DLSU Business & Economics Review Vol 25 No.1

Renee Kim, Dong Hyun Yoon, Yan Chao, and Noctan Dang
HanYang University, Seoul, Korea
[email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 1-15

Abstract:
Contemporary consumers are increasingly looking at a product as an experience rather a material object. Consequently, an experiential approach in marketing is drawing attentions recently in generating consumer-based brand equity, as it emphasizes the importance of emotions in addition to rationality in consumer’s consumption behavior. The purpose of this paper is to examine whether five different Brand Experience Scale have differentiated impact on consumers’ brand satisfaction and brand loyalty in Vietnamese market. In particular, three different product category types, which have different levels of product involvement, are assessed in order to determine whether consumers make differentiated response to brand experience for products with different involvement levels. We find that Vietnamese consumers have differentiated brand experience in developing their brand loyalty for three different types of products which have different product involvement levels.

Aditya S. Mishra
ICFAI Foundation for Higher Education, India
[email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 16-27

Abstract:
The use of celebrities in brand endorsements has been a widespread strategy in advertising. Over the years, academicians and practitioners have been trying to determine effective strategies to select appropriate celebrities for brand endorsements. Many models and tools have been proposed to help in this selection. However studies have focused on the appropriate congruence of celebrity with the product category, rather than with a specific brand, in effective product endorsements. But, when every product category is crowded with many brands then, it is imperative to investigate the role of specific brand’s personality-celebrity personality congruence and its role in creating effective celebrity endorsements. Further, the congruence in celebrity endorsement literature has been seen on the bases of source characteristics like attractiveness and expertise. It would be important to see the celebrity-brand congruence on the basis of the stimuli beyond source characteristics. The present study therefore empirically investigated the variation in advertising effectiveness measures across the high and low congruent pairs of celebrity endorser and brand based on the personality traits. The findings suggested that the advertising effectiveness measures such as advertisement believability and attitude toward ad were significantly different; while measures such as attitude toward brand and purchase intention were almost similar across the high and low congruent pairs of celebrity endorser and brand.

Inna Čábelková,
Charles University in Prague, Czech Republic

Boris Pogorilyak
Plekhanov Russian University of Economics, Moscow, Russia

Wadim Strielkowski*
Charles University in Prague, Czech Republic
[email protected]

Václav Stříteský and Radek Tahal
University of Economics, Prague, Czech Republic

Year: July 2015
Volume: 25 No. 1
Pages: 28-44

Abstract:
Economic transformation in the post-transition countries brought about the enormous expansion of the vending industry that included multi-national supermarket chains. With the saturation of the consumer demand, increase of the economic well-being, and the growth of competition in the field, vendors in Central and Eastern European countries (CEECs) attempt to sustain their loyal customer base using various loyalty programs. Our paper describes the results of the survey among shoppers in the six largest supermarket chains in the Czech Republic. We determine the main qualities that supermarkets may offer for the customers to stay loyal on the basis of 257 face-to-face interviews and the effect of socio-demographic factors on the importance of these factors. Our results show that, as opposed to the literature that stresses the emotional relationship between the customer and the store, loyalty of Czech consumers is linked to such “traditional” factors like low prices, discount sales, accessibility, and quality of goods and gifts. On the other hand, factors such as assortment of goods or the level of services in stores did not come through as significant. Our results are explained in the light of economic behavior of people in post-transition economies.

Rorian Pratyaksa, Rosanina A. Sayoc, Mika M. Koga, and Michael Dominic O. Siy
De La Salle University, Manila, Philippines [email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 45-62

Abstract:
Recent trends show that top Philippine conglomerates, with more than 91% of the Philippine Stock Exchange Index (PSEi) market capitalization, have continued to diversify into non-core industries (Santiago & Magpayo, 2007; Gutierrez & Rodriguez, 2013). We examine the effect of diversification on firm excess value, with considerations of ownership structure, particularly the supermajority status and family ownership while controlling for firm characteristics and industry sectors for 167 PSE-traded firms from 2004 to 2013. Results suggest that existence of a discount effect, where there is a 43% to 56% discount when diversifying into another industry. However, this discount can be offset by ownership structure characteristics, wherein having a supermajority status enjoys a 33% premium and being family-owned enjoys a 25% to 54% premium. We find that conglomerates can extract benefits from diversification strategies through the composition of their ownership structure.

Junius W. Yu
De La Salle University, Manila, Philippines
[email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 63-80

Abstract:
The study focuses on the three factors of Creativity Management namely visual, number, and word. The research examines the concept of creativity from a historical, psychological, and development stage until it is differentiated from innovation. The article corresponds to the evolution of creativity in conjunction with management. Moreover, the study discloses on the need of students in terms of creativity and management by identifying the related factors in conjunction with business application. Results of this study reveal that students are inclined towards visual creativity with a 69% frequency as well as the highest Coefficient of Determination at 0.6611. Bivariate correlations showed that Creativity Management Index was significantly associated with Visual creativity (positive) and Number creativity (negative). Thus, a theoretical framework was advanced and geared towards helping students to spark their creativity, nurture that idea, and harness it to fruition.

