October 21, 2009 at 1:53 pm
Whereas in the 1980s nearly four in five Americans were repeat buyers of the same brand of automobile, a new survey shows only 20 percent show such loyalty today. School of Management marketing Professor Shuba Srinivasan, who studies auto-industry marketing, says increased reliance on sales promotions is partly to blame.
“Over the last decade, the auto industry has seen an excessive reliance on sales promotions rather than an emphasis on ‘getting the products right’ through innovations. In fact, promotion escalation can lead to erosion in brand loyalty in the long run.”
Contact Shuba Srinivasan, 617-353-5978, ssrini@bu.edu
October 20, 2009 at 5:25 pm
Boston-based State Street Corporation has been sued by the California attorney general for "unconscionable fraud" against that state's largest public-worker pension funds. Law Professor Tamar Frankel, an authority on securities law and author of "Trust and Honesty: America's Business Culture at a Crossroad," says the big questions are how will State Street act in the future.
"Will State Street try to change the way it does business and settle for lower profits and lower executive compensation and lower share prices? Or will there be another way in which the management will try to make up the shortfall?"
Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu
October 19, 2009 at 4:43 pm
The National Academy of Sciences' National Research Council reports that there's about $120 billion in "hidden costs" -- including environmental and public health damage -- from energy production and consumption every year. Professor Ian Sue Wing of the BU Center for Energy and Environmental Studies was a member of the NRC committee which conducted the study.
"Although questions of health and environmental policy are not the focus of the report, its conclusions point to the need for measures to better internalize these hidden costs into the market price of energy."
Contact Ian Wing, 617-353-5989, isw@bu.edu
October 16, 2009 at 2:40 pm
A Louisiana justice of the peace is raising legal eyebrows for denying an interracial couple a marriage license because he doesn't think it would be good for any child the couple might have. Law Professor Linda McClain, a family law authority, says the J.P. is flat-out wrong legally, based on a long-ago U.S. Supreme Court ruling.
"The reason the Louisiana justice of the peace story is so startling is that it states an attitude that seems as if it belongs to another era."
Contact Linda McClain, 617-358-4635, lmcclain@bu.edu
October 16, 2009 at 8:00 am
Dr. Richard E. Besser, Senior Health and Medical Editor for ABC News and former Acting Director of the Centers for Disease Control and Prevention (CDC) will be the guest speaker at the 11th annual Dudley Allen Sargent Lecture at the College of Health and Rehabilitation Sciences: Sargent College today. The title of his lecture is “Pandemics, Public Health, and Political Transition.” The lecture will begin at 3:00 p.m. at 635 Commonwealth Avenue in Room 101. All attendees are invited to a reception following the lecture at 4:00pm in the Setterberg lounge on the 2nd floor. THE EVENT IS FREE AND OPEN TO THE PUBLIC
October 15, 2009 at 12:01 pm
With reports that most of the Nobel committee initially argued against giving President Obama the 2009 Peace Prize, former U.S. Ambassador Charles Stith, director of BU's African Presidential Archives and Research Center (APARC), makes the case in a Bay State Banner commentary for awarding the honor.
"The Nobel Committee gets something that seems to elude the pundits and prognosticators ... That is, race (and by implication tribe, clan, or country of origin) does not have to be the only, or certainly not the defining, thing that colors the decisions we make. That is refreshing; if not cause for hope."
Contact Charles Stith, 617-353-5452, crstith@bu.edu
October 15, 2009 at 11:28 am
After months of forcing cutbacks and considering bids, The New York Times Company decided to keep the Boston Globe after all. College of Communication Dean Tom Fiedler, a Pulitzer-winning former Miami Herald executive editor, says the key reasons were the "stunningly low" offers and the new optimism about the Globe's prospects.
"Add to that significant new revenue from a hike in the Globe’s price and the gradual return of recession-battered advertisers, and the Times may be envisioning a balance sheet in the black."
Contact Tom Fiedler, 617-353-3488, tfiedler@bu.edu
October 14, 2009 at 3:14 pm
Despite the taxpayer bailouts and regulators pressuring Wall Street's compensation culture, finance-industry pay is expected to push to a record high of $140 billion this year. Former Federal Reserve Bank examiner Mark T. Williams, who teaches finance at the School of Management, says only emplyees that take low risks and make large profits should be rewarded.
"Compensation schemes in the past inappropriately incentivized employees to bet the farm using the firm’s money. For the health of these companies and our economy, this practice must be stopped."
Contact Mark T. Williams, 617-358-2789, williams@bu.edu
October 13, 2009 at 5:02 pm
With only one Republican voting yea, the Senate Finance Committee has approved its healthcare-reform bill and the deal making should begin in earnest to meld it with a more liberal version from another committee. School of Management Professor Stephen Davidson, author of "In Urgent Need of Reform: Saving the U.S. Healthcare System," says the Finance panel stripped out cost-containment provisions that will be critically needed.
"The bottom line is that the insurers have demonsrated there is no reason any more to cultivate their support. That being the case, Congress has a new chance to do the job right."
Contact Stephen Davidson, 617-353-7422, sdavidso@bu.edu
October 13, 2009 at 4:13 pm
Convicted Enron CEO Jeff Skilling will get the chance to appeal to the U.S. Supreme Court his federal conviction on conspiracy, securities fraud, insider trading, and lying to auditors. Law Professor Tamar Frankel, an authority on securities law and legal ethics, says it shouldn't matter whether a manager directly or indirectly benefited from a wrongful act.
"Managers command enormous power derived from other people’s money. With power comes responsibility. With performed crimes comes criminal responsibility."
Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu
