Mind-reading versus neuromarketing: how does a product make an impact on the consumer?

Purpose – This research study aims to illustrate the mapping of each consumer’s mental processes in a market-relevant context. This paper shows how such maps deliver operational insights that cannot be gained by physical methods such as brain imaging. Design/methodology/approach – A marketed conceptual attribute and a sensed material characteristic of a popular product were varied across presentations in a common use. The relative acceptability of each proposition was rated together with analytical descriptors. The mental interaction that determined each consumer’s preferences was calculated from the individual’s performance at discriminating each viewed sample from a personal norm. These personal cognitive characteristics were aggregated into maps of demand in the market for subpanels who bought these for the senses or for the attribute. Findings – Each of 18 hypothesized mental processes dominated acceptance in at least a few individuals among both sensory and conceptual purchasers. Consumers using their own descriptive vocabulary processed the factors in appeal of the product more centrally. The sensory and conceptual factors tested were most often processed separately, but a minority of consumers treated them as identical. The personal ideal points used in the integration of information showed that consumers wished for extremes of the marketed concept that are technologically challenging or even impossible. None of this evidence could be obtained from brain imaging, casting in question its usefulness in marketing. Research limitations/implications – Panel mapping of multiple discriminations from a personal norm fills three major gaps in consumer marketing research. First, preference scores are related to major influences on choices and their cognitive interactions in the mind. Second, the calculations are completed on the individual’s data and the cognitive parameters of each consumer’s behavior are aggregated – never the raw scores. Third, discrimination scaling puts marketed symbolic attributes and sensed material characteristics on the same footing, hence measuring their causal interactions for the first time. Practical implications – Neuromarketing is an unworkable proposition because brain imaging does not distinguish qualitative differences in behavior. Preference tests are operationally effective when designed and analyzed to relate behavioral scores to major influences from market concepts and sensory qualities in interaction. The particular interactions measured in the reported study relate to the major market for healthy eating. Originality/value – This is the first study to measure mental interactions among determinants of preference, as well as including both a marketed concept and a sensed characteristic. Such an approach could be of great value to consumer marketing, both defensively and creatively

Does a Flexible Industry Wage Structure Increase Employment?: The U.S. Experience

This paper examines the flexibility of wages across industries inthe U.S. and seeks to determine the potential impact which changes in the industrial wage structure may have for employment. With regard to the flexibility of wages across industries, we find that the U.S., alone among the major OECD countries, has experienced substantial changes in the industry wage structure since 1970, with the variation of log wages among industries increasing dramatically, particularly in the 1970s. This represents a widening of the gap between wages in the high and low wage sectors. In order to evaluate these changes, we estimate equations linking changes in industry wages over an extended period of time to a variety of potential wage determining characteristics. We find that industrial wages are positively correlated with value productivity per worker, even after controlling for institutional and supply side factors which may have contributed to the increased dispersion of wages in the 1970s. Our results are not consistent with the standard competitive model of industry labor markets, in which wages and productivity are uncorrelated across sectors and wages depend on aggregate, rather than sectoral conditions.With regard to the impact of a flexible industry wage structure on employment, we evaluate the circumstances under which flexible wages among industries may be employment enhancing, and the set of circumstances under which flexible wages are likely to be employment reducing. For the U.S.economy in the 1970s we find that the data support the latter set of circumstances. The bottom line of the U.S. experience is that flexible wages by industry have not contributed to employment growth.

Sequential License Buyback Auctions: An Experimental Analysis

Fisheries managers use licenses as a method of capping the size of a fishing industry, but as management goals change and the size of fishery stocks fluctuate, managers may be faced with the decision to buy back licenses. The vast majority of economic literature on license buyback programs focuses on the changes to economic efficiency of the fleet, often citing changes to the composition of fleet size. However, managers have little guidance in deciding how to structure a buyback auction, despite the fact that the auction structure plays a key role in determining which licenses are retired and in the composition of the remaining fleet. With the Texas Park and Wildlife Department’s Inshore Shrimp License Buyback Program as a basis for auction design, this research uses three experimental treatments to analyze how individuals respond to various reverse auction structures. In terms of the quickest license expiration, our experiments suggest that fisheries managers should select a binding auction with no sequential quality. However, we find that managers would see higher average bids from fishers in comparison to the two sequential auctions. The results are also relevant to other environmental programs in which environmental services are purchased over time in a sequential reverse auction.Fisheries management, license buyback, reverse auction, Institutional and Behavioral Economics, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Q22, Q28, C9,

