The impact of fairness on trustworthiness and trust in banking

Abstract

Theorists and empirical researchers in marketing and other fields suggest that fairness is important in underpinning trust, which, in turn, is integral to developing and maintaining buyer–seller relationships. However, empirical investigation of fairness in the domain of marketing has, to date, been limited. Consequently, the relationship between fairness and trust is not well understood. Thus, the purpose of this study is to provide a fully developed social exchange model examining the differential effects of various dimensions of fairness on trustworthiness and customers’ trust. Data were collected from customers of banks and were analysed using confirmatory factor analysis and structural equation modelling. Findings of the study show that perceptions of fair treatment on the part of customers are important in driving trustworthiness and engendering trust.     

Trustworthiness and trust: influences and implications

Abstract

This paper frames trustworthiness as the key upstream construct of trust and recognises that trust operates at two levels in services relationships, with a number of key drivers that are mediated by trustworthiness. Our findings are supported by survey data from customers of UK financial services, with the data points captured over a number of years which allow for fluctuations in trust level.

Empirically we find that trustworthiness impacts both the cognitive and affecting dimensions of trust, with the impact being greatest on cognitive trust. As a result of our findings it is possible for practitioner to implement policies to not only build trust but also deal with issues where there is a need to rebuild it, as in the case of our research setting.     

Trust and Stakeholder Theory: Trustworthiness in the Organisation–Stakeholder Relationship

Trust is a fundamental aspect of the moral treatment of stakeholders within the organization–stakeholder relationship. Stakeholders trust the organization to return benefit or protections from harm commensurate with their contributions or stakes. However, in many situations, the firm holds greater power than the stakeholder and therefore cannot necessarily be trusted to return the aforementioned duty to the stakeholder. Stakeholders must therefore rely on the trustworthiness of the organization to fulfill obligations in accordance to Phillips’ principle of fairness (Business Ethics Quarterly 7(1), 1997, 51–66), particularly where low-power stakeholders may not be fully consenting (Van Buren III, Business Ethics Quarterly 11(3), 2001, 481–499). The construct of organizational trustworthiness developed herewith is presented as a possible solution to the problem of unfairness in organization–stakeholder relations. While organizational trustworthiness does not create an ethical obligation where none existed before, stakeholders who lack power will likely be treated fairly when organizational trustworthiness is present.     

Human capacity development in Indonesia: leadership and managerial ideology in Javanese organizations

Abstract

In this paper, leadership is viewed as a driver for change, showing directions towards a society with high adaptive capacity. This study, in particular, investigates whether the eight ancient principles of Javanese statesmanship (Asta Brata) can be employed as change agents for analysing managerial leadership excellence in Javanese organizations. Factor analysis, regression modelling and structural modelling are used to explain what constitutes leadership excellence in Javanese organizations. These findings based on the perceptions of 312 Javanese managers suggest they favour a paternalistic leadership style that is nurturing but not authoritative. This then calls for institutions that stimulate progressive leadership and entrepreneurial leadership as necessary but not sufficient until tempered with personal quality factors such as trustworthiness, dependable and discerning behaviours, patience and decisive action and acknowledgement of environmental influence.     

The Impact of a Third-Party Assurance Seal in Customer Purchasing Intention

ABSTRACT

Although e-commerce is evolving at an incredible speed, asymmetric information and opportunism have increased online purchasing risks and market inefficiencies. The lack of face-to-face contact and the inability of the customer to touch and feel tangible products necessitate that online business must provide customers with reliable information and convince customers of their trustworthiness. While the research on Third-Party Assurance Seals (TPAS) is not new, the effectiveness of TPAS has not been persuasively addressed by empirical studies. Our study is different from previous efforts in that it is comprehensive because it combines consumer trust, perceived risk, and influences of TPAS in the B2C e-commerce context. The results of the study show that (1) the effects of TPAS on perceived risk are channeled through perceived trustworthiness, thus demonstrating the mediating role of perceived trustworthiness in B2C e-commerce, (2) perceived risk, perceived usefulness of website, and subjective norm appear to be significant predictors of intention to purchase from the website, (3) a third-party assurance seal strongly affects online shoppers' perceived trustworthiness toward online retailers, while the seal appears to have little effect on perceived risk directly; perceived risk is strongly associated with intention to purchase from the website.     

