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Luxury retailers, customer experience, and brand desire

Consumers often complain that sales staff at luxury retailers ignore or reject average customers. Employees in the industry confirm that sales staff at luxury retailers do sometimes size up customers, choosing who to help and who to avoid based on what they wear. Conventional wisdom would suggest that the rejected consumer would choose not to buy the specific brand. Morgan Ward, assistant professor of marketing, and coauthor Darren W. Dahl (U of British Columbia) challenge this idea “by exploring how negative customer service experiences can, in some instances, facilitate more positive attitudes and customers’ desire for the brand.” The pair tested their theory by providing study participants with a variety of shopping scenarios involving being rejected versus receiving a neutral response from the salesperson while in a luxury retailer. Ward and Dahl discover that shoppers who “relate their self-concept to an aspirational brand” become more motivated to buy that luxury brand after a salesperson’s rejection, in order to be accepted by what they perceive as the in-crowd. Source:

The role of behavior in managing mergers

Despite corporate interest in M&As as a growth strategy, research indicates that financial returns on such deals often fall short of expectations. Corporate leaders spend considerable time looking at the financial and quantitative aspects of mergers and acquisitions; however, Sandy Jap, Sarah Beth Brown Professor of Marketing; A. Noel Gould (Texas State U); and Annie H. Liu (Texas State U) argue that factoring in people should also be a major consideration when it comes to a proposed deal. Their research indicates that better employee and customer management is especially critical to an organization’s M&A strategy and implementation success. The trio analyzed ANZ New Zealand’s horizontal merger with the National Bank of New Zealand to better understand the impact of employee and customer behavior on the deal. They contend that this brand and technology merger succeeded due to ANZ’s commitment to ensuring customer satisfaction and addressing employee concerns about the merger. ANZ New Zealand also focused on business efficiencies and rebranding efforts. Jap, Gould, and Liu note that collaboration became a big key to the success of the merger with ANZ’s financial, IT, marketing, and communications personnel working closely together to retain customers. Source:

The impact of economic prosperity on CEO ethics

Prior research suggests that economic booms are associated with overconfidence and risk-taking. In a new paper, Emily Bianchi, assistant professor of organization & management, and coauthor Aharon Mohliver (London Business School) build on that research by showing that prosperous times are also associated with more ethical lapses. The authors examined whether CEOs were more likely to backdate their stock options during prosperous economic times. Backdating stock options was relatively common during the late 1990s to early 2000s. It was also unethical. A backdating CEO would receive a stock option grant on one day but report that the options were assigned on an earlier date when the stock price was lower. This would allow the CEO to realize greater gains when he or she sold the stock. Also, it required lying to the SEC and came at the expense of company profits. To test their theory, Bianchi and Mohliver looked at the backdating patterns of 2,139 CEOs of US publically traded companies between 1996 and 2005. They found that CEOs were more likely to backdate in good economic times. They also found that “CEOs who began their careers in prosperous times were more likely to backdate stock option grants later in their careers.” The findings indicate that economic prosperity influences the likelihood of corporate misconduct. Source:

Populations at risk – how the whole planet is feeling and affected by climate change

The pounding heat of this summer seems like an anomaly, but according to experts, extreme heat waves may be a new reality. The global temperature is rising and the impact of that is being felt on every continent on earth. From Pakistan, to Japan to Mexico to Paris – the rolling waves of summer heat saw temperatures soar. While for some it’s a matter of comfort, the world’s poor and vulnerable populations are going to face serious risk and consequences. For instance, high heat and erratic rainfall can exacerbate drought, and prolonged drought can lead to severe food insecurity and in some cases, famine. Desperation can lead to conflict and worse. The global threat of climate change is very real and will touch every corner of the planet. There are a lot of questions to be answered and that’s where the experts from Catholic Relief Services can help. Lori Pearson leads Catholic Relief Services’ response to the massive impact climate change is having on global agriculture and especially on the lives of smallholder farmers in Africa, Asia and Latin America. She also crafts policy and advocacy recommendations to climate change challenges and global hunger. Lori is available to speak with media regarding this topic – simply click on her icon to arrange an interview. Source:

Baylor Media Expert Shares Thoughts Re: Charges of Biased Media Coverage of Minorities

Early this week, 18-year-old Nia Wilson was stabbed to death on a platform while transferring trains in Oakland, California. Authorities said the attack was unprovoked. Media coverage of Wilson's death included photos from her social media accounts. One California television station chose to share a photo of Wilson, who was African American, holding what appeared to be a gun. The decision to run that particular photo sparked outrage, with many saying the photo added to a trend of a biased media portrayal of minorities. Mia Moody-Ramirez, Ph.D., professor of journalism, public relations and new media at Baylor University, is an expert on mass media representations of women, minorities and other underrepresented groups. "This incident brings back memories of the shooting deaths of Trayvon Martin and Michael Brown. Media outlets used various photos to portray them as menacing. It also brings to mind the hashtag: #IfTheyGunnedMeDown, which asks the question: 'If they gunned me down, what photo would media use?'" Moody Ramirez said. "Historically, media outlets have used such photos to: 1) frame the individuals a certain way, 2) add interest to the story, 3) stir up conflict. Awareness that this is happening is the best way to stop it in the future. Black Twitter has taken on this cause. In the 'clap back' culture of Black Twitter, news outlets are very likely to get called out for such behavior." Moody-Ramirez is the co-author of the new book "From Blackface to Black Twitter: Reflections on Black Humor, Race, Politics, & Gender." In 2013, she co-authored "The Obamas and Mass Media: Race, Gender, Religion, and Politics." She also authored "Black and Mainstream Press’ Framing of Racial Profiling: A Historical Perspective." Source:

