Contextual and Competitive Interference: Inhibition or Facilitation?

Existing literature has found two sources of advertising interference, competitive and contextual, that decrease the effectiveness of an ad in a cluttered environment. However, to date, the negative impact of competitive and contextual interference has been examined independently. This research explores advertising effectiveness when these sources exist concurrently. Contrary to the supposition concerning the additive effects of both sources of interference when simultaneously present, our findings indicate that viewing ads for the same product category with similar executional elements leads to the dissipation of interference effects (Study 1). Consistent with the process rationale, when a product-brand cue (versus a picture cue) is provided, this novel effect disappears (Study 2). The implications of these findings for advertising are highlighted in the discussion section.     

The UK National (and Scottish) Vocational Qualification System: State of the Art or in a State?

The creation of a new competence-based framework of National (and Scottish) Vocational Qualifications (N/SVQs) in the UK has been fraught with difficulties and the ensuing debate has sharply divided those involved in education and training. Some argue that the N/SVQs are doomed to failure because the underlying philosophy is fundamentally flawed or see their introduction as part of a political conspiracy of the right to wrest power away from liberal educationalists; others see national standards and N/SVQs as a way of ensuring that education and training better meet the needs of employment; a few hold on to the original idealistic vision of opening up access to qualifications and giving credit where credit is due, especially for those workers who have been disadvantaged in the education system. Early implementation has been puncuated by scandals and, with a few notable exceptions such as the Care Sector, take-up rates have fallen well below what is necessary for achievement of National Education and Training Targets for the year 2000. In 1996, the publication of three major reviews of 16–19 qualifications, of assessment in General National/Vocational Qualifications and of the top 100 most commonly used N/SQVs, marked a crisis in confidence in the emerging UK system. Yet variations on the outcomes-based approach established by NCVQ/SCOTVEC are increasingly finding favour in the European Union and in New Zealand, Australia and the new South Africa, not least because they hold out the promise of greater transparency for all stakeholders. Extensive changes are now anticipated but they may be too little too late to get this radical innovation back on course.     

Paternalism in the marketplace: Should a salesman be his buyer's keeper?

The marketplace has become increasingly sophisticated. Products and services are more complex resulting in greater customer reliance on salespersons for guidance. The salesperson's role presumes superior knowledge with respect to the buyer because he is consulted as an expert on the quality and uses of his product. Thus, it is important that a tacit professional ethic for sales be established to protect customers from possible exploitation. The purpose of this article is to propose a realistic professional ethic for sales — limited paternalism. Limited paternalism implies that a salesman should be his buyer's keeper in the sense that he should serve the interests of his customers by identifying their needs, while disclosing all relevant information about products or services in order to facilitate mutual exchange to mutual advantage.James M. Ebejer, after studying psychology and philosophy as an undergraduate, received his M.B.A. from Oakland University in 1986. Mr. Ebejer has recently begun a sales career in the ROLM Systems Marketing Division of IBM.Michael Morden received his Ph.D. from Columbia University and is serving as a Visiting Assistant Professor at Oakland University where his courses include Medical Ethics and Business Ethics.     

State Minimum Wage Differences: Economic Factors or Political Inclinations?

This paper examines the importance of factors that influence a state's decision to adopt an above-federal minimum wage level. Our results indicate that state political leanings are the primary factor explaining differences in state minimum wage laws since 1991. Further, state cost of living differences do not appear to influence a state's decision to increase its minimum wage above the federal level. This result is interesting since proponents of raising the minimum wage cite the rising cost of living as a principal justification for an increase. Our findings should be of special interest to economists responsible for analyzing and forecasting labor cost trends within and among states where their employers operate or plan to relocate.     

Emerging Technologies and Ethics: A Race-to-the-Bottom or the Top?