Key quality factors affecting users' perception of social networking websites

PurposeThe main aim of the present study is to evaluate the quality factors of websites and their effect on users' perceptions about quality in the context of social networking websites.Design/methodology/approachThis is an applied study conducted as a field survey. A conceptual framework of website quality is proposed and empirically tested that combines quality factors and users' overall perception about quality. Based upon conceptual frameworks in the areas of information systems and using responses from 300 users, a seven factors scale has been validated and data were used to test the conceptual model. To test validity of conceptual framework, confirmatory factor analysis was conducted and regression analysis was performed to examine the suggested hypotheses in the conceptual framework.FindingsIn this study, six different significant factors namely efficiency, entertainment, community drivenness, privacy, user friendliness, efficiency and navigability were identified to be significant for the service quality of social networking websites. Using the survey conducted in the statistical sample, only the factor of web appearance was identified as less important for social networking website users.Practical implicationsFindings from this research provide a set of essential and desired quality factors that social networking website developers can use to improve the quality of existing websites in turn increasing its numbers of users, thus bringing benefits to the company. Second, this study shows how perceived quality has a direct and profound effect on the degree of consumer perception about website quality.Originality/valueThis study, expanding a conceptual model, tries to identify the set of service quality factors for social networking websites. The information of these quality factors as a major predictor of consumers' quality perception provides social networking websites management an initial point for making successful quality management practices for their e-commerce.     

Exploring the animosity domain and the role of affect in a cross-national context

PurposeThe purpose of this paper is to contribute to the development of animosity theory in three areas; construct domain, the mediating role of affect and model testing.Design/methodology/approachExploratory and empirical research is carried out in two countries in order to explore the domain and to test the factor structure and the hypotheses through confirmatory analysis.FindingsWe find animosity is a four-dimensional construct which impacts buying behavior through affect.Originality/valueThe research extends the domain of the animosity construct to a four-dimensional structure rather than the two-dimensional structure used in most previous studies. It is the first study to empirically test an extended animosity domain and investigate the mediating role of affective emotional responses between animosity and buying intentions.     

信息物理融合系统软件可信性演化动力学建模

信息物理融合系统(CPS)软件可信性建模是CPS可信软件开发过程中至关重要的一环,现有的形式化方法、软件验证技术并不适合对CPS软件可信性动态演化进行描述和分析。在深入分析CPS可信软件动态演化过程的基础上,结合非线性动力学的基本理论和方法,研究CPS软件可信性演化的动力学机制,对CPS软件在内外双重因素影响下的可信性演化过程进行建模,并分析其可信性演化规律,为CPS软件可信性研究提供了一种新手段。通过对一个工业控制领域中CPS软件的建模与分析,验证了该方法的可行性。     

Ethical Stewardship – Implications for Leadership and Trust

Great leaders are ethical stewards who generate high levels of commitment from followers. In this paper, we propose that perceptions about the trustworthiness of leader behaviors enable those leaders to be perceived as ethical stewards. We define ethical stewardship as the honoring of duties owed to employees, stakeholders, and society in the pursuit of long-term wealth creation. Our model of relationship between leadership behaviors, perceptions of trustworthiness, and the nature of ethical stewardship reinforces the importance of ethical governance in dealing with employees and in creating organizational systems that are congruent with espoused organizational values. Cam Caldwell is Assistant Professor of Management in the School of Business at Weber State University. His research is primarily in the areas of organizational governance, ethical leadership and trust. He received his Ph.D from Washington State University where he was Thomas S. Foley Graduate Fellow. He has worked as a City manager, Human Resource Director, and Management Consultants for 30 years. Linda A. Hayes is Assistant Professor and Director of Program Assessment in the School of Business Administration of the University of Houston – Victoria. She received a B.S.M.E. from Clarkson University, an M.B.A from the University of Houston, and a Ph.D from University of California at Berkeley. Dr. Hayes has 15 years of industry experience. Her research interests include decision-making, stakeholder behavior, business strategy. Dr. Hayes was a 1996 NASA Faculty Fellow. Recently, she has published in the Journal of Management Development, Journal of International Marketing, Business Horizons and International Journal of Mobile Communications. Ranjan Karri is an Associate Professor of Management at the University of Illinois at Springfield. He received his Ph.D from Washington State University. His research interests are in the areas of entrepreneurship, ethics and strategy. Patricia Martinez is a cum laude graduate of the University of Houston – Victoria School of Business and works for the Learning Education Achieve Dreams program at that University to help young people in the Victoria, Texas Community set and achieve personal and educational goals.     

The Ethical Climate of Danish Firms: A Discussion and Enhancement of the Ethical-Climate Model

The initial purpose of this study is to provide an empirical validation of Victor and Cullen’s ethical-climate model (1987, Frederick (ed.), Research in Corporate Social Performance and Policy, Vol. 9, pp. 51–71; 1988, Administrative Science Quarterly 33, 101–125; 1990, Frederick and Preston (eds.), Business Ethics: Research Issues and Empirical Studies (JAI Press Inc., Greenwich, Connecticut), pp. 77–97). Testing the model on a sample of Danish firms, this study demonstrates that the empirical model as suggested by Victor and Cullen is much stronger than suggested by previous research. Based on a confirmatory factor model, the results of this study suggest a revised ethical structure. Especially a sixth dimension – own interest – is separated from the original instrumental dimension. Further, this study suggests that the ethical-climate model can be enhanced with the dimension of autonomy deriving from Koys and DeCotiis’ (1991, Human Relations 44(3), 265–285.) dimensional psychological climate instrument.     

Product Promotion by Attractive Communicators

Abstract

The physical attractiveness of communicators has received some attention in fundamental and applied marketing research as a determinant of how target audiences respond tomarketing communication. Significantly less is known about underlying mechanisms and little is known about corresponding effects in agribusiness and food products promotion. Theoretically possible are direct effects of attractiveness as well as mediating effects through other communicator characteristics like competence and trustworthiness. This contribution examines both routes and investigates the effects of attractiveness under different conditions for an organic juice.     

Validating Restaurant Service Quality Dimensions

Abstract

Service-based industries such as hotels and restaurants are spending a tremendous effort to measure and improve the service quality of their businesses. Service quality is one of the key factors in achieving competitive advantages in the restaurant industry since high service quality presumably results in increased customer satisfaction, and thus increased future patronage. The purpose of this study was to examine the two generic service-quality dimensions: physical quality and staff behavior/attitude in restaurants by employing the confirmatory factor analysis approach. The findings indicated that the two-factor model of restaurant service quality was successfully validated and also, the predictive accuracy of the model was established.     

Consumer Shopping Styles and Online Shopping: An Empirical Study of Indian Consumers

ABSTRACT

The generalizability and applicability of the Consumer Shopping Inventory (CSI) scale on Indian sample in predicting online shopping behavior was examined. CSI scale has been adapted by researchers to validate its applicability in different countries. Results revealed new factors and different segments of consumers were identified by factor analysis. The findings posit that the original U.S. eight-factor model could not be confirmed completely on Indian sample. However, the study found support for five factors: quality-conscious shopper, fashion-conscious shopper, uninterested shopper, impulsive shopper, and brand-conscious shopper. Online shopping behavior was categorized under convenience, information availability, and cost factors. Demographic factors do not influence consumers' decision to shop online. Consumers shopping online frequently and Impulsive shoppers are likely to look at convenience factor of online shopping. Information availability was important for fashion-conscious shoppers, consumers frequently shopping online, and impulsive shoppers. Brand-conscious shoppers and quality-conscious shoppers were not likely to purchase online.     

An exhibitors perspective: factors affecting selection of industrial trade shows in India and the importance of spot sales

ABSTRACT

Purpose: To identify the factors affecting the selection of trade shows in India and the role of spot sales in decision-making.

Design/methodology/approach: This study uses a primary approach. It has been done with the help of data collected from exhibitors’ responses to a standard questionnaire (appendix) through offline mode. Finally, the collected data was used for analysis with the help of SPSS 21. Multivariate data analysis techniques such as factor analysis, correlation analysis, and structural equation modeling were used in the study.

Findings: The findings of the study revealed that perceived show value was the most important factor of selecting a trade show followed by measurable cost, timing and lastly show attractions. Spot sales were found to make a significant impact on the participating decision-making process. Some of the subjective factors such as facilities within the venue and connectivity to the venue made an impact on the exhibitors' selection of trade shows.

Practical implications: Organising a trade show requires a lot of money and effort and thus it becomes important that such events be successful. Thus, the study could be used by trade show organizers to attract exhibitors for participating in their show.

