Weak links and the management of reputational interdependencies

This paper builds on a growing literature that takes into account the fact that firms in an industry may be interdependent with regard to their corporate reputations, thus sharing a “reputation commons.” We argue that the theory of public goods can help us to understand the interdependencies that link corporate reputations and to frame the contexts and requirements for collective action that they induce. In particular, we suggest that more and more frequently these interdependencies make industry reputation a “weak link” public good. We show that this raises new challenges for the strategic management of industry reputation by communities of firms. The discussion of these challenges is based on the case study of the collective action of the European chlorine companies towards restoring their reputation after being accused of not being safe, and on a model of the production of reputation by companies. Copyright © 2013 John Wiley & Sons, Ltd.     

The influence of brand image and company reputation where manufacturers market to small firms: A customer value perspective

Branding research has largely focused on consumer goods markets and only recently has attention been given to business markets. In many business markets the company's reputation has a strong influence on buying decisions which may differ from the more specific product related influence of the brand's image. In this paper we investigate these differences by testing the hypotheses about the influences of brand image and company reputation on customers' perceptions of product and service quality, customer value, and customer loyalty in a business market where there are three manufacturers marketing their brands directly to a large number of small firms. The results indicate that the brand's image has a more specific influence on the customers' perceptions of product and service quality while the company's reputation has a broader influence on perceptions of customer value and customer loyalty.     

集体声誉危机与企业认证行为——基于“柠檬市场”治理机制的视角

中国制造业部门时有发生的行业集体声誉危机不仅抑制了消费者对中国产品的需求,也造成了企业行为扭曲。本文从“柠檬市场”不同治理机制间的交互作用入手,构建理论模型考察了行业集体声誉危机对被牵连企业认证行为的影响机理,并以中国乳制品行业为样本,运用双重差分法进行实证检验。研究发现,集体声誉危机通过破坏市场声誉机制提高了企业的认证激励,原本没有必要申请认证的高质企业比低质企业更愿意在危机后加大认证申请。此外,集体声誉危机还引发了企业非理性的过度认证,在穷尽强相关认证后,企业的认证激励并未减弱反而转向申请其他弱相关认证。额外增加的认证成本抵消了认证对销售收入增长的促进作用,导致“过度认证陷阱”,不利于企业质量提升和危机行业的转型升级。上述结论从企业认证行为扭曲这一视角拓展了有关集体声誉危机负面效应的认识,对政府避免危机发生以及完善认证行业发展有着积极的指导意义。     

What is a good reputation? Career concerns with heterogeneous audiences

When an agent faces audiences with heterogeneous preferences, it is non-trivial to determine what a “good” reputation means, and the return to reputation can be a non-monotonic function. We illustrate this through standard IO examples, and discuss some implications for reputation-building in a simple two-period career concerns framework. We conclude by discussing other observations concerning the impact of heterogeneous audiences on reputation-building.     

The effects of corporate reputation perceptions of the general public on shareholder value

Superior corporate reputations can have strategic value for firms. Of the “multiple reputations” associated with each firm, we focus on the perceptions of the general public. The public represents the most widely defined stakeholder group but has attracted the least amount of research interest to date. Drawing on data for German firms, this study demonstrates that superior reputation perceptions issued by the general public increase shareholder value, as measured by future stock returns. This study provides a more nuanced understanding for this novel finding. Applying a conceptualization of reputation that balances both its affective and cognitive components, we find that reputation perceptions that are driven by nonfinancial aspects are more value relevant in the future than reputation perceptions that are driven by previous financial performance. Copyright © 2014 John Wiley & Sons, Ltd.     

Optimal strategy of multi-product retailers with relative thinking and reference prices

Experimental evidence suggests that consumers are affected by reference prices and by relative price differences (“relative thinking”). A linear-city model of two retailers that sell two goods suggests how this consumer behavior affects firm strategy and market outcomes. A simple model analyzes the case in which all consumers want to buy both goods. An extended version adds consumers who want only one good. Relative thinking leads firms to increase the markup on the good with the higher reference price and decrease the markup on the other good, possibly to a negative markup. Stronger relative thinking increases the firms' profits.     

