Does peace boost stock prices? Evidence from the Korean stock market

This study analyzes the impact on the Korean stock market of the inter-Korean summits in 2000, 2007, and 2018 and the North Korea–United States summit in 2018 using the event study methodology. Three portfolios, which have high exposures to North Korea risks are constructed: stocks related to Kaesong Industrial Complex (KS portfolio), stocks related to inter-Korean economic cooperation (IEC portfolio), and stocks related to the defense industry (DEF portfolio). Empirical analysis show that the cumulative abnormal returns (CARs) of KS, IEC, and DEF portfolios react positively or negatively to each summit. These results imply that peace does not simply play a role in boosting stock prices and that the stock price reflects all available information related to the summits, including the process and agreement of the summits' discussion and political context. The robustness test (performed by changing the event day to the announcement rather than the agreement) shows that KS and IEC portfolios reflect positive expectation and that the DEF portfolio reflects negative expectation in the financial market. Although each CAR pattern varies, it is true that the stock price reflects all available information of summits swiftly. In other words, our paper shows that the efficient market hypothesis holds in the Korean stock market.     

Market segmentation strategies for complex automotive products

ABSTRACT

With the advent of ‘big data’, the purpose of this empirical study was to take the opportunity to rethink conventional market segmentation strategies. This is particularly relevant for the automotive industry which is going through a period of rapid change with advanced technologies such as electric powered and autonomous vehicles, creating increased concerns as to how this complexity is communicated effectively.

A mixed methods approach was utilised to collect data from multiple sources, incorporating in-depth discussion groups, semi-structured interviews, an online survey, and data collection of communication processes through the attendance of new car product launches.

The results suggest that marketing departments should rethink their data capture methods to collect more relevant consumer information, not the contemporary trend of needs, attitude, and motivation variables that are difficult to identify and collect, but basic information on their level of familiarity with products through previous experience and exposure. The basic dimensions identified are characterised by a consumer’s expertise, involvement, and familiarity with a product. The findings are synthesised into a theoretical framework to define differing levels of product complexity, which would enable manufacturers to provide more closely defined market segmentation strategies when communicating new product information.     

Using involvement to enhance employee engagement in IT firms: examining leadership initiatives in a key developing national context

Many organisational leaders increasingly use employee involvement to serve their interests, spurred by the unitarist rationale of leader‐member exchange (LMX). Existing research into employee involvement and participation (EIP) management has mainly focused on manufacturing firms in advanced economies and has not kept pace with developments in settings where practice is primarily governed by organisational leaders plus greater use is made of informal and technologically assisted EIP. Consequently, this paper investigates the management of EIP in IT firms at the forefront of these developments in India. The findings reveal how an array of informal initiatives, including social media, are being used to permeate traditional LMX and EIP boundaries to reinforce unitarist leadership goals. Limitations to some of these initiatives are elucidated, as they are unevenly used and contested by employees. Thus, the paper contributes to critiques of LMX as an ancillary framework for EIP.     

认知负荷对自我增强的影响

自我增强是一种提高自我价值感保持个体自尊的动机，它促使人们强烈的要求获得对于自己的积极反馈或评价。它和心理健康、人际交往、自尊等有着密切的关系。本文通采用社会比较范式对自我增强的认知机制进行探讨。通过控制认知资源，结果发现：1．个体的自我增强采取的是启发式加工，在高认知负荷奈件下，自我增强更加显著。2．个体在人际关系方面存在更加显著的自我增强，在能力特质方面受认知资源的影响，高认知负荷条件下，个体在能力方面的自我增强显著。低认知负荷条件下表现出谦虚倾向。     

The role of numeracy and information load in the tourist decision-making process

The aim of the present study is to merge two strands of research that have evolved in tandem (a) the consequences of numeracy; and (b) the effect of information load on the consumer decision-making process. The study analyses the interaction effect between these two factors on decision accuracy and on a set of cognitive and affective variables of the decision-making process (namely, confusion, calibration, and emotion). We measured participants' numeracy and used an experimental design to manipulate the information load. The results showed that the effect of numeracy on decision accuracy was entirely mediated by cognitive and affective processes involved in decision-making. In particular, numeracy was found to have a negative relationship with the level of confusion, calibration, and emotions experienced during the decision-making process. The results also showed that information load interacted with numeracy, such that individuals with high numeracy maintained lower levels of emotion when placed under conditions of low information load. However, under these same conditions, individuals with low numeracy maintained positive emotions. The findings help to identify approaches that can contribute to reducing the negative effects of low numeracy among consumers, in a context where the online channel predominates (the tourism sector).     

