Personal Word of Mouth,Virtual Word of Mouth,and Innovation Use

The authors examine the impact of word‐of‐mouth communication on innovation use. Hypotheses are developed linking both personal and virtual word of mouth (vWOM) directly to innovation use. The authors also examine the mediating role of two additional variables that link word of mouth and innovation use. Existing research suggests that personal word of mouth (pWOM) indirectly influences intensity of innovation use through its impact on consumer perceptions of the size of local adopter population. In addition, both personal and virtual word‐of‐mouth influence should be positively associated with consumer perceptions of the availability of complementary products, which prior studies have linked to variety of innovation use. The authors test these hypotheses using data collected from 247 Japanese adopters of new‐generation portable gaming devices. Findings indicate that both personal and virtual word of mouth are directly related with variety of innovation use, which is in turn related with intensity of use. In addition, pWOM is positively related with both intensity of use and variety of use through its impact on consumer perceptions of (1) the perceived size of the local adopter population and (2) the availability of complementary products. In contrast, through these same two paths, vWOM is negatively related with both intensity of use and variety of use.     

High Leverage and Willingness to Pay: Evidence from the Residential Housing Market

I document a strong correlation between paying the full listing price on homes and borrowing 100% loan‐to‐value. Homebuyers who do both overpay by 2.8% to 3.9% ($4,800 to $6,700) and are 22.7% more likely to have their properties foreclosed within one year. The correlation is not mechanical: there is a discontinuity in the average leverage around the full listing price. The correlation is stronger in areas with a high fraction of financially constrained and unsophisticated residents, and in areas of high past price growth (potentially indicative of buyer optimism).     

Economic Effects of Racial Integration: An Analysis of Hedonic Housing Prices and the Willingness to Pay

This study evaluates household economic effects stemming from neighborhood racial integration in Oakland, California. To that end, housing market data are applied to estimate hedonic price and willingness-to-pay functions for neighborhood racial composition. Results of the analysis indicate the problematic nature of the constant willingness-to-pay assumption and suggest this standard method may underestimate the household economic effects of racial integration. The paper concludes with implications for neighborhood integration policy.     

The Influence of Temporal Distance on Consumer Preferences for Technology‐Based Innovations*

Rapid technological developments in the computer and the telecommunications industries have spurred the introduction of technology‐based products. An important feature of these products is that they can be characterized based on improvements in the functionality and the interface. When consumers evaluate a technology‐based product, they face a trade‐off: How should they choose between a product that offers a superior functionality and another product that offers a superior interface? The present research focuses on how temporal distance (i.e., time) from the purchase or use occasion of a technology‐based innovation influences consumers' evaluations of the new product. Specifically, the present study examines how temporal distance affects the trade‐offs consumers make between improvements in the interface and improvements in the functionality of a new product. This research demonstrates that the weight consumers place on the functionality and the interface of a new product is a function of the temporal distance. Specifically, the functionality of the product is valued more in distant future events. In contrast, the interface of the product is more important in the near future. This research has direct implications for various aspects of the new product development process such as customer‐product research methods used, communication strategies, and product preannouncements.     

Identification of Lead Users for Consumer Products via Virtual Stock Markets*

Newly launched products in the consumer goods and services markets show high failure rates. To reduce the failure rates, companies can integrate innovative and knowledgeable customers, the so‐called lead users, into the new product development process. However, the detection of such lead users is difficult, especially in consumer product markets with very large customer bases. A new and potentially valuable approach toward the identification of lead users involves the use of virtual stock markets, which have been proposed and applied for political and business forecasting but not for the identification of experts such as lead users. The basic concept of virtual stock markets is bringing a group of participants together via the Internet and allowing them to trade shares of virtual stocks. These stocks represent a bet on the outcome of future market situations, and their value depends on the realization of these market situations. In this process, a virtual stock market elicits and aggregates the assessments of its participants concerning future market developments. Virtual stock markets might also serve as a feasible instrument to filter out lead users, primarily for the following two reasons. First, a self‐selection effect might occur because sophisticated consumers with a higher involvement in the product of interest decide to participate in virtual stock markets. Second, a performance effect is likely to arise because well‐performing participants in virtual stock markets show a better understanding of the market than their (already self‐selected) fellow participants. So far, only limited information exists about these two effects and their relation to lead user characteristics. The goal of this paper is to analyze the feasibility of virtual stock markets for the identification of lead users. The results of this empirical study show that virtual stock markets can be an effective instrument to identify lead users in consumer products markets. Furthermore, the results show that not all lead users perform well in virtual stock markets. Hence, virtual stock markets allow identifying lead users with superior abilities to forecast market success.     