论品牌延伸对市场份额和广告效率的影响——基于Smith-Park模型的实证分析研究

Smith-Park模型是国际上知名度较高的品牌延伸效果测定模型。本文选择江苏地区的40家消费品生产企业为调查样本,利用该模型分析了中国市场企业采取品牌延伸策略对品牌的市场份额和广告效率的影响。验证了在中国市场品牌延伸受延伸产品原品牌的特征、延伸产品的特征以及延伸产品的市场特征干扰状态;当市场上竞争者较多时,品牌延伸对市场份额的相关影响比市场上竞争者少时要大;市场份额和广告效率都不受延伸产品之间的相似性的影响;母品牌强度与延伸产品市场份额呈正相关,但却不影响广告花费的效用;现金流上的差别会随着时间的变化而变化等结论。本文的研究系统地验证了SP模型对我国制造业行业的市场适用性,并通过实证研究修正了SP模型的部分参数偏差。     

品牌服装实现零库存的战略思考

本文通过对品牌服装库存产生的本质进行透析,以消费群体的自然属性和精神属性的二重性特征为主要研究思路,来探索科学的生产配货,从而达到品牌服装实现销售最大化,达到实现零库存的设想。     

Access regulation and geographic deployment of a new generation infrastructure

This paper addresses the impact of regulatory policy on levels of infrastructure deployment and derived welfare in the telecommunications sector. The model considers two potentially coexisting and partially competing technologies (the “old generation network” – OGN – and the “new” generation network – NGN). This framework allows us to show that the “regulation defining access charge in order to maximize infrastructure deployment” is strictly equivalent to the case in which “no regulation applies”. We also derive from the model that these two types of regulation induce higher social welfare, but lower numbers of NGN consumers, compared to the “ex post access prices” regulation. Finally, we show that the level of infrastructure deployment (as well as social welfare and number of NGN consumers) will be highest if both investment and access charge decisions are taken by the welfare maximizing regulator. This suggests that the social optimum will be achieved through a calls-for-tender process that includes deployment and access charge requirements.     

Product Hierarchy and Brand Strategy Influences on the Order of Entry Effect for Consumer Packaged Goods

Manufacturers focus on becoming more agile, software firms deploy rapid application development tools—everyone is in a hurry. Although we all understand the benefits of being first to market, we understand just as clearly that not all first-to-market products enjoy the same, sustainable benefits from being market pioneers. Why do some pioneering products experience a more significant order-of-entry effect than others? Roger A. Kerin, Gurumurthy Kalyanaram, and Daniel J. Howard examine two factors–product hierarchy and brand strategy—which may influence the magnitude of this effect for new consumer packaged goods. First, they hypothesize that pioneering a new product class offers a greater advantage than introducing a new form to an existing product class. Second, they predict that the order-of-entry effect will be greater for brand extensions than for entirely new brands. Finally, considering both product hierarchy and brand strategy, they expect that the order-of-entry advantage for brand extensions over new brands will be significantly greater within new product classes than for new forms of existing products. These hypotheses are tested using data from the Information Resources, Inc. Behaviorscan° data set. Collected from 2,500 household panel members, 75 supermarkets, and 25 drugstores, this database contains weekly measures of brand trial penetration as well as brand distribution, price, and promotion information in eight geographic markets from the period 1983–1988. The models developed in this study explore the relationships among brand trial penetration, product hierarchy, brand strategy, order of entry, lag time between successive brand entrants, and marketing mix variables (i.e., price, promotion, distribution, and advertising). The study strongly supports all three hypotheses. In particular, the analysis clearly demonstrates that the order-of-entry effect is greatest for a new product class pioneered by a brand extension. Order of entry has the least effect on a new product form pioneered by an entirely new brand. For a company seeking a competitive advantage from being first to market, innovation in product function offers greater potential benefit than innovation in product form. Such a company can also benefit from building on the name and reputation of its established brands. Although the study finds these order-of-entry effects significant, the effects of marketing mix variables such as product price and promotion are consistently stronger.     