Continuous Tracking of Lava Effusion Rate in a Lava Tube at Kilauea Volcano Using Very Low Frequency (VLF) Monitoring

Measurement of lava effusion rates is a key objective for monitoring basaltic eruptions because it helps constrain geophysical models of magma dynamics, conduit geometry, and both deep and shallow volcano processes. During these eruptions, lava frequently travels through a single master lava tube. A new method and instrument for continuously monitoring the crosssectional area of lava streams in tubes and estimating the instantaneous effusion rate (IER) is described. The method uses 2 stationary very low frequency (VLF) radio receivers to measure an unperturbed VLF signal and the influence of highly conductive molten lava on that signal. The difference between these signals is a function of the cross-sectional area of molten lava and the IER. Data from a short test of the instrument are described. This methodology represents a breakthrough in the continuous monitoring of IER because it provides higher temporal resolution than competing methods at a fraction of the cost

The Incentive for Working Hard: Explaining Hours Worked Differences in the U.S. and Germany

This paper seeks to explain the greater hours worked by Americans compared to Germans in terms of forward-looking labor supply responses to differences in earnings inequality between the countries. We argue that workers choose current hours of work to gain promotions and advance in the distribution of earnings. Since US earnings are more unequally distributed than German earnings, the same extra work pays off more in the US, generating more hours worked. Supporting this inequality-hours hypothesis, we show that in both countries hours worked is positively related to earnings inequality in cross section occupational contrasts and that hours worked raises future wages and promotion prospects in longitudinal data.

When grassroots innovation movements encounter mainstream institutions: implications for models of inclusive innovation

Grassroots innovation movements (GIMs) can be regarded as initiators or advocates of alternative pathways of innovation. Sometimes these movements engage with more established science, technology and innovation (STI) institutions and development agencies in pursuit of their goals. In this paper, we argue that an important aspect to encounters between GIMs and mainstream STI institutions is the negotiation of different framings of grassroots innovation and development of policy models for inclusive innovation. These encounters can result in two different modes of engagement by GIMs; what we call insertion and mobilization. We illustrate and discuss these interrelated notions of framings and modes of engagement by drawing on three case studies of GIMs: the Social Technologies Network in Brazil, and the Honey Bee Network and People's Science Movements in India. The cases highlight that inclusion in the context of GIMs is not an unproblematic, smooth endeavour, and involves diverse interpretations and framings, which shape what and who gets included or excluded. Within the context of increasing policy interest, the analysis of encounters between GIMs and STI institutions can offer important lessons for the design of models of inclusive innovation and development

XMM-Newton Archival Study of the ULX Population in Nearby Galaxies

We present the results of an archival XMM-Newton study of the bright X-ray point sources (L_X > 10^38 erg/s) in 32 nearby galaxies. From our list of approximately 100 point sources, we attempt to determine if there is a low-state counterpart to the Ultraluminous X-ray (ULX) population, searching for a soft-hard state dichotomy similar to that known for Galactic X-ray binaries and testing the specific predictions of the IMBH hypothesis. To this end, we searched for "low-state" objects, which we defined as objects within our sample which had a spectrum well fit by a simple absorbed power law, and "high-state" objects, which we defined as objects better fit by a combined blackbody and a power law. Assuming that ``low-state'' objects accrete at approximately 10% of the Eddington luminosity (Done & Gierlinski 2003) and that "high-state" objects accrete near the Eddington luminosity we further divided our sample of sources into low and high state ULX sources. We classify 16 sources as low-state ULXs and 26 objects as high-state ULXs. As in Galactic black hole systems, the spectral indices, Gamma, of the low-state objects, as well as the luminosities, tend to be lower than those of the high-state objects. The observed range of blackbody temperatures for the high state is 0.1-1 keV, with the most luminous systems tending toward the lowest temperatures. We therefore divide our high-state ULXs into candidate IMBHs (with blackbody temperatures of approximately 0.1 keV) and candidate stellar mass BHs (with blackbody temperatures of approximately 1.0 keV). A subset of the candidate stellar mass BHs have spectra that are well-fit by a Comptonization model, a property similar of Galactic BHs radiating in the "very-high" state near the Eddington limit.Comment: 54 pages, submitted to ApJ (March 2005), accepted (May 2006); changes to organization of pape