Realized extreme quantile: A joint model for conditional quantiles and measures of volatility with EVT refinements

We propose a new framework exploiting realized measures of volatility to estimate and forecast extreme quantiles. Our realized extreme quantile (REQ) combines quantile regression with extreme value theory and uses a measurement equation that relates the realized measure to the latent conditional quantile. Model estimation is performed by quasi maximum likelihood, and a simulation experiment validates this estimator in finite samples. An extensive empirical analysis shows that high‐frequency measures are particularly informative of the dynamic quantiles. Finally, an out‐of‐sample forecast analysis of quantile‐based risk measures confirms the merit of the REQ.     

Business Ethics: The Bottom Line

Teaching Business Ethics -     

Augmenting the eye of the beholder: exploring the strategic potential of augmented reality to enhance online service experiences

Driven by the proliferation of augmented reality (AR) technologies, many firms are pursuing a strategy of service augmentation to enhance customers’ online service experiences. Drawing on situated cognition theory, the authors show that AR-based service augmentation enhances customer value perceptions by simultaneously providing simulated physical control and environmental embedding. The resulting authentic situated experience, manifested in a feeling of spatial presence, functions as a mediator and also predicts customer decision comfort. Furthermore, the effect of spatial presence on utilitarian value perceptions is greater for customers who are disposed toward verbal rather than visual information processing, and the positive effect on decision comfort is attenuated by customers’ privacy concerns.     

Me,Myself, and Future Generations: The Role of Affinity and Effectiveness in the Creation of Consumer Environmental Stewardship (CENS)

Policymakers, consumer advocate groups, and researchers agree that consumers need to increase their proenvironmental behaviors if a decent standard of living is to be ensured for future generations. Despite high levels of environmental concern, consumers still refrain from large‐scale adoption of proenvironmental behaviors. Social marketers agree that a change in attitudes is not enough to stimulate the necessary behavioral change and are looking for ways to help consumers overcome the costs (e.g., price premiums, inconvenience) that are often associated with proenvironmental behaviors. Currently, consumers often see proenvironmental behavior as a trade‐off between short‐term personal benefits and longer term collective benefits. The authors contribute to the social marketing literature on proenvironmental behavior by introducing the concept of Consumer Environmental Stewardship (CENS), which centers on the use of intrinsic motivation to stimulate a personal sense of responsibility for the environment. The findings, based on a survey and three experiments, show that the stimulation of consumers’ affinity with future generations (AFGs) and perceived consumer effectiveness (PCE) can help to promote CENS, which in turn raises proenvironmental behaviors. However, this research also shows that increasing levels of AFGs can backfire and result in lower levels of CENS, if consumers experience low levels of PCE.     

Segmenting a market in the making: Industrial market segmentation as construction

This paper takes an empirical starting point in a claim that Biacore, a pioneering Swedish producer of affinity biosensors, was “in the enviable position of creating its own market” (Abelin, 1997). An in-depth case study traces how Biacore undertook segmentation activities while shaping the market for its new product technology, affinity biosensors. This involved stabilising the modes of exchange with customers, the product and the identity of the company. The efforts of Biacore highlight a constructive dimension of market segmentation that hitherto has received little attention. Rather than a process of describing, deciding and taking action, Biacore engaged in the gradual construction of market segments through an interactive and iterative process involving close collaboration with early users. Simultaneously, the market for the new technology gained shaped. Thus, the paper reports a ‘markets from networks’ story illustrating how the practice of segmenting a market may have consequences for that market.     

Is a Long‐term Business Relationship an Implied Contract? Two Views of Relationship Disengagement*

ABSTRACT Current knowledge of business‐to‐business relationship dissolution centres upon definitions of relationship dissolution, models of dissolution, antecedents for dissolution, and dissolution strategies. In this paper an empirical case example of a terminated business relationship in the aftermath stage of the dissolution process is presented. William Baird sued Marks and Spencer for £53.6 m for breach of contract. The relationship between the actors was long‐term, exclusive, and involved substantial investment in specific assets. There was no written contract in place, yet one actor considered that the relationship was equal to an implied contract. The contribution of the paper is to discuss the possibility for legal redress using the transaction cost economics, relational contracting, and industrial networks literatures.     