Who cares about organizational purpose and corporate social responsibility,and how can organizations adapt? A hypermodern perspective

Organizations are becoming increasingly mindful of their purpose, clarifying their raison d’etre and fulfilling their economic, social, governance, ethical, and environmental responsibilities. One of the drivers for this behavior is stakeholders’ interest in purpose-driven organizations committed to creating positive value in society. However, less is known about these stakeholders: who they are, why they care, and how organizations can adapt in response. In this article, I use the theoretical framework of hypermodernity to propose that a specific type of stakeholders, identified as hypermodern individuals, may care about purpose-led, responsible organizations. This article highlights five characteristics of these individuals that may explain why they care, including their desire to contribute to a humane and caring world and their love for experiential consumption. Furthermore, I offer recommendations for managers on how to create actionable strategies to implement and communicate purpose and corporate social responsibility to this stakeholder group.     

Interactive music for multisensory e-commerce: The moderating role of online consumer involvement in experiential value,cognitive value,and purchase intention

Background music adds a multisensory element to marketing and e-commerce. Applying interactive sensory-enabling technologies (SETs) to online shopping websites is an area of interest in sensory marketing. This research examines interactive background music in e-commerce and investigates how online consumer involvement moderates the effects of interactive music. Single-factor experiments with three conditions (interactive music, static background music, and control) were conducted to investigate its impact on experiential value, cognitive value, and purchase intention of high- and low-involvement consumers among both students (Study 1, N = 251) and nonstudent samples (Study 2, N = 218). Different music genres were applied to stimuli of the two studies to demonstrate the generalizability of the findings. Results find that interactive music enhances the experiential value of e-commerce for low-involvement consumers. By contrast, high-involvement consumers show greater purchase intention under the interactive music condition due to a heightened level of perceived cognitive value. Involvement is an effective predictor of elaboration and purchase intention under the interactive music condition, but not under the other two conditions. The contribution is twofold: (a) it shows the impact of music as an interactive SET and, (b) demonstrates the moderating role of consumer involvement in the context of multisensory integration in e-commerce. Theoretical and practical implications are discussed along with limitations and directions for future research.     

Antecedents and consequences of tourists’ satisfaction in sport event: Mediating role of destination image

Abstract

In this study, we determined the causal relationship between some of the predictors and outcomes of sports tourists’ satisfaction using structural equation modeling. Motivation and involvement as predictors and behavioral intentions (WOM and intention to revisit) were considered as outcomes. The results indicated the significant mediating role of destination image in the relationship between involvement and satisfaction. So, Event organizers need to pay special attention to the psychological characteristics of tourists, such as their motivations and involvement. As a result, they can take some benefits in behavioral outcomes, such as word of mouths and intention to revisit.     

Accurate case‐outcome modeling in economics,psychology, and marketing

This article describes why and how to end bad science practices and shallow information‐from‐data reporting by embracing a seemingly minor but quite a radically different research paradigm that includes asymmetric, configurational‐focused case‐outcome theory construction and somewhat precise outcome testing. This radically different paradigm provides accurate point or interval estimates of case‐outcomes. As an illustration of this paradigm, the exposition in this article includes an elaboration based on additional analyses of data in research appearing in a recent issue of this journal.     

The Influence of Leisure Involvement on Flow Experience During Hiking Activity: Using Psychological Commitment as a Mediate Variable

This study investigated the mediating role of psychological commitment in the relationship between leisure involvement and flow experience and focused on selected hiking trails from the National Shoushan Nature Park in Taiwan. A sampling of recreationists on site was taken using the next-to-pass method. Structural equation modeling was employed in order to construct the correlation among variables. The findings confirmed that a higher level of leisure involvement is associated with a stronger flow experience. A recreationist's stronger psychological commitment was associated with a higher flow experience, higher leisure involvement was associated with a higher level of psychological commitment, and psychological commitment was found to play a mediating role in the relationship between leisure involvement and flow experience. Based on these findings, implications are discussed and directions for future research are also highlighted.