Exploring the boundaries of the framing effect: The moderating roles of disparate expected values and perceived costs of judgmental errors

Framing effects on retail store choice decisions were investigated in four experiments. Subjects preferred the store that guaranteed (a sure option) good prices (experiment 1), product availability (experiment 2), or a rebate (experiment 3) when consequences were framed in terms of gains; subjects preferred the risky option when consequences were framed in terms of losses. Consistent with fuzzy-trace theory, framing effects were reduced when the expected values of options were disparate in a direction that disfavored sure gain or probabilistic loss options (experiment 2) and when the perceived costs of committing a judgmental error were high (experiment 3). Experiment 4 shows that the moderating effects of disparate expected values and costs of judgment errors generalize to within-subject designs.     

Exploring supportive and developmental career management through business strategies and coaching

The shift toward individualistic career management requires a supportive and developmental career approach. Using coaching practices as a manifestation of such an approach, this study reports on coaching and other career practices that are part of supportive and developmental career management in a Belgium sample (n = 154). Three other types of career management were identified as well. Supportive and developmental career management was most present in organizations that had a past or current prospector strategy, and was the least present in past or current defenders. The type of business strategy organizations indicated to pursue in the future did not have an influence on the type of career management they currently had. © 2012 Wiley Periodicals, Inc.     

Technical nomenclature,everyday language,and consumer inference

Marketing Letters - The use of technical language in marketing communications has more complex effects than what the previous research suggests. Three studies show that the effect of technical...     

TOTAL FACTOR PRODUCTIVITY ESTIMATION: A PRACTICAL REVIEW

Abstract This paper aims to provide empirical researchers with an overview of the methodological issues that arise when estimating total factor productivity at the establishment level, as well as of the existing (parametric and semi‐parametric) techniques designed to overcome them. Apart from the well‐known simultaneity and selection bias, attention is given to methodological issues that have emerged more recently and that are related to the use of deflated values of inputs and outputs (as opposed to quantities) in estimating productivity at the firm level, as well as to the endogeneity of product choice. In discussing the estimation procedures applied in the literature, attention is given to recent developments in the field. Using data on single‐product firms active in the Belgian food and beverages sector, the most commonly applied estimators are illustrated, allowing for comparison of the obtained productivity estimates by way of a simple evaluation exercise.     

Implementation of IFRS for SMEs in Emerging Economies: Stakeholder Perceptions in the Czech Republic,Hungary, Romania and Turkey

This research investigates the perceptions of stakeholders involved in financial reporting in four emerging economies (the Czech Republic, Hungary, Romania, and Turkey) regarding the possible implementation of IFRS for SMEs, in terms of costs, benefits, and strategy of adoption. In‐depth, semi‐structured interviews were conducted with representatives of main stakeholders (preparers, auditors, regulators, professional bodies, and users). We find more support for IFRS for SMEs implementation in these four countries than suggested by the results of the European Commission's 2010 consultation for the European Union. Interviews reveal differences between stakeholder groups and between countries regarding the preferred implementation approach (mandatory adoption, voluntary adoption or convergence of national regulations with IFRS for SMEs). Interviews indicate the most support for the convergence approach. However, users oppose convergence and prefer the adoption of IFRS for SMEs. The convergence approach moves regulators' attention from users' needs to preparers' preferences and preparedness. This finding is relevant in the decision‐making process of national regulators, who should balance the needs of various stakeholders, but also the country's political and economic objectives.     

Globalization drives strategic product switching

Using firm-level panel data for Estonia, we analyse the impact of international competition on firm dynamics, considering both firm closedown and product switches. We contribute to the literature in two important ways: first, this is the first paper to study the determinants of exit and product switching in an emerging market; and second, we consider explicitly the role of export opportunities. Our results indicate that globalization does not affect firm exit significantly but it is an important factor explaining why firms choose a different core product. Previous studies on industrial countries have shown that product switching has been a defensive strategy against low-cost imports. In contrast, our results suggest that Estonian firms change their core products as an offensive strategy to take advantage of the export opportunities created by a globalized economy.     

The Influence of Repetitive Health Messages and Sensitivity to Fluency on the Truth Effect in Advertising

Although merely repeating a product claim does not influence the objective validity of the claim, it often increases the subjective validity of the claim (the truth effect). Research notes that the truth effect plays an important role in health advertising. The present research investigates the moderating role of sensitivity to feelings of fluency (or processing ease) on the truth effect. The truth effect was more pronounced when the need for affect was high rather than low (Study 1) and when consumers were primed to trust their feelings (Study 2). Finally, Study 3 and Study 4 replicate these findings using advertising appeals. Advertisements that encourage consumers to focus on their feelings increase susceptibility to the truth effect.     

Footloose Multinationals in Belgium?

Using firm level panel data for the years 1996–2001, covering all sectors of the economy, the impact of multinational ownership on the exit decisions of firms located in Belgium is estimated. In this analysis, I clearly distinguish for nationality of ownership, allowing for differences between firms that are foreign-owned and multinationals rooted in the domestic economy. Controlling for various firm- and industry-specific factors, it is found that while foreign multinationals are more likely to shut down operations compared to national firms in both manufacturing and service sectors, domestic multinationals only exhibit significantly higher exit rates in the manufacturing industries. The analysis has important policy implications, especially in terms of the desirability of the large impact of multinational firms on employment and output generation in Belgium. JEL no. D21, F23, L20, L25     

Construal-level mind-sets and the perceived validity of marketing claims

Prior research shows that the repetition of unfamiliar statements increases their subjective truthfulness. The present research shows that truth ratings can also be increased without repetition. Several different manipulations of low-construal-level mind-sets increased the perceived validity of a wide variety of marketing claims across a broad spectrum of products and industries. Mismatched construals reduced this effect. The results suggest that concrete construals enhance truth ratings when consumers focus on their intuitive feelings and impressions but not when they process marketing claims analytically.