Category: Current Affairs

Negative Advertising: When the Going Gets Tough, the Ads Get Tougher

When it comes to political advertising, the more campaigns spend and the more knowledge voters have, the more negative the advertising according to a recent study coauthored by Mitchell J. Lovett, assistant professor of marketing at the Simon Graduate School of Business, University of Rochester, and Ron Shachar of Tel Aviv University and New York University. In their paper, “The Seeds of Negativity: Knowledge and Money,” the co-authors studied more than 600 political campaigns and found that the more media coverage and ad spending on a campaign, the more negativity in the advertising. Competitiveness directly affects ad negativity, but when you account for knowledge about the candidates and campaign spending, the relationship goes away, Lovett says. When the economy started to decline, more consumer brands went negative in their advertising as well. Lovett speculates that when the going gets tough, the ads get tougher. For more on the study, click below.

Dec 20, 2011 | 0 comments View Post

NBA Lockout: “Owners Won”

The NBA lockout cost the league an estimated $500 million in lost games, but who won and who lost in the process? The owners came out ahead according to Simon Graduate School of Business Marketing Professor George Cook, since the revenue split went down from 57-43 percent in favor of the players reached back in 2005 to the current agreement that is closer to 50-50–weighing in the owners’ favor. The season begins on December 25 with a triple header. Cook says fans can expect to see higher ticket prices next year to help address the economic agreement made during the lockout. For more on Prof. Cook’s views on the lockout, click below.

Dec 09, 2011 | 0 comments View Post

Black Friday “Hijacked by Christmas Creep”

The holiday retail season is already well under way due to the ever growing phenomenon “Christmas creep.” Traditional Black Friday sales are being “hijacked” by Christmas displays in stores earlier every year—this year, well before Halloween—according to George Cook, executive professor of marketing at the Simon Graduate School of Business. Cook says early holiday sales that would have taken place later in the year combined with continuing economic uncertainty (high jobless rate, rising consumer goods prices, the lowest consumer confidence rate since the 2008-09 recession, decreased spending) will result in a modest 2 to 3 percent uptick in holiday retail sales this year compared to last year’s 5.2 percent gain. “On the positive side, luxury sales are rising,” Cook says. “For example, Nordstrom’s sales are up 10.4 percent and online sales continue to improve. That is a good sign.”

Nov 11, 2011 | 0 comments View Post

Buffett Rule: “Old Wine in New Bottles”

President Obama’s proposed Buffett Rule or millionaires tax as it is more widely known is “old wine in new bottles,” according to Simon Graduate School of Business Professor Jerold L. Zimmerman. The rule, named after billionaire Warren Buffett, would raise taxes on those earning more than $1 million a year. Zimmerman says implementing a minimum tax on high income earners has been tried and failed by administrations dating back to the 1960s. In addition, implementing it would only address the federal deficit for three days out of the year. What about the other 362 days, he asks. To Zimmerman, the answer is clear. The proposal fails to address in his view the nation’s most pressing problem, the ever mounting federal budget deficit due to massive government spending.

Oct 17, 2011 | 0 comments View Post
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