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1 – 10 of over 1000Noora Arantola and Mari Juntunen
This study aims to increase the understanding of the emergence of a values-based (VB) premium private label (PL) brand reputation within a multiple-tier PL brand portfolio in…
Abstract
Purpose
This study aims to increase the understanding of the emergence of a values-based (VB) premium private label (PL) brand reputation within a multiple-tier PL brand portfolio in retailing.
Design/methodology/approach
By building on the research on PLs, brand image, brand reputation and consumer values, this study creates a conceptual foundation for the emergence of VB PL brand reputation within a multiple-tier brand portfolio among consumers and examines the emergence of such reputation empirically using interpretive exploratory qualitative laddering interviews in the context of fast-moving consumer goods.
Findings
The findings of this study illustrate that the VB reputations of the premium PL product brand and the PL brand store intertwine, ultimately relating to two terminal values: pleasure and doing good. These reputations differ remarkably from the VB reputations of the economy PL brand and the umbrella brand of the retail chain (not doing good and financial security).
Research limitations/implications
This study explains the emergence of VB brand reputation within a multiple-tier brand portfolio and introduces the use of the laddering technique in such research.
Practical implications
This study reminds brand managers to carefully design the relevant brand strategy for brands and their relationships under a brand umbrella.
Originality/value
Although much is known about PL brands and brand reputation, to the best of the authors’ knowledge, this study might be the first to increase the understanding of how a VB premium PL brand reputation emerges and accumulates from brand images within a multiple-tier brand portfolio.
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This paper aims to empirically indicate the factors influencing stock liquidity premium (i.e. the relationship between liquidity and stock returns) in one of the leading European…
Abstract
Purpose
This paper aims to empirically indicate the factors influencing stock liquidity premium (i.e. the relationship between liquidity and stock returns) in one of the leading European emerging markets, namely, the Polish one.
Design/methodology/approach
Various firms’ characteristics and market states are analysed as potentially affecting liquidity premiums in the Polish stock market. Stock returns are regressed on liquidity measures and panel models are used. Liquidity premium has been estimated in various subsamples.
Findings
The findings vividly contradict the common sense that liquidity premium raises during the periods of stress. Liquidity premium does not increase during bear markets, as investors lengthen the investment horizon when market liquidity decreases. Liquidity premium varies with the firm’s size, book-to-market value and stock risk, but these patterns seem to vanish during a bear market.
Originality/value
This is one of the first empirical papers considering conditional stock liquidity premium in an emerging market. Using a unique methodological design it is presented that liquidity premium in emerging markets behaves differently than in developed markets.
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Kimberly Lynn Jensen, Karen Lewis DeLong, Mackenzie Belen Gill and David Wheeler Hughes
This study aims to determine whether consumers are willing to pay a premium for locally produced hard apple cider and examine the factors influencing this premium. This study…
Abstract
Purpose
This study aims to determine whether consumers are willing to pay a premium for locally produced hard apple cider and examine the factors influencing this premium. This study examines the influence of hard apple cider attributes and consumer characteristics on consumer preferences for local hard apple cider.
Design/methodology/approach
Data from a 2019 survey of 875 Tennessee consumers regarding their preferences for a local hard apple cider were obtained. Probit estimates were used to calculate the premium consumers were willing to pay for a locally made hard apple cider and factors influencing this premium. A multivariate probit was used to ascertain factors influencing the importance of attributes (e.g. heirloom apples, sweetness/dryness, sparking/still and no preservatives added) on local hard apple cider preference.
Findings
Consumers would pay a $3.22 premium for local hard apple cider compared with a $6.99 reference product. Local foods preferences, urbanization, weekly purchases of other alcoholic beverages and shopping venues influenced premium amounts. Other important attributes were sweetness/dryness and no preservatives. Influence of consumer demographics suggests targeted marketing of local ciders could be successful.
Originality/value
Few studies examine consumer preferences for hard apple ciders. This study represents a cross-sectional analysis of the premium consumers would pay for local hard apple ciders and the importance of other hard apple cider attributes.
