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Permanent URI for this collectionhttps://hdl.handle.net/20.500.14288/6

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Now showing 1 - 7 of 7
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    PublicationOpen Access
    Base-rate information in consumer attributions of product-harm crises
    (American Marketing Association (AMA), 2012) Lei, Jing; Dawar, Niraj; Department of Business Administration; Department of Business Administration; Canlı, Zeynep Gürhan; Researcher; Department of Business Administration; College of Administrative Sciences and Economics; 16135
    Consumers spontaneously construct attributions for negative events such as product-harm crises. Base-rate information influences these attributions. The research findings suggest that for brands with positive prior beliefs, a high (vs. low) base rate of product-harm crises leads to less blame if the crisis is said to be similar to others in the industry (referred to as the "discounting effect"). However, in the absence of similarity information, a low (vs. high) base rate of crises leads to less blame toward the brand (referred to as the "subtyping effect"). For brands with negative prior beliefs, the extent of blame attributed to the brand is unaffected by the base-rate and similarity information. Importantly, the same base-rate information may have a different effect on the attribution of a subsequent crisis depending on whether discounting or subtyping occurred in the attribution of the first crisis. Consumers who discount a first crisis also tend to discount a second crisis for the same brand, whereas consumers who subtype a first crisis are unlikely to subtype again.
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    PublicationOpen Access
    Looming losses in future time perception
    (American Marketing Association (AMA), 2010) LeBoeuf, Robyn A.; Department of Business Administration; Department of Business Administration; Bilgin, Baler; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 108641
    It is proposed that a future time interval's perceived length will be affected by whether the interval ends with a gain or loss. Confirming this, several experiments indicate that consumers perceive intervals ending with losses as shorter than equivalent intervals ending with gains. The authors explore the mechanisms underlying these effects, and they identify several parallels between the current effects and loss aversion. The authors further show that these changes in time perception influence consumption decisions, and they consider the implications of the findings for theories of time perception and intertemporal choice.
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    PublicationOpen Access
    Heterogeneous price effects of consolidation:evidence from the car rental industry
    (The Institute for Operations Research and the Management Sciences (INFORMS), 2020) Misra, Kanishka; Singh, Vishal; Department of Business Administration; Güler, Ali Umut; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 143349
    We study the price effects of consolidation in the car rental industry using three cross-sections of price data from U.S. airport markets spanning the years 2005 to 2016. The auto rental industry went through a series of mergers during this period, leading to a significant increase in market concentration. We find that the concentration of ownership affects the business (weekday) and leisure (weekend) segments differently. Average weekday prices rose by 2.1% and weekend prices fell by 3.3% with the increase in market concentration. Given the periodic differences in demand from business and leisure travelers, we explain this finding with a model of horizontal product differentiation that allows for heterogeneity in customer types and firms’ marginal costs. Consolidation leads to marginal cost savings, but the extent to which these savings are passed onto different customer types depends on the magnitude of switching costs. In particular, weekday customers with high switching costs are charged higher prices because of suppliers’ augmented market power whereas the more price-sensitive weekend segment enjoys the lower prices facilitated by efficiency gains. Our findings highlight that consolidation can have differential welfare effects on different customer groups and merger analyses should account for the heterogeneous impact based on firms’ price discrimination practices rather than just considering average effects.
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    PublicationOpen Access
    The role of market orientation in advertising spending during economic collapse: the case of Turkey in 2001
    (American Marketing Association (AMA), 2014) Ozturan, Peren; Pieters, Rik; Department of Business Administration; Tunalı, Ayşegül Özsomer; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 108158
    The authors investigate the role of market orientation in advertising spending during economic contraction. They use the 2001 economic collapse in Turkey as the empirical context in which to test hypotheses regarding why some firms increase their advertising spending in a contraction period while the majority of firms cut back. Analyzing market orientation at the level of its intelligence and responsiveness facets, they find the responsiveness facet to be positively associated with increases in advertising spending but observe the intelligence facet to be negatively associated with advertising spending. Importantly, positive shifts in advertising spending during the economic contraction predict better subsequent business performance. The opposing roles of the intelligence and responsiveness facets disappear in a subsequent economic expansion period. These findings have managerial and theoretical implications. Firms that nurture the responsiveness facet of market orientation during economic contractions go against the tide to increase their advertising spending and experience the performance benefits that such countercyclical actions can amass.
