Co-creation and service recovery process communication: effects on satisfaction,repurchase intentions,and word of mouth

After service failure situations, firms often carry out transactional activities to achieve customer recovery (CR), using corrective actions to restore the exchange (e.g., economic and social compensations). Furthermore, during the service recovery process, firms can encourage activities of co-creation (CC) to prevent similar future failures. This paper discusses the importance of CC and service recovery process communication (RPC), in which customers are informed of the adoption of solutions to address the cause of the failure, so as to avoid the same problem happening again. Experimental studies investigate the impact, individually and together, of CR, CC, and RPC on satisfaction, repurchase intentions, and word of mouth. The results indicate that CC and RPC improve customer’s satisfaction, repurchase intentions, and word of mouth. Firms that want to maximize the return on their efforts to prevent service failures, should encourage CC, develop solutions to prevent future failure recurrence, and implement strategies of RPC. Firms must decide how to promote CC and which media to use for RPC.     

From endogenous growth to stationary state: The world economy in the mathematical formulation of the Ricardian system

We analyse international trade in a Pasinetti–Ricardo growth model in the world economy scenario in which several small trading countries coexist and international commodity prices are determined by the interplay of supply and demand amongst them. We demonstrate that all the trading countries eventually reach the stationary state, though this process is not monotonic and the dynamics of capital and population may actually push some countries towards the stationary state and others away from it. We also use our model to assess an argument which Malthus employed in the second edition of An Essay on the Principle of Population (1803) to support a policy of agricultural protectionism.     

Politics of Association of Southeast Asian Nations Economic Cooperation

This paper discusses the political motivations behind the evolution of economic cooperation in the Association of Southeast Asian Nations (ASEAN) from its founding to the measures agreed upon to integrate its economy. Those measures include the reduction and elimination of tariffs on and the removal of nontariff barriers to intra‐ASEAN trade, customs reform, the harmonization of product standards, the liberalization of trade in services, and the strengthening of transportation links. The paper analyzes the failure to fully carry out those commitments, ascribing it partly to domestic political obstacles. Finally, it discusses the efficacy of the ASEAN Charter in this regard and the prospects of achieving an ASEAN Community by 2015.     

Do risk and time preferences have biological roots?

We revisit the claims about the biological underpinnings of economic behavior by specifically exploring if observed gender differences in risk/time preferences can be explained by natural fluctuations in progesterone/estradiol levels during the menstrual cycle and by prenatal exposure to testosterone and estrogen levels. We find no effect of the menstrual cycle (and thereby, of associated fluctuations in progesterone and estradiol levels) or of the digit ratio on either risk or time preferences.     

Quality of past performance: Impact on consumers’ responses to service failure

The conceptual model developed in this paper for the airline industry examines the relationship between quality of past service performance and consumers’ responses to service failures (causal attributions, emotions and satisfaction). The empirical results obtained indicate that for those consumers with higher perceptions of quality the causes underlying service failures are seen as less stable and less controllable by the firm than the causes identified by consumers with lower perceptions of quality. Attributions about the failure not only influence satisfaction directly but also moderate the effect of quality on satisfaction. We also analyse the mediating effect of negative emotions on the relationship between service failure attributions and consumer satisfaction.

Effects of Information on Consumers' Willingness to Pay for Golden Rice

We examine the effects of information on consumer bidding behavior using a uniform‐price auction with four units supply for golden rice. Our findings show that mean willingness to pay (WTP) bids are highest under positive information, followed by no information, negative information, and unexpectedly lowest with two‐sided information. Participants might have put more weight on the negative when faced with both positive and negative information. There is also a minor difference in WTP with respect to the reference price between positive information and no information. Furthermore, the marginal effect on WTP of positive information vis‐à‐vis no information is minimal. This suggests that the positive information faced by consumers might not be compelling enough to drastically increase WTP bids for a genetically modified product such as golden rice.     

Revisiting Cash Endowment and House Money Effects in an Experimental Auction of a Novel Agri‐food Product in the Philippines

This study explores the effect of varying cash endowments on bidding behavior in auction experiments conducted in a developing country. Our results suggest that cash endowment levels can have different effects on bidding behavior under second price auction and random nth price auction. In contrast to past studies conducted in developed countries, we generally do not see the presence of positive house money effect in our results. If behavior varies significantly as the cash endowment is varied, then care must be taken when designing auction experiments or when comparing results to other experimental results and theoretical predictions.     

Valuing an EU Animal Welfare Label using Experimental Auctions

The aim of this article is to determine consumers’ valuation for an EU Animal Welfare (EU‐CAW) Label for products providing higher animal welfare standards than the current legal requirements. Using revealed preference data from random nth price auction mechanism and two auction procedures, our results generally suggest that consumers are willing to pay a premium for an EU Animal Welfare (EU‐CAW) Label for cured ham. This finding is consistent in both the endowment and full‐bidding auction approaches we employed in our experiments conducted in Spain. The average premium that consumers are willing to pay for a cured ham with the EU‐CAW Label ranges between 19% and 23% of the average price of the regular cured ham that is currently available in supermarkets.