What else can your payment card do? Multifunctionality of payment modes can reduce payment transparency

Payment modes (e.g., cash vs. credit card) vary in the transparency of the outflow of money. Smartcards (multifunctional cards), which bundle payment with non-payment functions (e.g., loyalty programs, identification, and other information functions), have become an increasingly popular payment mode. This shift toward multifunctionality in payment modes is assumed to reduce payment transparency and consequently to decrease consumers’ recall accuracy of past expenditures. We employ a field study to examine recall accuracy for recent purchases with cash, a single-function card, and a multifunctional card. We find that recall accuracy is lower when using a single- or a multifunction card than cash. We also find that it is not the multifunctionality of the card that results in a higher recall error but the individual usage patterns: A higher usage frequency of the non-payment functions results in a higher recall error.     

Price Knowledge for Services: An Empirical Investigation

ABSTRACT

This study extends the price recall literature into the service sector. The authors surveyed 169 adults and asked them to recall the last price they paid for nine commonly purchased services. The findings indicate that most consumers (53%) cannot recall the last price they paid, 13% had an inaccurate price memory, and 34% remembered an accurate price. The findings also indicate that the ability to recall a price, and to recall an accurate service price varies significantly by service. Other mediating variables include frequency of usage, home ownership, and education. No other demographic variables were related to either price recall or recall accuracy.     

Violence against women and new venture initiation with microcredit: Self-efficacy,fear of failure,and disaster experiences

Domestic violence is the most prevalent form of gender-based violence that threatens the wellbeing and dignity of women. In this paper, we examine whether and how exposure to physical or sexual assault by male partners influences women's decision to initiate a new business when they have access to financing. We collected primary data from rural Bangladesh in collaboration with a microfinance institution that provided small collateral-free loans to a group of married women. We conducted a baseline survey before loan disbursement and then conducted a follow-up survey 12 to 15 months later to collect information on loan usage. We find that women who experienced physical or sexual violence by their husband before receiving a loan are less likely to initiate a new business with their loan than those who did not experience such violence. Exposure to domestic violence obstructs the initiation of new businesses through reduced entrepreneurial self-efficacy and increased fear of business failure. The adverse impact of domestic violence is more detrimental for women who recently experienced another potentially traumatic event—an environmental disaster—than for those without such an experience.     

Impact of the level of aggregation on response accuracy in surveys of behavioral frequency

Through observations of AT&T data and the results of two of our own studies, we discovered interesting asymmetrical effects of the level of aggregation of the question on the response accuracy in surveys of behavioral frequency. We find that disaggregating a question to a lower, less comfortable level of aggregation creates greater uncertainty, leading to larger absolute errors in survey responses. However, if a question is asked at a higher less comfortable level, the majority of respondents escape by splitting questions down to the natural level, thereby avoiding greater uncertainty and thus responding more accurately. We argue that for greater accuracy in surveys, one should identify the natural level of aggregation at which a question should be posed. But when in doubt, it is better to ask a question at a higher level of aggregation because of possible escapability downward.     

Music to Your Brain: Background Music Changes Are Processed First,Reducing Ad Message Recall

Background music captures attention, evokes images, and creates ambience, but may interfere with processing of advertised messages, reducing recall. Brains are hardwired to process unexpected background sound changes first, automatically preempting processing of brand message elements and reducing recall. The degree of this recall reduction depends on the structural characteristics of the music, as well as the advertised brand. Backgrounds with more frequent harmonic and textural changes create more frequent distraction, reducing message recall. Faster tempos increase the frequency of those distractions. However, faster tempos also enable streaming of like distractions, improving message recall. In Experiment 1, backgrounds, varying in harmonic, textural, and temporal characteristics, were compared across ads for six brands. Message recall was higher for ads with backgrounds with less‐frequent change. Message recall from ads for new, unfamiliar brands suffered more from background music interference than from ads for established brands. In Experiment 2, background change frequency was reduced in two ads, holding all else constant, which improved message recall.     

