Partitioned pricing: Can we always divide and prosper?

The widespread use of partitioned pricing by marketers may be the result of perceptions that it enhances the perceived value of the offer. This research identifies boundary conditions for the effectiveness of partitioned pricing by examining the role of the reasonableness of a surcharge and the need for cognition in consumers’ processing of pricing information. Three studies, each consisting of two experiments, examine the effectiveness of partitioned versus combined pricing and show that for high need for cognition persons, partitioned pricing has a more favorable effect than combined pricing when the surcharges are reasonable; these effects reverse when the surcharges are unreasonable. The studies indicate no differences between partitioned and combined pricing across surcharge conditions for low need for cognition consumers. A fourth study incorporating both reasonable and unreasonable surcharges in one experiment substantiates the conclusions of the first three studies. Finally, detailed process measures provide evidence that high versus low need for cognition persons evaluate partitioned pricing information differently in distinct surcharge conditions.     

Social media as a destination marketing tool: its use by national tourism organisations

India's protected areas (PAs), especially those designated tiger reserves, are popular tourist destinations, experiencing considerable and growing visitor numbers, but the principles of ecotourism are not well implemented. This paper analyses tourism practice in a sample of popular tiger reserves in India according to four principles of responsible ecotourism: minimisation of environmental impacts, generation of funds for conservation, benefits to local communities, and education of visitors. Evidence demonstrates that few criteria of ecotourism are met in most PAs: tourism imposes significant detrimental impacts, little of the generated revenue is captured, local communities get mostly menial jobs, and visitor education is virtually non-existent with tourism geared mainly towards thrill-seeking. The Indian Forest Service, which manages the PAs, is on the whole unprepared and ill-equipped to plan and implement proper ecotourism practices and faces constant pressure from other actors to increase tourism revenue. Periyar National Park stands out as an exception where innovative approaches involving local communities have brought about a significant positive change. Policy recommendations are offered based on limited, low-impact activities with high participation of local communities which is essential to build local support for conservation that has been historically lacking.     

Top Indian Incomes, 1922-2000

This article presents data on the evolution of top incomes andwages for 1922–2000 in India using individual tax returndata. The data show that the shares of the top 0.01 percent,0.1 percent, and 1 percent in total income shrank substantiallyfrom the 1950s to the early to mid-1980s but then rose again,so that today these shares are only slightly below what theywere in the 1920s and 1930s. This U-shaped pattern is broadlyconsistent with the evolution of economic policy in India: Fromthe 1950s to the early to mid-1980s was a period of "socialist"policies in India, whereas the subsequent period, starting withthe rise of Rajiv Gandhi, saw a gradual shift toward more probusinesspolicies. Although the initial share of the top income groupwas small, the fact that the rich were getting richer had anontrivial impact on the overall income distribution. Althoughthe impact is not large enough to fully explain the gap observedduring the 1990s between average consumption growth shown inNational Sample Survey–based data and the national accounts–baseddata, it is sufficiently large to explain a nonnegligible partof it (20–40 percent).     

An Analysis of Exports and Growth in India: Cointegration and Causality Evidence (1971–2001)

The relationship between exports and economic growth has been analysed by a number of recent empirical studies. This paper re‐examines the sources of growth for the period 1971–2001 for India. It builds upon Feder's (1983 ) model to investigate empirically the relationship between export growth and GDP growth (the export led growth hypothesis), using recent data from the Reserve Bank of India, and by focusing on GDP growth and GDP growth net of exports. We investigate the following hypotheses: (i) whether exports, imports and GDP are cointegrated using the Johansen approach and Breitung's nonparametric cointegration test; (ii) whether export growth Granger causes GDP growth; (iii) and whether export growth Granger causes investment. Finally, a VAR is constructed and impulse response functions (IRFs) are employed to investigate the effects of macroeconomic shocks.     

Attitude basis,certainty, and challenge alignment: A case of negative brand publicity

