Eun Jung Lee, Yu Kyung Lee and Joon Chae
In this paper, we analyze the effect of investor attention level on expected return in the Korean stock market by investor type. We find that the risk-adjusted excess returns in…
Abstract
In this paper, we analyze the effect of investor attention level on expected return in the Korean stock market by investor type. We find that the risk-adjusted excess returns in the next period are significantly higher when the institutional and foreign investor’s attention is high. In other words, investment strategies that buy stocks in higher attention groups and sell those in lower attention groups provide significant excess returns. This result is in contrast to the argument that the market operates more competitively and moves more efficiently as the number of investors increases due to the increased investor attention. Next, we examine how the degree of attention of institutional, individual, and foreign investors affects each other. The analysis reveals that the attention of individual investors affects the attention of institutional investors in the next period, and vice versa. In addition, as a result of group analysis according to the size of company and stock price, we find that the investor's attention affects the market differently depending on the type of investors and stock price level.
Details
Keywords
The purpose of this study is to examine the effects of a Disney collaboration and Disney product line extension type on the perceptions of masstige brands and purchase intentions…
Abstract
Purpose
The purpose of this study is to examine the effects of a Disney collaboration and Disney product line extension type on the perceptions of masstige brands and purchase intentions. By identifying masstige brands as two types (i.e. born-masstige versus luxury-masstige brands), this study investigates how consumers respond to a Disney collection across different types of masstige brands.
Design/methodology/approach
The authors conducted three studies using an experimental approach.
Findings
Study 1 shows that compared to a traditional collection, a Disney collection lowered perceptions of brand luxury, but the negative effect is stronger for born-masstige brands than luxury-masstige brands. Studies 2 and 3 revealed that an upward extension enhanced perceptions of luxury for the born-masstige brand more than it did with a horizontal extension, whereas there was no difference between upward and horizontal extensions for the luxury-masstige brand.
Research limitations/implications
This study contributes to understanding how Disney collaborations influence consumers’ perceptions of masstige brands. It has implications for brand positioning and pricing strategies for practitioners collaborating with Disney or similar companies.
Originality/value
To the best of the authors’ knowledge, this study is the first of its kind to investigate consumer responses to a Disney collaborated collection across two types of masstige brands by exploring their type of product line extensions.
Details
Keywords
Retailers are known to present tensile price claims (TPCs) stating high discounts to entice shoppers. Prior research on TPCs suggests that high TPC discounts increase purchase…
Abstract
Purpose
Retailers are known to present tensile price claims (TPCs) stating high discounts to entice shoppers. Prior research on TPCs suggests that high TPC discounts increase purchase intentions. However, the current study proposes, first, that the TPC discount shifts expected price discount (EPD) and, second, that the gap between the actual price discount and the EPD influence perceptions of the discount deal. Support for these propositions would suggest that high TPC discounts will only be effective when they closely match the actual price discount. Therefore, the purpose of this paper was to evaluate the effectiveness of exaggerated maximum-discount TPCs.
Design/methodology/approach
Two experiments were used. Study 1 investigated the effect of exposure to a TPC on EPD. Study 2 examined discount discrepancy as a mediator of the relationship between a TPC and consumer perceptions (i.e. perceived savings and price fairness) and purchase intentions. PROCESS and ANOVA were used for the analysis.
Findings
This research showed that exposure to a TPC influenced consumers’ EPDs. As TPC discount increased, EPD increased and the discount discrepancy (i.e. actual price discount minus EPD) decreased (and, in some cases, became negative). The discount discrepancy influenced consumer perceptions of savings and fairness, as well as purchase intentions. Consequently, when the actual price discount encountered was not as large as the advertised TPC discount, the results showed a negative, indirect influence of exaggerated maximum-discount TPCs on consumers’ discount perceptions, mediated by the discount discrepancy.
Originality/value
Previous TPC studies found that the size of the TPC discount positively influences consumers’ discount perceptions, implying that larger discounts are more effective. However, this approach does not take into consideration the notion that larger TPC discounts increase consumer expectations about the size of discount and these expectations are used as a frame to evaluate a discount deal. The findings of the current research show a negative, indirect influence of exaggerated TPC discount on consumer perceptions and purchase intentions through discount discrepancy. Therefore, this study provides a new perspective to explain the influence of TPC discount size on consumer perceptions.
