Testing prospect theory in students’ performance

This paper tests the existence of ‘reference dependence’ and ‘loss aversion’ in students’ academic performance. Accordingly, achieving a worse than expected academic performance would have a much stronger effect on students’ (dis)satisfaction than obtaining a better than expected grade. Although loss aversion is a well-established finding, some authors have demonstrated that it can be moderated – diminished, to be precise–. Within this line of research, we also examine whether the students’ emotional response (satisfaction/dissatisfaction) to their performance can be moderated by different musical stimuli. We design an experiment through which we test loss aversion in students’ performance with three conditions: ‘classical music’, ‘heavy music’ and ‘no music’. The empirical application supports the reference-dependence and loss aversion hypotheses (significant at p < 0.05), and the musical stimuli do have an influence on the students’ state of satisfaction with the grades (at p < 0.05). Analyzing students’ perceptions is vital to find the way they process information. Particularly, knowing the elements that can favour not only the academic performance of students but also their attitude towards certain results is fundamental. This study demonstrates that musical stimuli can modify the perceptions of a certain academic result: the effects of ‘positive’ and ‘negative’ surprises are higher or lower, not only in function of the size of these surprises, but also according to the musical stimulus received.

Effects of message appeal and service type in CSR communication strategies

Studies highlight the importance of corporate social responsibility (CSR) for companies' stakeholders. Consumers, however, are often unaware of such initiatives. Understanding how to effectively communicate socially responsible initiatives is an important challenge for both researchers and managers, who invest considerable resources in CSR initiatives. This study examines consumers' responses to two types of CSR initiatives (environment-related and employee-based) using two types of message appeals (emotional and rational) across two service types (hedonic and utilitarian). Responses provide data on consumers' awareness of CSR initiatives, attitudes toward the company, perceived company uniqueness, emotional response, and attributions of company motives to engage in CSR activities. Rational appeals more effectively communicate environment-related CSR initiatives, whereas emotional appeals more effectively communicate employee-based CSR initiatives. Effects on consumers' attributions of company motives to engage in CSR are significant in both service types. Finally, rational message appeals affect consumers' CSR awareness and emotional responses in utilitarian service.