Working with customers: Cooperation and competition in relational marketing

The relationship and interaction between salespeople and their customers may be usefiilly examined in terms of how they believe their goals and interests are related. Twenty‐five sales persons and 40 travel agents and managers in charge of corporate travel were interviewed on specific interactions. Results support previous theorizing that productive conflict management and resulting trust and personal bonds contribute to successful marketing relationships and suggest that these dynamics occur when sales representatives and clients have developed strongly cooperative goals, but not when they have competitive or independent goals. Results were interpreted that the constructive discussion of opposing views complements cooperative goals as important contributors for developing successful relational marketing.     

Marketing and Professional Services: the Case of Consultancy Engineering

Professional services suffer from a dearth of literature on marketing, especially in New Zealand. Like other professioal services, consulting engineers have expressed particular concern on how to adapt to the present competitive environment. A survey of New Zealand consulting engineers indicated that the use of marketing techniques within consulting engineering practices is uncoordinated in nature and there is disagreement as to the most efective method of attracting clientele. The lack of coordination of marketing techniques is best illustrated by the majority of consulting engineering practices competing on price, while actually perceiving service quality as the most important method for success. Within consulting engineering practices, marketing is becoming a legitimate management function. However, evidence can be seen to illustrate that the ‘trappings' of marketing prevail rather than the ‘substance’ which is needed to have the customer-driven orientation fundamental to the implementation of the marketing concept.     

Investigating the different approaches to importance–performance analysis

Importance–performance analysis (IPA) is an analytic technique that generates a two-dimensional importance–performance grid, where the values of importance and performance across attributes are plotted against each other. This technique is used to assist service and other firms in prioritizing areas for service improvement when resources are limited. This study contributes to service theory by first performing a comprehensive literature review of four different and commonly used approaches to IPA. Survey data from the ports sector are then used to elucidate the value and the distinctiveness of these four different approaches, and it is also shown how the underlying theoretical assumptions led to somewhat varying, and contradictory interpretations. Subsequently, novel guidelines for integrating results from these four different approaches are proposed. The study advances service theory by detailing the integration of the different approaches to make sense of the importance and performance of diverse service attributes. The integrative approach developed in this paper also provides practitioners with clearer guidance for the application of IPA.     

Quantitative impact of correlation errors on basket options with time‐varying correlations

This study examines the quantitative impact of correlation errors on basket options with time‐varying correlations and the risk measures (conditional) value‐at‐risk (VaR) in the framework of Basel II. The results show that risk measure misestimation due to correlation errors are the largest and most asymmetric for the at‐the‐money and out‐of‐the‐money basket option. Delta hedging of the basket option reduces risk but increases size and asymmetry effects substantially. Finally, the square‐root‐of‐time rule for VaR does not adjust adequately to correlation errors and consistently underestimates risk measures, which could lead to the VaR exceedance clustering observed during the recent financial crisis. © 2011 Wiley Periodicals, Inc. Jrl Fut Mark     

Robust anomalies? A close look at accrual‐based trading strategy returns

The last 40 years have seen an extensive literature documenting so‐called anomalies in major capital markets. Evidence of ‘abnormal’ returns associated with trading strategies based on readily observable phenomena such as accounting‐based data involves experimental design choices that can be expected to influence the results. We show how evidence of an accrual anomaly in Australia is sensitive to research design specifications such as the choice of proxy for total accruals; the definition of abnormal returns (i.e. the return generating model); the impact of data trimming as a response to exceptionally large returns; and the choice between value and equal weighting of returns. We show that research design choices do matter and help reconcile conflicting prior evidence of any accrual anomaly in Australia. More broadly, our results suggest the need for caution in drawing inferences from trading strategy tests which claim to identify anomalies.     

Interest differentials and extreme support for uncovered interest rate parity

This paper addresses two findings from the empirical literature testing uncovered interest parity (UIP): (i) more favorable results when interest differentials (IDs) are large and (ii) instability across samples. Simulations demonstrate that explanations of the results using large IDs based on the hypothesis of a “zone of speculative inactivity” are inconsistent with empirical evidence. Furthermore, it is shown that, if agents forecast IDs based on long-run values, coefficient estimates will be unstable if rates of decay in IDs vary significantly and, for ex post UIP to hold, IDs must decay in absolute value. This is consistent with OECD country data.     

Gender preference and transfers from parents to children: an inter-regional comparison

This paper examines whether parents exhibit gender preference in the allocation of family resources to their adult children. Gender preference is defined in the context of an altruistic model for inter-vivos transfer from parents to children extended to include educational investment. Data from the Health and Retirement Study (United States) and the Korean Longitudinal Study of Ageing are used to show that the degree of gender preference differs across these culturally distinct regions. Among Korean families, empirical results point to male preference as sons receive larger inter-vivos transfers and attain higher levels of education compared with daughters. In contrast, the evidence pertaining to gender preference among American families points to daughter preference as inter-vivos transfers and educational investment is generally higher among female adult children.     

Management training in small and medium-sized enterprises: methodological and conceptual issues

The paper examines the impact of management training and development on the organisation and performance of small and medium-sized enterprises (SMEs), via a variety of quantitative and qualitative research techniques and including both crosssectional and longitudinal approaches to analysis. The paper demonstrates the value of management training and development in SMEs and demonstrates a series of one-off and longer lasting effects on their organization and performance. The paper also highlights the conditions under which management development projects are likely to be more successful. Finally, the paper extends the schema developed by Arthur and Hendry (1990) and Hendry et al. (1991), indicating the factors influencing training within businesses, and shows the indirect and complex links between management training and firm performance.     

Effect of supervisor–subordinate guanxi on supervisory decisions in China: an empirical investigation

As China is becoming an important market and there are a lot of foreign ventures operating there, different lines of research have been providing useful information for foreign ventures to manage effectively in China. In this paper, we discuss one of the critical factors leading to successful management of Chinese subordinates, i.e. building and maintaining good guanxi (i.e., interpersonal connection) with them. We conducted an empirical investigation to illustrate (1) the supervisor-subordinate guanxi concept is different and unique when compared to other similar concepts in the Western literature such as leader-member exchange (LMX) and commitment to supervisor; (2) the supervisor-subordinate guanxi will affect the Chinese supervisor's administrative decisions; (3) guanxi can be measured by concrete behaviour/activities. Data on 189 supervisor-subordinate dyads were collected in the People's Republic of China (PRC). Results indicated that supervisor-subordinate guanxi is a distinct concept from LMX and commitment to supervisor. It also has additional explanatory power over supervisory decisions on promotion and bonus allocation after controlling for performance. Implications for foreign ventures and expatriates are discussed.