The Effects of Monetary Magnitude and Level of Aggregation on the Temporal Framing of Price

Existing research has shown that the pennies-a-day strategy of reframing a large aggregate expense as a small daily expense helps to reduce the perceived cost of a transaction (Nagle and Holden, 1995; Price, 1995; Gourville, 1998, 1999). This paper builds on this research and explores the robustness of the phenomenon across two dimensions – (1) the level of temporal aggregation and (2) the dollar magnitude of the transaction. First, we show that the effectiveness of a pennies-a-day strategy is not limited to per-day framing. Rather, we find a more general phenomenon in which a less aggregate expense is preferred to a more aggregate expense, such that if a per-day framing is preferred to a per-year framing, than a per-month framing also will be preferred to a per-year framing. Second, we show that this effectiveness reverses with the magnitude of the underlying expense, such that while a framing of $1 per day is preferred to one of $365 per year, a framing of $4200 per year is preferred to one of $11.50 per day.     

Creating a Market Orientation

A market orientation is a business culture in whichall employees are committed to the continuous creation of superiorvalue for customers. However, businesses report limited successin developing such a culture. One approach to create a marketorientation, the approach taken by most businesses, is the programmaticapproach, an a priori approach in which a business uses educationprograms and organizational changes to attempt to implant thedesired norm of continuously creating superior value for customers.A second approach is the market-back approach, an experientialapproach in which a business continuously learns from its day-to-dayefforts to create and maintain superior value for customers andthereby continuously develops and adapts its customer-value skills,resources, and procedures. Theory suggests that both approachescontribute to increasing a market orientation. It also suggeststhat when the a priori education of the programmatic approachis sharply focused on providing a foundation for the experientiallearning, the combined effect of the two learning strategiesis the largest. The implication is that the two strategies mustbe tailored and managed as a coordinated joint strategy for creatinga market orientation.     

新技术下服务产品“虚拟化”探究

产品"虚拟化"的服务业可以有效地摆脱困扰服务业的鲍莫尔"成本病"的影响,实现生产率的快速增长。本文通过一个双头博弈模型,借助"自助服务外包给顾客"的形式说明了"虚拟服务"大大优于现在占据主体服务市场的实体"柜台"服务,"虚拟服务"将取代实体"柜台"服务,从而实现服务业"产业化"经营的目标。     

我国生鲜农产品物流变革的经济学分析

我国生鲜农产品物流存在着很多问题,由"集市"向"超市"的物流模式变革是生鲜农产品物流发展的必然趋势。根据新制度经济学的分析,本文认为从"集市"到"超市"的变革是节约交易费用的结果,也是制度变迁的结果。因此,促进这种变革,对我国生鲜农产品物流水平的提高,意义重大。     

Viagra(ization) or Technoromanticism

Viagra can rather obviously be termed "techno-romantic"--literally it is a technology to make sex possible. But technoromanticism is also a philosophical term referring to the belief that advances in technology serve "truth" "unity" and "wholeness" according to Coyne (1999). Surprisingly many pharmaceutical companies seem to have developed "Viagra" or at least substances that were very similar, but to have ignored and/or rejected commercializing them. This article assumes that the primary activity of research and development in pharmaceutical companies is to produce texts that interpret chemicals as "meaningful." Assumptions of what constitutes (medical) meaning within prevailing technoromanticism have seen R and D as a form of "production" that demands rejection of "consumption." This technoromanticism succeeded in rebuffing the sexual "techno-romanticism" of Viagra in the company studied, but Viagra's enormous commercial success has reversed priorities. R and D's meaning system has proven to be no match for Viagra-ization--the article examines the resulting crisis in meaning systems.     

The Effect of Implicit versus Explicit Comparisons on Temporal Pricing Claims

Existing research has investigated the "pennies-a-day" strategy of reframing an "aggregate" expense as a "per day" expense (Nagle & Holden, 1995; Price 1995; Gourville 1998). This paper extends this research by considering the incremental impact on compliance of explicitly comparing the cost of a transaction to a specific petty cash expense (e.g., a cup of coffee). We show that in the presence of a per day framing of price (e.g., $1 per day), an explicit comparison provides little added value. However, we also show that in the presence of an aggregate framing of price (e.g., $350), an explicit comparison to a petty cash expense is sufficient to generate a "pennies-a-day" perspective. We conclude that it is not the per day framing, per se, which drives "pennies-a-day" effectiveness, but the petty cash comparisons that such a framing either implicitly or explicitly generates.     

Effects of price uncertainty on consumer purchase budget and price thresholds

This article examines how uncertainty about prices affects: (1) the budget consumers allocate for purchasing a product and (2) consumer price thresholds (i.e., the prices that are considered too high or a good deal). In an experimental setting, the purchase budget as well as the absolute values of both thresholds for uncertain subjects were higher than those for certain subjects. Moreover, a relatively large decline from the budget was needed before a price was considered a good deal, whereas a relatively small increase from the budget was sufficient for a price to be considered too high. Price uncertainty widened the difference between the upper (i.e., too high) price threshold and the budget, making uncertain subjects more tolerant to prices exceeding the budget than certain subjects. However, price uncertainty did not have a significant effect on the difference between the budget and the lower (i.e., good deal) price threshold.We wish to thank the editor and anonymous reviewers for their helpful comments on an earlier draft. We also thank Professors S. P. Raj and Amiya Basu for their comments and suggestions at various stages of the study.     