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Christopher N. Boyer and Andrew P. Griffith
Livestock Risk Protection (LRP) insurance can reduce losses from price declines for cattle producers, but LRP adoptions has been limited. In 2019 and 2020, LRP subsidies were…
Abstract
Purpose
Livestock Risk Protection (LRP) insurance can reduce losses from price declines for cattle producers, but LRP adoptions has been limited. In 2019 and 2020, LRP subsidies were increased to lower the cost, but it is unclear how much these changes lowered the cost. The objective of this research was to estimate the impact of the subsidy increase on the cost of LRP for feeder and fed cattle by month and for various insurance period lengths and levels.
Design/methodology/approach
The authors collected United States LRP offering data from 2017 to 2021. The authors estimated separate generalized least squares regression for feeder cattle and fed cattle with producer premium as the dependent variable. Independent variables were dummy variables for coverage level, insurance period, month and year as well as dummy variables in commodity years 2019 and 2020 when the LRP subsidy was increased.
Findings
The authors found the subsidy increases did reduce the cost of LRP policies for feeder and fed cattle LRP policies. Producer premiums for feeder cattle LRP polices have declined between $1.41 to $1.90 per cwt and $0.95 to $1.56 per cwt for fed cattle LRP policies depending on the coverage level. Results indicate these subsidy increases did lower the LRP premium costs to producers.
Originality/value
Results show policy implications from the subsidy increases and will be informative to producers when exploring the cost of LRP. This study extends the literature by estimating the reduction in subsidy costs while considering total premiums changed.
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Farouk Metiri, Halim Zeghdoudi and Ahmed Saadoun
This paper generalizes the quadratic framework introduced by Le Courtois (2016) and Sumpf (2018), to obtain new credibility premiums in the balanced case, i.e. under the balanced…
Abstract
Purpose
This paper generalizes the quadratic framework introduced by Le Courtois (2016) and Sumpf (2018), to obtain new credibility premiums in the balanced case, i.e. under the balanced squared error loss function. More precisely, the authors construct a quadratic credibility framework under the net quadratic loss function where premiums are estimated based on the values of past observations and of past squared observations under the parametric and the non-parametric approaches, this framework is useful for the practitioner who wants to explicitly take into account higher order (cross) moments of past data.
Design/methodology/approach
In the actuarial field, credibility theory is an empirical model used to calculate the premium. One of the crucial tasks of the actuary in the insurance company is to design a tariff structure that will fairly distribute the burden of claims among insureds. In this work, the authors use the weighted balanced loss function (WBLF, henceforth) to obtain new credibility premiums, and WBLF is a generalized loss function introduced by Zellner (1994) (see Gupta and Berger (1994), pp. 371-390) which appears also in Dey et al. (1999) and Farsipour and Asgharzadhe (2004).
Findings
The authors declare that there is no conflict of interest and the funding information is not applicable.
Research limitations/implications
This work is motivated by the following: quadratic credibility premium under the balanced loss function is useful for the practitioner who wants to explicitly take into account higher order (cross) moments and new effects such as the clustering effect to finding a premium more credible and more precise, which arranges both parts: the insurer and the insured. Also, it is easy to apply for parametric and non-parametric approaches. In addition, the formulas of the parametric (Poisson–gamma case) and the non-parametric approach are simple in form and may be used to find a more flexible premium in many special cases. On the other hand, this work neglects the semi-parametric approach because it is rarely used by practitioners.
Practical implications
There are several examples of actuarial science (credibility).
Originality/value
In this paper, the authors used the WBLF and a quadratic adjustment to obtain new credibility premiums. More precisely, the authors construct a quadratic credibility framework under the net quadratic loss function where premiums are estimated based on the values of past observations and of past squared observations under the parametric and the non-parametric approaches, this framework is useful for the practitioner who wants to explicitly take into account higher order (cross) moments of past data.