Abd. Jamal, Said Muhammad, Raja Masbar, and Aliasuddin
Economics Faculty of Syiah Kuala University, Banda Aceh, Indonesia
*[email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 81-94

Abstract:
This research aims to analyze the success of proliferation of districts as political economic policy in Indonesia to reduce economic growth disparities among districts in Aceh Province, and factors affecting these. Cross sectional and time series data were employed in this research, in periods 2001–2012, by panel regression analysis model. Data were grouped into Aceh-13 (periods 2001–2012), Aceh-23 (2008–2012), and reintegrated to Aceh-10 (2001–2012). Estimation results showed that convergence of economic growth, both σ (sigma) and β (beta) convergence existed significantly, in Aceh-13, Aceh-23, and Aceh-10. Population density and direct government expenditures density both affected convergence of economic growth significantly, which each have negative and positive sign consecutively. The number of teachers, as proxy to knowledge spillover and geographic concentration, are not statistically significant. Proliferation of districts occurred in Aceh, from 13 districts/cities to 23 districts/cities have resulted in a decreasing disparities among districts, indicated by lower half-life indexes from 79.19 years in Aceh-13 to 15.23 years in Aceh-23. Speed of convergence increased from 0.88% in Aceh-13 to 4.55% in Aceh-23.

John Lourenze S. Poquiz
University of Santo Tomas, Manila, Philippines
[email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 1-9

Abstract:
The Philippines has one of the highest power rates in Asia, second only to Japan. This remains true even though it has been more than ten (10) years since the country engaged in a comprehensive liberalization of the power industry, through the legislation of the Electric Power Industry Reform Act (EPIRA). The rationale for the EPIRA is to introduce competition in power sector by selling the assets of the National Power Corporation (Napocor). It was expected that competition would bring about efficiencies in the power industry and ultimately ease the price of electricity. Majority of the Napocor assets have been sold to private firms since the signing of the EPIRA but whether or not privatization was able to lower power rates remains questionable. This paper uses the structure-conduct-performance paradigm to evaluate the price effects of privatization. Regression analysis was used to determine whether changes in market concentration had a significant effect of the price of power in the Whole Sale Electricity Spot Market (WESM) from 2006 to 2010. The Herfindahl-Hirschman Index (HHI) was estimated for each month covered by the time period of the studied and the market concentration was assessed using the HHI. The results suggest that the changes in market concentration had no significant effects on electricity prices from 2006 to 2010. The study also concludes that situations wherein the supply of power is tight could allow prices in the WESM to rise.

Cesar C. Rufino
De La Salle University, Manila, Philippines
[email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 119-142

Abstract:
This study utilized the recently available public use raw data file of the 2011 round of the Annual Poverty Indicator Survey (APIS) to establish the latest stylized facts on the Philippine child labor situation. Public use file of the 2008 APIS was also used to generate comparative descriptives. It is also an attempt to jointly estimate the schooling and employment choices of Filipino children via the multinomial logit model that used the four different permutations of schooling and employment as the mutually exclusive and exhaustive categories of choice. A value added feature of the study is the use of survey design consistent procedures in establishing the descriptives as well as the estimates of the main empirical model. Tabulated summaries of the results reveal some alarming developments in the child labor situation of the country. The outcome of the econometric modeling confirms the empirical relevance of certain covariates discussed in the literature concerning schooling/work choice formation of Filipino children.

Andrea L. Santiago
De La Salle University, Manila, Philippines

Fernando Y. Roxas
Asian Institute of Management, Philippines
[email protected]

Year: July 2015
Volume: 25 No. 1
Pages: 143-154

Abstract:
The after effects of Typhoon Yolanda have forced the country to rethink its strategy with respect to serious calamities. We believe that the country should also think about the devastation as an opportunity for shifting to “sustainable reconstruction” by which infrastructure is rebuilt with the long-term view, taking into account the impact of reconstruction on the environment, economy, society, technology, and institutions at each stage of the process. This approach is far better than recreating the status quo ante. In response, the Philippine government crafted the Yolanda Comprehensive Rehabilitation and Recovery Plan, which incorporates current best practices. The strategic shift is to increase investments in disaster mitigation, prevention, and preparedness rather than mere response, rehabilitation, and recovery. The evaluation of the 8,000 page, 8-volume document reveals a model that looks beyond physical structures and works toward rebuilding a community that learns to live sustainably. The challenge is ensuring that the sustainable reconstruction plans are implemented as envisioned.