Monthly Archives: August 2026

Understanding Eras: Discovering Audience Preferences Through Nostalgic Connections

When brands invest millions in nostalgia-driven advertising—such as Super Bowl commercials—they face a critical question: what if they choose the wrong era? Nostalgia is a powerful marketing tool, but its effectiveness depends on whether it resonates with the intended audience. Researchers at the University of Arizona have developed the Nostalgia for Eras Scale. This new measurement tool helps marketers identify which historical periods evoke the strongest nostalgic feelings among different groups. Their findings, published in the Journal of Advertising, provide a more precise way to understand audience preferences and improve marketing strategies.

Developed by Caleb Warren, professor and Robert A. Eckert Endowed Chair in Marketing at the Eller College of Management, and Matthew Farmer, now an assistant professor at Utah Valley University, the scale addresses an important gap in existing research. Previous studies typically measured nostalgia for personal memories or the past in general. In contrast, Warren and Farmer argue that people are often nostalgic for broader periods of time—whether personal life stages, such as university years, or collective eras, such as the 1950s or 1980s. Understanding these preferences enables marketers to create campaigns that connect more deeply with consumers.

To develop the scale, the researchers analysed consumer essays, previous academic studies, news coverage, and more than 200 advertisements. Their work identified three core elements of nostalgia: the warmth associated with remembering the past, a sense of loss because that time has passed, and the belief that life was simpler and more carefree during that period. Using these insights, they designed a measurement tool that identifies which decade or historical era people feel most nostalgic about.

When hundreds of participants completed the assessment, fewer than half identified their late teens or early twenties as the period they missed most. Instead, many selected different stages of life or even historical periods they had never personally experienced. People who had meaningful experiences later in adulthood, for example, often felt stronger nostalgia for those years. Others idealised eras such as the 1950s, the 1980s, or even the Old West, demonstrating that nostalgia is shaped by personal experiences, cultural influences, values, and identity—not simply by age.

The researchers then tested whether these preferences influenced consumer behaviour. Participants who expressed strong nostalgia for the 1990s responded more positively to a 1990s-era eBay advertisement than to a contemporary version. Participants whose nostalgic preferences centred on other decades did not show the same response. The scale also successfully predicted which film trailers participants were more likely to watch based on the historical periods they found most nostalgic, highlighting its value for advertising, entertainment, and market research.

Rather than relying on intuition or assumptions about generational preferences, marketers can use the Nostalgia for Eras Scale to identify the historical periods that resonate most with specific audiences. Whether promoting a brand, producing a film, or creating a period drama, understanding nostalgic connections allows organisations to tailor content that is more emotionally meaningful and engaging. By replacing guesswork with evidence-based insights, the scale offers a practical framework for predicting audience preferences and creating more effective, emotionally resonant marketing campaigns.

More information: Matthew Farmer et al, Conceptualizing and Measuring Nostalgia for Eras, Journal of Advertising. DOI: 10.1080/00913367.2026.2686662

Journal information: Journal of Advertising Provided by University of Arizona

Clear Communication About Price Increases Builds Customer Trust

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Simply explaining where customers’ money goes could make them more willing to accept higher prices, according to new research from the University of Surrey. Published in the Journal of Service Research, the study found that businesses can increase customers’ willingness to pay by explaining how their money supports the aspects of a service that customers value most, such as skilled staff, talented artists or high-quality ingredients, rather than focusing on overhead expenses like administration or advertising.

The findings challenge the common assumption that consumers care only about the final price. Instead, the researchers found that when customers understand what their money is funding, they are more likely to perceive prices as fair and voluntarily pay more. Greater transparency about the value behind a product or service can therefore strengthen customer trust while reducing resistance to price increases.

To investigate this relationship, the research team examined six service sectors: restaurants, museums, dance workshops, guided tours, online courses and newspaper subscriptions. The study combined two field experiments with six experimental studies involving a total of 2,606 participants. Participants were presented with a variety of real and hypothetical pricing scenarios and asked to decide how much they would be willing to pay after receiving different explanations about how business costs were allocated.

