Trust in financial services: the influence of demographics and dispositional characteristics

So far, very little attention has been paid to examining consumer perceptions of trust from an interdisciplinary perspective. The purpose of this study is to examine how consumer trusting belief and disposition to trust within the financial services sector vary on the basis of individual demographic differences in trust. The research provides new insights into how consumers with higher dispositional trust have higher institutional trust and higher trusting belief and how consumers’ trusting belief significantly differs according to their demographic background in terms of age, marital status, ethnicity and gross annual income. The findings offer useful insights for the managers in financial institutions to carefully consider the impact of the influence of these individual differences on consumer behaviour in order to serve the needs of consumers in their target market and be able to design financial products and develop trust building strategies to attract and retain them. They also call for the action of the regulators and the financial institutions to play their part in building strong institutional systems that contribute to engendering higher levels of consumer trust.     

The Spiraling and Spillover of Misconduct: Perceived Workplace Bullying,Subclinical Psychopathy,and Businesspersons’ Recognition of an Ethical Issue

Workplace bullying can potentially spiral into numerous counterproductive behaviors and negative organizational outcomes. Therefore, the purpose of this study was to determine the degree to which increased perceptions of workplace bullying were associated with stronger expressions of (subclinical) psychopathic traits and weakened ethical decision making. Data were collected from national and regional samples of selling and business professions using a self-report questionnaire that contained relevant measures and an ethics scenario, and structural equation modeling was employed to investigate the proposed relationships. Findings indicated that perceived workplace bullying operated through psychopathy to influence the recognition of an ethical issue (or full mediation). The implications of these findings are discussed, along with the study’s limitations and suggestions for future research.     

Technology, trade, and adjustment to immigration in Israel

In the early 1990s Israel experienced a surge of immigration from the former Soviet Union. Russian immigrants had high relative education levels. There is little evidence that the immigration shock put downward pressure on Israeli wages. We examine two mechanisms through which Israel may have absorbed labor-supply changes related to the Russian immigration: Global changes in production technology and national changes in output mix. Global changes in production techniques, which appear consistent with skill-biased technical change, were sufficient to more than offset Israel's change in relative factor supplies. Changes in output mix did not help Israel absorb changes in relative factor supplies.     

Can socially irresponsible firms benefit from corporate advertising?

Abstract

Can corporate advertising improve firm performance following a brand crisis borne out of corporate social irresponsibility (CSI)? This article investigates socially irresponsible firms and their corporate advertising expenditures, which can be used to counter negative opinions. First, we examine whether firms experiencing a negative brand image due to socially irresponsible behavior alter their corporate advertising expenditures. Next, we assess the resulting impact of corporate advertising spending by CSI firms on overall performance. Using a sample of firms engaging in socially irresponsible behavior between 1995 and 2011, we find that such firms tend to increase their corporate advertising. Such changes in corporate advertising expenditures ultimately impact firm performance. Specifically, an increase in corporate advertising helps to reduce the negative effect of CSI on firm performance.     

Who's got my back? Comparing consumers' reactions to peer-provided and firm-provided customer support

This study demonstrates that when an individual encounters a product-related problem, fellow consumers (i.e., one's peers) have a unique advantage in providing social support to the affected consumer. Specifically, we find that social support can be a dominant driver of consumer satisfaction when the risk of customer defection is at its highest (i.e., following an unsuccessful attempt to solve the consumer's problem). Using real-world data from an online support community, a pilot study finds that if the problem that a consumer faces goes unsolved, satisfaction is greater when consumers receive peer-provided versus firm-provided support. Study 1 replicates this finding in a controlled experiment that realistically simulates an actual customer support incident in real-time. Study 2 identifies social support as the mechanism that underlies this effect and investigates whether firm employees can take steps to appear more customer-like and thereby replicate the advantage of peer-provided support. Finally, Study 3 reveals an alternative strategy (i.e., utilizing multiple employees) that firms can use to enhance social support and provides evidence that peer-provided support not only enhances satisfaction but also positively influences consumers' behavioral intentions.     

The impacts of the U.S.–China trade war

Business Economics - The trade war has received an enormous amount of attention. Its impacts today have been limited because the U.S. and China have been a bit restrained. Lots of firms have gotten...     

Marketing and the church: Should god be sold or found?

Recent years have seen an expansion of marketing in social causes and not-for-profit activities; there continues to he considerable debate about the extent to which this simply reflects a pragmatic application of established marketing techniques or whether it truly reflects efforts to be genuinely market orientated. Indeed some may argue that the nature of social cause marketing is such that it is difficult, if not impossible, to be customer-driven. The marketing of the Church is one manifestation of social cause marketing where marketing programmes are calculated to influence the acceptability of social ideas. The paper seeks to examine whether the marketing techniques and approaches used in relation to the Church are really marketing or just a form of selling. It is argued that the core product of the Church, salvation, is not really subject to modification in response to customer needs and thus that questions may arise about the possibility of genuinely marketing the Church. However, where there is a willingness to develop and modify the expected and augmented products in response to the changing needs and expectations of a ‘marketplace’, arguably there is evidence of marketing, not just selling.     

LEARNING BY BREWING: HOMEBREWING LEGALIZATION AND THE BREWING INDUSTRY

In 1978, H.R. 1337 was signed into Federal law allowing for the home production of beer at the national level forever changing the U.S. brewing industry. Like the repeal of Prohibition, states were granted the right to enact their own homebrewing laws, resulting in a heterogeneous rollout of legalized homebrewing. This research examines the relationship between homebrewing legislation and the growth of the beer industry across the United States, and finds that enacted legislation has had a significant effect on the structure and growth of the brewing industry. (JEL L51, N42, Q18)     

Hits and misses: Herd behavior and online product popularity

This article presents the results of a market experiment in which the perceived popularity of programs on a large commercial online system were manipulated. The download counts of software, which indicate how many previous users had obtained a software program, were artificially increased by repeated downloading. This manipulation was done to one member of a matched program pair, with the manipulation levels set randomly to achieve a balanced experimental design over a set of matched pairs. Subsequent downloads of the programs made by the service's subscribers were then recorded. Substantial additional downloads were induced by the manipulation. Some consumers apparently are drawn to market leaders, further increasing their lead. This raises an important issue regarding the need for verifiability of online popularity measures.