Building a Trust Model in the Online Market Place

ABSTRACT

If demand is not sufficient, a business will not be viable. This basic fact of business survival is intimately related to one of the most popular analytical approach for evaluating the profitability potential of a business, Porter's “Five Forces” model. Locating an online niche that is in sufficient demand to generate adequate revenues and profits is a challenging, but not an impossible, task. The Internet has the unparalleled ability to produce information trails that allow the user to measure the supply and demand for keywords used in online searches, and software has been designed to facilitate the location of potentially profitable niches. This paper provides an overview of this software along with associated strengths and weaknesses, shows examples of the output generated by leading keyword research software (KRS), and provides an extensive listing of KRS vendors and a summary of the capabilities of their products.     

Disagreement in a Multi‐Asset Market

This paper provides a simple framework to study the effect of disagreement in a multi‐asset market equilibrium by considering two agents who disagree about expected returns, variances, and correlation of returns of two risky assets. When agents' subjective beliefs are characterized by mean preserving spreads of a benchmark homogeneous belief, we show that the effect of the disagreement does not cancel out in general and the effect in a multi‐asset market can be very different from a single asset market. In particular, the market risk premium can increase and the risk‐free rate can decrease significantly even when the market is overoptimistic and overconfident.     

Trading Off Fish Health and Safety: Female Decision‐Making Processes toward the Risk of Methylmercury in Fish

This study takes a qualitative, point‐in‐time look at 26 females’ decision‐making processes toward trading off the risks of mercury and the health benefits of a seafood diet. The data revealed five different decision‐making processes, with 17 of the 26 participants indicating their fish consumption patterns did not change. Of the nine who changed their fish consumption in some way, six specifically reduced the amount of tuna they ate. Similarly, participants who were most at risk—women of childbearing age and those with young children—expressed fish consumption changes more frequently than others, especially in the amount of tuna they consumed.     

Time Affluence as a Path toward Personal Happiness and Ethical Business Practice: Empirical Evidence from Four Studies

Many business practices focus on maximizing material affluence, or wealth, despite the fact that a growing empirical literature casts doubt on whether money can buy happiness. We therefore propose that businesses consider the possibility of “time affluence” as an alternative model for improving employee well-being and ethical business practice. Across four studies, results consistently showed that, even after controlling for material affluence, the experience of time affluence was positively related to subjective well-being. Studies 3 and 4 further demonstrated that the experience of mindfulness and the satisfaction of psychological needs partially mediated the positive associations between time affluence and well-being. Future research directions and implications for ethical business practices are discussed.     

Time Affluence as a Path toward Personal Happiness and Ethical Business Practice: Empirical Evidence from Four Studies

Many business practices focus on maximizing material affluence, or wealth, despite the fact that a growing empirical literature casts doubt on whether money can buy happiness. We therefore propose that businesses consider the possibility of “time affluence” as an alternative model for improving employee well-being and ethical business practice. Across four studies, results consistently showed that, even after controlling for material affluence, the experience of time affluence was positively related to subjective well-being. Studies 3 and 4 further demonstrated that the experience of mindfulness and the satisfaction of psychological needs partially mediated the positive associations between time affluence and well-being. Future research directions and implications for ethical business practices are discussed.     

Wealth‐to‐Income Ratio and Stock Market Movements: Evidence from a Nonparametric Causality Test

We use a nonparametric causality‐in‐quantile test to analyze the predictive ability of the wealth‐to‐income ratio (wy) for excess stock returns and their volatility. Our results reveal that the wy is nonlinearly related with excess stock returns, and hence, results from linear Granger causality tests cannot be deemed robust. When we apply the nonparametric causality‐in‐quantile test, we find that the wy can predict excess stock returns over the majority of the conditional distribution, with the exception being the extreme ends, that is, when the market is in deep bear or bull phases. However, the wy has no predictability for the volatility of excess stock returns.     

Option Pricing in Discrete‐Time Incomplete Market Models

Various aspects of pricing of contingent claims in discrete time for incomplete market models are studied. Formulas for prices with proportional transaction costs are obtained. Some results concerning pricing with concave transaction costs are shown. Pricing by the expected utility of terminal wealth is also considered.     

A Case Study: How a Retail Jewelry Store Learned to Compete in the E-Commerce Market Place

ABSTRACT

The Case Study describes how a retail jewelry store adapted to a new e-commerce market place. Until the mid-1990s, their marketing strategy included (1) a large dramatic sign visible from surrounding streets, (2) local print and radio advertising, (3) a sales staff that aggressively pushed the perceived value and emotional component of jewelry, and (4) an after-sales follow-up program. Typical customers were in the lower to middle socio-economic segment.

E-commerce created more knowledgeable customers who recognized their buying alternatives. The Store reacted by developing several proprietary web sites, displaying products in the store “as seen on” the home shopping networks or on various web sites, and offering classes on how to become a more knowledgeable jewelry shopper. During the implementation of the e-commerce changes, problems arose in two areas: project management issues (deadlines, staffing, testing) and cultural adaptation issues. Once these issues were effectively addressed, and the e-commerce changes were implemented, sales stabilized and returned to prior levels.

The Case Study explores a well-known strategic principle: all organizations must monitor their changing environment and adapt accordingly, e-commerce is a current example; there will always be others.     

Counter‐Credit‐Risk Yield Spreads: A Puzzle in China's Corporate Bond Market

In this paper, using China's risk‐free and corporate zero yields together with aggregate credit risk measures and various control variables from 2006 to 2013, we document a puzzle of counter‐credit‐risk corporate yield spreads. We interpret this puzzle as a symptom of the immaturity of China's credit bond market, which reveals a distorted pricing mechanism latent in the fundamental of this market. We also find interesting results about relationships between corporate yield spreads and interest rates and risk premia and the stock index, and these results are somewhat attributed to this puzzle.     

Consumer Response toward Plus‐Size Models Featured in the Mainstream Media

The rise of the body acceptance movement among consumers has led several brands and media outlets to feature models with diverse body shapes and sizes. However, little research has examined consumer reactions to these nontraditional models. This exploratory study addresses this gap by examining consumer response to three different instances in which a plus‐size model was featured in a popular press magazine. Discourse analysis examined consumer‐generated online comments. Three broad themes were identified that included positive sentiment related to more inclusivity in media representations of women: concern about model body size and health, and questions around how a “plus” size body is defined. This work offers insight into consumer response to plus‐size models, sheds light into how society views the plus‐size body and health, as well as how brands can begin to integrate plus‐size models into marketing and advertising campaigns.     

Evaluation of a maltodextrin gel as a partial replacement for fat in a high‐ratio white‐layer cake

The performance of maltodextrin gel as a replacement (25%, 50%, 75% and 100%) for shortening along with sucrose and high fructose corn syrup‐90 (HFCS‐90), adjusted for sweetness in each treatment, was evaluated in a high‐ratio white‐layer cake formulation. Two controls were used as a reference to fat‐replaced cakes: control A (100% fat and 100% sucrose) and control B (100% fat with 50% sucrose/50% HFCS‐90), which closely matched the sugar system of the fat‐replaced cakes. Volume of cakes showed that treatment F (100% fat‐substituted) was significantly (P < 0.05) different from the other treatments. Crust and crumb L‐ and b‐values indicated that control B produced a dark crust (P < 0.05) with a light crumb (P < 0.05) whereas treatment E (75% fat substituted) produced a light crust (P < 0.05) and treatment F a darker crumb (P < 0.05) with a significantly (P < 0.05) higher moisture content. Degree of staling significantly (P < 0.05) increased over time for all treatments. Sensory results indicated that treatment F produced a significantly (P < 0.05) moister, less adhesive and cohesive cake. Tenderness and sweetness scores indicated that treatments E and F were significantly (P < 0.05) tougher and less sweet, respectively, when compared with the other treatments. Results from both the physical and sensory analyses indicated that the combination of maltodextrin gel up to a 75% reduction for shortening and sucrose/HFCS‐90 resulted in satisfactory cakes.     

Pre‐school staffs’ attitudes toward foods in relation to the pedagogic meal

The aim of this study, with the pedagogic meal in focus, was to identify pre‐school staff members’ attitudes to the role of food and meals as part of daily activities at pre‐school. Interviews were carried out at 12 pre‐schools and a total of 34 pre‐school staff participated. The staff revealed strong opinions as well as ambivalence towards how food and meals should best be integrated into their daily work and pedagogic activities. The pre‐school staffs’ lack of or insufficient education and knowledge regarding food and nutrition resulted in an ambivalent and uncertain situation with respect to how they should see themselves as teachers in the meal situation. Nevertheless, most of the staff had a clear perception of what it meant to practice a pedagogic meal. It meant helping and encouraging the children to help themselves and serving as an adult model for the children at table, though this pedagogic activity was uncommon. While the staff were satisfied with the pre‐schools’ role of catering for the children, they expressed concern about or even mistrust towards the children's parents. Despite, or perhaps due to, their inadequate knowledge about food and nutrition and the lack of specific aims for the pedagogic meal, they assumed that the public sector was a better educational institution regarding foods and a better guarantor for children's food habits and dietary intake. As the teachers’ identities have changed over the past years they have not yet found a solid ground for determining how food and meals could be integrated into their everyday work as pre‐school teachers and childminders.     

Fairness as a Constraint in the Real Estate Market

Community standards, ethical norms, and perceptions of fairness often serve as constraints on pure profit maximizing behavior. Consider the following examples: Most hardware stores refrain from raising prices on snow shovels after a major snow storm, even where short term profits might be increased. Most employers do not lower wages for existing employees, even as unemployment in the area increases. Automobile dealerships rarely raise sticker prices to cope with the long waiting periods for a popular model. Each of these anomalies is consistent with the proposition that firms increase profits subject to fairness constraints.This paper examines perceptions of fairness in the residential real estate industry and explores how community standards affect economic decision-making. The residential real estate industry is unique. One party to the transaction (the landlord) frames decisions as pure business decisions. The other party to the transaction (the tenant) frames decisions more broadly. While a tenant's choice of apartments is in part viewed as a business decision, tenants consider a broad spectrum of non-business issues, as well.This disjunction between landlord and tenant perceptions can lead to unique ethical quandaries and can explain otherwise anomalous economic behavior in the industry. The hypothetical case examined in this paper is based on a frequently encountered situation in the industry. The paper concludes with practical suggestions for managers.     