Across nearly every setting, participants who received information about customer-facing costs consistently paid more than those given no explanation or information focused on behind-the-scenes operating expenses. The effect was particularly strong among individuals who would otherwise have chosen to pay the least, suggesting that transparency can be especially effective in increasing price acceptance among more price-sensitive customers.

Lead author Dr Brigitte Stangl, Associate Professor at the University of Surrey, said the findings demonstrate that customers are not simply looking for the lowest possible price. Instead, they are often willing to pay more when they understand the value they receive and how their payments directly support the quality of the service. She emphasised that businesses do not need to disclose confidential financial information; rather, highlighting customer-facing investments such as expert staff, talented artists or premium ingredients is sufficient to improve perceptions of fairness.

Overall, the study found that explanations centred on costs customers can directly appreciate consistently outperformed messages focused on general operating expenses, such as administration, marketing or building costs. By clearly communicating how customer payments contribute to service quality, businesses can build greater trust, increase perceptions of fairness and encourage customers to accept higher prices more willingly—an approach that may prove particularly valuable as organisations continue to navigate rising operating costs and the challenge of communicating necessary price increases.

More information: Brigitte Stangl et al, The Impact of Cost Structure Appeals on Fairness Perceptions and Payments, Journal of Service Research. DOI: 10.1177/10946705251341080

Journal information: Journal of Service Research Provided by University of Surrey

Public Research as the Foundation for Private Investment and Growth

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Strategic public investment in research and development (R&D) can strengthen the economy almost immediately while encouraging private sector investment for years to come, according to a new study led by the University of Southampton. Conducted in collaboration with UCL and the World Bank and published in The Economic Journal, the research finds that government-funded R&D is a particularly productive form of public investment. Rather than displacing private innovation, it stimulates additional business investment and economic activity even before the full technological benefits of research are realised.

Lead researcher Dr Vincenzo De Lipsis says the findings have important implications for governments seeking to stimulate growth while managing constrained public finances. “At a time when governments are seeking to rebuild industrial capacity while operating within tight fiscal constraints, our findings show that the composition, design and credibility of public investment can be as important as its overall size,” he says. The team set out to understand how quickly public R&D generates wider economic benefits, how large those benefits become, and whether they endure over time.

To answer these questions, the researchers analysed more than 280 quarterly economic observations from the US Bureau of Economic Analysis spanning 1947 to 2017. The dataset included public and private investment, government expenditure, tax revenues and gross domestic product (GDP). The United States’ long history of public investment in innovation enabled the team to examine how government-funded R&D influences the economy over several decades and to trace both its short- and long-term effects.

The analysis showed that public R&D delivers substantially stronger and longer-lasting economic benefits than conventional government spending. A key reason is its ability to “crowd in” private investment by encouraging businesses to increase their own research spending. The researchers estimate that every additional dollar invested in public R&D generates between $2.60 and $4.30 in additional economic output within a year, highlighting its effectiveness as an engine of economic growth.

The study also suggests that the impact of public R&D begins before projects are fully underway. When governments make clear, credible long-term commitments to research and innovation, businesses may adjust their investment plans in anticipation, reducing uncertainty and increasing confidence. According to the authors, governments are uniquely positioned to stimulate innovation because they can support high-risk, long-term research and use innovation-oriented procurement to help create new markets and strengthen productive capacity.

The researchers conclude that public and private R&D should be viewed as complementary rather than competing forms of investment. Public funding is well suited to tackling long-term, high-risk challenges and laying the scientific and technological foundations for innovation, while private firms are better placed to transform those discoveries into commercially viable products and services. Together, sustained public investment and private sector innovation can deliver stronger economic growth, greater resilience and lasting benefits for society.

