Amending China’s Notion of a “Consumer”: Lessons from Comparative Analysis of the PRC Consumer Protection Law

Who does the law treat as a “consumer” and why does it matter? How should China’s notion of a “consumer” best be articulated within the law and applied in practice? This article will attempt to answer these intriguing questions by first focusing on the approach taken to define a “consumer” in China’s Law on the Protection of Consumer Rights and Interests before examining the legal notion of a “consumer” in comparative perspective, in order to further understand the competing rationales behind the consumer protection law. This article will explore this Chinese definition of a “consumer” to propose how China’s vague and unworkable statutory definition of a ‘consumer’ should be amended in future.

     

The Ethnographer’s Apprentice: Trying Consumer Culture from the Outside In

Anthropologists have long wrestled with their impact upon the people they study. Historically, the discipline has served and subverted colonial agendas, but views itself traditionally as an advocate for the disempowered and as an instrument of public policy. Marketing is now among the pre-eminent institutions of cultural stability and change at work on the planet. Currently, ethnography is assuming a growing importance in the marketer’s effort to influence the accommodation and resistance of consumers to the neocolonial forces of globalization. The ethical consequences of market-oriented ethnography are explored in this essay. John F. Sherry, Jr., Herrick Professor and Chairman of the Department of Marketing at the University of Notre Dame, is an anthropologist who studies the sociocultural and symbolic dimensions of consumption, and the cultural ecology of marketing. His work appears in numerous journals, book chapters, professional manuals and proceedings. Sherry has edited Contemporary Marketing and Consumer Behavior: An Anthropological Sourcebook, as well as Servicescapes: The Concept of Place in Contemporary Markets; he is co-editor of Advances in Consumer Research (Vol. 19), Time, Space and the Market: Retroscapes Rising, and Consumer Culture Theory.     

Determinants of Consumer’s Willingness to Purchase Gray-Market Smartphones

The study analyzes the influential factors of consumers’ willingness to purchase gray-market smartphones by considering the model of novelty seeking, status consumption, integrity, and perceived risk. Attitude toward counterfeit is used as mediation in the model. The causalities in the model of problematic willingness of consumer to purchase gray-market smartphones are hypothesized. A total sample of 350 respondents with 238 effective samples is collected by interviewing with questionnaires at the service counters of telecommunications operators. Structure equation modeling (SEM) is adopted in the analysis. Consumers’ attitude toward counterfeit goods is found to be positively related to the willingness of consumers to purchase gray-market smartphones, but perceived risk is negatively related to consumers’ willingness to purchase. As for personality constructs, integrity and status consumption are found to be negatively related to consumers’ attitude toward counterfeit goods, but novelty seeking is positively related to the attitude. Further, managerial implications for branded smartphone manufacturers and telecommunications regulators are provided by the research.     

Relational Consequences of Perceived Deception in Online Shopping: The Moderating Roles of Type of Product,Consumer’s Attitude Toward the Internet and Consumer’s Demographics

Appropriate enablers are essential for management of intellectual capital. Through the use of structural equation modeling, we investigate whether organic renewal environments, interactive behaviors, and trust are conducive to intellectual capital management processes, as they each depend upon the establishment of a climate emphasizing mutual respect. Owing to a lack of clarity in the literature, we tested the ordering of the variables and found statistical significance for two ordering alternatives. However, the sequence presented in this article provides the best statistical fit: an organic renewal environment provides a foundation for interactive behaviors, which leads to trust, and thus is consistent with the development of intellectual capital management pro- cesses within the organization.     

Consumer＇s confidence rises again in the third quarter

According to the Orga-nizing Committee of World Economic Development Declaration, China will pub-lish its first declaration on world economic develop-ment next month in Zhuhai. It acts an sponsor as well as an organizer and designer in this activity. Seven Nobel Economics Prize winners     

Building the foundation of a Firm’s market competence

Many firms are experiencing difficult times regarding their turnover and profits. What started as a financial crisis soon became a sales crisis. This article offers a definition of market competence — what areas a firm needs to master in order to drive sales — and a model offering a stable foundation for knowledge sharing, strategizing and executing regarding customers.     

