EXPERIMENTAL EVIDENCE OF A SUNK‐COST PARADOX: A STUDY OF PRICING BEHAVIOR IN BERTRAND–EDGEWORTH DUOPOLY*

We experimentally test the effect of sunk costs on decision making. In the experiment, subjects play the role of price‐setting duopolists. Both firms have identical costs, including an exogenous sunk cost that varies across sessions over six different values. We observe that the sunk cost has a U‐shaped effect: From low to medium levels, average prices decrease, but from medium to high levels, average prices increase. This effect, which is consistent with loss avoidance, develops quickly and persists throughout the game. A follow‐up experiment confirms the main results of the original experiment.     

An Exploratory Study into the Factors Impeding Ethical Consumption

Although consumers are increasingly engaged with ethical factors when forming opinions about products and making purchase decisions, recent studies have highlighted significant differences between consumers’ intentions to consume ethically, and their actual purchase behaviour. This article contributes to an understanding of this ‘Ethical Purchasing Gap’ through a review of existing literature, and the inductive analysis of focus group discussions. A model is suggested which includes exogenous variables such as moral maturity and age which have been well covered in the literature, together with further impeding factors identified from the focus group discussions. For some consumers, inertia in purchasing behaviour was such that the decision-making process was devoid of ethical considerations. Several consumers manifested their ethical views through post-purchase dissonance and retrospective feelings of guilt. Others displayed a reluctance to consume ethically due to personal constraints, a perceived negative impact on image or quality, or an outright negation of responsibility. Those who expressed a desire to consume ethically often seemed deterred by cynicism, which caused them to question the impact they, as an individual, could achieve. These findings enhance the understanding of ethical consumption decisions and provide a platform for future research in this area.     

Are family‐friendly workplace practices a valuable firm resource?

We study the determinants and consequences of family‐friendly workplace practices (FFWP) using a sample of over 450 manufacturing firms in Germany, France, U.K., and U.S. We find a positive correlation between firm productivity and FFWP. This association disappears, however, once we control for a measure of the quality of management practices. We further find that firms with a higher proportion of female managers and more skilled workers, as well as well‐managed firms, tend to implement more FFWP. Conversely, a firm's environment does not have a significant impact on the FFWP it provides. © 2010 The Authors. Strategic Management Journal published by John Wiley & Sons, Ltd. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.     

Socio-emotional and operational demands on service employees

Enacting appropriate behaviors often requires service employees to suppress genuine emotions and/or express other emotions, genuine or contrived. Managing emotions to act in a socially appropriate manner constitutes a form of labor: emotional labor. If labor demands exceed the resources of the employee, burnout arises, with negative consequences for overall psychological well-being and job performance. Similarly, task related activities engender role stress, which can also lead to burnout. Both task related role demands and socio-emotional demands are likely to be omnipresent in interpersonal interactions in service settings. Accordingly, this study sets out to investigate the simultaneous impact of these job demands on burnout in front line service professionals. Based on survey data collected from allied health service workers, the study findings strongly suggest that both socio-emotional demands and task related role demands are significant determinants of workplace stress and that their simultaneous effects on employee burnout can be large.     

Entrepreneurship and regional competitiveness: The role and progression of policy

Regions have gained a position at the forefront of the economic development policy agenda. However, the regional approach to economic strategy remains contested. This paper tests the extent to which regional policy in less competitive regions is accounting for issues relating to entrepreneurship and enterprise development as a tool for improving regional competitiveness. It does so by examining policies undertaken by the UK Labour government 1997–2010, drawing on interviews with policy makers and an analysis of relevant policy documents. This paper finds that entrepreneurship policy at the regional level is multidimensional, with policies broadly ranging from those that are either economically or socially driven. Although there is a considerable policy activity in these areas across less competitive regions, enterprise policy making remains relatively undifferentiated across the regions. There are a number of evolutions in regional policy occurring, especially a shift from policies relating to the facilitation of clusters to those focused on developing regional innovation ecosystems. It is found that regional policy makers are under pressure to measure short-term outputs at the expense of long-term nurturing. The paper also finds that there is a tension between using enterprise policy as a tool for improving regional competitiveness or for addressing economic and social disadvantage.     