Can Ethical Organizational Character Be Stimulated and Enabled?: “Upbuilding” Dialog As Crisis Management Method

Crisis management can be simultaneously a content specific problem solving process and an opportunity for stimulating and enabling an organizations ethical tradition. Crisis can be an opportunity for ethical organizational development. Kierkegaardian upbuilding dialog method builds from within the internal ethical tradition of an organization to respond to crises while simultaneously adapting and protecting the organizations tradition. The crisis itself may not be a directly ethical crisis, but the method of responding to the crisis is built upon the ethical foundations of an organizations tradition. A limitation of this method is that it may be less applicable to organizations with questionably ethical traditions. The concept of upbuilding dialog is derived from Kierkegaard, but here is applied to organizational crisis management. The method is illustrated and discussed in the context of a wrongful death crisis of the Dana- Farber Cancer Institute, a nonprofit organization, and an economic survival crisis at Ben and Jerrys, a business organization.     

“Damocles shadowing”

Since the widening of the fluctuation bands in the European Monetary System in 1993 the previous core countries have pursued a “D-Mark shadowing”. The characteristic feature of this shadowing is the participating countries' willingness to voluntarily return to, and maintain, the old exchange rate parities. Our author analyses this process and its consequences for the planned monetary union.     

A note on government policy and the new ‘intrapreneurship’ in Bulgaria

Conclusion I have attempted in this paper to highlight the recent emergence and rapid growth of a particular type of intrapreneurship in the Bulgarian economy. This intrapreneurship involves the creation of new smaller establishments within existing large-scale industrial firms. These semi-autonomous auxiliary plants are exempt from part of the bureaucracy which constrains the larger addition, they have provided a higher rate of technological advance, a better supply of consumer goods, a greater utilization of labor resources, and a higher return to human capital.Only through the continued development of a small-firm sector can the Bulgarian economy meet the challenge currently posed by its western counterparts. Whether the next step from intrapreneurship to entrepreneurship is taken may hold the key for industrial development in Bulgaria.     

“差价补偿”的博弈分析——以福州家电零售业为例

“差价补偿”在国内一些城市的某些商品零售业出现,有人认为它是价格战的一种新的形式,担心“差价补偿”的推出,会导致价格大战一触即发。实际上,“差价补偿”不是价格战的一种新的形式,而是想避免打价格战的一种策略,在博弈论中称之为“策略性行动”。它是寡头垄断市场中具有较强实力的企业,期望通过做出限制自己行为的承诺来限制其竞争对手的选择,实施“差价补偿”策略的目的是促使竞争对手采取合作的态度,选择与本企业相接近的价格,进而避免出现两败俱伤或几败俱伤的“囚犯困境”的结局。     

反倾销法国内产业定义中的“主要部分”研究——兼评欧盟紧固件案

WTO《反倾销协定》没有解释国内产业定义中"主要部分"一词的含义。"主要部分"生产者的产量占同类产品国内总产量的比例是多少?"主要部分"包含哪些生产者?欧盟紧固件案为这两个问题的解答提供了指引。"主要部分"没有具体的比例要求,但要确保为损害确定提供足够的、真实的生产者信息。调查机构不能运用结果导向型的方式来选择"主要部分"所包含的生产者,否则将违反损害确定中"客观审查"的义务。     

基于“服务交互”视角“中国服务”的餐饮特色培育研究

培育中国特色的餐饮服务对于本土餐饮品牌的经营与发展意义重大。本文在"中国服务"的内涵基础上,阐明"中国服务"的餐饮特色的内涵与特征;明确使"中国服务"成为走向世界的、独具中国特色的服务品牌,是培育"中国服务"的餐饮特色的核心目标,也是餐饮业发展的长远之计;基于"服务交互"的视角,为培育"中国服务"的餐饮特色,打造中国特色餐饮品牌的管理实践提供方法指导。旨在为餐饮业服务品质的提升,尤其是为本土中高端餐饮品牌的健康发展提供有益的参考。     

Business Ethics and changes in society

The business world is not a separate universe of economic values and goals distinct from society, but an aspect of the behaviour of society as a whole. Ethics cannot be a cosmetic applied to established practice in the business world, a mere restraint on the unsocial or criminal behaviour of managers or a pragmatic response to consumer pressure. The author argues for a Total Ethics concept analogous to Zero Defects concepts in operations management. This ethic should form the foundation of the organisation's mission and permeate its statements of business objectives. If the ethic is to serve the common good of all who have an interest in the business, then all the stakeholders, not just those with a financial interest, must contribute to the business objectives and exercise some control.The author is External Affairs Director of Traidcraft Plc, a publicly owned £⁵ million turnover company in the north-east of England, committed to promoting just trade with poor producers in developing countries. Before joining Traidcraft in 1985, the author worked for six years with the Intermediate Technology Development Group involving extensive travel to developing countries advising on appropriate technology and village industry development. He has a Master's Degree in Business Administration and has studied philosophy and theology.     

