Media Management and Economics Division 2010 Abstracts

Social Media and Young Latinos: A Cross-Cultural Examination • Alan Albarran, The University of North Texas; Aimee Valentine, The University of North Texas; Caitlin Dyer, The University of North Texas; Brian Hutton, The University of North Texas • This paper examines uses and gratifications of social media in a large cross-cultural study among young adult Latinos in six countries. A two-stage research design was employed using a series of focus groups followed by a survey (n = 1,507) administered in each country. This paper presents initial findings and discusses the results compared to earlier studies along with the managerial and economic implications of social media among this growing demographic.

Sports as a competitor in the local radio market • Todd Chambers, Texas Tech University • This study used information from 245 radio markets to better understand the market structure of sports radio. Since its inception as a format in the late 1980s, all sports radio has increased in terms of the number of stations and market share. Using information about metropolitan statistical areas, radio stations and information from sports leagues, the data indicated that the vast majority of markets have at least one sports radio station. The findings suggested that competition within the sports format led to higher ratings than in markets with just one sports radio station.

Consumer Perceptions of Social Media: Comparing Perceived Characteristics and Consumer Profiles by Social Media Types • Sylvia Chan-Olmsted, University of Florida; Moonhee Cho, University of Florida; Sangwon Lee, Jamestown College • This study examines the consumer perceptions of six major social media types (social networks, blogs, online forums, content communities, and micro-blogging) on five characteristics: participation, commonality, connectedness, conversationality, and openness. Consumer profiles are also investigated to assess the role of demographics and usage in differential perceptions. Using an online survey of a national consumer panel, the study found that different social media applications are perceived differently and social media usage, gender, and age are related to these differences.

Writing Their Own Obituaries? Examining How Newspapers Covered the Newspaper Crisis from the Media Economics Perspective • H. Iris Chyi, University of Texas at Austin; Seth Lewis, University of Texas at Austin; nan zheng, University of Texas at Austin • During the past two years, U.S. newspapers covered the crisis of their own industry extensively. Such coverage drew substantial attention to the state of the newspaper but also raised questions about whether journalists misunderstood or over-reacted to this newspaper crisis. This study examines whether such coverage was based on media economics data and whether it placed the crisis in the historical/economic context so as to present a fair and balanced portrayal of the state of the newspaper.

Demystifying the Demand Relationship Between Online and Print Products under One Newspaper Brand: The Case of Taiwan and the Emergence of a Universal Pattern • H. Iris Chyi, University of Texas at Austin; J. Sonia Huang, National Chiao Tung University • This study seeks to clarify the often misunderstood demand relationship between online and print newspapers with reality-based research. As a replication and extension of previous research conducted in the U.S. and in Hong Kong, this study examined further the demand relationship between online and print newspapers in Taiwan. Analyzing survey data of 7,706 Web users, this study generated results of striking similarities: 1) Simultaneous use of a newspaper’s online and print products is common; 2) the print edition attains a much higher penetration relative to its online counterpart; 3) print penetrations increase among readers of the same newspaper’s online edition; 4) online readers were more likely to read the same newspaper’s print edition and vice versa. These counter-intuitive findings posit important theoretical questions as well as practical challenges regarding the management of multiple product offerings under one newspaper brand. A universal pattern characterizing the demand relationship between online and print newspapers is emerging.

Non-English Language Audiences in the U.S.: Predictors of Advertiser Investment across Media Platforms • Amy Jo Coffey, University of Florida • Based in audience valuation and consumer theory, this replication study examined U.S. advertiser valuation of non-English language audiences across radio, online, newspaper, magazine, and outdoor media platforms, then compared these results with those examining U.S. television advertisers. Results reveal that nearly all advertisers—regardless of medium—invest in non-English language audiences due to the specific cultural traits of that audience, which permit culturally-relevant messaging and segmentation. Results and implications for each media platform are discussed.

The New Economics of Advertising • Andrew Gaerig, University of North Carolina • This paper examines, on a macro level, how media advertising has changed from both a qualitative and quantitative perspective. The paper investigates the rise of below the line advertising and how it relates to traditional media advertising. It then reclaims the Principle of Relative Constancy as a framework under which media leaders can begin to understand advertising spending. Finally, it offers suggestions for how media companies can thrive in this new advertising ecosystem.

Online Relationship Marketing in Media Industries: The Adoption of Social Media by Media Firms Miao Guo, University of Florida; Sylvia Chan-Olmsted, University of Florida • This study investigates how and to what extent traditional media organizations adopt social media to perform relationship marketing functions on their websites and the factors that might affect such practices. Through a content analysis of newspaper and television websites, it was found that traditional media have aggressively incorporated many social media tools to connect with their readers/viewers. There are, however, significant differences in the use of social media between the national and local media as well as newspaper and television media. The study also found that media type and market size play a role in social media adoption and relationship marketing functions on local media sites.