The tale of two research communities: The diffusion of research on productive efficiency

The field of theoretical and applied efficiency analysis is pursued both by economists and people from operational research and management science. Each group tends to cite a different paper as the seminal one. Recent availability of extensive electronically accessible databases of journal articles makes studies of the diffusion of papers through citations possible. Research strands inspired by the seminal paper within economics are identified and followed by citation analysis during the 20-year period before the operations research paper was published. The first decade of the operations research paper is studied in a similar way and emerging differences in diffusion patterns are pointed out. Main factors influencing citations apart from the quality of the research contribution are reputation of journal, reputation of author, number of close followers; colleagues, “cadres of protégés”, Ph.D. students, and extent of network (“invisible college”). Such factors are revealed by the citing papers. In spite of increasing cross contacts between economics and operations research the last decades co-citation analysis reveals a relative constant tendency to stick to “own camp” references.     

Competition Among Middlemen When Buyers and Sellers Can Trade Directly

This paper examines competition among middlemen when sellers and buyers can trade directly. Direct trade alters the supply and demand facing the middlemen, making them interdependent, and reduces the market power of intermediaries. However, it does not alter the Stahl [1988] result that middlemen may have an incentive to “corner” the market if demand is inelastic. The model is applied to market making in financial markets, vertical integration in goods markets and to the question of bypass in utilities. This discussion suggests that cornering is most likely in markets for essential inputs and that it may enable seller collusion.     

数字经济背景下ICT货物贸易的影响因素分析——以"一带一路"沿线国家(地区)为例

本文在阐述“一带一路”沿线国家(地区)ICT(信息通信技术)货物贸易现状的基础上,利用2007~2019年贸易流量数据与空间杜宾模型,实证分析贸易格局与国家产业基础、资源禀赋、营商环境等因素的关系。研究发现:(1)“一带一路”沿线国家(地区)ICT货物贸易呈现出两边高-中间低的空间格局,产业基础是主要影响因素,并存在正向的空间溢出效应;(2)改善本国营商环境、提高城市化水平、扩大经济体量是每个沿线国家(地区)改变其ICT贸易格局的有利举措。同时需要注意对外直接投资、汇率及关税的调节作用,重视经济合作组织的影响;(3)我国应充分发挥贸易的直接和间接效应,积极拓展ICT产业新型基础设施建设,满足人们日益增长的带宽需要及通信需求。     

Indirect network effects and the quality dimension: A look at the gaming industry

Two-sided markets consist of platforms that need to bring both retail consumers and complementary goods producers on board to be successful. Consumer adoption of these platforms can often hinge on the presence and magnitude of indirect network effects — the positive feedback loop where a larger base of adopters of a primary product (“hardware”) creates a larger market for complementary goods (“software”), which in turn increases the value of the primary good. Prior work attempting to measure indirect network effects often uses aggregate counts of software variety to do so. In this paper, we illustrate the importance of accounting for variation in software quality — a feature present in many markets — when conducting this measurement, and provide the conditions under which not doing so results in over- or underestimation of the actual indirect network effect. We apply our framework to the 7th-generation video game console market with quality-differentiated titles and show that in this market the use of aggregate software measures underestimates the indirect network effects by approximately 30%.     

Pay-for-delay patent settlement,generic entry and welfare

“Pay-for-delay” settlement (P4D), in which the brand patentee reversely pays the generic infringer to delay market entry, is typically criticized for blocking competition but is often excused for its potential to maintain innovation. We present a game-theoretic model to show that when the generic firm’s entry decision is endogenized, P4D can actually increase ex post competition under certain conditions. We further explore the impact of P4D on ex ante innovation and find that the brand’s innovation incentive may increase or decrease, depending on the generic firm’s entry cost and other factors. Our findings contribute to the ongoing P4D debate by identifying conditions under which (1) P4D can improve consumer surplus and (2) the trade-off between competition and innovation can be reconciled.     

