/social sector. Addressing this issue, the present study aims to identify cross-cultural and cross-sectoral commonalities and differences in international executives’ perceptions of ethical and unethical leadership. Findings from in-depth interviews (N = 36) with executives from Western and Eastern cultures working in the private or the public/social sector reveal collectively held perceptions of ethical leadership (including leader honesty, integrity, concern for responsibility/sustainability, and people orientation) and of unethical leadership (referring to leader dishonesty, corruption, egocentrism, and manipulation). Results indicate limited support for a compliance-oriented perspective on ethical and unethical leadership but yield a much greater trend toward a value-oriented perspective. Concrete practice examples illustrate these different perspectives. Cultural and sectoral particularities of executive perceptions of ethical and unethical leadership are discussed.     

What is behind the real appreciation of the accession countries’ currencies?: An investigation of the PPI-based real exchange rate

In the paper, we calculate real equilibrium exchange rates (EER) for EU accession countries and compare these with the actual exchange rate movements since the mid-1990s. The real equilibrium exchange rates are derived from models of macroeconomic balance and tested for econometrically. It is found that productivity increases can be regarded as one source of the observed PPI-based real appreciation of the accession countries’ currencies. These productivity gains experienced in the process of economic catch-up imply an increased capacity to produce high-quality export goods and are a key driving force of exports. To a large extent real appreciation can, therefore, be viewed as an equilibrium phenomenon.     

The antecedents of charity trust and its influence on charity supportive behavior

This study develops and tests a model that evaluates eight antecedents of charity trust and its influence on volunteering and donating. Secondary data from a national Australian survey (N = 1,377) was collected and data was analyzed using partial least square path analysis. Key findings include identifying individual and organizational antecedents of charity trust and its influence on charity supportive behavior. Results show that organizational transparency is a very strong antecedent, followed by the individual awareness level of an individual towards the organization. We also examined the effect of gender as a moderating influence but did not find a significant effect. We conclude with managerial implications and areas for future research.     

Euro-Area Inflation: does the Balassa–Samuelson effect matter?

The paper argues that the Balassa–Samuelson effect is of little importance for the inflation target of the ECB. First, econometric tests of the Balassa–Samuelson effect suggest that the most robust link is found between relative sectoral deflators and relative unit labour costs; i.e. a link that accounts for an incomplete wage pass-through. For the (change in the) HICP — the target of the ECB — and its components additional factors seem to cause divergent international and sectoral developments. Second, countries with high productivity growth in industry may experience a real devaluation in the sector of tradable goods which counters the real appreciation resulting from a relative increase in service prices. It follows that the difference in productivity growth and thus the difference in the size of the relative price adjustment between countries does not have unambiguous consequences for the overall inflation rate, and as such can thus not justify an inflation target well above zero.