Determinants of Commitment in an Online Community: Assessing the Antecedents of Weak Ties and Their Impact

Research argues that participants contribute to online communities because they have developed commitment to that community. Even relatively light commitment—“weak ties”—can make an impact on community participation. We hypothesize and empirically verify that users’ reading activity is an important factor in creating commitment. In doing so, we support and contextualize the Theory of Weak Ties through the investigation of weak “readership ties.” Our research formulates both of these constructs, readership ties and commitment, as part of a larger model that identifies perceived site asset value as an important antecedent for readership ties and, thus, commitment. The empirical investigation draws on survey data from 144 members of the Slashdot community. We find all of our hypotheses confirmed, indicating that all types of site assets (community members, knowledge, and technology) increase perceived site value, and that, in turn, increased perceived site asset value leads to more active usage and higher commitment, thus demonstrating the impact of weak ties.     

Testing a Measurement Model of Financial Capability Among Youth in Ghana

Youth may benefit from having enhanced financial knowledge and skills and access to financial services to help them navigate transitions to adulthood, though reliable and valid measures of youth financial capability to help assess financial education and inclusion intervention outcomes are lacking. Using survey responses from 5,451 youth ages 12–18 in Ghana, we used exploratory and confirmatory factor analysis to assess 18 survey items concerning youth financial behavior and understanding and attitudes concerning financial services. A 12‐item, group invariant scale (α = .72) with three latent factors was retained in a well‐fitting model that may help practitioners assess financial education and inclusion outcomes. We found that six items were poor indicators of youth financial capability, possibly because these items measure other constructs like numeracy, or because these items were not sufficiently assessed for developmental and cultural validity using qualitative methods like cognitive interviewing.     

An Empirical Study of Business-to-Business Electronic Marketplace Usage: The Impact of Buyers' E-Readiness

This study addresses critical questions regarding the extent of business-to-business electronic marketplace usage for purchasing, and the degree and impact of buyers' e-readiness on the range of electronic marketplace usage. The data from a Web-based survey of 359 purchasing professionals in the United States suggests that buyers with more experience in using information technology, the Internet to facilitate purchasing, and information systems for enhancing supply chain management would more likely use electronic marketplaces for purchasing. This study has significant theoretical implications because it confirms the important role of e-readiness in the electronic marketplace usage model. The practical implications of this study are also discussed.     

Antecedents of Online Reviews' Usage and Purchase Influence: An Empirical Comparison of U.S. and Korean Consumers

We propose a model linking consumer characteristics (consumer susceptibility to interpersonal influence and Internet shopping experience), attitude toward online reviews (perceived usefulness), and the outcome of online reviews (usage frequency and purchase influence). We advance hypotheses on the interrelationships among these factors and on the moderating effects of national culture on some of the relationships. We test the hypotheses on survey data collected from U.S. and Korean consumers. The results show that national culture has important moderating effects on the relationships among online reviews and its antecedents. The results suggest that an attitude-oriented marketing communication strategy is more effective for Korean consumers while a behavior-oriented strategy is more effective for U.S. consumers.     

Does Sleep Really Matter? Examining Sleep among Salespeople as Boundary Role Personnel for Key Job Factors

ABSTRACT

Purpose: Sleep deprivation among employees has become commonplace in the workforce. In the United States, the number of hours individuals sleep per night has declined by an hour and a half per night since the 1960s. As of 2005, seventy-four percent of individuals were getting less than eight hours of sleep per night on weekdays. There are negative ramifications to the organization when employees are sleep deprived such as lost productivity, increased accident rate, and increased absenteeism.

Originality/Value/Contribution of the paper: Although prior research has investigated the impact that sleep deprivation has on unique job positions (e.g., shift workers, transportation), no research has investigated how sleep impacts business-to-business sales employees. Due to the responsibilities of business-to-business sales employees, this type of position should not just be lumped in with other organizational employees. For example, business-to-business sales employees are boundary spanning employees that are responsible for generating revenue for the organization. These sales employees are also more likely to be physically, socially, and psychologically separated from the organization since they frequently work outside of the office. Because of these distinctive roles, this study examines if differences based on sleep duration exist for business-to-business sales employees for two individual and five organizational factors. The two individual factors consisted of grit and happiness while the five organizational factors consisted of perceived organizational support, perceived supervisory support, job satisfaction, organizational commitment, and turnover intentions.

