Research methods assignment Paper Example | Topics and Well Written Essays - 2500 words

Methods assignment - Research Paper Example Mekonnen and Harris (2006) is an empirical investigation whether â€Å"cause-related† and â€Å"affinity marketing† enhances the product’s appeal and provides product differentiation (p. 135). In particular, the study investigated whether â€Å"linking a commercial organisation’s product with a non-profit organisation enhances the product’s appeal and provides differentiation from rival offers† (Mekonnen and Harris 2006, p. 135). Mekonnen and Harris (2006, p. 135) articulated that the purpose or aim of their study is to investigate the efficacy of the premise of â€Å"affinity marketing†. The research objectives were not explicitly stated but it can be surmised that, implicitly, the research objectives covered identification of values associated with the use of affinity cards and how they affect the likelihood of donation. 2.0. Literature Review Based on a review of literature, Mekonnen and Harris (2006, p. 136) claim that â€Å"there are significant gaps in understanding consumer attitudes† towards products being sold by â€Å"cause-related marketing† and â€Å"affinity marketing†. ... 136). Mekonnen and Harris (2006, p. 135) declared their work as a challenge to the assumption â€Å"that linking a product to a non-profit organisation enhances its appeal and provides a basis for differentiation.† For Mekonnen and Harris (2005, p. 135), â€Å"the efficacy of this premise depends on the type of cause or affinity group.† Unfortunately, however, the review of literature of Mekonnen and Harris (2006) does not amount to an illustration of the â€Å"significant gaps in understanding consumers’ attitude† in the literature. It is not clear from the review of literature what the various studies have made or the findings they have reached on the relationship between â€Å"cause-related market marketing† and â€Å"affinity marketing† on one hand and product sales on the other. Perhaps there was no empirical study done at all prior on cause-oriented and affinity marketing prior to their study but this is not clear from the review of lit erature. However, because of the failure to illustrate what empirical studies have done or to explicitly clarify at least that no study has been done, the review of literature fails to identify precisely or to justify precisely the significance of the Mekonnen and Harris (2006) endeavour in the overall literature on the subject. The review of literature narrated that cause-oriented marketing has been conventionally characterised as being focused on short-term campaign initiatives (Mekonnen and Harris 2006, p. 136). It also pointed out that the affinity marketing is a sub-set of cause-related marketing (Mekonnen and Harris 2006, p. 136). However, citing the work of Berger and others in 1999, Mekonnen and Harris (2006, p. 136) clarified that â€Å"affinity marketing can

Dividend Policy decisions and Capital Structure decisions in relation Essay

Dividend Policy decisions and Capital Structure decisions in relation to Signaling THeory - Essay Example Usually the principal will offer a higher price than if she/he would not have received the signal. The assumptions underlying information asymmetry are that managers are better informed in relation to investors and will act to the best interest of current shareholders. The signaling theory assumes that managers and investors have same information but managers usually having better information. Thus, the managers would sell stock if overvalued and bonds if stock is undervalued. The investors clearly understand this and, therefore, view new stock sales as a negative signal. From the fact that information asymmetry is well known to all, how a company raises capital becomes a signal. The major implications of information asymmetry are: when the company’s prospects are poor the there is overvaluation of stock as nobody knows except the insiders, everything is financed with stock thus the company can raise more money at a lower cost; and when the company’s prospects are good then there is undervaluation of stock thus the company uses debt to finance. Overvaluation of stock assumes that once the stock falls, sharing of losses is by old and new stockholders favoring the old stockholders whereas undervaluation assumption is when the stock pri ces goes high only the old stockholders will benefit from the gains. This may be simply represented as follows: The signaling view in relation to dividend policy argues that changes in dividend amounts are signals of paramount importance to the investors about management’s changes expectation of future earnings (Duke,edu para 1). It is the belief of many that the amount per share companies’ pay as dividends is a clear indication of the management’s belief about future earnings. A decline in the dividend amount from a previous high amount is an indication that the management anticipates a decline in future earnings. It is a practice by most