Marketing and Branding in Online Social Media Environments: Examining Social Media Adoption by the Top 100 Global Brands • Miao Guo, University of Florida • This study examined how and to what extent social media was utilized on the top 100 global brands’ websites to realize relationship marketing and branding functions. Based on a media typology model along several media characteristic dimensions, the study first differentiates diverse social media tools, comparing mass and personal communication channels. By conducting a content analysis on the use of social media on top global brand websites, the study found that social networks such as Facebook and Linked In are the leading social media channels used by these companies. Variations in social media adoption also differ by industry type, which reflects how the offline resources and capabilities of a firm might influence its online relationship marketing and branding strategies.

The Relationship between Online Newspapers and Print Newspapers: A Public Good Perspective Louisa Ha, Bowling Green State University; Xiaoqun Zhang, Bowling Green State University; Gi Woong Yun, Bowling Green State University; Kisung Yoon, Bowling Green State University • Compared to print newspapers, online newspapers still play a minor role in newspaper revenue. However, because the decline of print newspapers seems irreparable, newspaper industry tries to promote online newspapers in order to maintain their share of media market. This paper investigates the demographic characteristics of online newspaper readership. The analysis shows that online newspaper readers are likely to be male, lower income, younger, and have higher education. The online newspaper readers and the print paper readers have different demographic characteristics. The study shows a weak positive relationship between the reading time of online newspapers and print newspapers. The data does did not support the inferior good hypothesis in which usage is affected by income level. Using a public good perspective, this study shows that medium use time, not willingness to pay directly, is a better measure for value of online newspapers as a public good. The online newspaper is a fledging public good to attain enough value to be supported by consumers.

The theory of news-agency management: Copy sharing, public goods, and the free-rider problem Grant Hannis, Massey University • Scholarly interest in news agencies’ operations has been characterized as frequently eschewing any overt theoretical component. In response, this paper applies the economic theory of the free rider to better understand managerial decision-making in the New Zealand news agency NZPA. The theory explains NZPA’s efforts to stamp out piracy of its wire copy early in its career and why NZPA recently abandoned a fundamental aspect of its operation, sharing copy among its members.

New Business Pursuit at a Small Advertising Agency: An Emerging Model for the Pursuit of New Accounts • Daniel Haygood, Elon University; Jae Park, University of Tennessee Pursuing new business is integral to the ongoing success of an advertising agency. The largest firms have established practices in competing for new accounts and increasingly must deal with advertising agency search firms. But what are small advertising agencies doing to successfully seek new business? This research looks at the new business strategy/practices of a small advertising agency and proposes a small agency model for successfully pursuing new business.

News Editors’ Beliefs and Attitudes toward Online Advertising: A Happy Balance between Journalistic Ideals and Commercial Realities? • Jisu Huh, University of Minnesota; Tsan-Kuo Chang, Department of Media and Communication, City University of Hong Kong; Brian Southwell, University of Minnesota-Twin Cities; Hyung Min Lee, University of Minnesota; Yejin Hong, University of Minnesota-Twin Cities • We surveyed a representative sample of newspaper editors and TV news directors (1) to determine perceptions and attitudes of news editors toward online advertising; (2) to examine if news editors believe that online advertising negatively influences news content; and (3) to explore predictors of their perceptions of online advertising. The findings suggest that journalists do not hold strongly negative attitudes toward online advertising and do not have strong support for setting limitations for online advertising.

Modeling access charge reform: Achieving parity between interstate and intrastate long-distance telephony Krishna Jayakar, Penn State University; Richard Taylor, Penn State University; Amit Schejter, Penn State University • Access charges are intended to compensate local loop providers for the usage of the local networks for long-distance traffic origination and termination. They have also provided a cross-subsidy from long-distance to local service to keep local rates low. Actual charges thus bear little relation to price, especially at the state level—thus, it often costs more to call long-distance within a state, than across the continent. In this paper, we present a mathematical model for access charges using a constant elasticity demand function, and argue that the net social welfare effects of access charge reductions will be positive.

Factors determining the popularity of Fortune 500 corporate blogs Eun Hwa Jung, University of Florida; Dae-Hee Kim, Graduate student; Angie B. Lindsey, University of Florida • Blogs and blogging have become a phenomenon that transforms communication and information gathering. The interest in this phenomenon has been extended to business and marketing fields as a new channel of corporate communications. However, there has been a lack of research about the popularity of corporate blogs and influential factors to the popularity of corporate blogs. Thus a content analysis about corporate blogs of Fortune 500 companies was conducted. The results showed that some of factors (frequency of posting, number of authors, number of video and picture, number of comments, and easiness of web search) were significant difference between popular corporate blogs and unpopular corporate blogs that were gauged using Technorati Ranking. Based on the research results, the current study contributes to increasing the knowledge and extending the understanding about the corporate blogs. Research implications and limitations are discussed for future research.