Teaching Business Ethics with Computer-based Multimedia? A Cautionary Analysis

Still shots, videos, music, and movie clips can be helpful in bringing some excitement to the study of business ethics. For several years, Professor McAdams has been using The Great Gatsby as a text for discussing American commercial values. That discussion serves as an introduction to a larger examination of contemporary business ethics. Recently, Professor Duclos and her students converted that socratic exploration of Gatsby's contemporary relevance to a PC-based, multimedia show employing the efficient and manageable PowerPoint software presentation package. Computer-based multimedia added flavor to the presentation, but developing this lengthy lesson required hundreds of hours, substantial hardware/software and a high tolerance for frustration.     

Individual strategies in a market entry game

Quantitatively trained Ph.D. students participated in three replications of a 20-trial market entry game in which each agent has two pure strategies—to enter the market or stay out of the market—and the individual payoff depends on the size of the set of active agents entering the market. With experience, subjects adhered more strictly to pure strategies, which although markedly different from one to the other combined to form distributions supporting a Nash equilibrium solution to the game.     

Norman Bowie and Richard Rorty on multinationals: Does business ethics need ‘metaphysical comfort?’

Norman Bowie wrote an article on the moral obligations of multinational corporations in 1987. This paper is a response to Bowie, but more importantly, it is designed to articulate the force and substance of the pragmatist philosophy developed by Richard Rorty. In his article, Bowie suggested that moral universalism (which he endorses) is the only credible method of doing business ethics across cultures and that cultural relativism and ethnocentrism are not. Bowie, in a manner surprisingly common among contemporary philosophers, lumps Rorty into a bad guy category without careful analysis of his philosophy and ascribes to him views which clearly do not fit. I attempt to provide both a more careful articulation of Rorty's views, and to use his pragmatism to illustrate an approach to business ethics which is more fruitful than Bowie's. This brand of philosophy follows the Enlightenment spirit of toleration and attempts to set aside questions of Truth, whether religious or philosophical, and have ethics centered around what James called that which is good in the way of belief. Rather than looking for metaphysical foundations or some type of external justification, ethicists perform their craft from within the cultural traditions, narratives and practices of their society.Andrew C. Wicks, M.A. in Religious Ethics. Currently a fourth year Doctoral Candidate in the Religious Studies Department at the University of Virginia, Charlottesville.     

Assessing Industrial Buyer Preferences: Using the Swait-Louviere Test to Test the Key Informant Assumption

When using professional buyers to study an organizations buying behavior an important consideration is whether their preferences reflect those of the organization. Since this is a key informant problem, the present article focuses on the issue of the degree to which key informants can be used to provide insights into their own organizations preferences. We conduct a direct test of the key informant assumption using the Swait-Louviere test. In this test preferences from a choice experiment using actual buyers, and from market decisions made by the organization, are estimated separately, then jointly in multinomial logit models. We found that buyers experimental preferences were similar to estimates obtained from the market decisions. Buyers preferences were closer to the intuitive preferences of the organizations top executives than the estimates based on past market decisions, although a model based on the combined data outperformed either. We discuss the implications of these results for industrial buying research.This revised version was published online in May 2005 with a corrected cover date.     

Deception in commercial negotiation

Buyers and sellers of inputs of production, to the degree that they must negotiate directly with each other and cannot have recourse to more impersonal markets, share in certain aspects of bilateral monopoly. Under these circumstances, and assuming profit maximizing goals for each, deception often seems to be an unavoidable characteristic of negotiation.... I hate, detest, and can't bear a lie, not because I am straighter than the rest of us, but simply because it appalls me. There is a taint of death, a flavor of mortality in lies ... — JOSEPH CONRAD, Heart of Darkness.     

A Qualitative Exploration into Voters' Ethical Perceptions of Political Advertising: Discourse, Disinformation, and Moral Boundaries

Political campaign advertising continues to be a controversial policy topic in advertising and marketing research. It is also a prime subject for investigating the ethical evaluations of consumers (or voters). The following study draws from postmodern communication theory and employs a qualitative research methodology in order to explore voters' intimate and subjective views about politics, candidates, and political advertising. The findings include emergent themes relating to significant media rituals in voters' lives, the cynical perspective of politics as a game, and the widespread disapproval and suspicion with which voters regard negative political advertising. Additionally, the a priori theme of political information as disinformation was proposed and expanded upon. Findings are discussed in light of a greater understanding of the appropriateness of the traditional versus the postmodern perspective of political communication, informants' construction of moral boundaries which help them determine right from wrong, acceptable vs. unacceptable political behaviours in this particular context.