Search results

1 – 10 of over 27000
Article
Publication date: 13 June 2022

Cecilia Souto Maior, Danielle Mantovani, Diego Costa Pinto and Mário Boto Ferreira

Earlier research indicates that brand choices may display different identity signals, such as altruism and benevolence for green brands or high status and exclusiveness…

Abstract

Purpose

Earlier research indicates that brand choices may display different identity signals, such as altruism and benevolence for green brands or high status and exclusiveness for premium brands. This research adds to the literature by exploring how opting for green (vs premium) brands leads consumers to feel authentic (vs hubristic) pride.

Design/methodology/approach

Three experimental studies were conducted to test the hypotheses related to green versus premium choices (Studies 1–3), public accountability (Study 2) and the underlying process of anticipated judgment (Study 3).

Findings

The findings reveal that choosing a green (vs premium) brand results in higher authentic pride and lower hubristic pride. However, the green pride effects were only observed when consumers' brand choices were publicly accountable. Finally, anticipated judgment mediates changes in authentic pride driven by green (vs premium) brands.

Originality/value

The study findings contribute preponderantly to the green consumer behavior literature and practice by providing primary evidence that green (vs premium) branding can trigger distinct patterns of pride in comparative decisions.

Details

Marketing Intelligence & Planning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 June 2006

Angela J. Black

This paper aims to examine the relationship between the conditional variance of the factors from the Fama–French three‐factor model and macroeconomic risk, where…

3640

Abstract

Purpose

This paper aims to examine the relationship between the conditional variance of the factors from the Fama–French three‐factor model and macroeconomic risk, where macroeconomic risk is proxied by the conditional variance for a default risk premium and real gross domestic product (GDP) growth.

Design/methodology/approach

A generalised autoregressive conditional heteroscedastic model is used to generate the conditional volatilities and bivariate Granger causality tests are used to examine the empirical relationship between the risk measures.

Findings

Past values of the conditional variance for a default risk premium have information that is precedent to the conditional volatility for value premium and the small stock risk premium, and the conditional variance for the market risk premium has information about the future volatility of macroeconomic risk, as proxied by the conditional variance for GDP growth.

Research limitations/implications

The implications are that conditional volatility associated with default is related to current and future volatility in value premium; however, volatility associated with the market risk premium appears to be a predictor of future macroeconomic risk. A caveat is that the results are dependent on the proxies used for macroeconomic risk and more refined measures of macroeconomic risk may yield different results.

Practical implications

This paper suggests that examination of the relationship between the volatility of macroeconomic factors and the explanatory factors in asset‐pricing models will help to further understanding of the relationship between risk and expected return.

Originality/value

This paper focuses directly on the links between risk associated with the Fama–French factors and macroeconomic risk. This added knowledge is beneficial to practitioners and academics whose interest lies in asset price modelling.

Details

Managerial Finance, vol. 32 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 25 May 2010

Sulaiman Mouselli

The aim of this paper is twofold. First, it aims to provide better understanding for the main sources behind the value premium in the UK. Second, given that the value…

Abstract

Purpose

The aim of this paper is twofold. First, it aims to provide better understanding for the main sources behind the value premium in the UK. Second, given that the value factor (HML) in the Fama‐French three‐factor model is itself a proxy for value premium, this paper seeks to illustrate the component of HML responsible for explaining UK portfolio returns.

Design/methodology/approach

For the period July 1991 to June 2006, value premium is broken into two components: one is related to small stocks and the other to big stocks. Then monthly time‐series regressions are used to test which component of value premium provides better explanatory power for UK portfolio returns.

Findings

The empirical results indicate that the value premium in average returns is due to small market capitalization stocks. Moreover, value stocks do not seem riskier than growth stocks according to their market beta. Furthermore, the significance of the value factor (HML) in explaining UK portfolio returns is mainly due to its small stock component (HMLS). The paper suggests a revision for the Fama‐French three‐factor model that replaces HML by HMLS.

Originality/value

Academics are interested in understanding the main sources of value premium and the reasons behind the significance of the value factor in explaining UK portfolio returns. Investors and fund managers who wish to exploit the value premium will tilt their portfolios towards value stocks that have low‐market capitalization. Both academics and practitioners may consider altering the Fama‐French model, as suggested by the paper, when estimating the cost of capital.

Details

The Journal of Risk Finance, vol. 11 no. 3
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 4 March 2022

Jeff Gow, Rezwanul Hasan Rana, Daniel Moscovici, Adeline Alonso Ugaglia, Lionel Valenzuela, Radu Mihailescu and Robert Coelli

There has been increasing consumer interest in recent times in the environmental providence of what they eat and drink. A number of different environmental wine…

Abstract

Purpose

There has been increasing consumer interest in recent times in the environmental providence of what they eat and drink. A number of different environmental wine certifications have been created and these include biodynamic, fairtrade, organic, natural and sustainable. The purpose of this study is to survey wine consumers in Australia about their interest in these eco-certifications and their willingness to pay (WTP) a price premium for wine with one of these eco-certifications.