Does national success with an emerging technology require ethical sacrifices? This question is considered through the simultaneous consideration of ethics, investment, and outcomes in the nine jurisdictions that are making the largest investments in nanotechnologies—an important emerging technology. It is found that while ethical environment has no notable effect on pure and applied research, a more positive ethical environment is associated with measures associated with invention and commercialization. In summary, a race-to-the-top supports invention and commercialization of emerging technologies. A critical finding as it suggests that issues such as corruption and regulation could be critical in limiting the extraction of social and economic benefit from emerging technologies (like nanotechnologies).     

Worktime Demands and Work-Family Interference: Does Worktime Control Buffer the Adverse Effects of High Demands?

This study examined whether worktime control buffered the impact of worktime demands on work–family interference (WFI), using data from 2,377 workers from various sectors of industry in The Netherlands. We distinguished among three types of worktime demands: time spent on work according to one’s contract (contractual hours), the number of hours spent on overtime work (overtime hours), and the number of hours spent on commuting (commuting hours). Regarding worktime control, a distinction was made between having control over days off and vacations (leave control) and having control over starting and finishing times (flextime). These three worktime demands were expected to have separate as well as joint effects on WFI, whereas worktime control should buffer these adverse effects of worktime demands on WFI. Stepwise regression analyses showed that working high numbers of contractual and overtime hours was indeed associated with high WFI. Further, worktime control indeed made a difference in terms of WFI: whereas leave control contributed directly to lower WFI, flextime buffered the adverse effects of long contractual workhours. Our results suggest that very long working days should be prevented, and that worktime control may be a powerful tool to help workers maintaining a good work–family balance.     

Technology and counterfeiting in the fashion industry: Friends or foes?

This article addresses the relationship between technology and counterfeiting in the fashion industry. Starting with an economic analysis of counterfeiting, I examine how new technologies encourage counterfeiters while at the same time provide important tools to combat it. The development of sophisticated technologies to obtain, process, and reproduce images and the extensive use of new digital channels for online sales have simplified both production and distribution of counterfeit products. Based on tagging and DNA analysis, as well as web-based monitoring systems, trace and track technologies allow rights holders to combat counterfeiting through effective control of the entire production and distribution chain. This article considers an innovative method of product monitoring based on latest-generation IT platforms, integrated with portable devices, that can easily and immediately verify product authenticity. The spread of these new technological systems is closely related to the role of a party that is glaringly absent in the battle against counterfeiting: the consumer. Indeed, new technologies are the driving element in a virtuous circle where the consumer becomes an essential instrument in the battle against counterfeiting, along with the other players involved: companies, public institutions, and civil society.     

Wage Inequality in the United Kingdom: Trade and/or Technology?

I employ two alternative intra‐industry trade Applied General Equilibrium (AGE) models to explain some stylised facts of the British economy. The model with skill‐biased technical change (i.e. exogenous skill‐biased technical change à la Solow) can explain the rise in wage inequality between skilled and unskilled workers, the decline in manufacturing and the expansion of modern services. However, the model where technical change is trade‐induced (i.e. endogenous sector‐biased technical change à la Romer) performs better, because it can also explain the exponential rise of imported intermediate capital goods and developments in the wage rate of unskilled workers.     

Revisiting the construction of the Empire State Building: Have we forgotten something?

What’s past is prologue. Or is it? The construction of the Empire State Building (ESB) was not only the fastest erection of a skyscraper ever, but the construction company that took on the job allegedly began with no equipment or supplies that would be adequate for the job. The project was completed ahead of schedule and under budget; instead of 1 year and 6 months as anticipated, it only took 1 year and 45 days. The costs totaled $24.7 million instead of the estimated $43 million. So, we ask, how was this possible and is there something we could learn? Based on a review of existing literature describing the history and construction of the ESB, we outline strategic, operational, and contextual explanations for what appears to be a truly successful megaproject. We illustrate how, for example, inspiration from Henry Ford’s assembly line technique, the uniqueness of the logistics during the construction period, the economic decline of the Depression, and early ideas of concurrent engineering and fast-track construction enabled the success. Our conclusion is that there are lessons to be learned in going back to basics when tackling a megaproject.     

