An empirical examination of public attitudes towards advertising in a transitional economy

This paper examines public attitudes towards advertising within the context of transition in central and eastern Europe. Drawing on a consumer survey conducted in three cities within Romania, the study conceptualises Pollay and Mittal’s (1993) model of beliefs and attitudes towards advertising. This study introduces a novel differentiation between image and the social integration role of advertising, extending in this way the concept of the personal uses of advertising. It highlights variations in public opinion towards advertising between socio-cultural areas in Romania. Attitudes towards the institution of advertising, attitude–instrument, product information and hedonic/pleasure have a positive effect on general attitude to advertising as expected. Consumers who perceive an informational and entertaining value of advertising, those holding positive attitudes towards advertising as an institution in a free market economy and the instruments used to further it, are more likely to hold positive general attitudes towards advertising. The role of advertising exhibits a positive effect on general attitude. Image has a surprisingly negative effect on general attitude towards advertising, which contrasts with expectations based upon developed countries. Finally, the managerial implications are discussed.     

Environmental regulation and trade openness in the presence of private mitigation

Acknowledging the differential ability of individuals to privately mitigate the consequences of domestic pollution for their health is essential for an understanding of their demands for regulation of the environment and of trade in dirty goods, and for analysis of the implications of these demands for equilibrium policy choices. In a small open economy with exogenous policy, we first explain how private mitigation at a cost results in an unequal distribution of the health consequences of pollution in a manner consistent with epidemiologic studies, and consequently how the benefits and costs of trade in dirty goods interact with choices concerning private mitigation to further polarize the interests of citizens concerning environmental stringency. The economy is then embedded in a broader political economy setting, and simulated to investigate the role of private mitigation in shaping political equilibria. We show that when citizens can choose between mitigating the health consequences of domestic pollution privately and reducing pollution through public policy, the same polarization of interests underlies equilibrium policy choices in both democratic and autocratic regimes.     

Responsive and Proactive Market Orientation and New‐Product Success*

What is the relationship between market orientation and new‐product success? This important question has not been examined adequately to date because the concept of market orientation has been measured too narrowly. The concept of market orientation implies both responsive market orientation, which addresses the expressed needs of customers, and proactive market orientation, which addresses the latent needs of customers—that is, opportunities for customer value of which the customer is unaware. In the numerous market orientation–performance studies to date, the measure of market orientation has consisted virtually entirely of behaviors related to satisfying customers' expressed needs rather than satisfying their latent needs as well. The present study extends the measurement of market orientation to match the full scope of the concept—to measure both responsive market orientation and proactive market orientation. Using data from a sample of technologically diverse businesses, the present study develops a measure of proactive market orientation, refines the extant measure of responsive market orientation, and analyzes the relationship of a business's responsive and proactive market orientation to its new‐product success. The study findings imply that for any business to create and to sustain new‐product success, a responsive market orientation is not sufficient and, thus, that a proactive market orientation plays a very important positive role in a business's new‐product success. These findings make intuitive sense. For if in developing its new products a business relies solely on what customers state as their new product needs, the business is very vulnerable economically. Such a business is vulnerable not only for relying on customers' best guesses for new products, many or most of which may have little long‐term economic value for either party, but also to competitors' parallel new product responses and the inevitable resulting price competition. A business that relies solely on customers' expressed needs to develop its new products creates no new insights into value‐adding opportunities for the customer and thereby creates little or no customer dependence and foundation for customer loyalty. The important role for proactive market orientation in new‐product success is intuitively obvious—and is supported empirically in this study.     

A lower bound on computational complexity given by revelation mechanisms

Summary This paper establishes a lower bound on the computational complexity of smooth functions between smooth manifolds. It generalizes one for finite (Boolean) functions obtained (by Arbib and Spira [2]) by counting variables. Instead of a counting procedure, which cannot be used in the infinite case, the dimension of the message space of a certain type of revelation mechanism provides the bound. It also provides an intrinsic measure of the number of variables on which the function depends. This measure also gives a lower bound on computational costs associated with realizing or implementing the function by a decentralized mechanism, or by a game form.This research was supported by National Science Foundation Grant No. IRI-9020270.