Methodology/Approach: Data was collected from 320 business-to-business sales employees using a cross industry survey. The survey was conducted using a Qualtrics panel. Sleep duration was broken into two groups with one group consisting of business-to-business sales employees who sleep, on average, seven or more hours per night and the other group consisting of business-to-business sales employees who sleep, on average, six or less hours per night. The sleep duration groups were determined based on prior research that found adults should regularly sleep seven or more hours per night in order to support optimal health. There were one hundred thirty-four respondents who slept six hours or less and one hundred eighty-six respondents who slept seven or more hours, on average, per night.

Findings: The research question developed was answered by examining the differences between means for the two individual constructs and the five key organizational constructs. Differences in sleep duration for six of the seven sales constructs. There were significant differences between those that slept seven or more hours per night from those that slept six or less for grit, perceived organizational support, perceived supervisory support, job satisfaction, organizational commitment, and turnover intentions. Results found that business-to-business sales employees that slept seven or more hours per night exhibited more grit than those that slept six or less hours per night. In addition, business-to-business sales employees that slept six or less hours per night had higher perceptions of both organizational and supervisory support than those that slept seven or more hours per night. Furthermore, business-to-business sales employees that slept six or less hours per night displayed higher job satisfaction and organizational commitment than sales employees that slept seven or more hours per night. Finally, business-to-business sales employees that slept seven or more hours per night indicated higher levels of turnover intentions than sales employees that slept six or less hours per night. There were no significant differences between the two sleep groups for sales employee happiness. Although some of these results may appear to be counterintuitive, conservation of resources theory can be used to explain these findings.

Research Implications: This exploratory study showcases the importance of good sleep among business-to-business sales employees. This study draws on the conservation of resources theory literature to explain the counterintuitive findings. This theory posits that individuals will retain and guard against resource depletion. Additionally, as resources become depleted, other resources are valued to a greater extent. In this study, the resource being depleted is the condition of sleep. When business-to-business sales employees experience a lower average amount of sleep per night (i.e., six hours or less), they perceive higher levels of support, job satisfaction, and organizational commitment than business-to-business sales employees who experience a higher average amount of sleep per night (i.e., seven hours or more). Although this study provides a good initial examination of how sleep impacts sales organizations, this study also highlights the need for additional business-to-business sales employee sleep research. This is the first study that has examined how sleep duration impacts business-to-business sales employees.

Practical Implications: This study is important to sales research because it highlights the impact that poor sleep of business-to-business sales employees has on the organization. For sales organizations, we provide guidance on ways a sales organization can help promote healthy sleep for their business-to-business sales employees. Some examples of guidance provided can be categorized into four primary categories. These categories include (1) proper sleep education, (2) sales management training, (3) creating a sleep friendly workplace environment, and (4) creating specific workplace policies to minimize sleep disturbances such as setting reasonable work hours and sleep accommodating travel schedules.     

What drives Indian consumer credit card loyalty? The perspective of involvement in reward programmes

This study, from the customer involvement perspective, looks at the impact of reward point programmes on the purchasing behaviour of Indian credit card users. A total of 125 valid responses were collected using an online survey of Indian credit card users. The study found that customers’ involvement is not only low, but also does not affect their loyalty (frequency of card use and usage expenditure). As for redemption behaviour, usage frequency and numbers of credit cards showed significantly positive effects. This study has important implications for both scholars and credit card issuers. Consumers’ responses towards loyalty programmes need more evidence from developing markets and companies should dedicate more resources to understand the involvement process of their targets, as well as the design of programmes.     