The Impact of Word of Mouth Sources on the Perceived Usefulness of an Innovation

This paper examines the role of three indirect mechanisms linking word‐of‐mouth communication with one of the most important innovation attributes influencing the adoption decision: perceived usefulness. The authors hypothesize that word‐of‐mouth (WOM) communication impacts perceived usefulness by influencing potential adopter perceptions of the credibility of innovation information, the size of the adopter population, and the availability of complementary products. To test these hypotheses, the authors analyze the survey responses of over 550 potential adopters of e‐readers and smartphones. In both product samples, the perceived credibility of WOM information is positively related with perceived usefulness, which is positively related with purchase intent. Consistent with theoretical arguments regarding the importance of access to expert information sources, findings indicate that, relative to personal WOM, written and virtual WOM have stronger relationships with consumer perceptions of the credibility of innovation information. In addition, in both samples, perceived usefulness is positively related with the perceived availability of complementary products, which is positively related with both personal and written word‐of‐mouth. Finally, perceived usefulness has (1) a direct relationship with the perceived size of the local adopter population in the e‐reader sample and (2) an indirect relationship with the same variable that is mediated by the perceived availability of complementary products in both samples. In turn, the perceived size of the local adopter population is positively related with exposure to personal word‐of‐mouth.     

Willingness to pay for over-the-top services in China and Korea

The increasing penetration of broadband and multiscreen availability has encouraged the development of premium video consumption through over-the-top (OTT) services. Netflix, the leading global OTT provider, is aggressively expanding its international operations and has ambitiously entered the Asian market. To prepare for the shift that the streaming service giant will bring, a proper understanding of consumer acceptance and intent to pay for OTT services is crucial. Therefore, this empirical study uses conjoint analysis to investigate the key attributes and to examine consumers’ marginal willingness to pay (WTP) for OTT services. We identified recommendation systems, resolution, and viewing options as important product attributes of OTT services that influence the WTP of Chinese and Korean consumers. The most important attribute for Chinese consumers of OTT services was resolution, followed by the recommendation system and viewing options. For Korean consumers, the recommendation system was ranked as the most valuable attribute, followed by viewing options and resolution. The overall WTP of Chinese consumers was 22.6 yuan (3.4 USD) per month, while Korean consumers’ intent to pay amounted to a total of 3530 won (3.1 USD) for OTT services.     

The Effect of Personal and Virtual Word‐of‐Mouth on Technology Acceptance

This paper extends the Technology Acceptance Model (TAM) to incorporate the impact of personal and virtual word‐of‐mouth (pWOM and vWOM). The authors hypothesize that both types of word‐of‐mouth will be positively related with consumer perceptions of innovation usefulness and perceived ease of use. In addition, the authors examine two competing hypotheses regarding the relative impact of pWOM and vWOM on perceptions of innovation attributes. One hypothesis argues that potential adopters place more weight on pWOM sources because they perceive relatively more similarity between themselves and pWOM sources. The alternative hypothesis argues that potential adopters place more weight on vWOM sources because those sources (relative to pWOM sources) expose potential adopters to a wider variety of information and a larger number of experts. Finally, the authors argue that symbolic product usage will enhance the relationship between word‐of‐mouth and consumer perceptions of innovation attributes. These hypotheses are tested using data collected in Japan from over 600 potential adopters of Blu‐ray DVD recorders and smart phones. Findings indicate that, in both product categories, pWOM and vWOM are positively and significantly related with perceived ease of use. Moreover, in both samples pWOM is positively and significantly related with perceived usefulness, while vWOM is significantly related with perceived usefulness only in the smart phone sample. With regard to the relative impact of pWOM and vWOM on perceptions of innovation attributes, results indicate that vWOM has a larger impact on potential adopter perceptions of ease of use. Finally, the estimated model provides support for the hypothesis that symbolic consumption increases the impact of word‐of‐mouth on perceptions of innovation attributes. In particular, findings indicate that the impact of pWOM on perceptions of innovation usefulness is higher among potential adopters of smart phones than among potential adopters of Blu‐ray DVD recorders. Similarly, the impact of vWOM on perceptions of ease of use is higher among potential smart phone adopters than among potential adopters of Blu‐ray DVD recorders.     

Consumer willingness to pay for redundant food labels

Previous studies, as well as market sales data, show some consumers are willing to pay a premium for redundant or superfluous food labels that carry no additional information for the informed consumer. Some advocacy groups have argued that the use of such redundant labels is misleading or unethical. To determine whether premiums for redundant labels stem from misunderstanding or other factors, this study seeks to determine whether greater knowledge of the claims - in the form of expertise in food production and scientific literacy - decreases willingness to pay for redundant labels. We also explore whether de-biasing information influences consumers’ valuations of redundant labels. An online survey of 1122 U.S. consumers elicited preferences for three redundantly labeled products: non-GMO sea salt, gluten-free orange juice, and no-hormone-added chicken breast. Respondents with farm experience report lower premiums for non-GMO salt and no-hormone-added chicken. Those with higher scientific literacy state lower premiums for gluten-free orange juice. However, after providing information about the redundancy of the claims, less than half of respondents who were initially willing to pay extra for the label are convinced otherwise. Over 30% of respondents counter-intuitively increase their premiums, behavior that is associated with less a priori scientific knowledge. The likelihood of “overpricing” redundant labels is associated with willingness-to-pay premiums for organic food, suggesting at least some of the premium for organic is a result of misinformation.     