Not For Profit or Not For Long – Is Nonprofit Journalism Sustainable? • Kelly Kaufhold, University of Texas at Austin • At least nine new independent nonprofit news organizations have been launched online since 2004 – many of them going head to head against established news organizations – and 12 more university-based programs have entered the market. These outlets embrace a variety of funding sources, including foundation support, advertising, user- and crowd-funding models. This study aggregates and analyzes these different funding models in the context of existing news outlets, and discusses the potential for success in nonprofit news.

Business Size and Media Effects: An Examination of Econo-Psychological Factors • Wan Soo Lee, School of Visual & Mass Communication, Dong-Seo University; Min-Kyu Lee, Chung-Ang University • This study investigates the non-mediated experience effect of economic conditions on business sentiment, the agenda-setting effect of news coverage on business sentiment and the self-fulfilling hypothesis that business sentiment affects economic reality, especially focusing on corporate size. The result shows 1) that the future business condition affected the business sentiment in small and large firm, implying there is no significant size effect, 2) that the current business conditions only affected the business sentiment in small and medium firms, not in large business firms, implying there is a significant size effect, 3) that the tone of news coverage has no significant effect on business sentiment, which doesn’t support agenda-setting effect, and 4) business sentiment only affected the increase and decrease rates of GDP regardless of corporate size. We discuss the possibility to broaden the theoretical horizon of corporate communication research by measuring the relationships among corporate sizes, economic circumstances, media reports and understanding of economic realities.

Market Competition and Media Diversity: An Examination of Taiwan’s Terrestrial TV Market from 1986 to 2002 • Shu-Chu Li, National Chiao Tung University; Yi-Ching Liu, National Chiao Tung University • This study adopted the S-C-P model as the theoretical framework for examination of the competition-diversity relationship in Taiwan’s terrestrial television market from 1986 to 2002. This study divided the 17 years into four periods with the first period categorized as one with an oligopolistic market structure, the second period as one with minor competition, the third period as one with strong competition, and the fourth period as one with intra-media competition. The four methods used to measure media diversity include vertical programming diversity, horizontal programming diversity, content diversity and source diversity. This study analyzed 44,432 programs that were randomly selected from the 17-year period. The data analysis shows that media diversity increased as minor inter-competition entered Taiwan’s market, while media diversity decreased when strong inter-competition entered the market. Furthermore, this study found that strong intra-media competition was associated with an increase of media diversity in Taiwan’s television market.

Case Study: Competition and Merger of a Daily and a Weekly in a Non-metropolitan Market Jason Lovins, Ohio University • Competition among non-metropolitan daily and weekly newspapers has been studied, but little research exists on strategic decisions related to competition and merger. This case study examines a 25-year competition and merger of a daily and a weekly. A publisher, an editor and owner are interviewed to discuss competition and reasons for acquisition. The study concludes that the outcomes parallel those of prior research focusing on metropolitan markets, though both papers maintain separate branded identities.

Media Discontinuance: Modelling the Diffusion S Curve to Declines in Media Use • Jay Newell, Iowa State University; Ulrike Genschel, Iowa State University; Ni Zhang, Iowa State University • The cumulative diffusion of innovations such as new media has been modeled with an S-curve. This study explores the potential extension of the use of the S-curve to model declines in existing media. Using annual data from declines in telegrams, afternoon newspapers, vinyl records, outdoor movie theaters and VHS tapes, this study finds that decays in existing media often follow a dramatic downwards path that is more abrupt than that of media undergoing growth. Implications for media management and theory are discussed.

Predicting Theatrical Movies’ Financial Success • Seung Hyun Park, Hallym University; Namkee Park, University of Oklahoma
• This study replicates past research that examined the predictors of movies’ box office revenues. Using a sample of 400 movies released from 2004 to 2007, the present study discovered that production budget, the number of screens, critics’ review, and star actors were significant for the total domestic, first-week, and international box office revenues. The study also found that the Easter season negatively affected both the domestic and international box office revenues.