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Seok Goo Nam and Byung Jin Kang
The variance risk premium defined as the difference between risk neutral variance and physical variance is one of the most crucial information recovered from option prices. It…
Abstract
The variance risk premium defined as the difference between risk neutral variance and physical variance is one of the most crucial information recovered from option prices. It does not, however, reflect the asymmetry in upside and downside movements of underlying asset returns, and also has limitation in reflecting asymmetric preference of investors over gains and losses. In this sense, this paper decomposes variance risk premium into downside - and upside-variance risk premium, and then derives the skewness risk premium and examines its effectiveness in predicting future underlying asset returns. Using KOSPI200 option prices, we obtained the following results. First, we found out that the estimated skewness risk premium has meaningful forecasting power for future stock returns, while the estimated variance risk premium has little forecasting power. Second, by utilizing our results of skewness risk premium, we developed a profitable investment strategy, which verifies the effectiveness of skewness risk premium in predicting future stock returns. In conclusion, the empirical results of this paper can contribute to the literature in that it helps us understand why variance risk premium, in most global markets except the US market, has not been successful in forecasting future stock returns. In addition, our results showing the profitability of investment strategies based on skewness risk premium can also give important implications to practitioners.
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The dividend month premium is the phenomenon that firms have abnormal returns in predicted dividend month. This study aims to examine the dividend month premium in the Korean…
Abstract
The dividend month premium is the phenomenon that firms have abnormal returns in predicted dividend month. This study aims to examine the dividend month premium in the Korean stock market, using common stocks listed on the KOSPI and KOSDAQ from January 1999 to December 2016. Abnormal returns are estimated using the following asset price models: capital asset pricing model, Fama–French three-factor model and the Fama–French–Carhart four-factor model. This study finds positive abnormal returns in predicted dividend months, and even for the within-firm portfolio that buys stocks in the predicted dividend months and sells the same stocks in other months. The price impact and the subsequent reversals are greater with lower liquidity and higher dividend yield, implying that the price pressure from dividend-seeking investors affects this dividend month premium. In addition, the anomalies with the pre-declaration stock are smaller than the post-declaration stock, suggesting the necessity to improve the cash dividend policy of post-declaration for market efficiency.
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Sun-Joong Yoon and Jun Sik Kim
This study aims to examine the return predictability of variance risk premium, which is defined as the difference between risk-neutral variance and expected realized variance, on…
Abstract
This study aims to examine the return predictability of variance risk premium, which is defined as the difference between risk-neutral variance and expected realized variance, on KOSPI 200 index returns. Although extant literature shows that variance risk premium estimated from U.S. index options has a predictive power on underlying returns, little study has been conducted in KOSPI 200 index returns. In addition, there is no conclusion for the predictive power of variance risk premium in other financial markets. In this paper, we can find the predictive power of S&P500 variance risk premium on KOSPI200 index returns as well as on S&P500 index returns, but cannot find the predictive power of KOSPI200 variance risk premium on both indices. These results are consistent to Londono (2012) and Bollerslev et al. (2013). The poor performance of KOSPI200 variance risk premium is explained by the assumption that U.S. economy is a leader economy, while Korea economy is a follower economy. To support this conclusion, we conduct Vector Auto-Regression (VAR) using two variance risk premiums. Two premiums have bi-directional lead-lag relationship but S&P500 variance risk premium is informationally superior to KOSPI200 variance risk premium regarding return predictions.
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Health insurance is one of the major contributors of growth of general insurance industry in India. It alone accounts for around 29% of total general insurance premium income…
Abstract
Purpose
Health insurance is one of the major contributors of growth of general insurance industry in India. It alone accounts for around 29% of total general insurance premium income earned in India. The growth of this sector is important from the perspective of overall growth of general insurance Industry. At the same time, problems in this sector are also many which are affecting its performance.
Design/methodology/approach
The paper provides an understanding on performance of health insurance sector in India. This study attempts to find out how much claims and commission and management expenses it has to incur to earn certain amount of premium. Methodology used for the study is regression analysis to establish relationship between dependent variable (Profit/Loss) and independent variable (Health Insurance Premium earned).
