Explicating the ‘like’ on Facebook brand pages: The effect of intensity of Facebook use,number of overall ‘likes’, and number of friends' ‘likes’ on consumers' brand outcomes

This study examined the relationship between the number of overall ‘likes’ and friends' ‘likes’ on Facebook brand pages in influencing consumers' brand attitude, brand trust, brand involvement, and purchase intention, drawing upon theoretical concepts including diffusion of innovations, social capital theory, strength of weak ties, sociometric versus perceptual popularity, and prior research in online impression formation. Results of a 2 × 2 experiment revealed significant main effects of number of overall ‘likes’ and friends' ‘likes’ on key dependent measures. A significant interaction effect was also found between overall ‘likes’ and friends' ‘likes’. Additionally, intensity of Facebook use also mediated the relationships between number of overall ‘likes’ and friends' ‘likes’ with brand attitude, brand trust, and purchase intention.     

Sluggish Recovery from the Financial Crisis: Crowding-out Effect and Contagion

Abstract

The stimulus plans by the US Government after the financial crisis in 2008 may decrease private investment by means of a crowding-out effect. The US Federal Reserve utilized quantitative easing policies to maintain the interest rate as low as possible to minimize crowding-out. The 2008 financial crisis also affects other economies through contagion effects. This paper investigates the existence of the crowding-out effect and contagion effect after the crisis using Temin and Voth's models. The empirical results from vector autoregession show that there is a crowding-out effect in the US economy as well as a contagion effect of the crisis on the Korean and Japanese economies.     

The Relation Between Earnings Management and Non‐GAAP Reporting

Managers have a variety of tools at their disposal to influence stakeholder perceptions. Earnings management and the strategic reporting of non‐GAAP earnings are just two of the available menu choices. We explore how real earnings management and accruals management influence the probability that a company will disclose a non‐GAAP adjusted earnings metric in its earnings press release and the likelihood that it will do so aggressively. We first investigate situations where managers already meet analysts’ expectations either based on strong operating performance or after employing real and accruals management. We find that when solid operating performance alone allows firms to meet expectations, managers do not employ earnings management or non‐GAAP reporting. However, when managers meet expectations using real and accruals management, they are significantly less likely to report a non‐GAAP earnings metric. Next, we explore scenarios where companies fall short of expectations. We find that when they just miss expectations after managing GAAP earnings, they are significantly more likely to employ non‐GAAP reporting, suggesting that the timing and relatively costless nature of non‐GAAP reporting allows managers to appear to meet expectations on a non‐GAAP basis when managed GAAP earnings fall short. Moreover, we find that companies are more likely to report non‐GAAP earnings (and to do so aggressively) when (i) they are unable to use real or accruals earnings management, (ii) are constrained by prior‐period accruals management, and (iii) their operating performance is poor. Taken together, our results are consistent with a substitute relation between non‐GAAP reporting and both real and accruals management.     

Multigeneration diffusion model for economic assessment of new technology

In the era of 21st century, development of emerging information technology is the essence of the advancement. This kind of new technology, however, often requires a great deal of amount of initial investment for both procedures of R&D and commercialization. As cost invested in developing the specified technology is increasing, investors are paying more attention to cost to benefit analysis (CBA). One of the basic elements of CBA for new technological development is the diffusion pattern of demand of such technology. Typically, it would be hard to presume the diffusion pattern of demand when the new product or the technology is under development. In this case, a simulation study is necessary. Many studies of technology evaluation have adopted a single generation model to simulate the diffusion pattern of demand. This approach, however, considers the diffusion of the new technology itself, not taking into account newer generation, which can replace the one just invented. In the real market situation, one must consider the competition and substitution phenomena between old and new technologies. In this paper, we show how multigeneration technology diffusion model can be applied for more accurate CBA for information technology. Additionally, Monte Carlo simulation is performed to find influential factors on the CBA of a cybernetic building system (CBS).     