The role of a municipality’s financial health in a firm’s siting decision

When deciding where to locate a new facility, a firm needs to consider the financial health of the municipality where its activities will take place. Unless it sites its facility in a financially viable community, a firm is putting a substantial investment at risk. Despite the importance of this issue, many firms pay insufficient attention to a municipality’s financial condition. Instead, they focus on matters such as the tax rate, the quality of the school system, or the absence of regulatory constraints. All of these features are important, but unless a municipality is financially healthy, they can evaporate before a company has attained its expected return on investment. There are 5 financial statements and 10 financial ratios that can be used to create a financial health template, which can help a firm to assess a municipality’s financial strength, or its counterpart financial weakness. The template goes beyond the debt-repayment focus of credit rating agencies to matters such as financial autonomy, cash flows, and borrowing capacity. We use data from three cities—Barcelona, Dublin, and Detroit (pre- and post-bankruptcy)—to demonstrate the template’s ability to facilitate comparisons among cities that are in different countries and that use different accounting systems.     

Country of Origin Principle in the EU Market for Audiovisual Media Services: Consumer’s Friend or Foe?

The country of origin principle, the cornerstone of the EU Television Without Frontiers Directive – to become the Audiovisual Media Services Directive – is often criticised as being insensitive to the legitimate national public interest to protect viewers – and consumers – of audiovisual media content. This paper seeks to demystify this pessimistic perception of the country of origin rule from the perspective of the consumer interest. It demonstrates that the possible negative repercussions of the country of origin logic for consumer welfare are mitigated in three ways: by specific derogations possibilities foreseen in the Directive in case of violations of the fundamental rules on protection of minors and of human dignity; through the margin of broadcasting control left to the Member States in the areas beyond those coordinated by the Directive, and by means of a new two-step anti-circumvention procedure introduced by the new Directive.

How Does Corporate Social Responsibility Affect Consumer Response to Service Failure in Buyer–Seller Relationships?

The researchers investigate how corporate social responsibility (CSR) affects customer response following service failure within the context of buyer–seller relationships. A series of three experiments demonstrate that CSR is more effective under communal (vs. exchange) relationship norms, consistent with the alignment of CSR with the communal norm of concern for the needs of others. The effectiveness of CSR is also shown to vary as a function of company motives and CSR framing, serving as theoretically and managerially relevant boundary conditions. Together, these findings increase our understanding of how and when CSR will have a positive impact on consumers and, in turn, companies via customer satisfaction and loyalty.     

Gibrat’s law and the learning process

This paper discusses the speed of convergence of small firms in the context of Gibrat’s law for manufacturing and service industries. We analyze unbalanced panel data from 139,922 firms belonging to the Spanish manufacturing and service industries between 1994 and 2002. The results show that small firms grow faster than large firms. The evidence supports the proposition that market structure affects the capacity of firms to grow. In particular, small firms in service industries do not grow as quickly as small firms in manufacturing industries. This is mainly due to the lower medium efficient size (MES) in the service industries diminishing the incentives to grow and the positive effect of MES on the speed of convergence.     

China’s growing conflict with the WTO

China is the leading exporter of rare earths, elements which are crucial to the development of high-tech products and new green technologies. In recent years, however, China has begun imposing export restraints on these elements in order to benefit its domestic economic development. This reduces global supply and thus artificially leads to higher prices for importing countries. The EU, the US and Japan have launched a formal complaint in the WTO against China’s export restrictions. China claims that these restrictions are aimed at environmental protection. This paper examines China’s rare earth policy and its compliance with WTO rules.     

Investigating the consequences of word of mouth from a WOM sender’s perspective in the services context

Abstract

Employing scenario-based experiments, this paper examines the effect of word of mouth (WOM) on the sender’s intention to give future WOM about the focal service provider and the self-enhancement derived from articulating WOM. Extant WOM literature considers self-enhancement as a key driver of positive WOM. This paper provides empirical evidence that a reverse effect exists and that self-enhancement is also an outcome of WOM behaviour. Results indicate that the impact of WOM on self-enhancement has substantive significance and holds for both positive and negative WOM. The effect of WOM on intentions is only partially supported. Finally, tie strength between the WOM participants partially moderates the relationship between the variables. Importantly, the impact of negative WOM is stronger than that of positive WOM.     