Reconstructing the past to forecast how climate change may alter our future

The scientific world all agrees – climate change is real, it’s here and it is something we need to know more about. As the climate on Earth changes – everything from temperatures, weather patterns, wind rain and snow will all in some way or another be altered. Even minor and fractional adjustments in some aspects of climate may result in drastic differences to temperatures, precipitation, ocean levels and ecology. In order for us to understand the impacts of climate change and to try and predict how populations will have to adapt scientists at the University of Mary Washington are currently working on a long-term project to re -construct past climate by looking at the geochemistry of oyster shells. This research could prove vital as the Chesapeake Bay region is expected to experience more extremes in precipitation with human-caused warming, so more heavy rain events and more prolonged drought events. These changes in rainfall will cause drastic swings in salinity in the Bay from changes in the freshwater river input. It’s important research and the experts at the University of Mary Washington are available to help explain how oyster shells may hold the answer to the region’s future climate challenges. Dr. Pamela Grothe is an Assistant Professor in the Department of Earth and Environmental Sciences as the University of Mary Washington and is an expert on climate change. Dr. Grothe is available to speak with media regarding this subject – simply click on her icon to arrange an interview. Source:

Misreporting in securitized loans

Nonagency mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs) derived from MBSs and their role in the recent financial and housing crisis remain a subject of discussion. An MBS is an asset-backed security secured by a mortgage or grouping of mortgages. Non-agency MBSs are not guaranteed by any government-sponsored organization, such as Freddie Mac or Fannie Mae, or the federal government. According to research from Gonzalo Maturana, assistant professor of finance, and John Griffin (U of Texas), the complexity of these structured products made it difficult to learn the true value of the underlying assets. They analyzed “apparent fraud among securitized nonagency loans, looking at unreported second liens, owner occupancy misreporting, and appraisal overstatements.” The study data comes from Lewtan’s ABSNet Loan and HomeVal data sets, along with DataQuick’s Assessor and History files, for the time period between January 2002 and December 2011. The researchers discovered that “48% of loans exhibited at least one indicator of misrepresentation.” The level of misreporting was similar for low- and full-documentation loans. Also, loans with a misreporting were 51% more likely to be delinquent. Maturana and Griffin’s research points to apparent fraud by loan originators and MBS underwriters, and it also suggest that MBS underwriting banks were aware of some of the MBS representations at issuance. Source:

Synergies between product placements and TV ads

As television watchers get inundated with commercials, the temptation to flip the channel grows. In the hopes of better connecting with consumers, advertisers are increasing their efforts to get product placements directly into TV shows. In a research study, David Schweidel, Goizueta Term Chair, Caldwell Research Fellow, and associate professor of marketing, and coauthors Natasha Zhang Foutz (U of Virginia) and Robin J. Tanner (U of Wisconsin) took a look at how the synergy between product placements and traditional commercials can keep viewers from flipping past the ad. The trio found that by simply putting a product in a television show and then immediately following it up with a commercial featuring the same product, viewers were more likely to stay tuned to the commercial. “The audience loss during the ad decreases by 5%,” they note. The effect was intensified when differing products from the same brand were shown in a program and then in a commercial immediately following the TV show. They write, “This indicates a positive synergy between the two activities that can reduce audience decline by more than 10%.” When products of different brands were featured in a television program and in a subsequent commercial, audience loss increased. Source:

Investor conferences and analyst advantage

In a research paper, T. Clifton Green, associate professor of finance and doctoral area coordinator, and coauthors Russell Jame 10PhD (U of Kentucky), Stanimir Markov (Southern Methodist U), and Musa Subasi (U of Maryland) focused their investigation on broker-hosted investor conferences to determine their impact on investor research. They studied 68,194 presentations by 4,394 companies at 2,749 investor conferences led by 107 brokerages for the period January 2004 to December 2010. According to the data, Green and his coauthors concluded that brokerage research analysts were more likely to provide better research for firms that participated at their conferences. Conference-hosting brokers were more likely to provide “more informative stock recommendations and more accurate earnings forecasts” than non-hosts. They discovered that firms participating in “broker-hosted investor conferences have a closer relation with the hosting analyst than with non-hosts, resulting in more private interactions (e.g., more company visits and meetings with management) and a continual flow of value-relevant information throughout the sample period.” Source:

Why negotiations fail

For business leaders engaged in negotiations, it’s essential to constantly analyze and revisit their negotiation strategy to avoid many of the errors typically made in the process. In the Handbook of Conflict Management Research, Erika Hall, assistant professor of organization & management, and coauthors Brian Lucas (U of Chicago) and Leigh Thompson (Northwestern U) offer a window into negotiation methods and some of the mistakes negotiators make along the way. The trio discovered and defined three specific errors that occur in negotiations, including what they label as domain myopia, the self-preoccupation effect, and the script hijack effect. Domain myopia is described as the “tendency for negotiators to fail to see meaningful parallels across negotiation situations that might appear different on the surface, but have meaningful underlying similarities.” Hall and her coauthors also describe the self-preoccupation effect, where negotiators let their emotions win the day and subsequently lose perspective. The third scenario that they define is the script hijack effect, which they describe as “the tendency for negotiators to feel compelled to follow a script, often based on stereotypes.” According to the authors, the problems they document apply across a variety of industries. Source: