The effects of television commercial pacing on viewers' attention and memory

This study investigated the effects of advertising pacing (i.e. the number of visual cuts in an advertisement) on viewers' voluntary and involuntary attention to an advertisement, as well as its effects on the recall of claim-related and non-claim-related components of the advertisement. Using a limited capacity model of information processing/retrieval as its theoretical base and physiologically oriented measures of attention, this study provided some evidence that fast-paced advertisements (as compared to slower paced ones) may have a positive effect on viewers' involuntary (automatic) attention towards an advertisement, but have little differential effect on their voluntary attention. Furthermore, it appeared that the enhanced involuntary attention gained through the use of fast-paced advertisements comes in the form of attention directed towards the non-claim (advertisement executional) elements of an advertisement as opposed to the message-based (copy) elements of the advertisement. The practical and theoretical implications of these findings are discussed.     

The effects of eWOM characteristics on consumer ratings: evidence from TripAdvisor.com

Abstract

Given the rise of online review communities, the management of consumer ratings has gained much attention in the recent years. In this study, we use data from Tripadvisor.com and examine the number of stars that a review receives. Specifically, we address how a star rating is determined by the components in the focal review as well as the preceding reviews of other consumers. Our qualitative and quantitative analyses provide interesting findings as follows. A star rating has a positive relationship with the focal review’s valence. That is, the more positive a review is, the greater number of stars a review receives. The reviews of other consumers also play a role in determining a star rating of the focal review suggesting social influence among consumers. Interestingly, a review with lengthy content leads to a lower star rating only when using smartphones. We conclude with theoretical and managerial implications.     

Reverse Price Discrimination with Bayesian Buyers

This paper studies price discrimination under the situation in which buyers' prior valuations are initially observable by a seller but buyers receive further information about a product or service which remains private thereafter. The buyers interpret new information via Bayes' rule. We show that, in this environment, prices are not monotone in buyers' prior valuations. Interestingly, this results in the possibility that a seller intentionally offers a higher price to a low valuation buyer rather than a high valuation buyer (Reverse Price Discrimination). We derive this result in both monopoly and duopoly markets.     

Do fluctuations in crude oil prices have symmetric or asymmetric effects on the real exchange rate? Empirical evidence from Indonesia

Current research on the oil price impacts on exchange rates typically relies on the assumption that fluctuations in crude oil prices have symmetric impacts on a country's real exchange rate. Thus, the contribution of the paper is to use the non‐linear autoregressive distributed lag (ARDL) method of Shin, Yu, and Greenwood‐Nimmo (2014) and examine whether crude oil prices are asymmetrically passed on to the real exchange rate in the case of Indonesia. We uncover that oil price changes indeed asymmetrically affect the Indonesian rupiah in both the long and short run; i.e., the movement in the Indonesian rupiah appears to be more responsive to rising oil prices than to declining oil prices.     

Five Seconds to the Ad: How Program-Induced Mood Affects Ad Countdown Effects

The study examines how program-induced mood and a five-second countdown warning affect reception of midroll video commercials. Building on mood regulation theory, findings from three studies suggest that program-induced moods and five-second countdowns systematically influence advertising effectiveness. When the main program is tragic (comedic) and when a countdown precedes (does not precede) the midroll ad, viewers have more positive attitudes toward the ad and purchase intentions. The findings are replicated in realistic (Study 1) and controlled (Studies 2A and 2B) settings.     

Does executive compensation reflect corporate productivity?

Recent literature has given attention to the effect of CEO-specific productivity on the structure of CEO compensation. Our paper instead focuses on the effect of a different productivity factor—which we call “corporate productivity”—on CEO compensation. In particular, we show that corporate productivity affects the trade-off between incentive and risk in a non-monotonic fashion, which the literature has not yet recognized. Using various empirical proxies for corporate productivity, we show that our results are consistent with the non-monotonic relation and thus contribute to the debates in the incentive-risk trade-off literature. Second, our findings also contribute to the internal capital market literature by exploring the relation between the structure of CEO compensation and excess value.     

Exploring promising vacant technology areas in a technology-oriented company based on bibliometric analysis and visualisation*

Under technology convergence phenomenon and fast-changing social demands, it is inevitable to collect and analyze a large amount of information in order to determine a vacant technology area that can preempt the market. Thus, this research aims to propose a systematic approach to identifying vacant technology areas by reflecting the technological competitiveness of company. Vacant technology is identified as underdeveloped and undeveloped vacant areas for a firm in both macroscopic and microscopic view by generating a technology level map in a practical view. In addition, vacant technology can be identified as undiscovered vacant areas in a microscopic view by using generative topology mapping (GTM) and local outlier factor (LOF). In a respective view, the promising vacant areas are defined by developing various indicators that represent competitive strength, growth stage, and marketability in both macro and micro level, and novelty indicators that represent originality and marketability in the micro level. The proposed approach is applied to the information & communication technology (ICT) R&D technology classification to validate its usefulness. The results can be used to enhance the practical application of R&D technology planning, understand the current technology level, and perform future technology planning.     

The Role of Chonsei as a Price Protector in the Korean Housing Market

In this study, we investigate whether ‘Chonsei,’ the distinctive type of housing contract system in Korea, has a favorable impact on house prices during a market downturn. We show the mechanism in which Chonsei prevents a sharp drop in house prices based on sellers’ loss aversion behavior. Moreover, using data on the Seoul condominium (i.e. apartment) market during the 2006–2017 period, we find that Chonsei prices have a negative impact on the housing trade volume in a market recession. This finding is consistent with our argument that loss aversion behavior appears with regard to the rise in Chonsei prices and thereby Chonsei functions as a price protector in the Korean housing market.