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Open Access Publications from the University of California

The Paul Merage School of Business combines the academic strengths and best traditions of the University of California with the cutting-edge, entrepreneurial spirit of Orange County. The School's thematic approach to business education is: sustainable growth through strategic innovation.

Cover page of The Relationship Between Belief in Stable Luck and a Propensity for Superstition: The Influence of Culturally Conferred Agency Beliefs

The Relationship Between Belief in Stable Luck and a Propensity for Superstition: The Influence of Culturally Conferred Agency Beliefs

(2018)

Superstition is known to be positively associated with the belief in luck. However, prior research that has demonstrated the link between luck belief and superstition has not distinguished between two different types of luck beliefs – stable luck and fleeting luck – and their concomitant relationships with agency beliefs and superstition, as those vary by culture. The current research focused on the belief in stable luck and investigated the relationship between this belief and the propensity for superstition among Asians and Americans (Study 1) or Asian-Americans and non-Asian-Americans (Study 2). We found that belief in stable luck is positively associated with the propensity for superstition among Asians (Study 1) and Asian Americans (Study 2) but not among individuals without Asian cultural background. Furthermore, belief in collective agency mediated the effect of stable luck on superstition, but again, only for Asians (Study 3). The implications of these findings for the study of culture are discussed.

Cover page of Linking the content to demographic reach of online advertising of electronic nicotine delivery systems

Linking the content to demographic reach of online advertising of electronic nicotine delivery systems

(2018)

Recent studies have separately examined the content and demographic reach of the advertising of electronic nicotine delivery systems (ENDS). No study to our knowledge has linked the two in investigating whether racial/ethnic groups are differentially exposed to the comparative messages conveyed in online ENDS advertisements.932 unique ENDS advertisements (6311 total), which were posted on 3435 websites between December, 2009 and October, 2015, were categorized as either comparative or non-comparative with respect to the traditional cigarette. The race/ethnicity of website visitors was obtained from a proprietary source and used in constructing variables for racial/ethnic viewership. The variables for advertising content and website racial/ethnic viewership were then linked yielding a final sample of 551 unique ENDS advertisements (2498 total) on 1206 websites. A two-level hierarchical generalized linear model, used in estimating website racial/ethnic viewership as a predictor of comparative advertising, accounted for the nesting of advertisements (level 1) within 152 ENDS brands (level 2).In contrast to racial/ethnic minorities, a greater proportion of non-Hispanic whites visited websites with ENDS advertisements than the overall proportion of nonHispanic white U.S. Internet users. Yet, it was the advertisements on websites that appealed to Hispanics that had greater odds of comparing ENDS to traditional cigarettes.The lower exposure to ENDS advertising among racial/ethnic minorities versus non-Hispanic whites is consistent with survey data. Yet, the greater odds of comparative advertising of ENDS on websites that appeal to racial/ethnic minorities (ie, Hispanics) could impact the longterm health of minority smokers.This study's findings have important implications for the uptake of ENDS among minority smokers. If the comparative advertising yields greater interest and eventual use of ENDS, then minority smokers could either benefit from smoking cessation because they switch to ENDS, or adopt dual tobacco use. The fate of comparative advertising of ENDS versus the traditional cigarette will depend on the Food and Drug Administration enforcement of its deeming rules and the ensuing changes in the ENDS marketplace.

Cover page of Effect of analysts' earnings pressure on marketing spending and stock market performance

Effect of analysts' earnings pressure on marketing spending and stock market performance

(2018)

Despite the clearly visible effects in the popular press of analysts’ pressures on C-level executives, there is limited evidence on their effects on marketing spending decisions. This study asks two questions. First, how do analysts’ pressures affect firms’ short-term marketing spending decisions? Based on a sample of 2,706 firms during 1987-2009 compiled from Institutional Brokers Earning System, COMPUSTAT, and CRSP databases we find firms cut marketing spending. Second, more importantly, we ask if firms which remained more committed in the past to marketing spending under analysts’ pressures have higher longer-term stock market performance. We find the stock market performance of firms more committed to marketing spending under past periods of analysts’ pressures is higher. The findings are replicated for R&D spending, and robust across measures, controls, and methodologies. Consideration of two industry-based moderators, R&D spending and revenue growth, and one firm-based moderator, whether the firm is among the industry’s top four market share or other lower share firms, reveals that the findings are stronger for high R&D and growth industries and lower market share firms. One key implication is that top executives respond to analysts’ pressures by cutting marketing spending in the short-term, however, if they can resist these pressures, longer-term stock market performance is higher.