Job satisfaction and self-employment: autonomy or personality?

Most studies in the economics discourse argue that the impact of self-employment on job satisfaction is mediated by greater procedural freedom and autonomy. Values and personality traits are considered less likely to explain the utility difference between self-employed and salaried workers. Psychology scholars suggest that entrepreneurial satisfaction also depends, at least in part, on specific values and personality traits. Utilising a large dataset derived from the 2006 European Social Survey, this study performs a complementary analysis by taking personality traits, personal values and indicators for workers’ autonomy explicitly into account. The empirical findings add further strength to economists’ argument that, net of values and personality traits, autonomy and independence are the mechanisms by which self-employment leads to higher levels of job satisfaction. These results hold true for both male and female sub-samples even when a multitude of socio-demographic characteristics, personal values and personality traits are controlled for.     

Globalization and Poverty: Oxymoron or New Possibilities?

We examine the occurrence of ethics- related terms in 10-K annual reports over 1994–2006 and offer empirical observations on the conceptual framework of Erhard et al. (Integrity: A Positive Model that Incorporates the Normative Phenomena of Morality, Ethics, and Legality (Harvard Business School, Harvard) 2007). We use a pre-Sarbanes-Oxley sample subset to compare the occurrence of ethics-related terms in our 10-K data with samples from other studies that consider virtue-related phenomena. We find that firms using ethics-related terms are more likely to be “sin” stocks, are more likely to be the object of class action lawsuits, and are more likely to score poorly on measures of corporate governance. The consistency of our results across these alternative measures of ethical behavior suggests that managers who portray their firm as “ethical” in 10-K reports are more likely to be systematically misleading the public. These results are consistent with the integrity-performance paradox.     

Competition or partnership?: CCT and EC public procurement rules in the single market

This study was carried out to investigate the impact of compulsory competitive tendering (CCT) and the EC procurement rules on small and medium enterprises in one region of the UK. A comparison of purchasing systems between private, utility and public sectors revealed two distinct models of purchasing. At one end of the spectrum is the competitive or adversarial model; at the other end is the partnership sourcing model. Public-sector purchaser-supplier relationships tended towards the competition end while private-sector relationships were nearer the partnership end. These differences are related to the commercial pressures exerted on public authorities by CCT and the EC Procurement Rules.     

Raghuram Rajan: The Third Pillar—How Markets and the State Leave the Community Behind

Business Economics -     

Customer's angry voice: Targeting employees or the organization?

Poor service encounters have the potential to leave customers feeling angry at the frontline service employee who serves them, angry at the organization, or angry at both parties. The 25 in-depth interviews (Study 1) and experimental work (Study 2) demonstrate how distributive (outcome fairness), procedural (response time) and interactional (treatment received) justice dimensions differentially affect where the customer targets her or his anger, either at the frontline employee or at the organization as a whole. Further investigation reveals sins-of-omission (when the service provider failed to act) and interactional justice mediate the effect of response time on anger at the employee. Interactional justice also partially mediates the effect of outcome fairness on anger at the organization whereas sins-of-omission do not.     

Service Design in the NHS: Collaboration or Conflict?

Continuous new service design / redesign is a key contributor to organisational performance. The NSD literature, originally evolving from new product development studies, often emphasised a sequential, linear process. More recently, however, the role of culture, internal politics and social dynamics in the NSD process has been highlighted. The potential for an enhanced role for political behaviour and stakeholder conflict within public sector organisations is apparent. In view of the increasing importance of consumer opinion as both an input into, and evaluation of, the design of public sector services, the need to understand the process of new service formation and its impact on consumer perceived service quality is of major importance. This study examines the design process for three mental health resource centres. Through interviews with a range of stakeholders, the role of conflict within complex, multi-organisational decision making is highlighted and the impact on the final consumer is assessed.