New evidence in the pursuit of locating new businesses

Finding good, generalizable samples has long been an Achilles heel for those interested in entrepreneurship-related phenomena. Practitioners, policy makers, and researchers frequently desire to take the pulse of entrepreneurial activity but struggle in doing so. For example, Friedman (1995) reported that California overestimated job loss by 2.4 times because of failure to account for newer, more robust firms. With the goal of being able to better identify new businesses, this research addresses the following questions: (1) Which sample sources best identify new businesses? (2) Are the characteristics of a sample drawn from one source similar to those drawn from a different source? (3) How accurate are the different sample sources in the information they report? and (4) How practical and cost effective are the different sample sources?We pursued answers to these questions by examining the state sales tax file and comparing it with the previously examined sources of the state unemployment insurance file (ES202) and Dun & Bradstreet's Dun's Market Indicator file (DMI) (Birley 1984; Aldrich et al. 1989). The phonebook was also used to examine its overlap with the three primary sources. In making these comparisons, we evaluate generalizability issues, accuracy of founding date, cost, practicality, and other auxiliary information.Sales Tax FileOur findings suggest that the sales tax file is a rich source for identifying generalizable samples. The accuracy of the founding data was correct over 70% of the time, and it appears to identify businesses very early in the start-up phase. The data also are available in machine readable format, give some helpful auxiliary information, and the cost of obtaining the file was negligible. Another advantage of the sales tax file is its ability to identify new businesses that do not have visible on-street locations. Thus, the sales tax file appears to be a very credible source for identifying firms early in the start-up process.ES202 File, DMI File, and Phone BookOur study affirms earlier studies that found major limitations with both the ES202 and DMI files. More specifically, this study found that both sources have substantial limitations in identifying new start-up firms, and they both appear to be slow in removing firms from their records once they have moved or gone out of business. As for the phonebook, as it is only issued annually, it takes some time for new businesses to be listed in the directory. Furthermore, because so many of the new businesses identified by the sales tax file initially operate out of the entrepreneur's home (58% in our survey sample), the enumeration/phonebook method would miss many new businesses unless they had a business phone listing and a business sign on their residential property. Thus, we do not consider the enumeration/phonebook method to be very practical, nor the best method for identifying new firms.In sum, these findings give renewed hope in locating generalizable samples of new businesses. Although the sales tax file is not a perfect source, it represents a very attractive alternative for those interested in identifying entrepreneurial firms early in the start-up phase. These findings should assist practitioners, policy makers, and researchers in making better sample selections, which should lead to more accurate indicators of new business start-ups, fewer sample biases, and ultimately, to a better understanding of the determinants of new venture failure and success.     

Respondents’ recall of injury events: an investigation of recall bias in cross-sectional injury data from the Sudan Household Health Survey 2010

Recall bias is a well-documented limitation of population-based cross-sectional injury surveys. To fill some gaps in this area, we investigated the extent and nature of recall bias in Sudan Household Health Survey (SHHS 2010) injury data. The extent of incomplete recall was measured by comparing the total reported injuries over 12 months with the annualised number of injuries in the four weeks preceding the survey. Multivariable logistic regression was used to investigate the association of socio-demographic variables, injury attributes and interviewee characteristics with differential recall. Relevant interactions were tested. Overall, reported injuries were 33% of the expected. Injuries among children 1–4 years had lower odds of being reported to have occurred earlier than the four weeks preceding the survey than people aged 65 years and over (OR = 0.24, 95% CI 0.12–0.47). Injuries that received inpatient care in the first week were more likely to be recalled than those that did not receive care (OR = 2.07, 95% CI 1.14–3.75). Respondent's age was associated with differential recall. Differential injury recall should be considered when using SHHS 2010 to compare injury occurrence between children under five and older groups or at the level of health care received.     

Understanding Personal Web Usage in Organizations

Personal web usage, that is, non-work-related use of the Internet for personal purposes during work hours, is a pervasive behavior observed in the daily work environment. U.S. companies have implemented several countermeasures to cope with personal Web usage, but those measures have not successfully mitigated this behavior. Considering the significance of personal Web usage, we need to understand why personal Web usage is not alleviated in current organizations. The goal of this study is to present an empirical investigation of why employees continue personal Web usage based on an extended theory of planned behavior. We are particularly interested in how people's perceptions of moral dimensions contribute to personal Web usage, recognizing that our work environment becomes more Web-embedded. We conducted a field survey of 426 U.S. business professionals and analyzed the data by using partial least squares. As a result, we demonstrate that an individual's attitude, subjective norm, denial of responsibility, self-efficacy, personal computer availability, seclusion of office, and workload are significant factors affecting personal Web usage. Interestingly, current organizational preventive efforts (e.g., Web-based activity monitoring and filtering systems and policies) and moral obligation are not as significant as we originally expected. Key implications for theory and practice are discussed.     