Findings
Findings of the study indicate that there is significant relationship between earned premium and underwriting loss. There has been increase of premium earnings which instead of increasing profit for the sector in fact has increased underwriting loss over the years. The earnings of the sector is growing at compounded annual growth rate of 27% still it is unable to earn underwriting profit.
Originality/value
This study is self-driven based on secondary data obtained from insurance regulatory and development authority site.
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Mauricio Santos and Walesska Schlesinger
This paper aims to test the effects of brand experience and brand love on brand loyalty and willingness to pay a premium price in streaming television services.
Abstract
Purpose
This paper aims to test the effects of brand experience and brand love on brand loyalty and willingness to pay a premium price in streaming television services.
Design/methodology/approach
Structural equation modelling was used to assess the proposed theoretical model drawing on data from 220 subscribers of a well-known TV streaming brand services (Netflix).
Findings
The results revealed that brand experience and brand love have a significant direct impact on brand loyalty and willingness to pay a premium price in streaming TV services. Also, the impact brand experience has on brand loyalty and on willingness to pay a premium price is partially mediated by brand love.
Practical implications
In the streaming television industry, brand managers can create more meaningful experiences that create strong and emotional bonds with users, thereby increasing loyalty levels and intention to pay a premium price. Also, brand managers should consider focusing their efforts to young consumers, as they have a stronger attachment to technology than older generational groups.
Originality/value
This paper enriches the existing literature on brand experience in the entertainment television industry and provides evidence of the role of experience and brand love on brand loyalty and willingness to pay a premium price in services.
Propósito
Este estudio prueba el efecto que tiene la experiencia de marca y el amor a la marca en la lealtad a la marca y la disposición a pagar un precio más elevado en las plataformas de servicios de streaming.
Diseño/metodología/enfoque
Un modelo de ecuaciones estructurales (SEM) ha sido utilizado para contrastar el modelo teórico propuesto basándose en datos de 220 suscriptores de una conocida marca de servicios de streaming (Netflix).
Hallazgos
Los resultados revelan que la experiencia de marca y el amor a la marca tienen un impacto significativo y directo en la lealtad a la marca y la disposición a pagar un precio más elevado en el contexto de televisión por streaming. También, el impacto que tiene la experiencia de marca en la lealtad a la marca y en la disposición para pagar un precio más elevado es parcialmente mediado por el amor a la marca.
Implicaciones prácticas
En el contexto de la industria de entretenimiento (televisión por streaming), los gerentes de marca pueden diseñar significativas experiencias que sean capaces de crear fuertes lazos emocionales con sus usuarios, incrementando sus niveles de lealtad y disposición a pagar más. Además, los gerentes de marca deben considerar enfocarse al segmento de consumidores jóvenes, pues ellos tienen más apego a la tecnología que las personas mayores.
Originalidad/valor
Este estudio enriquece la literatura existente sobre experiencia de marca en el sector del entretenimiento televisivo aportando evidencia del rol de la experiencia y del amor hacia la marca en la lealtad y la disposición a pagar un precio elevado.
目的:
本研究检验了品牌体验和品牌喜爱对流媒体电视服务的品牌忠诚度和高价支付意愿的影响。
设计/方法/途径:
结构方程模型(SEM)被用来评估本文所提出的理论模型, 该模型的数据来自于一个知名电视流媒体品牌服务方(Netflix)的220名订阅用户。
结果:
本文的结果显示, 品牌体验和品牌喜爱对流媒体电视服务的品牌忠诚度和高价支付意愿有显著的直接影响。同时, 部分品牌体验对品牌忠诚度和高价支付意愿的影响会被品牌喜爱所调节。
实践意义:
在流媒体电视行业中, 品牌经理可以创造更多有意义的体验, 与用户建立强大的情感联系, 从而提高忠诚度和高价支付意愿。同时, 品牌经理应该考虑将他们的工作重点放在年轻消费者身上, 因为他们比老一辈群体对科技有更强的依恋。
原创性/价值:
本文丰富了关于娱乐电视行业品牌体验的现有文献, 并提供证据证明了体验和品牌喜爱对品牌忠诚度和高价支付意愿的作用。
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