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    PublicationOpen Access
    Negative interest rates, excess liquidity and retail deposits: banks' reaction to unconventional monetary policy in the euro area
    (Elsevier, 2021) Eisenschmidt, Jens; Vlassopoulos, Thomas; Department of Economics; Demiralp, Selva; Faculty Member; Department of Economics; College of Administrative Sciences and Economics; 42533
    Negative interest rate policy (NIRP) is associated with a particular friction. The remuneration of banks ' retail deposits tends to be floored at zero, which limits the transmission of policy rate cuts to bank funding costs. We investigate whether this friction affects banks' reactions under NIRP compared to a standard rate cut in the euro area. We argue that reliance on retail deposit funding and the level of excess liquidity holdings may increase banks' responsiveness to NIRP. We find evidence that banks highly exposed to NIRP tend to grant more loans, i.e. NIRP is indeed expansionary for the levels of interest rates seen in the euro area so far. This confirms studies pointing to higher risk taking by banks under NIRP and sheds some new light on results that associate NIRP with a contraction in bank loans, albeit in specific market segments. We are the first to document the importance of banks' excess liquidity holdings for the effectiveness of NIRP, pointing to a strong complementarity of NIRP with central bank liquidity injections, e.g. via asset purchases.
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    PublicationOpen Access
    Production control with price, cost, and demand uncertainty
    (Springer, 2018) Department of Business Administration; Tan, Barış; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 28600
    An optimal production flow control problem of a make-to-stock manufacturing firm with price, cost, and demand uncertainty is studied. The objective of the flow rate control problem is maximizing the average profit that is the difference between the expected revenue and the expected production, inventory holding, and backlog costs. The uncertainties in the system are captured jointly in discrete environment states. In each environment state, the price, cost, and demand take different levels. The transitions between different environment states evolve according to a time-homogenous Markov chain. By using a continuous flow model, the optimal production policy is stated as a state-dependent hedging policy. The performance of the system where the production cost alternates between a high and a low cost level and the demand is either constant or also alternates between a high and a low level is analyzed under the double-hedging policy. According to this policy, the producer produces only when the cost is low and the surplus is between the two hedging levels. However when the backlog is below the lower hedging level, the producer produces with the maximum capacity regardless of the cost. The effects of production cost, production capacity, demand variability, and the dependence of the demand and the cost on the performance of the system are analyzed analytically and numerically. It is shown that controlling the production rate optimally allows producers respond to the fluctuations in price, cost, and demand in an effective way and maximize their profits.
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    PublicationOpen Access
    The influence of mating mind-sets on brand extension evaluation
    (American Marketing Association (AMA), 2012) Monga, Alokparna Basu; Department of Business Administration; Department of Business Administration; Canlı, Zeynep Gürhan; PhD Student; Department of Business Administration; College of Administrative Sciences and Economics; 16135
    Prior research has identified several factors that influence brand extension evaluations. Extending this research, the authors suggest that external, situational factors can have an important influence on brand extension evaluations. This research focuses on mating mind-sets (i.e., thinking about a mate), which consumers commonly experience. Specifically, the authors propose that mating mind-sets triggered by the external situation can influence brand extension evaluations, particularly for men. Mating mind-sets induce male consumers (but not female consumers) to engage in relational processing, increasing fit perceptions and evaluations for moderately dissimilar brand extensions. These differences are more likely to emerge when a short-term mating mind-set is primed (vs. a long-term mating mind-set). Furthermore, using prestige brands (vs. functional brands) reduces the gap between men and women. In addition, subbrand architecture (vs. direct brand architecture) boosts the evaluations of female consumers but decreases those of male consumers. The authors find that the effects of mating mind-sets on brand extension evaluation are driven by male consumers' need to express creativity.