Design/methodology/approach

An online survey was developed to capture the knowledge and attitudes of consumers and their socio-demographic characteristics about their WTP for eco-certified wine. Data from 454 wine consumers in Australia were collected and analysed. Descriptive statistics and Pearson’s chi-squared test analysed the significant factors which determine consumers’ attitudes towards eco-certified wines. Ordinal logistic regression with marginal effects was used to examine whether the WTP a premium for different certified wines differs significantly based on wine knowledge, attitudes and socio-demographic characteristics.

Findings

The findings of this study indicate that consumers often buy pro-environmental goods. The majority have a positive (greater than 0) WTP a premium for biodynamic, fairtrade, organic, natural and sustainable-labelled wines. The main factors influencing eco-certified wine purchase decisions by Australian consumers are previously bought eco-certified goods, previously bought eco-certified wine and respondent age. Income, education or previous wine knowledge did not positively influence WTP a price premium for eco-certified wines. Gender was not significant in the ordinal logistic regression.

Research limitations/implications

Most studies in the literature use stated preference experiments to elicit WTP and these are valuable exercises, as they can provide an indication of consumer preferences for potential certifications, before they have been introduced to the market. In this study, we used an ordinal dependent variable in the logistic regression instead of a continuous variable (because of data limitations). Using ordinal dependent variables provides information on the probability or likelihood of occurring an event.

Originality/value

The study results provide the first price premium indications that Australian consumers are willing to pay for eco-certified wines (other than organic).

Details

International Journal of Wine Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1751-1062

Keywords

Book part
Publication date: 27 September 2021

Jianjun (John) Zhu, Thomas S. Gruca and Lopo L. Rego

This study examines the empirical relationship between four broad antecedents of brand equity (branding strategy, brand structure, brand positioning and target market) and…

Abstract

This study examines the empirical relationship between four broad antecedents of brand equity (branding strategy, brand structure, brand positioning and target market) and two separate dimensions of revenue premium: price premium and volume premium. Our modeling framework aims to explain how different antecedents of brand equity influence the realized velocity and margin of branded product sales, key drivers of operating cash flow. Our generalizable empirical analyses are based on a representative dataset of over 6,500 brands, across 200 consumer-packaged goods categories, spanning three years. We find that only 20% of brands command revenue premiums, for which volume premiums are the critical determinant. Branding strategies and brand structure primarily impact volume premium. In contrast, brand positioning has little effect. Target market substantially affects both premiums. Overall, these four elements account for 73% and 69% of the explained variations in price and volume premiums, respectively. This study provides generalizable, important, and novel insights for the theory and practice of brand management regarding price positioning and extending brands into new categories.

Details

Marketing Accountability for Marketing and Non-marketing Outcomes
Type: Book
ISBN: 978-1-83867-563-9

Keywords

Article
Publication date: 25 February 2022

Zhenkuo Ding, Man Hu and Sheng Huang

The purpose of this paper is to examine the influence of bilateral political relations on the completion stage premium of cross-border mergers and acquisitions(CSPCMA) and…

Abstract

Purpose

The purpose of this paper is to examine the influence of bilateral political relations on the completion stage premium of cross-border mergers and acquisitions(CSPCMA) and the moderating roles of cultural distance, trade openness and the nature of firm ownership for this relationship.

Design/methodology/approach

Based on a sample of 401 cross-border mergers and acquisitions (M&A) conducted by Chinese companies from 1995 to 2019 in the Statistical Data Center (SDC), this article used weighted least squares (WLS) to empirically test the impact of bilateral political relations between countries on the CSPCMA.

Findings

The better the target country of entry’s bilateral political relations with China, the lower the premium of the transaction price paid by Chinese companies at the completion stage of cross-border M&A. Among the moderators, the study found cultural distance positively moderates the relationship between bilateral political relations between countries and CSPCMA. The degree of trade openness of the target country negatively moderates the relationship between bilateral political relations between countries and CSPCMA. The negative relationship between bilateral political relations between countries and CSPCMA is stronger when the acquirer is a state-owned enterprise (SOE).

Originality/value

The findings of this study not only add to the knowledge about the relationship between bilateral political relations and corporate cross-border M&A premiums, but also have managerial implications for Chinese corporate managers to sustainably reduce corporate cross-border M&A premiums.

