LESSONS FROM THE RICH AND FAMOUS: A Cross-Cultural Comparison of Celebrity Endorsement in Advertising

Using celebrities to promote products is a popular advertising technique around the world. However, little is known about how the implementation of celebrity endorsement varies according to dominant cultural values. This study content-analyzed television commercials featuring celebrities from two diametrically different countries--the United States and Korea--in terms of two fundamental cultural dimensions: (1) low versus high context, and (2) individualism versus collectivism. Findings of this study suggest that the strategic use and creative executions of celebrity endorsement mirror the respective prevalent cultural orientations in the two countries, although some similarities do exist. Extensive discussion and suggestions for future research are provided.     

Impact of Death-Related Television Programming on Advertising Evaluation

Programming that depicts or implies death constitutes a vital component of daily television broadcasts, yet the impact of such programming on the evaluation of embedded advertising remains unexplored. Using terror management theory, we propose that exposure to routine and commonplace death-related television programming will lead to the differential evaluation of ensuing advertisements depending on whether they are perceived to be of domestic or foreign origin, and that this effect is contingent on the nature of the death-related cognitions at play at the time of ad exposure. Further, the death-related program context effects on embedded advertising are unique—ads at the end, not the beginning, of the embedded pod are affected by programming content. Based on the empirical findings from four studies we identify the cognitive processes underlying consumers' ad evaluation, isolate the pod positions when context effects are observed, and suggest a framework for television commercial scheduling.     

International Advertising Strategies by NIC Multinationals: The Case of a Korean Firm

Managers of new brands seek to leverage positive WOM and establish a critical mass of consumers who interact with their brands on social network sites (SNSs). Effective selection of ‘seeds’, or influencers, on SNSs, who will recommend the product and leverage the power of their social networks to influence other consumers is key to organic growth. This research examines the role of an influencer’s activity on a social network website (network size, membership duration, share-of-posts), brand message source (marketergenerated versus member-generated), and recipient type (SNS member versus nonmember) on an influencer’s decision to recommend a new brand and the recipient’s decision to make a referral visit. Empirical analyses of clickstream data from SNSs at a commercial website show that marketer- and consumer-generated brand ads differ in their impact on recommending propensity for high share-of-posts and long-term influencers, and for member and non-member recipients, which has implications for referral management.     

Relational benefits,their consequences,and customer membership types

The purpose of this research is to develop and test a theoretical model in which customer satisfaction mediates the relationship between a firm's relational benefits efforts (i.e. psychological, social, and special treatment benefits) and customer voluntary performance behaviors. Through a review of literature, a conceptual model was developed and then tested utilizing data collected from 522 hotel restaurant patrons. The results indicated that customer relational benefits influence customer voluntary behaviors, the impact of which is mediated by customer satisfaction. More importantly, it was found that the relationships among relational benefits, customer satisfaction, and customer voluntary performance differ depending on whether the surveyed customers had paid or free memberships with the companies in question. The managerial implications of these findings are discussed in the latter part of this article.     

Foreign direct investment motivations and knowledge acquisition from MNEs in overseas subsidiaries

Despite studies exploring factors affecting knowledge acquisition from multinational enterprises in subsidiaries, what accounts for a successful acquisition is unresolved. We argue that such disparity may stem from inattention to investment motivations of multinational enterprises (MNEs) in foreign markets and to the fact that learning patterns of subsidiaries can be influenced by foreign firms' market‐seeking or efficiency‐seeking behaviors. We find that absorptive capacity in learning organizations and daily interactions with knowledge possessors are essential to learning from parent firms. In addition, active support from parent firms is particularly crucial for subsidiaries seeking to improve operational efficiency of MNEs. We also suggest that potential absorptive capacity plays a catalyst role in initiating knowledge acquisition, particularly in cases where MNEs have market‐seeking motivations. Copyright © 2014 ASAC. Published by John Wiley & Sons, Ltd.     

Accounting for quality differences in human capital and foreign direct investment

This paper empirically investigates how cross-country differences in the quality of human capital, as they are captured by the conventional measures of international test score differences, influences the patterns of foreign direct investment. Using panel data covering 32 countries during the period between 1985 and 2004, this paper finds that a host country's quality of educational attainment plays an independent role in attracting foreign direct investment. In particular, the quality of human capital influences horizontal foreign direct investment, even after accounting for the roles of skill and factor endowments, trade costs, investment costs, and country-size and income effects.     

The Effect of Cross-Channel Price Dis/parity on Ethicality Evaluations and Purchase Intent: The Moderating Role of Price Frame

Using a scenario-based survey with a factorial between-subject experimental design, this study examines the effect of price dis/parity across multiple channels of distribution on customers' ethicality evaluations and purchase intent, with the focus on the moderating role of price frame. Results show that when the varying prices of the disparity policy were all lower than or equal to the uniform price of the parity policy, consumers did not evaluate the disparity policy as significantly less ethical than the parity policy, and were more likely to purchase from the firm with the disparity policy. However, when at least one of the varying prices of the disparity policy was higher than the uniform price of the parity policy, they evaluated the disparity policy as less ethical, and, therefore, were more likely to purchase from the firm with the parity policy, despite price incentives offered by the disparity policy. This finding suggests that the success of a cross-channel price disparity policy depends on the price frame.     

A Comparison of Young Publics’ Evaluations of Corporate Social Responsibility Practices of Multinational Corporations in the United States and South Korea

The purpose of this study was to examine how young publics in the United States and South Korea perceive the corporate social responsibility (CSR) practices of multinational corporations and evaluate the effectiveness of CSR practices in terms of organization–public relationship (OPR). Results showed that young publics in the United States and South Korea differently characterized CSR practices of multinational corporations and evaluated relationships with them. Young American participants evaluated the CSR practices of multinational corporations more favorably than did the young Korean participants. In addition, four CSR practices (internal environment, moral, discretionary, and relational) were associated with OPR dimensions in the United States, while only relational CSR practices were significantly related to OPR dimensions in South Korea. Overall, the findings highlight that cultural and societal meanings were embedded in identifying CSR practices and evaluating the relationship with multinational corporations involved in CSR practices.     

公司控制权价值:来自中国企业控制权交易案例的证据

公司控制权溢价是否存在及其数量大小在文献中一直被广泛讨论，但很少有处理中国公司状况的文献。本文利用了1994--2004年的95起公司控股权转让数据分析了中国公司控制权的价值。我们发现中国存在着一个正的公司控制权溢价，在平均水平上，控制权股份的交易价格要比非控制权股份交易的价格高14％。回归分析显示，公司控制权价值变化与公司最大股东的控制力成正比；在治理相对糟糕的地方，拥有控制权股份的要价也相对更高。     

Free Trade and Wage Inequality in an Advanced Economy

This paper develops a formal model for examining the impact of free trade on the wage inequality in the Northern economy and the sensitivity of wage inequality indices to changes in causal factors within a general equilibrium setting.The model has three types of labor: sector-specific high-skilled, mobile unskilled and immobile unskilled labor. Thus, three types of wage inequality indices are derived. Selected comparative statics for changes in consumer expenditure shares, biased technological changes, changes in relative endowments are provided.