More information: Vincenzo De Lipsis et al, Macroeconomic Effects of Public R&D, The Economic Journal. DOI: 10.1093/ej/ueag061

Journal information: The Economic Journal Provided by University of Southampton

The Trillion-Dollar Truth Behind Corporate Climate Commitments

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Corporate climate spending is now directing trillions of dollars towards the global transition to net zero, yet a fundamental question remains: does it translate into meaningful climate action? Research suggests that differences in accounting methods alone can cause a company’s reported emissions to vary by as much as twofold, allowing similar businesses to appear either as climate leaders or laggards. A new Nature Sustainability Perspective argues that industry-specific net-zero blueprints are needed to create a consistent scientific basis for measuring and comparing corporate climate performance.

More than 2,000 companies, representing US$36.6 trillion in annual revenue, have pledged to achieve net zero, while businesses collectively hold an estimated 18–21 GtCO₂e of annual emissions reduction potential. Despite this momentum, the latest Net Zero Stocktake found that only 7% of corporate net-zero commitments demonstrate high integrity. The challenge has shifted from encouraging companies to make pledges to ensuring those commitments are supported by credible, science-based methodologies.

Researchers from ESMT Berlin, the International Institute for Applied Systems Analysis (IIASA), Bauhaus Earth, and the University of Sussex propose developing industry-specific net-zero blueprints that establish a common scientific foundation for corporate climate action. Rather than focusing solely on disclosure requirements, these blueprints would standardise emissions accounting, industry-specific target setting, progress measurement, and the governance of unavoidable residual emissions. They would complement existing frameworks such as the GHG Protocol, the Science Based Targets initiative (SBTi), the Corporate Sustainability Reporting Directive (CSRD), and the International Sustainability Standards Board (ISSB).

Lead author Ramana Gudipudi of ESMT Berlin explains that current Scope 3 guidance encourages companies to reduce emissions where possible and offset what remains, but provides little scientific basis for determining what residual emissions are unavoidable. This uncertainty increases reliance on carbon credits and carbon removal technologies, both of which face significant limitations. Industry-specific blueprints would instead translate planetary science into practical business guidance, enabling companies, investors, and regulators to benchmark climate ambition using consistent scientific criteria.

The proposal comes as political and economic pressures reshape climate policy. The United States withdrew from the Paris Agreement in early 2026, while the European Union’s Omnibus package reduced the scope of the CSRD. Without stronger scientific guidance, the authors warn that investment decisions could become increasingly fragmented, weakening confidence in corporate climate commitments and slowing progress towards global climate goals.

Industry-specific blueprints would also bridge the gap between global climate pathways and company-level decision-making. By linking sector-specific emissions pathways to shared industry value chains, companies could better understand where meaningful emissions reductions are achievable, which emissions are likely to remain, and how progress compares across competitors. For example, a food and beverage blueprint could assess emissions from agriculture, packaging, transport, and refrigeration to identify realistic decarbonisation opportunities while distinguishing unavoidable emissions such as livestock methane.

The benefits would extend across sectors facing very different decarbonisation challenges. Construction companies must reduce emissions embedded in materials such as cement and steel, AI infrastructure must address rapidly growing electricity demand, and financial institutions require robust methods for assessing climate risks across lending portfolios. According to the researchers, industry-specific blueprints would help organisations quantify both the cost of achieving net zero and the financial risks of inaction, enabling more informed investment decisions and encouraging credible climate leadership.

The authors believe these blueprints should become a living scientific resource that evolves alongside advances in climate science, technology, and industry practices, much like the IPCC periodically updates assessments of climate science. With revisions underway for the GHG Protocol, SBTi’s Corporate Net-Zero Standard, ISO 14060, the European Sustainability Reporting Standards, and the growing adoption of ISSB disclosure standards worldwide, they argue the timing is ideal to establish a shared scientific foundation for corporate net-zero commitments. They call on researchers, businesses, policymakers, standard-setters, and funding organisations to collaborate in developing this next generation of corporate climate guidance.