Details
Keywords
Jaeuk Khil, Song Hee Kim and Eun Jung Lee
We investigate the cross-sectional and time-series determinants of idiosyncratic volatility in the Korean market. In particular, we focus on the empirical relation between firms’…
Abstract
We investigate the cross-sectional and time-series determinants of idiosyncratic volatility in the Korean market. In particular, we focus on the empirical relation between firms’ asset growth rate and idiosyncratic stock return volatility. We find that, in the cross-section, companies with high idiosyncratic volatility tend to be small and highly leveraged, have high variance of ROE and Market to Book ratio, high turnover rate, and pay no dividends. Furthermore, firms with extreme (either high positive or negative) asset growth rates have high idiosyncratic return volatility than firms with moderate growth rates, suggesting the V-shaped relation between asset growth rate and idiosyncratic return volatility. We find that the V-shaped relation is robust even after controlling for other factors. In time-series, we find that firm-level idiosyncratic volatility is positively related to the dispersion of the cross-sectional asset growth rates. As a result, this study is contributed to show that the asset growth is the most important predictor of firm-level idiosyncratic return volatility in both the cross-section and the time-series in the Korean stock market. In addition, we show how the effect of risk factors varies with industries.
Details
Keywords
Although visual prototypicality in fashion is an observed phenomenon, empirical examinations of the link between fashion products' design prototypicality and consumer evaluations…
Abstract
Purpose
Although visual prototypicality in fashion is an observed phenomenon, empirical examinations of the link between fashion products' design prototypicality and consumer evaluations still need to be included. The present study analyzes the influence of the visual prototypicality of fashion products on consumer-perceived product values and brand preference.
Design/methodology/approach
An online survey adopting the fashion product images with significantly differing levels of visual prototypicality was used to collect data from 456 US consumers. The hypothesized relationships among visual prototypicality, product values and brand preference were analyzed through multi-group analysis.
Findings
Perceived visual typicality of fashion product designs significantly increased the hedonic and utilitarian value of the product and only indirectly increase brand preference. The hypothesized positive relationship between visual prototypicality and the product’s social value was found to be significant only in the low-price levels but became insignificant in the high-price levels.
Originality/value
The findings of this study contribute to the extant literature by first providing an initial analysis of the mechanism of visual prototypicality in the fashion product design field. The results confirm that visual prototypicality indirectly influences consumers' brand evaluations by the product’s perceived value. This relationship was previously assumed but not empirically proven only in non-fashion product categories. The study also presents additional new points, further enriching the understanding of visual typicality. Additionally, the results show the complex relationship between the visual prototypicality of fashion product designs and the perceived social value of the product, which varies depending on the price range.
Details
Keywords
The purpose of this study is to examine the effect of craftsmanship content and social distance embedded in the craftsmanship content on luxury brand experiences, perceived luxury…
Abstract
Purpose
The purpose of this study is to examine the effect of craftsmanship content and social distance embedded in the craftsmanship content on luxury brand experiences, perceived luxury and brand purchase intentions using a social media video.
Design/methodology/approach
The authors conducted a single factor (close social distance vs great social distance vs control group) using a between-subjects experimental design. The social distance was manipulated by the presence (i.e. a close social distance) or absence (i.e. a great social distance) of a consumer scene in a craftsmanship video shown on social media. The control group watched a video with non-craftsmanship content. Then, brand experience, perceived luxury and purchase intentions were measured.
Findings
The results showed that the control group perceived less luxury and had lower brand experiences and purchase intentions than the group that watched the video without a consumer scene. In addition, participants who watched the craftsmanship video that included a consumer scene (i.e. a close social distance) had stronger brand experiences than those who watched the video without the scene (i.e. a great social distance). The brand experience increased perceived luxury and purchase intentions.
Originality/value
By manipulating social distance and providing better brand experiences in social media, experiential marketing allows luxury brands to reconcile two apparently incompatible goals: maintaining an exclusive image while increasing purchase intentions.