Details

Cross Cultural & Strategic Management, vol. 29 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Book part
Publication date: 25 February 2016

Elena Crivellaro

While there has been intense debate in the empirical literature over the evolution of the college wage premium in the United States, its evolution in Europe has received…

Abstract

While there has been intense debate in the empirical literature over the evolution of the college wage premium in the United States, its evolution in Europe has received little attention. This paper investigates the causes of the evolution of the college wage premium in 12 European countries from 1994 to 2009, assessing the relevance of the supply factor as a determinant of the college wage premium. I use cross-country variation in relative supply, demand, and labour market institutions to examine their effects on the trend in wage inequality. I address possible concerns of endogeneity of the relative supply using an IV strategy exploiting the differential legislations of university autonomy and their variations over time. Results show that the strong increase in the relative supply that European countries have experienced has decreased the college wage premium. The most relevant institution is the minimun wage, which significantly decreases college wage premium.

Details

Inequality: Causes and Consequences
Type: Book
ISBN: 978-1-78560-810-0

Keywords

Book part
Publication date: 20 March 2007

Joseph Heath

Few issues in business ethics are as polarizing as the practice of risk classification and underwriting in the insurance industry. Theorists who approach the issue from a…

Abstract

Few issues in business ethics are as polarizing as the practice of risk classification and underwriting in the insurance industry. Theorists who approach the issue from a background in economics often start from the assumption that policy-holders should be charged a rate that reflects the expected loss that they bring to the insurance scheme. Yet theorists who approach the question from a background in philosophy or civil rights law often begin with a presumption against so-called “actuarially fair” premiums and in favor of “community rating,” in which everyone is charged the same price. This paper begins by examining and rejecting the three primary arguments that have been given to show that actuarially fair premiums are unjust. It then considers the two primary arguments that have been offered by those who wish to defend the practice of risk classification. These arguments overshoot their target, by requiring a “freedom to underwrite” that is much greater than the level of freedom enjoyed in most other commercial transactions. The paper concludes by presenting a defense of a more limited right to underwrite, one that grants the legitimacy of the central principle of risk classification, but permits specific deviations from that ideal when other important social goods are at stake.

Details

Insurance Ethics for a More Ethical World
Type: Book
ISBN: 978-1-84950-431-7

Article
Publication date: 4 March 2022

Neena Sondhi and Rituparna Basu

This paper attempts to explore and identify the growing segments of online buyers of premium brands in the context of the post-pandemic market in India. The…

Abstract

Purpose

This paper attempts to explore and identify the growing segments of online buyers of premium brands in the context of the post-pandemic market in India. The multi-dimensional trait of fashion orientation has been used as the psychographic construct for segmenting young urban consumers who shop on e-commerce platforms.

Design/methodology/approach

An online study across major cities resulted in a sample of 555 urban consumers of premium apparel and accessories brands. Hierarchical, two-step and k-means cluster analysis were conducted to identify diverse consumer segments and arrive at a demographic and usage-based profiling of the clusters. Furthermore, one-way analysis of variance was conducted to assess the key drivers for an online purchase among the obtained segments.

Findings

The pioneering use of fashion orientation as a base for segmentation helped identify three distinct clusters of socially conscious fashionistas, fashion involved and fashion indifferent buyers. The study identified significant differences in the demographic composition as well as their usage patterns and purchase motivations to shop online.

Originality/value

The study looks at an extremely important but neglected category of premium brands. The distinct clusters of premium brand buyers highlighted by the study adds theoretical value as well as managerial insights for the premium brand marketer as they seek to target consumers in Asian economies.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Book part
Publication date: 2 March 2011

Martín Grandes, Marcel Peter and Nicolas Pinaud

The currency premium is one of the three components of the differential between local and foreign interest rates. Emerging economies such as South Africa typically face…

Abstract

The currency premium is one of the three components of the differential between local and foreign interest rates. Emerging economies such as South Africa typically face positive interest rate differentials, that is, a higher cost of capital than developed economies. In this chapter we aim at identifying the determinants of the South African rand–U.S. dollar currency premium using monthly data over the period 1997–2008. We carry out an empirical analysis using dynamic time series econometric techniques to estimate the determinants of the one-month and one-year currency premia. Our findings show that the currency premia at both horizons are driven by long-run movements in the expected inflation differential between South Africa and the United States, risk aversion as a proxy for the price of rand exchange risk, and the volatility of the rand exchange rate as an indicator of the quantity of that risk. Misalignments in the real effective or rand–U.S. dollar bilateral exchange rates display mixed results in terms of their impact and statistical significance on both currency premium. Our parameter estimators overall are stable and robust to sample variations. Monetary policy is an important determinant of currency premia at both one-month and one-year horizons, but risk aversion is equally important to determine its time fluctuations.

Details

The Impact of the Global Financial Crisis on Emerging Financial Markets
Type: Book
ISBN: 978-0-85724-754-4

Keywords

1 – 10 of over 27000