We present the results of an empirical study, in which we analyze the ability of the Ordered Weighted Average (OWA) operator to model actual preferences in a multi-attribute ranking task. We compare the OWA to a competing model (Simple Additive Weighting SAW), and we also study whether its characteristic feature, the ability to represent different attitudes toward compensation among attributes, is reflected in the preferences provided by subjects. We find that in general, the OWA model fits slightly less well to empirical data. Subjects whose preferences are better explained by the SAW model are also more consistent in their choice behavior. Our results furthermore indicate that preferences of most subjects are not fully compensatory. Thus the ability of the OWA operator to represent different attitudes toward compensation can be a useful feature in modeling actual preferences. The structure of the weights estimated for the OWA operator also suggests that it might provide a good approximation to certain types of decision heuristics.
Based on literature review on private labels (PL), co-branding and celebrity branding, a conceptual framework is developed in which a celebrity brand is used in a co-branding setting as a quality signal for a premium PL product. Similar to previous studies that are limited to PL and national brands (NB) as brand allies in a co-branding setting, we propose that the improved consumer evaluations of a celebrity co-branded, chain-labeled PL product will spill over to the first brand ally. That is the retailer and more specifically his brand image. Since previous research indicates a positive effect of retailer’s brand image on consumer evaluations of its PL, we also suggest that a celebrity co-branding strategy will indirectly (via retailer’s brand image as a mediator), improve consumer evaluations of an individual retailer’s PL product of any tier. The goal of the research is to contribute to the calls for more research on private label and branding as well as on retailer brand equity. This study provides the foundation for and should encourage further research in this area.
Retailers have used celebrity endorsement (CE), an advertising strategy, for several decades to advertise the retailer’s brand or their private labels (PL); however, the emergence of celebrity co-branding (CCOB), a branding strategy, in combination with PL is a relatively new trend worldwide. Evidence from practice indicates that the most successful co-branded premium PL are the ones offering a wide range of products. Apart from superior brand management, this trend might be a result of consumers’ perceived impact of CCOB increasing with the number of products co-branded by the same brand allies. The existing CE, CCOB, and traditional co-branding literature have not yet addressed the effect of multiple applications of any of these strategies on a range of products within the same brand (i.e., celebrity application frequency). However, applying existing findings on the effect of one endorser recommending many different brands to our research context, we hypothesize a negative impact when a spokesperson endorses multiple products within a brand. We propose that consumers perceive CE and CCOB differently when the number of endorsed or co-branded products increases. Indeed, our experiment reveals an interaction between celebrity application type and celebrity application frequency but no main effects. This finding indicates that when either strategy is applied multiple times within the same brand, product evaluations increase in the case of CCOB and decrease in the case of CE.
Ulf Zölitz ist seit Anfang November 2017 Assistant Professor of Economics of Child and Youth Development am Institut für Volkswirtschaftslehre. Was fasziniert ihn an seinem Forschungsgebiet und was möchte er seinen Studierenden vermitteln?
A variety of studies assess the impact of multinational enterprises (MNE) in developing countries. They mainly focus on the negative externalities of these companies. Therefore, this study focuses on the positive effects emanating from the presence of MNEs in developing countries. It is hypothesised that positive externalities resulting from MNEs have their source in the local embeddedness of the firm. The two case studies presented in this paper assess the embeddedness of Syngenta’s subsidiaries in Kenya and Colombia. The focus is on Syngenta’s potato production and related crop protection business. The study investigates the perspective of the company, the view of experts and the potential impact on smallholder farmers. The results show that in both countries Syngenta is collaborating with universities and other research institutions, governmental institutions, NGOs and the local private sector. Syngenta creates attractive skilled jobs for locals in both countries. The company positively influences its business partners in the area of standards and good business practices. Furthermore, farmers profit from the technologies and trainings provided by the firm or its partners. It can be concluded that through embeddedness, Syngenta understands the needs of farmers and can help to meet these needs, which in turn results in a business case for the company.
The study examines the banana production operations of Chiquita in the remote region of Changuinola in Panama and contrasts it with experiences from Guatemala and Costa Rica. Of particular interest are the local context and the socio-economic framework conditions in which the company is operating. They are essential to assessing the embeddedness of the company in the region. Moreover, they influence the potential of the enterprise to provide positive sustainability effects through its business activities for the local community, the local economy and the local environment. The study analyses how the use of technology, standards and partnerships can help to mitigate the significant social and ecological problems in the indigenous communities in Panama. It also highlights which areas the Chiquita company would need to address to improve its sustainability and further embed the company in Panama. The main recommendations are deduced from interviews with local experts and workers in the banana plantations.
Sustainability remains high on the worldwide agenda in the cocoa sector as numerous problems threaten its viability. This study gives a broad picture of the Ghanaian cocoa sector and examines the initiatives of two Swiss chocolate manufacturers aiming at a more sustainable and future-oriented cocoa production in Ghana.
The study reveals many challenges the Ghanaian cocoa sector is facing. The entire sector is highly regulated and controlled by the Ghana Cocoa Board (COCOBOD); the scope of influence of the private sector is limited. The COCOBOD shows rent-seeking behaviour and patronising attitudes. To attract investments from cocoa farmers, cocoa production would have to become a profitable business for them. The case study reveals that certification helps to increase both yields and income of the farmers. However, certification schemes are by far not sufficient to pull farmers out of poverty. As the projects of the two chocolate manufacturers focus on the diversification of the farmers’ income, they have the potential to improve the livelihoods of farmers. Because chocolate manufacturers, through their core business activities, cannot directly interact with farmers given the state control of the sector, its development is limited. Large-scale improvements of the whole cocoa sector go beyond the sphere of influence of chocolate manufacturers and must come from the Ghanaian government.