Enhancing Consumers' Affection for a Brand Using Product Design

Product design is an integral component of a brand and an important driver of brand equity. For the brand, product design is an important tool for driving differentiation, creating value for both the consumer and the firm, driving consumer preferences, and creating a sustainable competitive advantage. At the firm level, the importance of investing in design has been substantiated by studies that suggest firms capable of creating innovative design and providing superior consumer value perform better in the marketplace. Thus, product design clearly presents an important area of research for those studying and managing brands. In this context, the goal of this research is to explain the brand‐level affective outcomes that product‐level design features can create. This paper develops a conceptual framework and hypotheses that theoretically connect design‐based values, at the product level, to affective brand‐level relational outcomes with the brand. The drivers of product affection include social value, altruistic value, functional value, emotional value, and economic value. Analogous to “firm affection,” the paper postulates a brand affection construct that is defined as the passion and pride that a consumer feels about owning a brand. Using syndicated product‐level data from the automotive industry collected from a national sample of consumers, 712 useable consumer/product observations of 30 small vehicles are employed in the analysis. A confirmatory factor analysis and structural equation model are developed to test the conceptual model. This research finds that the social value and emotional value that a design provides to consumers have a greater effect on brand affection than purely transactional values, such as functional value or economic value. This research contributes to the literature by providing evidence that product design‐related values are multifaceted and can contribute to relational outcomes, such as brand affection. It contributes to practice by highlighting the means by which design can be used as a strategic tool to create a sustainable long‐lasting relationship with the consumer, and provides managers with a framework to assess the impact of design‐based values on long‐term relationship‐based outcomes. The results provide new insights about how consumers' perceptions of the value of product design at the product level can help create enduring relationships with brands.     

Induced effects of smart food/agri-systems in Japan: Towards a structural analysis of information technology

The Japanese government decided to promote “smart society” in the 5th Science and Technology Basic Plan. The purpose of this research is to evaluate the effects of information and communication technology (ICT) in smart society by input-output analysis using the food industry and agriculture as examples. We define food production and agricultural activities utilizing ICT as a smart food-agri system, and try to analyze the effect of such a system on the economy as a whole. As a result, we confirmed that such a system has a large economic ripple effect on information sectors. At the same time, through these analyses, (1) we redefine information goods and service sectors, (2) we describe the new management sectors that are using these goods and services, but are not currently independent businesses, and (3) we clarify new industrial structure that exists in “smart society” using ICT.     

Revitalizing weak industrial products

The study reported in this article focuses on the policies and practices of industrial goods companies to revitalize weak products. The decision was found to be a multiple-stage sequential process that begins with “diagnostic” routine to identify the causes of a product's unsatisfactory performance and ends with the implementation of a corrective action that management believes could restore the product's health.     

Well Known or Well Liked? The Effects of Corporate Reputation on Firm Value at the Onset of a Corporate Crisis

Research summary : We study how two dimensions of reputation (i.e., generalized favorability and being known) and attribution of crisis responsibility affect firm value at the onset of a crisis. Analyzing 126 corporate crises befalling publicly listed firms in China from 2008 to 2014, we find that generalized favorability serves as a buffer, while being known can be a burden, in influencing firm value. We also find that the buffering effect of generalized favorability is stronger when the attribution of crisis responsibility is low (vs. high). In addition, there is a negative interaction effect between the two dimensions of reputation such that the buffering effect of generalized favorability weakens when firms are better known. We discuss our contributions to research on corporate reputation and crisis management. Managerial summary : Corporate reputation is an intangible asset, especially at the onset of a corporate crisis. This research sheds light on the “double‐edged sword” of corporate reputation by examining the effects of two reputation dimensions (i.e., being liked and being known) on firm value. Our results suggest that well‐liked firms can leverage their generalized favorability among stakeholders to assuage firm value loss, whereas well‐known firms may have to better communicate with stakeholders to overcome the burden of stakeholders' attention that escalates firm value loss. To better cope with the onset of a crisis, firms should therefore enhance their generalized favorability and simultaneously avert stakeholders' excessive attention. In addition, well‐liked firms can further buffer against the loss in firm value by reducing the perceived intentionality of a crisis. Copyright © 2017 John Wiley & Sons, Ltd.     

金龙汽车：净利润为何仅为宇通的21％？

这真是一个有趣的现象：为什么同处一个行业、品牌知名度相近的两家氽业，盈利能力相差如此之巨？