The impact of reporting frequency on the information quality of share price: evidence from Chinese state-owned enterprises

As a major global exchange, the Stock Exchange of Hong Kong (SEHK) only requires semi-annual reporting whereas other major exchanges including the ones in Chinese mainland require quarterly reporting. We argue against the traditional view that higher reporting frequency is necessarily more beneficial. The decision on reporting frequency depends on how the information is being processed by the recipient traders and the results are not obvious. Using a sample of Chinese companies dual-listed in both China A share market and SEHK (AH shares) as the experimental group and mainland’s companies listed on SEHK (H shares) only as the control group, we apply the difference-in-difference (DID) method to investigate the impacts of reporting frequency on stock information quality. The results suggest that after China A share market require quarterly financial reporting for all listed companies in 2002, the information asymmetry of the H tranche of AH stocks increases. Different from prior studies, the results suggest a negative association between stock information quality and financial reporting frequency. We argue that the increased information asymmetry in the H tranche is caused by the noise spilled over from the A tranche. We conduct multivariable GARCH tests and find evidence supporting this conjecture.     

The impact of reporting frequency on the information quality of share price: evidence from Chinese state-owned enterprises

As a major global exchange, the Stock Exchange of Hong Kong (SEHK) only requires semi-annual reporting whereas other major exchanges including the ones in Chinese mainland require quarterly reporting. We argue against the traditional view that higher reporting frequency is necessarily more beneficial. The decision on reporting frequency depends on how the information is being processed by the recipient traders and the results are not obvious. Using a sample of Chinese companies duallisted in both China A share market and SEHK (AH shares) as the experimental group and mainland’s companies listed on SEHK (H shares) only as the control group, we apply the difference-in-difference (DID) method to investigate the impacts of reporting frequency on stock information quality. The results suggest that after China A share market require quarterly financial reporting for all listed companies in 2002, the information asymmetry of the H tranche of AH stocks increases. Different from prior studies, the results suggest a negative association between stock information quality and financial reporting frequency. We argue that the increased information asymmetry in the H tranche is caused by the noise spilled over from the A tranche. We conduct multivariable GARCH tests and find evidence supporting this conjecture.     

Credit Scoring and Loan Default

A metric of credit score performance is developed to study the usage and performance of credit scoring in the loan origination process. We examine the performance of origination FICO scores as measures of ex ante borrower creditworthiness using loan‐level data on ex post performance of subprime mortgages. Parametric and nonparametric estimates of credit score performance reveal different trends, especially on originations with low credit scores. The data suggest a trend of increased emphasis on higher credit scores accompanying a trend of increased riskiness in other origination attributes. Over time, this increased emphasis on credit scoring coincided with deterioration in FICO performance largely because of the fact that higher credit score originations of later cohorts were more likely to have riskier attributes. However, controlling for other attributes on originations and changes in economic conditions, we find that, as measures of borrower ranking, FICO performance on subprime loans over the years remains fairly stable.     

Consumers’ perceptions of food waste: A pilot study of U.S. students

Participants in this pilot study are asked to rank their perceptions of food waste by choosing between pairs of four types of foods of equal weight: chicken, cheese, bread and peas. We examine whether these perceptions are consistent for proportionally different weights and whether they are linked to the perceived cost of the items. The subjects (n = 106) who are students are randomly assigned to one of three information treatments: a control, a food waste video or the text of the food waste video. We find that the subjects have very accurate perceptions of the environmental impacts of food waste and the relative wastefulness of different food groups. These perceptions are not related to cooking skills or frequency. We find that the perceptions are consistent for proportionally different weights of food: 25 and 50 g. We also find that the perceptions are linked to participants’ assessments of the relative prices of the foods. However, while the participants have somewhat accurate estimates of the relative prices, they vastly overestimate the actual prices of foods. This implies that more accurate information about the true prices could actually decrease their perceptions of the wastefulness of throwing out food. Given that the participants had highly accurate perceptions of the environmental impacts of food waste and the relative wastefulness of animal vs. plant products, we found no significant increase in overall accuracy of perceptions due to information treatment, except for bread, for those who saw the food waste video.