More information: Ramana Gudipudi et al, From corporate net-zero pledges to credible climate action, Nature Sustainability. DOI: 10.1038/s41893-026-01908-6

Journal information: Nature Sustainability Provided by International Institute for Applied Systems Analysis

Flexible Working May Open More Leadership Opportunities for Women in Family Businesses

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Digital workplace innovation could help more women become leaders of family businesses by making it easier to balance work and family responsibilities, according to new research from the University of East London. The study suggests that flexible digital working enables women to take on greater strategic and leadership responsibilities without sacrificing family commitments, potentially creating a stronger pipeline of future leaders within family-owned firms.

Although family businesses are often viewed as supportive employers, the researchers argue they can present unique barriers to women’s advancement. Leadership succession is frequently determined through informal family decisions rather than formal recruitment processes. At the same time, traditional gender expectations and assumptions that effective leaders must be physically present in the workplace can disadvantage women with caring responsibilities. These factors may limit opportunities for women to be recognised as future successors.

The researchers argue that digital workplace technologies—including Microsoft Teams, Zoom, Google Workspace and cloud-based business systems—can help shift attention away from time spent in the office towards measurable contributions and performance. By making collaboration, communication and decision-making more accessible, these tools allow women to participate more visibly in leadership activities while maintaining a healthier balance between work and family life.

The paper proposes a framework explaining how digital workplace innovation can strengthen women’s leadership prospects through four connected changes: building confidence, creating more opportunities to participate in strategic decision-making, increasing business knowledge and changing perceptions of who is prepared to lead. Together, these factors could make leadership pathways more accessible for women in family businesses.

Dr Ozlem Ozdemir, from the Royal Docks School of Business and Law, said that while family businesses are built on close relationships, this does not necessarily make them easier environments for women to reach leadership positions. She explained that women family members may struggle to be viewed as ambitious professionals. Still, digital workplace tools can help redirect attention from who is most visible in the office to who is making the strongest contribution. Co-author Professor Kirk Chang added that collaboration platforms can create new opportunities for talented women to demonstrate leadership, provided businesses judge leaders by results rather than physical presence.

The authors emphasise, however, that technology alone cannot eliminate barriers to leadership. Family businesses must also foster cultures that actively support women, value performance over visibility and challenge traditional assumptions about leadership. Published in the journal Strategy and Leadership, the paper synthesises existing research to propose a framework showing how digital workplace innovation can improve work-life balance while helping more women become future leaders of family businesses.

More information: Ozlem Ozdemir et al, Women entrepreneurs and their leadership in family business: insights from digital workplace innovation, Strategy and Leadership. DOI: 10.1108/SL-04-2026-0200

Journal information: Strategy and Leadership Provided by University of East London

Artificial Intelligence in Investment Decision-Making: A Pusan National University Perspective

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Artificial intelligence (AI) is reshaping modern finance, supporting applications such as stock market forecasting, portfolio management, and investment advice. However, researchers from Pusan National University and their international collaborators argue that accurate market predictions do not always translate into better investment decisions. Instead, they suggest that financial AI should be assessed by its ability to improve real-world decision-making rather than prediction accuracy alone.

To address this challenge, Professor Yoontae Hwang of Pusan National University and Professor Stefan Zohren of the University of Oxford developed the Signature-Informed Transformer (SIT), a decision-focused AI framework. Rather than concentrating solely on predicting future prices, the model learns from how markets evolve and how different assets influence one another, enabling it to optimise investment decisions while accounting for risk. Published in the Proceedings of the 43rd International Conference on Machine Learning on 30 April 2026, the study lists Professor Hwang as first author.

The researchers evaluated the SIT framework using equity market data from the United States and China. Compared with conventional forecasting-based methods, the decision-focused approach delivered stronger risk-adjusted returns and more consistent wealth accumulation. According to Professor Hwang, the findings suggest that future financial AI systems should prioritise decision quality over prediction accuracy to achieve better investment outcomes.