Originality/value: Although research studies have been conducted on the motives for participating in a trade show in the U.S. and Europe, very few were found relating to the identification of factors affecting the decision to participate. This number becomes still smaller when one considers the case of the growing Indian economy. Looking into these aspects, this study can be considered new and thus its originality remains high.     

The Attitudes of Middle Class Male and Female Consumers Regarding the Effectiveness of Celebrity Endorsers

Abstract

This study analyzes consumer perceptions regarding the effectiveness of celebrity endorsers in relation to the AIDA framework and the match-up hypothesis. Findings indicate that celebrity endorsers influence both men and women, but men were influenced to a greater degree than women. The main AIDA influence is the celebrity endorser's ability to get and hold attention. Celebrity endorsers also appear to help products stand out from the competition, and make ads more memorable, as well as enhancing brand awareness, particularly for desired products. Indications are that the most important celebrity source characteristic is expertise, which apparently can overcome certain celebrity character flaws, such as the lack of trustworthiness and likeability.     

Price Differences in Consumer Goods in Retail Markets

Abstract

This study analyses the effects that competition causes on the dispersion of prices in the mass market products. Therefore, a model is proposed that integrates the vertical, spatial and market environment factors that make up the competitive structure of the retail trade distribution sector. The results obtained, after processing a database of more than 19,000 records, indicate that various indicators of these three levels of competition exercise a decisive influence on determining the final prices of the analysed products. Likewise, the research allows verifying that there are significant differences in the effect caused by the analysed factors on the dispersion of prices, thereby depending on the considered product category (packaged goods versus fresh food).     

Consumer affinity for foreign countries: Construct development,buying behavior consequences and animosity contrasts

PurposeOur purpose is to extend affinity theory in construct domain, scale development, model testing and by discerning affinity and animosity.Design/methodology/approachWe carry out exploratory and empirical research in order to explore the domain and to test the factor structure and the hypotheses through confirmatory analysis.FindingsWe find (1) four target country affinity dimensions, (2) consumer affinity impacts micro country image, buying intentions and actual product ownership, and (3) affinity and animosity are distinct constructs with partly shared and partly unique dimensions.Originality/valueThe study is the first to empirically test the four dimensions, the first to establish a positive relationship with actual product ownership and micro country image, and the first to contrast the role of the dimensions in affinity and animosity.     

Why labor income shares seem to be constant?

Abstract

The common assumptions that labor income share does not change over time or across countries and that factor income shares are equal to the elasticity of output with respect to factors have had important implications for economic theory. However, there are several theoretical reasons for why the elasticity of output with respect to reproducible factors should be correlated with the stage of development. In particular, the behavior of international trade and capital flows and the existence of factor saving innovations imply such a correlation. If this correlation exists and if factor income shares are equal to the elasticity of output with respect to factors then the labor income share must be negatively correlated with the stage of development. The existence of a labor intensive sector that produces non-tradable goods would explain why labor income share has no correlation with income per capita.     

Creating a Sustainable Supply Chain Network by Adopting Relationship Management Strategies

ABSTRACT

Purpose: This paper develops a conceptual framework to analyze the impact of a supply chain network (SCN) structure on relationship management strategies (RMS) that focal firms apply to manage sustainability issues within the SCN.

Design/methodology/approach: This paper is based on a comprehensive review and analysis of the industrial marketing and purchasing (IMP), sustainable supply chain management (SSCM), and SCN literature.

Findings: The conceptual framework expands the network perspective in the SSCM context by considering the important role of the SCN structure in the firm’s decision-making process. Four factors (dependency, distance, power, and transparency) were found that are useful in conceptualizing the SCN structure. The conceptual framework also categorizes various sustainability practices into four RMS (noncompliance, transactional, dictatorial, and collaborative), which are needed to make an SCN more sustainable. In addition, 16 propositions are developed based on how firms may identify the most effective RMS to implement appropriate sustainability practices through examining their SCN structure.

Research limitations/implications: The conceptual framework, developed as a result of a comprehensive review of the literature, led to the development of 16 propositions, which can assist in furthering a research agenda on RMS to diffuse various sustainability practices within SCN structures.

Originality/value: The relationship between SCN structure and RMS in the sustainability context remains an under-researched but emerging area of interest. This paper leverages existing research to develop a conceptual framework suitable for empirical testing.