Details
Keywords
Jung Eun Lee, Eonyou Shin and Doris H. Kincade
This study aims to investigate how image-presentation-order influences mental imagery (MI) processing and purchase intentions. This study also examines the moderating effect of a…
Abstract
Purpose
This study aims to investigate how image-presentation-order influences mental imagery (MI) processing and purchase intentions. This study also examines the moderating effect of a series of images on the relationship between image-presentation-order and MI processing.
Design/methodology/approach
This research conducted two studies using an experimental approach.
Findings
Two studies showed that MI processing was higher, when an apparel product image worn by a model with a background was shown after rather than before a simple product image (SPI), indicating the recency effect. In contrast, examining a series of images, consumers were more engaged in MI processing, when product image(s) worn by a model with a background were presented first, followed by the four SPIs, than the reversed order (primacy effect). The level of MI in two studies subsequently increased purchase intentions.
Research limitations/implications
Results of this study have the potential to provide guidance to online retailers for how to best order their product images on a website to help consumers form elaborated MI about the product and thus increase purchasing intentions.
Originality/value
Although past research has examined presentation-order effect using textual information, very limited studies have explored presentation-order effect of pictorial information. To the best of the authors’ knowledge, this research is in the forefront of investigations about the joint effect of image-presentation-order and the number of images on individuals’ perceptions.
Details
Keywords
Eun Jung Lee, Sungmin Kim and Yongwon Jang
This paper examines whether long-term foreign investors may force firms to use a costly dividend to mitigate inefficient managerial behavior. The authors also hypothesize that the…
Abstract
This paper examines whether long-term foreign investors may force firms to use a costly dividend to mitigate inefficient managerial behavior. The authors also hypothesize that the relation between foreign investment horizons and payout policy depends upon the extent of the corporate governance. The authors find that firms held by long-term foreign investors make dividend more often in the subsequent years. The authors also find that foreign investors with long-term investments do not cause firms to pay dividends when firms have strong corporate governance. It suggests that long-term foreign investors serve as a substitute for strong corporate governance with respect to controlling agency conflicts.
Details
Keywords
Aspasia Simillidou, Demetris Vrontis and Michael Christofi
Service employees engage in Emotional Labor (EL), either through surface acting (SA) or deep acting (DA), when they interact with aggressive customers, so that they are able to…
Abstract
Service employees engage in Emotional Labor (EL), either through surface acting (SA) or deep acting (DA), when they interact with aggressive customers, so that they are able to abide to the organizational rules. Current studies have shown that employees engage only in SA when they interact with aggressive customers due to a number of reasons. Based on this, the authors undertake an exhaustive review and analysis of existing literature on EL, in order to enhance our understanding of the DA concept. Consequent to this analysis, tha authors interrelate and present the various research findings into a unified comprehensive framework for engaging in DA during a service encounter. Conclusively, the authors discuss the implications of the developed framework for the scholar community and management practice in the hospitality industry, and the authors propose various avenues for further research.
Details
Keywords
The purpose of this paper is to examine the signaling effects of high versus low price discounts by integrating extant literature on price discounts, perceived risks and purchase…
Abstract
Purpose
The purpose of this paper is to examine the signaling effects of high versus low price discounts by integrating extant literature on price discounts, perceived risks and purchase intentions for products sold online. The study examines the influence of price discounts on perceived risks, and the subsequent influence of these risk perceptions on online purchase intentions.
Design/methodology/approach
This study used an experimental design. The manipulated factor was price discount (10, 30, 50, 70 and 90 per cent). Responses were collected via online surveys. Nonlinear regression analysis with the MEDCURVE macro was used for the analysis.
Findings
The results show that the discount size increases customers’ perceived risks, and that these perceived risks mediate the relationship between price discount and purchase intentions.
Practical implications
This study provides a better understanding of customers’ risk perceptions for online price discounts, which enables retailers to decide appropriate price discounts to attract customers.
Originality/value
Most previous literature focusing on price discounts takes into consideration the presentation effect on consumers’ positive perceptions, while this study investigates the price discount effect on customers’ negative perceptions. In particular, this study examines the mediating effect of perceived risks on the relationship between price discount and purchase intention, which has not been investigated in previous studies.