Can socially irresponsible firms benefit from corporate advertising?

Abstract

Can corporate advertising improve firm performance following a brand crisis borne out of corporate social irresponsibility (CSI)? This article investigates socially irresponsible firms and their corporate advertising expenditures, which can be used to counter negative opinions. First, we examine whether firms experiencing a negative brand image due to socially irresponsible behavior alter their corporate advertising expenditures. Next, we assess the resulting impact of corporate advertising spending by CSI firms on overall performance. Using a sample of firms engaging in socially irresponsible behavior between 1995 and 2011, we find that such firms tend to increase their corporate advertising. Such changes in corporate advertising expenditures ultimately impact firm performance. Specifically, an increase in corporate advertising helps to reduce the negative effect of CSI on firm performance.     

Consumers' interest in learning about cooking: the influence of age,gender and education

General and governmental interest in cooking has increased recently. In part this may be because the acquisition of food preparation skills may make individuals less dependent on processed foods and reduce risks of overweight and obesity. However, little research has been conducted on consumers' interests in learning about cooking. Therefore in 2012 an online survey was conducted in Australia among 1023 adult food preparers with the aim of determining what and how they wanted to learn to cook. Questions were asked about interest in learning about cooking‐related topics, specific main meals and cooking techniques, preferred ways to learn, and their demographic characteristics. Frequency and cross‐tabulation analyses were used to compare the responses across demographic categories, and content and correspondence analyses were used to analyse meal preferences and age‐related differences. The findings show that 71% of the sample wanted to learn more about cooking. Respondents wanted to learn to cook a wide range of evening meals, especially ethnic dishes (e.g. Chinese, Thai, Italian, ‘Asian’). Most preferred to learn from television (68%), newspapers and magazines (41%), although attendance at cooking classes (34%), YouTube (27%) and special newsletters (24%) were also popular. There were few, weak associations between interest in cooking and the respondents' demographic characteristics. The findings are discussed in relation to the common problems faced by all domestic food preparers and the major opportunities to communicate about cooking.     

Technology and financial services: Marketing in times of U-commerce

This article revisits and uses the so-called U-Commerce framework to challenge financial services marketing decision makers to consider reformulating marketing objectives in an age of ubiquitous technological networks. It outlines the 4 U’s of U-Commerce – ubiquity, universality, unison and uniqueness, and revisits the original framework used to conceptualize U-Commerce. Then it identifies and describes four broad marketing objectives that financial services marketers can strive for, including amplification, attenuation, contextualization and transcension. Four broad marketing strategies can be used to achieve these objectives, namely nexus marketing, sync marketing, immersion marketing and transcension marketing. Examples specific to financial services marketing are used to illustrate and discuss these strategies.     

Consumer normalcy: Understanding the value of shopping through narratives of consumers with visual impairments

This paper extends our understanding of the symbolic and experiential value of shopping. By exploring the narratives of consumers with visual impairments, consumer normalcy is shown to be an important value of shopping implicit in discussions of shopping experiences. The informants often achieve consumer normalcy, which they reveal consists of four dimensions: participating or being-in-the-marketplace (I am here), achieving distinction through the marketplace (I am me), demonstrating competence and control (I am in control), and being perceived as an equal in the marketplace (I belong). The consumer normalcy construct reveals to readers how shopping experiences contribute to identity and the tension between acceptance by others and individual agency. Reality differs between informants, but their collective realities inform how consumers realize their self and consumption aspirations by shopping.     

Public participation and organizational change in Wisconsin land use management

This article explores the issues that arise when land use management organizations change their previous ways of relating to the public. I introduce an analytic framework for evaluating organizational changes that are grounded in participatory planning and decision making. Using a case study of a recent planning initiative of the Wisconsin Department of Natural Resources, I examine dynamics of trust, civic capacities, personal demands, history of working relationships, and interest in the issue at hand. Though preliminary, the conclusions drawn from this research illustrate how these dynamics may influence the success of participatory planning that reflects organizational change.     

Social identity in MNCs based on language and nationality

The existence of multiple languages in a multinational corporation (MNC) causes tensions in the firm both by causing problems in communicating and by creating social groups. MNCs that adopt a common corporate language that is not their home language will find a problem of competing languages. Nationality is another cultural feature that leads to perceived biases that favor home‐country nationals. We explore both of these influences using social identity theory. Our research was conducted in a Spanish MNC that has subsidiaries in 42 countries and has adopted English as its corporate language. We used a mixed‐method approach with a mailed survey of 216 managers across 42 subsidiaries in the MNC and personal interviews of headquarters executives. We found that Spanish speakers enjoyed advantages in terms of access to resources for themselves and their subsidiaries, relative to non‐Spanish speakers. This access was greater when the Spanish speakers were Spanish nationals and was moderated by geographic proximity of the subsidiary to the headquarters and age of the subsidiary.     

How Powerful CFOs Camouflage and Exploit Equity-Based Incentive Compensation

While numerous studies have examined the impact that powerful CEOs have on their compensation and overall firm decisions, relatively little is known about how powerful CFOs influence their compensation and important firm financial reporting and operational outcomes. This is somewhat surprising given the critical role CFOs play in the financial reporting process of a firm. Using managerial power theory (Bebchuk and Fried in J Econ Perspect 17:71–92, 2003) and the theory of power and self-focus (Pitesa and Thau in Acad Manag J 56(3):635–658, 2013), we predict that powerful CFOs employ a two-part strategy to camouflage excessive incentive compensation above what efficient contracting would dictate. First, powerful CFOs use their power and influence to negotiate shorter incentive pay duration to maximize the present value of their performance—based compensation. Second, when their incentive equity compensation vests, we suggest that CFOs manage earnings to further enhance their personal income. Consistent with our theoretical expectations, we find higher levels of income-increasing accrual-based earnings management and real transactions management, a potentially unethical practice, in firms with powerful CFOs who have short pay durations. We discuss the implications of our analysis in the context of mitigating CFO power and managing the ethical environment “tone at the top.”     

May the force drag your dynamic logo: The brand work-energy effect

We introduce force in dynamic brand logos as a cue to brand work and subsequent brand energy; constructs we develop and distinguish from brand engagement. We argue the phenomenon observed is due to a brand work-energy effect, whereby the depiction of a drag force (opposite direction to motion) in brand logos enhances consumer judgments of brand work, which results in greater perceived brand energy. Taking a Newtonian physics lens, we argue that the presence of a drag force within a dynamic brand logo positively affects an individual's judgment of the brand's work (effort and trying hard) and brand's energy (momentum, power, and drive) and, subsequently, their brand attitude, purchase intention, and actual behavior. Across four experiments we manipulate brand logo design through the absence of force without motion (static logo), the absence of force with motion (kinematic logo), and the presence of force with motion (i.e., gravitational, spring, air resistance, and tension force; dynamic logo). Results demonstrate that the presence of a drag force in brand logos increases brand attitude and behavior. We demonstrate that brand work and brand energy, rather than brand engagement, sequentially explain attitudinal and behavioral judgments derived from brand logo drag force through a brand work-energy effect and a brand energy halo effect. We also determine that a thrust force of air propulsion results in attenuation of our brand work-energy effect, with high magnitude of a drag force enhancing the effect.