Refashioning Television: A Structural Analysis of Webisodes L. Meghan Peirce, Ohio University; Tang Tang, University of Wisconsin Oshkosh • This study was interested in how the structure of traditional television media changes when content is instead designed exclusively for Internet broadcasting. This was achieved by conducting a content analysis on 100 webisodes nominated for a 2010 Streamy Award. Specifically, it aims to explore transparent characteristics, interactivity, and the differences between professional and amateur Webisodes. Results demonstrate that webisodes come in many forms, lengths and purposes. Most webisodes fall under the comedy genre. A large variety interactivity features exist in webisodes. However, most of this interactivity is user-to-webisode, not webisode-to-webisode, suggesting consumption is designed to be done in a relatively short succession. Finally, professionally-produced webisodes presented violent and sexual acts significantly more often than their amateur counterparts. This study contributes to existing research, as the findings may provide strategic value for webisode producers interested in creating popular and viral webisodes with relatively little production costs and management.

Journalism layoff survivors burn in Arizona, keep cool in L.A. • Scott Reinardy, University of Kansas • Following dramatic newsroom cuts, this study examines organizational transformation of layoff survivors at the Los Angeles Times, Arizona Republic, Dallas Morning News and St. Louis Post-Dispatch. It’s a comparative analysis of burnout levels, job satisfaction, organizational trust, morale and commitment. Interestingly, the younger, less experienced staff at the Arizona Republic is suffering more burnout and lower levels of perceived job quality than journalists at the L.A. Times, but demonstrate more organizational trust than the other papers.

Economic Factors and the Adoption of Video-on-Demand Service in the Cable Industry • sangho seo, Konkuk University • The primary purpose of this study is to examine economic factors affecting on the adoption of video-on-demand service in the U.S. cable industry. This study examines what economic factors leads to investments in new technologies, and results in deployment of video-on-demand services in local markets. Probit regression analyses reveal that MSOs transfer efficiency to deployment of video-on-demand services in local markets. Therefore, the implications of the efficiency of horizontal integration have significant meaning. In addition, the result of this study has indicated that cable operators with triple-play services are more likely to adopt video-ondemand services than cable operators without triple-play services.

You Can Build It, But Will They Come: Not-For-Profit Media Competition for Audiences • Dan Shaver, Jonkoping International Business School/Media Management & Transformation Centre This study examines the question of whether there is sufficient audience demand for content provided by not-for-profit news sites developed to meet the perceived loss of local news coverage resulting from closures and cut-backs in resources by existing newspapers to create a sustainable business model. It concludes that inefficient marketing and a lack of innovation hinder attraction of online audiences from websites offered by traditional media outlets and that sustainability requires improvement in both areas.

Newspaper customer value: An exploratory examination of the role of network effects in a converging industry • Ed Simpson, Ohio University • This exploratory study sought to quantify the value of newspaper readers, both paid and pass-along, to print operations and the value of unique visitors to newspaper Web sites. By employing the theory of direct and indirect network effects, this study found evidence to support discussions of movements away from historical paid circulation models and cost-per-thousand advertising calculations in determining audience value. This study found that so-called free customers provided substantial value to newspaper Internet sites and that, in fact, newspaper readers also contributed to the value of the Web sites. This study suggests that convergence is far more than an ephemeral concept of how journalists and Web designers do their work, but argues for deeper examination of a recasting of customer value within the industry.

User Flow in a Non-linear Environment: An Examination of Web Site Consumption Tang Tang, University of Wisconsin Oshkosh; Gregory Newton, Ohio University • This study represents one of the first attempts to empirically examine a combined model of psychographic and institutional factors that predict web site consumption. The study found that user characteristics, motivations, use of Internet structures and external web sources, and user availability predicted the use of social networks, entertainment, news, sports and e-commerce sites. Results suggest that in a non-linear environment, media users still exhibit predictable patterns of behavior. Different types of web sites need to guide user flow differently according to their unique characteristics.

Text is Still Best: Online editors’ attitudes towards news story platforms • Bartosz Wojdynski, University of North Carolina at Chapel Hill • Developments in Web audiences and business models have resulted in more converged news rooms, in which the ability to produce media for multiple platforms has become increasingly important. This paper examines results from a survey of online editors (n=31) from popular U.S. news sites to explore differential perceptions of the role, strengths, and weaknesses of six online story formats: text, video, audio, audio slideshow, interactive graphic, and multimedia package.

Diffusion of Innovation or Not?: Both Cases of Direct t-DTV Adoption With and Without Payment Kyung Han You, The pennsylvania State University; Hongjin Shim, Yonsei University • This study investigated factors affecting the intention to directly adopt terrestrial digital television (t-DTV), assuming that diffusion of t-DTV free-of-charge and with willingness-to-pay is not identical to general diffusion patterns. Findings showed that t-DTV adoption with willingness-to-pay followed general diffusion pattern, whereas t-DTV adoption free-of-charge did not. Further, Innovation characteristics did not predict intentions to directly adopt t-DTV free-of-charge. Findings suggested that willingness-to-pay is critical in determining diffusion patterns. Implications and limitations are also discussed.

<< 2010 Abstracts

Print friendly Print friendly

About kysh