Strategy

The Language of Branding: Theory, Strategies and Tactics shows marketers how to use language successfully to improve brand value and influence consumer behavior.

Using a novel sample of professional asset managers, we document positive incremental alpha on newly purchased stocks that decays over twelve months. While managers are successful forecasters at these short-to-medium horizons, their average holding period is substantially longer (2.2 years). Both slow alpha decay and the horizon mismatch can be explained by strategic trading behavior.

Exploiting variation in the timing of resets of adjustable rate mortgages (ARMs), we find that a sizable decline in mortgage payments (up to 50%) induces a significant increase in car purchases (up to 35%). This effect is attenuated by voluntary deleveraging. Borrowers with lower incomes and housing wealth have significantly higher marginal propensity to consume. Areas with a larger share of ARMs were more responsive to lower interest rates and saw a relative decline in defaults and an increase in house prices, car purchases, and employment.

The article shows that outside ownership of media moves in stages -- from media properties as the mouthpiece for personal and business interests, to a second stage of conglomerates seeking economic “synergies” of performance, to a third stage dominated by financial portfolio diversification. These phases of outside media ownership correspond to the stages of economic development in that country.The article finds that in rich countries, the ownership of media by industrial companies as a way to create political influence has been declining.

We examine the relation between shareholder activism and voluntary disclosure. An important consequence of voluntary disclosure is less adverse selection in the capital markets. One class of traders that finds less adverse selection unprofitable is activist investors who target mispriced firms whose valuations they can improve. Consistent with this idea, we find that managers issue earnings and sales forecasts more frequently when their firm is more at risk of attack by activist investors, and that these additional disclosures reduce the likelihood of becoming an activist's target.

Since John Lynch’s presidential address at the 1998 annual meeting of the Association for Consumer Research (Lynch 1998), a large number of articles have appeared in the marketing literature pertaining to the review process in our field. Almost every new journal editor makes some statement about the standards and etiquette that reviewers should adopt during his or her editorial regime. For some good examples, see Shugan (2003), Desai (2011), and Kumar (2016). Other useful discussions of the review process also exist (e.g., Holbrook’s 1986 paper with seven suggestions for reviewers).

Stress can impact various aspects of a person's well-being. While some researchers have suggested that consumption-related activities may cause stress, no research has yet explored such stress among vulnerable, younger consumers. To better understand this phenomenon, the concept of adolescents' perceived brand deprivation stress (BDS) is introduced as a state of tension perceived negatively by a young consumer when he or she does not have specific brands from a particular product category.

We exploit the release of a mobile application for a financial aggregation platform to analyze how technology adoption changes consumer financial decision making. The app reduced the cost of accessing personal financial information, and we find that this led to a drop in non-sufficient fund (NSF) fees. Because of the manner in which these fees are incurred, this represents an unambiguous welfare improvement for users of the platform. The leading explanation for this result appears to be mistake avoidance due to easier access to information.

We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number of foreclosures but reached just one-third of its targeted indebted households. This shortfall was in large part due to low renegotiation intensity of a few large intermediaries and was driven by intermediary-specific factors.