Hedonic shopping motivation and co-shopper influence on utilitarian grocery shopping in superstores

Much prior literature has focused on how hedonic shopping motivation operates in hedonic shopping environments such as shopping malls, but few empirical studies have assessed hedonic shopping motivation effects in utilitarian shopping environments. Combining a field survey (Study 1) with observation using video ethnography (Study 2), our research addresses this issue. Our results empirically reveal how, through both psychological and behavioral routes, hedonic shopper motivation affects purchases in a utilitarian shopping environment, specifically a section of a superstore selling predominantly utilitarian products. Hedonic shopping motivation is found to induce consumer impulsiveness (psychological route) while also encouraging shoppers to stay longer in a store (behavioral route), which when combined result in greater consumer purchases than either route alone. Additionally we observe a moderating effect of co-shopper influences on these two routes. Implications of these findings are discussed.     

Relationship between Emotional Labor Consequences and Employees' Coping Strategy

This research begins with the intention of discerning why previous literature regarding the consequences of emotional labor is diverse in the analysis result. Regarding the result of emotional labor, alienation hypothesis and facial feedback hypothesis reveal the bipolar perspectives. Recently, several works have examined the moderating variables affecting the relationship between emotional labor and its consequences in order to solve symptoms that can frequently be found. However, there has been little study to verify empirically the moderating role of the employee's coping strategy towards emotional labor. This study elaborates a different result of emotional labor according to the coping strategy. The analysis result supports this research's assumption. In other words, it was found that it is highly probable to have only negative consequences of emotional labor only when emotional labor is executed through deep acting and surface acting, but the reverse in the case of emotional labor through genuine emotion. Such an analysis result indicates that the emotional laborer's coping strategies are worth focusing on as the new moderating variables between the emotional labor and its consequences.     

Processing Difficulty Increases Perceived Competence of Brand Acronyms

Unlike previous work that shows that processing fluency leads to positive evaluations, the present research demonstrates that processing difficulty can lead to positive inferences of a brand. In three experiments, we show that when a brand acronym is difficult to pronounce, it is evaluated favourably with respect to competence relative to warmth. In contrast, easy‐to‐pronounce acronyms are perceived as similarly warm and competent. We find that individuals perceive a difficult‐to‐pronounce acronym to be more psychologically distant than an easy‐to‐pronounce one. Furthermore, they perceive competence as a more fitting characteristic of a distant brand than warmth is. We find that this relative fit of competence over warmth results in higher competence evaluations. Theoretical and applied contributions of the findings are discussed. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Trends in the use of statistics in major advertising journals over four decades

The use of statistical techniques in data-based articles appearing in the International Journal of Advertising, Journal of Advertising, Journal of Advertising Research and Journal of Current Issues & Research in Advertising was analysed over four decade intervals (i.e., 1980s, 1990s, 2000s and 2010s) and by journal. Among the trends, the study found: (1) nearly seven of every 10 journal articles reported statistical analyses (68.8% or 541 of 786); (2) the trend for statistically based articles was remarkably consistent over the time intervals and held true for the different advertising journals with one exception; (3) the use of different statistical techniques changed over time, with statistical techniques becoming more diverse and sophisticated through the years, but more so in some advertising journals than in others; (4) statistics were correctly applied in the majority of the research reports relative to ‘study purpose’; (5) the use of different statistical techniques varied by method of data collection generally and within articles appearing in three of the four journals; and (6) the presence or absence of hypotheses and/or research questions in the advertising studies was differentially associated with the application of different statistics. The inquiry serves to move advertising research forward in two ways: first, it documents how statistical analyses have changed over time and, second, it provides insight into where the field might be headed regarding the use of statistical techniques.     

Information and adjustment in a local housing market

Existing studies on bubbles have been mainly concerned with investigating the stationarity properties of stock prices and market fundamentals. We develop a new method of testing for bubbles that relates the bubble component of stock prices to the probability of bursting in the context of the Weibull distribution. There were several eruptions and subsequent collapses of seeming bubbles over the past three decades: 1987 (Black Monday), 2000 (information technology (IT) boom) and 2007 (housing market boom). Using US monthly data for the S&P 500 and NASDAQ series, we have found that the S&P 500 series contained an explosive bubble only during the boom of the housing market that occurred before the 2007 global economic crisis, and the NASDAQ market contained an explosive bubble during the surge of stock prices peaking in 1987 and 2007, although our stationarity tests fail to detect the bubbles. No bubble was found in both the S&P and NASDAQ series during the 2000 IT boom. Our evidence corroborates the criticism that the traditional unit root and cointegration tests may not be able to detect some important class of bubbles.