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The purpose of this paper is to investigate whether there is any difference across individual investors, domestic and foreign institutional investors in trading volume responses to analyst reports. The authors also examine the determinants of trading volume responses using firm as well as forecast characteristics.

The authors use trading data from the Korean equity market. The authors divide investors into three classes of investors; namely, individual investors, domestic institutional investors, and foreign institutional investors. The authors then examine whether the trading responses to analyst reports vary across investor types, and how firm characteristics and characteristics of analyst reports influence the trading activities on the release dates across investor types.

Individual investors are the most responsive investor group, being responsive to analyst reports on small, neglected firms with large inside ownership as well as to analyst reports with optimistic forecasts. Domestic institutional investors are responsive to reports on neglected firms with high return volatility while foreign institutional investors show least responses.

There are few studies that investigate whether the trading responses to analyst reports vary across investor types and how firm characteristics and characteristics of analyst reports influence the trading activities on the release dates across investor types. Taking advantage of the trading volume data for the three main investor types in the Korean stock market, the authors study the trading volume responses for each investor type and make comparisons across investor types.

Customer service is often described as consisting of a set of measurable elements. Similarly, market response to customer service may be viewed as consisting of a set of components which are measurable. Most published empirical studies of the relationship between customer service and market response, however, have represented market response through the use of a single measure. The results of an empirical study of interset association between two sets of measures, one representing the elements of customer service (measured in service levels) and the other representing various forms of market response, are reported. Canonical correlation analysis of data collected from 91 grocery channel dyads indicated (as expected) a closer association of market response with customer perceptions of customer service than with supplier perceptions of the same. Also presented, is the contribution of individual measures to the close association between market response and customer perceptions of customer service.

The purpose of this paper is to explore the prediction of competitive response based on the characteristics of market and non‐market actions comprehensively, and develop a four‐stage decision‐making model of firm's competitive action, which is significant for Chinese practicing managers when formulating and implementing the strategies, and further predicting competitors' strategic choices.

The research adopted the method of structured content analysis and carried out the survey in Chinese home appliance industry, mainly covering the largest firms, including TCL, Hisense, Changhong, Konka, Haier, and Skyworth. The method of multiple regression analysis was employed to test the hypotheses.

The results show that in order to comprehensively forecast competitor's responding behaviors, the firms could not only limit their perspective to market field but also pay attention to non‐market. Additionally, in the process of dynamic interaction, the attacking or responding action is not independent and it is related significantly to another three type decisions, which are market and non‐market, strategic and tactic, and collective and individual. Further, the study asserts that, in market field, tactic activity is more likely to trigger competitor's response than strategic one, while in non‐market, the situation is just the opposite. Meanwhile, the study figured out that individual market attack is easier to trigger individual market and non‐market response, as well as collective market response. While for non‐market action, whatever it is individual or collective, both would be easy to provoke competitor's collective response.

The research findings extend the existing competitive interaction theory to non‐market field. When forecasting competitor's choice of the competitive action, the firms could not only limit their perspective to market field but also pay attention to non‐market, attaching importance to certain situation of competitor's taking such non‐market action as corporate philanthropy, etc. to launch an attack or a response for gaining competitive advantage.

Market response models or marketing mix models quantify the effects of marketing actions on consumption-based outcomes such as sales and market share. They are frequently used in the business sector to help managers make effective resource allocation decisions, especially in the digital age. However, these models can also be used on social causes, in particular to gauge the efficacy of regulations on consumption levels that have social consequences. This chapter explores these principles in two major areas of social concern, alcohol consumption and narcotics abuse. We review the empirical findings in these two areas, based on published research in major marketing journals, and we formulate various recommendations for the effective regulation of alcohol and narcotics consumption.

The conclusions on the importance of corporate response timing to a crisis have remained inconsistent. Some studies suggest that active response may reduce negative impacts, whereas managers argue that issuing official response frustrates stakeholders and thus decreases the firm value. The purpose of this paper is to investigate the role of external media in the response timing strategy and the consequent stock market reaction.

Based on 130 corporate crises that befell publicly listed firms in China from 2007 to 2014, this paper uses the Baidu News Search Engine and Chinese Lexical Analysis System to construct the variables of the media characteristics. A structural equation model is established to test the hypotheses.

The results of this paper suggest that media coverage drives response timing after a crisis. Although an official response is a burden for firms, the timing strategy has multidimensional benefits including effectively alleviating negative effects (defined as buffering effects) and repairing the market (defined as restoring effects). Moreover, the buffering effects of response timing are stronger when completeness of response is low.

This study mainly contributes to crisis communication literature by introducing the role of media in prompting managers to make timing decisions. The findings of this study provide empirical support for the importance of timing response strategy.