Women,gender and policy‐making in the South African context

Equality, including gender equality, is a fundamental principle of the South African constitution. This article is intended as a briefing document for researchers and policy‐makers on some of the more qualitative gender considerations involved in policy‐making and analysis. The article is not based on original research or data analysis, but is informed by a range of papers and studies which throw up gender questions about conventional ways of seeing. The article starts by dealing briefly with the distinction between ‘equity’ and ‘efficiency’ arguments for gender equality. After summarising past and current developments in establishing gender machinery within government, it goes on to suggest how traditional economic theory obscures or distorts gender issues. Finally it discusses the use and abuse of concepts commonly encountered in both poverty studies and discussions of gender.     

Resource interaction in inter-organizational networks: Introduction to the special issue

This article introduces the special issue of Journal of Business Research on the topic of resource interaction in inter-organizational networks. Both networks and resources receive considerable attention in the field of business studies. As companies specialize further and rely on cooperative agreements with external parties, the importance of networks is gaining increasing recognition. Resources are typically a key factor for identifying a company's competencies, or its sources of growth, profitability, and sustained competitive advantage. This special issue takes a novel approach by directing attention toward the processes of interaction in which companies combine and recombine resources at the network level. This approach provides new insights into the development, production, exchange, and use of resources. The introductory article also reviews the 13 articles in this special issue and concludes by discussing their contributions to the fields of marketing, innovation, entrepreneurship, and logistics.     

Alcohol as a risk factor for unintentional rail injury fatalities during daylight hours

Railway fatalities account for approximately 10% of transport fatalities in Cape Town. The objective of this study was to examine alcohol intoxication as a risk factor during daylight hours by conducting a case - control study to compare rail passenger and pedestrian fatalities (cases) with motor vehicle passenger and pedestrian fatalities (controls). Rail passenger and rail pedestrian fatalities were defined as cases with motor vehicle passenger and pedestrian fatalities as the respective controls. Data were collected from post-mortem reports at two mortuaries from 1994 to 1996. Blood alcohol concentration was the dependent variable. The independent variables were age, gender, date of death, day of week, time of injury and external cause of death. The late afternoon and early evening period from 1600 hours to 1900 hours had the highest frequency of fatalities for all case and control groups. Of the 56 predominately male (89%) railway passenger cases with an average age of 34.5 (SD 12.5) years, Friday (27%) was the most frequent day of death. Railway pedestrian cases (89% male, average age 36.8 years (SD 13.3)) were more likely to be killed on a Monday (11% of cases). Among the controls, motor vehicle passengers (63% male, average age 39.9 (SD 15.5)) were more likely to die on a Sunday (25%) and pedestrians (82% male, average age 41 (SD 14.7)) on a Saturday (21%). The study showed that alcohol consumption is an important risk factor for rail fatalities during daylight hours, with rail passenger fatalities being 4.71 (1.72 - 12.88) and rail pedestrian fatalities 1.62 (0.98 - 2.69) times more likely to be intoxicated than the respective controls. The results provide more evidence for public health campaigners to tackle endemic alcohol abuse and to develop diverse interventions that do not exclusively target motor vehicle drivers.     

An Empirical Investigation of Japanese Consumer Ethics

One of the gaps in the current international marketing literature is in the area of consumer ethics. Using a sample drawn from Japanese consumers, this study investigates these individuals' reported ethical ideology and their perception of a number of different ethical situations in the realm of consumer behavior. Comparisons are then made across several demographic characteristics. The results reveal differences which provide theoretical support for expanded research in the area of cross-cultural/cross-national consumer ethics and highlight the need for managers to consider possible differences in the ethical behavior of consumers when entering a new international market. In addition, this study extends current knowledge in international marketing ethics by utilizing a research design and survey instruments similar to previous studies on consumer ethics.