By integrating research from attitude challenge matching and consumer alignment and judgment revision, the authors explore how firms can position brands to insulate them from negative publicity and how consumers evaluate brands in reaction to such publicity. They introduce an important moderator of brand evaluation revision, prior brand attitude certainty, and propose that when negative publicity matches or “aligns” with the basis of a brand attitude, certainty in that attitude interacts with the attitude, determining the affect of the negative publicity on brand evaluations. The results of two experiments suggest that prior brand attitudes held with high certainty tend to “nsulate” brands, even when negative publicity matches or aligns with the bases of brand attitudes, whereas brand attitudes held with low certainty may exacerbate the effects of negative event publicity. The results also show that multiplex positioning (positioning a brand with both performance-and values-based attributes) may insulate brands more effectively from negative publicity. Chris Pullig (chris_pullig@baylor.edu) is an assistant professor of marketing in the Hankamer School of Business at Baylor University. Before beginning his academic career, Professor Pullig worked in the retail industry as the CEO of a chain of specialty clothing stores and also as a consultant with the Small Business Administration. He received his Ph.D. from Louisiana State University and was previously on the faculty at the University of Virginia. His research is in consumer attitudes and decision making, with an emphasis on effective creation and the protection of consumer-based brand equity. His previous work has been published in theJournal of Marketing, theJournal of the Academy of Marketing Science, theJournal of Retailing, theJournal of Consumer Psychology, theJournal of Public Policy and Marketing, and others. Richard G. Netemeyer (rgn3p@virginia.edu) is the Ralph A. Beeton Professor of Free Enterprise in the Mclntire School of Commerce at the University of Virginia. He received his PhD in business administration from the University of South Carolina in 1986. From 1986 to 2001, he was a member of the Marketing Department in the College of Business at Louisiana State University. In 2001, he joined the faculty at Mclntire. His substantive research interests include’ consumer and organizational behavior topics and public policy and social issues. His methodological research interests focus on survey methods and measurement. His research has been published in theJournal of Marketing, theJournal of Marketing Research, theJournal of Consumer Research, theJournal of Applied Psychology, theAmerican Journal of Public Health, and others. Abhijit Biswas (a.biswas@wayne.edu) is the Kmart Endowed Chair and Professor of Marketing at the School of Business Administration, Wayne State University. He received his PhD from the University of Houston. His research interest is primarily in the area of pricing and consumer behavior, and he has published numerous research papers in journals such as theJournal of Marketing, theJournal of the Academy of Marketing Science, theJournal of Retailing, theJournal of Consumer Psychology, theJournal of Public Policy and Marketing, theJournal of Advertising, theJournal of Business Research, Psychology and Marketing, Marketing Letters, and other refereed journals and proceedings. He currently serves on the editorial boards of theJournal of the Academy of Marketing Science and theJournal of Public Policy and Marketing and is the associate editor for the Business and Marketing Research track of the Journal of Business Research.     

A Hotelling–Downs model of electoral competition with the option to quit

We study a variant of the multi-candidate Hotelling–Downs model that recognizes that politicians, even after declaring candidacy, have the option of withdrawing from the electoral contest before the election date and saving the cost of continuing campaign. We find that this natural variant significantly alters equilibrium predictions. We give conditions for the existence of an equilibrium for an arbitrary finite number of candidates and an arbitrary distribution of single-peaked preferences of voters. We also provide a partial characterization of the equilibrium outcomes that addresses whether policy convergence can be a feature of equilibrium outcomes when more than two candidates enter the electoral contest.     

Determinants of Trade Misinvoicing

Trade misinvoicing should be seen as an element of de facto capital account openness. Traditional explanations for trade misinvoicing??high custom duties and weak domestic economies??are less persuasive in a world of high growth emerging markets that have low trade barriers. We construct a 53-country data set over a 26?year span, covering both industrialized and developing countries, to study the phenomena of export and import misinvoicing. Capital account openness, differentials in interest rates, political stability, corruption, indebtedness and the exchange rate regime are identified as factors related to misinvoicing.     

Drivers and impact of food inflation in India

Average food inflation in India during 2006–2013 was one of the highest among emerging market economies, and nearly double the inflation witnessed in India during the previous decade. In this paper, we analyse the behaviour and determinants of food inflation over the recent past. Our main findings include that recent surge in food inflation in India is a result of various factors. On the cost side, agricultural wage inflation is found to be a universal driver of food commodities inflation, as well as the aggregate food inflation. The contribution of agricultural wages has increased significantly in the post Mahatma Gandhi National Rural Employment Act era. Fuel inflation has a moderate impact on food inflation and the effects vary across commodities. Our analysis indicates limited role of fuel and international prices, except for in tradeables. Finally, results suggest significant pass-through effects from food to non-food and to the headline inflation.     

Petty services,profit‐led growth and rural–urban migration in a developing economy

This paper develops a structuralist urban dual economy model for a developing economy consisting of a capitalist formal sector and a “petty” or informal service sector. The petty service sector plays an important role in wage determination and capital accumulation in the formal sector. The urban dual economy is situated in the midst of a rural area endowed with generous amount of surplus labour. The rural area augments urban labour supply over time through rural–urban migration. The paper, therefore, incorporates rural–urban migration within a structuralist framework and highlights its implication for growth and structural change in urban spaces of developing economies riddled with persistent formal–informal duality.