Several studies have examined sponsor‐cause congruence as an influence on consumer response to cause marketing campaigns. This paper aims to assess the relationship between sponsor‐cause congruence and consumer responses to cause marketing programs. In addition, it aims to test the possible existence of an interaction of congruence and service type of a cause sponsor (utilitarian vs hedonic) on consumer response.

A 2×2 experimental design was used to assess the impact of congruence and firm type. A total of 176 students participated in the main experiment. Sponsor‐cause linkages were presented using mock press releases.

Results indicated no main effects differences existed for the sponsorship response variables collectively, but perceived sincerity and attitude toward sponsor were significantly more positive for congruent sponsor‐cause linkages and attitude toward sponsor was significantly more positive for utilitarian sponsors. The congruence‐service type interaction was significant.

Findings based on parings of two high equity brands with two well‐known causes. Future research should consider impact of sponsor and cause prominence on consumer response.

Sponsorship managers must go beyond examining a cause's audience characteristics to insure a good match between the values of the brand and cause. Also, findings suggest that sponsors that market hedonic services face unique challenges communicating their involvement in cause sponsorships.

Results can assist sponsorship managers better understand the relationship between sponsor‐cause congruence and the nature of the service their firms offer and their impact on shaping consumer response to cause marketing activity.

The adoption of a model‐building approach to marketing is today inevitable, due to improvements in hardware and software and the increased professionalisation of marketing and its techniques. Aggregate response models are focused upon, particularly the issues of which responses are realistic and should be modelled, how the response can be expressed and how a choice can be made between options available. The traditional model‐building process is described, and the inclusion of correct variables found to be critical, the primary means of doing this being statistical analysis. Simple expressions perform as effectively as more complex ones, and should be used if able to give operationally meaningful results. Cross‐correlation analysis and biased estimation techniques provide good guides to usable variables and their effects.

Given that the majority of firms are followers of pioneering firms into new, related product markets, managers of almost all firms can benefit from benchmarking their competitive responses to pioneering new product introductions. This paper examines the competitive responses of firms not only in terms of the time until their responding new product introduction, but also in terms of the firms’ preceding stages of competitive response: awareness, interest, and evaluation. For example, how long does – and should – it take a follower firm to become aware of a pioneering new product introduction? A general conceptual framework and basic methodology is proposed for firms to evaluate and benchmark their competitive responses. Follower firm responses to pioneering new low‐fat food product introductions in North America are examined and illustrate the opportunity for benchmarking firms’ competitive responses.

Investigates customer attitudes towards the direct marketing strategies employed by banks in relation to how attitudes toward the marketing media used and response channels influence the customer’s intention to purchase. Marketing media include mail promotion, telephone, and e‐mail promotions. Response channels include mail order, telephone and e‐mail orders. A total of 153 customers of bank services and products completed a survey questionnaire on their attitudes. Research indicates that customers generally evince a negative attitude toward banks using direct marketing strategies. They have mixed feelings about response channels, and low intention to purchase as an outcome of direct marketing. Purchase intention is significantly influenced by attitudes toward direct marketing media rather than response channels. Attaching promotions to communications a customer is expecting to receive can strengthen purchase intention. No demographic differences indicate that attitudes may have a stronger association with purchase intention. Revealed dilemmas faced by bank managers, marketers and researchers.

While existing research has established various methods for pricing, the impact of a manager’s individual psychological profile on his/her price setting behavior is relatively unexamined. This is especially critical in the context of pricing decisions implemented in response to competitive forces. This paper aims to explore how a manager’s price responses to price cuts by a competitor are affected by his/her cognitive style, gender and entrepreneurial attitudes.

In the first study, a simulation-based pricing environment is used in a lab setting to capture the dynamics of pricing decisions made in response to competitive price cuts. Participants’ price responses are captured in the form of the magnitude of price change implemented in a simulated environment in response to a competitor’s price reduction. The second study extends the scope of inquiry by using a national sample of business professionals and replicates and reinforces the findings of the first study by capturing participants’ attitudinal response on the decision to reduce prices in reaction to competitive price reductions.

The results of both studies indicate significant effects for cognitive style, gender and entrepreneurial attitudes. Individuals with stronger entrepreneurial attitudes and analytical cognitive styles, and females are less likely to engage in reactive price reductions.

The findings of this study indicate that managers’ propensity to engage in price changes in reaction to competitors can be linked to their psychological profile and gender.

Given the existence of the relationship between price reactions of managers and their cognitive style and entrepreneurial attitudes, the training and development of pricing professionals may need to take these individual-level factors into account.

This is the first study that has linked managers’ propensity to engage in price changes in reaction to competitors to their gender and psychological profile.