Simon School Blog

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

CharlaKucko — Tue, 20 Dec 2011 20:02:35 +0000

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.

NBA Lockout: “Owners Won”

CharlaKucko — Fri, 09 Dec 2011 20:54:43 +0000

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.

Black Friday “Hijacked by Christmas Creep”

Black Friday “Hijacked by Christmas Creep”

CharlaKucko — Fri, 11 Nov 2011 17:59:32 +0000

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.”

Yellow Jackets Advance in NBC’s The Sing Off

CharlaKucko — Fri, 21 Oct 2011 18:47:28 +0000

Two Simon Graduate School of Business students are singing their way to the next round of NBC’s popular show The Sing Off next Monday night. Matthew Francis, MS ’12 and Jonathan Greenhalgh PMBA, members of the University of Rochester’s a cappella group, The Yellow Jackets, are now moving on to the next round of competition. Both Matt and Jon reflected on their group’s success on the show, its impact on the Rochester/Simon community, and the future for the Yellow Jackets. Both are grateful to their fans and supporters and asking for continued support through online voting at http://www.nbc.com/sing-off/
Next week’s show will feature hip-hop songs. Stay tuned! Go Yellow Jackets!

Buffett Rule: “Old Wine in New Bottles”

CharlaKucko — Mon, 17 Oct 2011 16:00:28 +0000

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.

Sand in Gears of Economy

CharlaKucko — Thu, 13 Oct 2011 15:22:12 +0000

While well intentioned, Simon Graduate School of Business Dean Mark Zupan says President Obama’s jobs bill is unfortunately more of the same. The proposed jobs bill is a stimulus package that will be disproportionately paid for in higher taxes and will rely too much on the public sector for meaningful jobs, Zupan says. If anything, what economists dating back to Adam Smith have learned is that the private sector is a much better generator of long-run jobs. Zupan compares Western Europe to the U.S. post-1945 and how many more jobs were created per capita through a more private sector approach. He also cites lessons from Japan’s economic meltdown of the 1980s and the massive stimulus that resulted in a prolonged crisis. The more we can promote trade and the private sector for job creation, the better, Zupan says.

Lessons from Kodak

CharlaKucko — Wed, 12 Oct 2011 13:07:03 +0000

With the recent news about Kodak stock plunging, and word that the firm has hired a restructuring law firm and is potentially mulling bankruptcy, Simon Graduate School of Business Dean Mark Zupan is reflecting on Kodak’s challenges and its global impact.

Zupan observes that the world we live in is hypercompetitive, both in terms of business and technology. As a result of global competitiveness and rapid technological change, there is a constant need for reinvention, and that applies to governments, firms and individuals. Citing the Dow Jones, only one company from the original index remains–General Electric. That underscores just how hard it is to remain relevant and the need for continuous reinvention. Zupan points to firms like Goodyear and IBM, both of which were on the brink of bankruptcy but went through significant transformations and experienced major comebacks. Kodak’s impact on Rochester and the world over the years is a testament to its success, Zupan says. Kodak founder George Eastman set in motion a history of philanthropy that has extended to higher education including the University of Rochester, Rochester Institute of Technology and Massachusetts Institute of Technology, among several others. Zupan says the impact those alumni have had on society is arguably Kodak’s biggest legacy of all.

Steve Jobs: Serial Innovator

CharlaKucko — Fri, 07 Oct 2011 16:09:44 +0000

Apple co-founder Steve Jobs passed away on October 5 following a courageous battle with pancreatic cancer. Calling Jobs a “serial innovator,” Simon Graduate School of Business Professor Abraham Seidmann reflects on his life as a pioneer inventor and innovator who changed the world the way we knew it and made our lives a lot more fun.

Sand in Gears of Economy

Simon 9/11 Remembrance

CharlaKucko — Tue, 04 Oct 2011 20:33:34 +0000

During Convocation on September 22, the Simon community observed a Moment of Silence in memory of University of Rochester and Simon alumni lost on 9/11/01: Jeffrey R. Smith ’87, ’88 MBA, and Zhe (Zack) Zeng ’95, ’98 MBA.

Jeff was working at Sandler O’Neill and Partners as an equity analys on the 104th floor of the South Tower that morning. Those who knew Jeff said he was passionate about three things: his family, his friends and his Miami Hurricanes. Jeff, then 36, was a devoted husband to wife, Ellen, and a loving father to their daughters, Margaret and Charlotte, who were 3 and 1 at the time. Friends say he loved to hike with one of this two girls strapped to his back. As a student, Jeff played on the University football team and was very involved in campus life. After the first plane hit the World Trade Center, Jeff called his wife and said he would remain in the building. Friends believe he died helping others evacuate.

While most people were running away from the scene, Zack grabbed his EMT bag, which he always had with him in case of an emergency, left his office at the nearby Bank of New York, and headed for the WTC. The last known images of Zackwere aired on Fox TV in New York showing him helping an injured woman on a stretcher before the South Tower collapsed. A native of Canton, China, Zack emigrated to the US with his parents when he was 15. His father died while Zack was a student at the University, something friends say had a profound impact on him. From then on, he wanted to give back and help others. During his years in Rochester, Zack worked for Brighton Volunteer Ambulance. He has been described as humble, kind, giving and selfless. After his death, the New York City Council renamed a street in Chinatown where he lived “Zack Zeng Way” to honor his heroism.

During Convocation, University President Joel Seligman lead a Moment of Silence in their memory and said they will never be forgotten.

Convocation 2011

CharlaKucko — Fri, 30 Sep 2011 13:40:45 +0000

The Simon community kicked off the new academic year on Thursday, September 22, during the annual Convocation ceremony. University and Simon administrators welcomed new and returning students and honored Barry Florescue, BS ’66, chairman of the board and president of Florida-based BMD Management Company Inc. A University Trustee and member of the Simon Executive Advisory Committee, Florescue is funding a revival of the University’s undergraduate business program, similar to what existed when he was a student on the River Campus in the ’60s. The Barry Florescue Undergraduate Business Degree Program is a collaboration between the Simon School and the College of Arts, Sciences and Engineering. “Thanks, Barry!” t-shirts were spotted in the crowd, and the crowd gave him a warm welcome. Dean Mark Zupan and Varun Shah ’12, president of the Graduate Business Council, were the first to sign the Simon School Credo, a student-authored set of principles emphasizing integrity and ethics. The credo will be framed and displayed in Schlegel Hall.