Enormous Potential of the Chinese Consumer Market

With a population of 1.2 billion, the enormous potential of the consumer market in China is common knowledge for people around the world. From an analysis by the Ministry of Internal Trade, the potential of the Chinese consumer market is shown mainly in two aspects. Firstly, the capacity of the market is growing fast. From 1979 to 1994, the yearly average increase rate of the gross value of national productivity was over nine percent. The sustained increase     

“To Pirate or Not to Pirate”: A Comparative Study of the Ethical Versus Other Influences on the Consumer’s Software Acquisition-Mode Decision

Consumers of software often face an acquisition-mode decision, namely whether to purchase or pirate that software. In terms of consumer welfare, consumers who pirate software may stand in opposition to those who purchase it. Marketers also face a decision whether to attempt to thwart that piracy or to ignore, if not encourage it as an aid to their softwares diffusion, and policymakers face the decision whether to adopt interventionist policies, which are government-centric, or laissez faire policies, which are marketer-centric. Here in order to assess the decision-making of all three of these stakeholders, we focus on the consumers point-of-view as central and examine it by considering on a comparative basis the ethical dimension versus other dimensions, including economic, legal, and other salient consumer behavior considerations. Based on a survey of 689 software consumers conducted over the Internet, the results indicate that ethics as a factor is embedded in a multidimensional set of determinant factors influencing software piracy, including attitudes, legal aspects, social support, perceptions of economic loss and age. Policy and research implications, based on these findings, are provided.     

Enormous Growth Potential for China＇s Consumer Lending

China＇s consumer lending has been expanding rapidly and shows strong growth potential due to economic growth and government policy, according to a recent report by Boston Consulting Group （BCG）.     

When is Gibrat’s law a law?

The purpose of this article is to investigate if the industry context matters for whether Gibrat’s law is rejected or not using a dataset that consists of all limited firms in five-digit NACE-industries in Sweden during 1998–2004. The results reject Gibrat’s law on an aggregate level, since small firms grow faster than large firms. However, Gibrat’s law is confirmed about as often as it is rejected when industry-specific regressions are estimated. It is also found that the industry context—e.g., minimum efficient scale, market concentration rate, and number of young firms in the industry—matters for whether Gibrat’s law is rejected or not.     

Defending Gibrat’s Law as a long-run regularity

According to Gibrat’s Law of Proportionate Effect, the growth rate of a given firm is independent of its size at the beginning of the period examined. While earlier studies tended to confirm the Law, more recent research generally rejects it. This article reconciles these two streams of literature, taking into account the role of market selection and learning in reshaping a given population of firms through time. Consistently with previous studies, we find that Gibrat’s Law has to be rejected ex ante, since smaller firms tend to grow faster than their larger counterparts. However, a significant convergence toward Gibrat-like behavior can be detected ex post. This finding is an indication that market selection “cleans” the original population of firms, so that the resulting industrial “core” does not depart from a Gibrat-like pattern of growth. From a theoretical point of view, this result is consistent with those models based on passive and active learning, and can be seen as a defense of the validity of the Law in the long-run.

Leveraging the Diaspora for Africa’s Economic Development

ABSTRACT

African countries need to engage their diasporas in industrialized countries to provide much needed human, social, and financial capital to help with their economic development. For Africa’s economies to successfully transition from their current state of commodity-dominated production to high value-added production, governments in the continent must design and implement strategies to harness their grossly underutilized diaspora in developed countries. For the most part, the diaspora’s contribution to development has been viewed only in terms of remittances that go primarily to support families. In this paper, we provide a broad overview of some of the diaspora friendly policies that can help engage the African diaspora in the economic development of their respective countries of origin (COOs). Governments in the COOs need to move beyond seeing the diaspora as simply a source for remittances, and engage them in a meaningful way to provide them with a sustainable competitive advantage in the global battle for talent. There needs to be a move beyond simple calls to patriotism, and into engagement that leads to a mutually beneficial relationship between the diaspora and its COO. We conclude by pointing out some of the steps that can be taken in this regard to engage with the diaspora in a mutually beneficial relationship.     

Learning from own and others’ previous experience: the contribution of the venture capital firm to the likelihood of a portfolio company’s trade sale

The objective of this paper is to examine to what extent different venture capital firms contribute to the likelihood that the portfolio company in which they invested will realize a trade sale. We use arguments from learning theory to hypothesize the relationship between vicarious, experiential and congenital learning of the venture capital (VC) firm and the trade sale hazard of its portfolio companies. Based on our analysis of 206 VC-backed UK start-ups, we find that both trade sale experience of the VC and learning from syndicate partners with trade sale experience significantly increase the trade sale hazard. The routines and procedures learned from experienced syndicate partners complement experience accumulated through trial and error. Congenital trade sale experience of the investment managers on the contrary has no significant influence on the acquisition hazard.