In a second study, the research team investigated whether the reported success of financial AI can be reliably trusted. Analysing 164 studies on large language models (LLMs) in finance published between 2023 and 2025, they identified several recurring sources of bias that could overstate model performance. These included the unintended use of future information, survivor bias resulting from the exclusion of failed companies, unrealistic evaluation settings, and the omission of practical considerations such as transaction costs. Published in the Proceedings of the 43rd International Conference on Machine Learning on 1 May 2026, the study lists Professor Hwang as co-first author.

To improve research quality, the team introduced a Structural Validity Framework, a practical checklist designed to help researchers evaluate whether financial AI systems are tested under realistic conditions and whether their reported performance is likely to generalise beyond laboratory settings. The framework encourages more transparent and rigorous evaluation practices that better reflect real-world financial markets.

Together, the two studies highlight a common principle: AI should be designed to support meaningful financial decisions and evaluated using realistic benchmarks. Looking ahead, the researchers envision AI-powered “flight simulators” for financial markets, enabling institutions and regulators to test investment strategies, financial products, and market shocks in virtual environments before they affect real investors. Such advances could ultimately promote more transparent financial advice and more trustworthy AI systems.

More information: Yoontae Hwang et al, Signature-Informed Transformer for Asset Allocation, Proceedings of the 43rd International Conference on Machine Learning. DOI: 10.48550/arXiv.2510.03129

Journal information: Proceedings of the 43rd International Conference on Machine Learning Provided by Pusan National University

Do Penalties Discourage Misconduct—or Normalize It?

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Many people drive more carefully after receiving a traffic fine. But do large corporations, such as airlines, also change their behaviour when they face financial penalties? Researchers explored this question by examining penalties imposed on U.S. airlines for lengthy tarmac delays, asking whether fines genuinely deter misconduct or become another cost of doing business.

A tarmac delay occurs when an aircraft remains on the ground with passengers still on board for an extended period. U.S. regulations generally limit these delays to three hours for domestic flights and four hours for international flights, with airlines facing financial penalties for violations. However, when penalties are relatively small compared with an airline’s profits or the costs of preventing delays, they may be viewed as routine operating expenses rather than meaningful deterrents. Behavioural economics also suggests that small fines can unintentionally signal that rule-breaking is acceptable if the “price” is paid.

To determine whether penalties influence airline behaviour, the researchers focused on delays associated with severe weather, which airlines cannot fully predict or control. This approach enabled them to compare penalised and non-penalised airlines using statistical methods designed to estimate causal effects while minimising the influence of other operational differences.

The study found that penalties were associated with reductions in lengthy tarmac delays for some airlines, but the improvements were generally modest and often temporary. Other airlines responded in ways that differed from the regulation’s intended purpose, including increases in prolonged ground delays and higher rates of flight cancellations.

In ongoing research, the investigators are examining whether the size of the penalty influences airline responses. Preliminary findings suggest that greater reductions follow larger penalties in tarmac delays exceeding three hours, although these effects also appear to diminish over time. The researchers also found evidence that airlines may adjust their operations to remain just below the regulatory threshold, increasing very long ground delays that fall slightly short of the three-hour limit.

Overall, the findings suggest that simply increasing financial penalties is unlikely to produce consistent or lasting improvements in corporate behaviour. The researchers conclude that effective consumer-protection policies should consider not only the size of penalties, but also the durability of behavioural change and the potential for unintended consequences, such as increased flight cancellations or strategic responses to regulatory thresholds.

More information: Hideki Fukui et al, Penalties as prices? evaluating airline strategic responses to tarmac delay penalties in the US, Transportation Research Part A Policy and Practice. DOI: 10.1016/j.tra.2026.105063

Journal information: Transportation Research Part A Policy and Practice Provided by Ehime University