'Fun and surveillance': the paradox of high commitment management in call centres

Much of the research into telephone call centres has focused on the coercive employment systems which are adopted in these organizations. This appears to contrast with the high levels of customer service and satisfaction which are often required for them to be successful. Our research, which is based on two case studies of call centres studied in depth, challenges this 'satanic mills' image. We explore the ways in which both companies sought to balance the pressures in the product and labour markets and employee needs to develop strategies which combined elements of commitment and control. They developed sophisticated human resource practices, which resembled the high commitment management approach, while, at the same time, maintaining a highly controlled and measured work environment. Consequently, there was a greater alignment between their HR practices and control systems, the needs of employees and the high quality of interactions with customers expected. This suggests that high commitment practices are not automatically associated with extensive employee discretion, as has been argued in the manufacturing sector. HR practices of this kind can be used to offset some of the worst features of call centre working. These findings illustrate the variety of HR practices in call centres and suggest some possible reasons for this diversity.     

The view from inside the 'simulacrum‘: visitors’ tales from the set of Coronation Street

The social significance of visits to television and film locations has been little studied. This article concentrates on Granada Studios Tour (GST) - home of the external set of Coronation Street - and uses as its main source interviews with visitors to GST, conducted on site and in visitors' homes, to explore the complex significance of this site. Although sites such as GST have tended to be dismissed because of their ‘fictive’ status, a detailed examination of visitors’ experiences - in particular, their reactions to the Street set's status as an actual place of filming - suggests a more interesting picture. Visiting the Street set connects viewers to the ‘world of television’, a connection examined from a number of different perspectives: ‘aura’ (in Walter Benjamin's sense), social memory and symbolic reversals, pilgrimage and ritual place. The analysis of GST and the Street set as ‘ritual places’ draws in particular on the work of the anthropologist Jonathan Smith. It develops from the way the set connects two places and two worlds organized in a symbolic hierarchy: the ‘ordinary world’ of viewers and the ‘media world’. Such worlds are, largely, social constructions, but they are the basis of GST's particular ‘power of place’. The conclusion connects this analysis to Lash and Urry's recent (1994) analysis of the ‘resubjectivization of space’ in contemporary travel and reflexivity.     

International managers and mobile families: the professional and personal dynamics of trans-national career pathing and job mobility in the 1990s

This paper reviews the literature on transnational career pathing and job mobility. Alongside a detailed, critical review of the literature, a systematic model of international job mobility is presented. The directions for future research are then examined.     

360-Grad-Kommunikation und Customer Touchpoint Management — Die Pepsi-Kampagne „I CAN be a Star“

Fragmentierte Kommunikationskan?le, sich fast t?glich wandelndes Informationsverhalten der Konsumenten und immer neue Optionen für Ansprache und Dialog mit den Konsumenten: Marken artikler stehen vor immer komplexeren Aufgabenstellungen. Wie Markenverantwortliche die Vielzahl m?glicher Kommunikationskan?le am effizientesten orchestrieren und die Customer Touchpoints am wirksamsten gestalten, um ihre Marke nachhaltig in den K?pfen der Zielgruppe zu verankern, zeigt dieses Fallbeispiel.     

Measuring service quality of travel agents: evidence from Northern Cyprus

Service quality delivered by travel agents in Northern Cyprus was examined using a SERVQUAL scale. The translated instrument was purified using an item-categorisation technique and administered to 337 current users of travel agents in the region. Expectations and performance (SERVPERF) scores indicated that respondents were concerned most with the efficiency and least with the personalisation of the services offered. The largest service gaps were identified with the ‘modern’ appearance of the service and service-scape, and the smallest with interpersonal qualities of service. Multiple regression showed promptness, empathy, efficiency and service-scape aesthetics to be the main determinants of customer satisfaction. SERVPERF scores gave a better prediction of overall satisfaction and showed marginally better reliability and validity than those from which expectations were subtracted. Instead of the predicted SERVQUAL five-factor solution, factor analysis showed an underlying uni-dimensionality that is consistent with the findings of other authors. Possible management actions suggested by the findings are discussed in the context of the small business environment in Northern Cyprus.