Pet‐related consumption as a consumer identity constructor

The objective of this paper was to analyse how pet‐related consumption can be connected to consumer identity construction. This objective is based on the idea that consumers use symbolic meanings from possessions to construct and communicate their identities. Objects of attachment have especially been found to be closely connected to the formation of consumer identity. Furthermore, it is often assumed that consumers struggle to maintain a true sense of self or personal identity while retaining a feeling of belonging and social identity. This may be portrayed through layers of identity, which are composed of personal identity, social identity and other people. Empirical research was conducted using focus groups to create individual collages. The findings indicated that pet‐related consumption was used in the following six ways to construct consumer identity: ‘character developer’, ‘source of well‐being’, ‘means to connect’, ‘status communicator’, ‘object of devotion’ and ‘intermediary’, all of which found their places in the layers of identity. Each of these ways of using pet‐related consumption was paired with one other so that the extremes formulated three dimensions in a consumers' identity construction: the personal dimension, the social dimension and the dimension of emotional attachment. In conclusion, it was proposed that consumer identity construction illustrated via pet‐related consumption as created within both social interactions with meaningful others and those three dimensions is multi‐levelled and multifaceted. The paper invites future research to study both identity construction and emotional attachment, being such multifarious phenomena, and to explore the dynamic interactions that may exist.     

Pre‐schoolers,parents and supermarkets: co‐shopping as a social practice

The objective of this paper was to examine the co‐shopping practices of children and parents in supermarkets, i.e. the practical enactment of grocery shopping. Our special focus is on how informal consumer training occurs during parent–child interaction. We use observational data collected in spring 2008 in different Estonian supermarkets, post‐shopping interviews with parents and focus group interviews with their children. Our analysis is informed by practice theory, which helps to look in detail at how the activities in a particular situation are coordinated by understandings and procedures, and are guided by the engagement in a particular shopping trip. Co‐shopping interactions mostly revolve around particular material objects, although not exclusively. Product choice is a deeply contested area, where both parents and children face numerous pressures in this situation of two‐way socialization. There are implications for consumer education more broadly. To accomplish lasting and meaningful effects on the everyday lives of families, there has to be a wider range of actors – supermarkets, producers, governmental bodies, schools and families – who care about both formal and informal consumer education.     

Market Orientation and Internationalization in Small and Medium‐Sized Enterprises

This article builds on studies from the literature on market orientation (MO) and internationalization to develop a model and a set of hypotheses regarding the relationships among MO, knowledge acquisition (KA), and market commitment (MC), and the direct and indirect effects of these variables on the performance of small and medium‐sized enterprises (SMEs) in foreign markets. The model and its hypotheses are tested by means of an empirical study of a multi‐industry sample of Spanish SMEs operating in foreign markets. The results, obtained by structural equation modeling, indicate that a direct positive relationship exists between MO and a strategy of internationalization, and that the effect of MO on performance in foreign markets is moderated by KA and MC.     

Challenges of Existing in a Market as a Small,Low-quality Producer

This paper explores the strategy of a small firm entering a monopolist's market thereby creating a duopoly market. The small firm avoids competing with the larger, incumbent firm by producing a lower-quality product at a lower price. The model here establishes an equilibrium under a specific set of assumptions and examines how exogenous factors affect prices, qualities and profits. Although the strategy might allow the firm to enter and earn a profit, the market conditions may make this position much less desirable to that of the large firm for several reasons. In the case explored here where tastes for the product are uniformly distributed, the small firm's profit is about six percent of that of the larger firm. The smaller firm is more severely threatened by the entrance of a third firm. Furthermore, even if the smaller firm can cut costs, its position is not well suited for exploiting such increases in efficiencies.     

A Nietzschean re‐evaluation of values as a way of re‐imagining business ethics

Whereas a range of business and management scholars have argued that business is in an ethical crisis, Nietzsche makes it possible to see that it is ethics itself that is in crisis, and that only as the crisis in ethics is dealt with can ethics in specific areas such as business be addressed. Nihilism is the name that Nietzsche gives to the crisis in ethics. The failure to fully appreciate nihilism and its pervasiveness as the root cause of the problem, as evident in the perpetual quest to obliterate nihilism through the creation of ethical frameworks and foundations, has plunged business and ethics scholarship in the field, ever deeper in the quagmire of nihilism. In response to nihilism, Nietzsche offers a re‐evaluation of all values. To re‐evaluate all values means to accept nihilism and see it as a basis for questioning taken for granted assumptions that have supported the notion of ethics or values in order to re‐imagine an ethics which is responsive to the crisis of nihilism. The paper thus proposes that rather than trying to invent new ethics or ethical foundations, or figuring out “how” to be ethical, we need to turn our attention on the “why to be” of ethics.