Consumer willingness to pay for traditional food products

Reflecting the growing interest from both consumers and policymakers, and building on recent developments in Willingness to Pay (WTP) methodologies, we evaluate consumer preferences for an archetypal traditional food product. Specifically we draw on stated preference data from a discrete choice experiment, considering the traditional Hungarian mangalitza salami. A WTP space specification of the generalized multinomial logit model is employed, which accounts for not only heterogeneity in preferences but also differences in the scale of the idiosyncratic error term. Results indicate that traditional food products can command a substantial premium, albeit contingent on effective quality certification, authentic product composition and effective choice of retail outlet. Promising consumer segments and policy implications are identified.     

重视起重设备的安全技术检查

为保障企业的安全生产和正常运行,必须以《起重机械安全管理规程》、《起重机械监督检验规程》及《起重机械安全规程》等为准则,加强对起重机械的安全管理。做好安全技术检查,是起重设备管理的关键。笔认为对起重机的安全技术检查应注重以下几个方面。     

Antitrust Sanctions and a Firm's Ability to Pay

Review of Industrial Organization - Gallo et al. (1994) analyze the sanctions imposed on firms convicted of criminal price-fixing under the antitrust laws. An element not included explicitly in...     

Pay for Performance and Corporate Governance Reform

Directors’ pay and corporate governance continue to generate public outrage and calls for reform. Our meta‐regression analysis of all comparable UK pay‐for‐performance estimates finds little, if any, meaningful association between directors’ pay and corporate performance. However, there is evidence of the effectiveness of past “comply‐or‐explain” rules, especially the Cadbury Report. Unfortunately, the effects of past reform efforts tend to erode over time. This study also explores differences between pay–performance estimates, finding that these are largely explained by how pay and performance are measured by a given study.     

抓住商机创新求赢

几条信息,同一主题—医药包装行业在新的年度里将成为拉动国民经济发展新的增长点。古语云:“木体实而花萼振。”如果把医药行业比为“木体”的话,医药包装自然是“花萼”了。然而,有了商机,并不一定做成买卖。关键还是要看商家能否向用户提供物美价廉的产品。创新是企业的灵魂,更是产品的卖点。30年一贯制的“老面孔”绝登不上包装创业的大雅之堂。创新者,要拿出别人没有的产品,这本身就具有巨大的竞争力,更是商机。优质是企业的生命。每个企业家都要关注产品质量。只有优质才能创造品牌效应。品牌效应的最高境界是“买椟还珠”,虽然实现这一目标很难,但我们必须朝这一方向努力。科学管理是保证。企业的粗放管理只能是权宜之计,绝不可能长远。一个包装企业只有坚持走创新、优质、科学管理之路,才能迎来“花萼振”的佳境。编讫这组信息,我们唯一的企盼,就是———抓住商机,创新求赢。     

Willingness to pay and pricing for broadband across the rural/urban divide in Canada

Efforts to close the rural/urban digital divide in Canada have reached new heights in the wake of the ongoing COVID-19 pandemic and “stay-at-home” policies. Yet the extent to which the rural/urban digital divide extends to pricing and demand for broadband services is not well understood. Using a dataset of more than 4700 residential survey responses from southern Ontario, Canada, we assess the disparity in pricing and willingness to pay for broadband across rural and urban households. Our results suggest that rural users face higher installation and monthly fees while receiving a significantly inferior quality of service than their urban counterparts. Demand among rural users for improved broadband access is also higher than for urban users. These results may strengthen the business case for expanding broadband services into rural areas and/or supporting justification for public subsidization. Our analysis also suggests higher economic net benefits from prioritizing majority access at current federal service objectives rather than investing in a small number of users to receive higher quality broadband.     

Pay, Gender and the Social Dimension to Europe

Equal pay for men and women was a principle enshrined in the Treaty of Rome and was the subject of a European Directive in 1975. This investigation of progress towards equal pay in three member-states, Germany, Italy and the UK, reveals the importance of differences in employment structures and reward systems in determining relative pay for women. Differences in the structure and size of pay differentials among countries suggest that more attention needs to be paid to the general system of labour market regulation than to explicit equal-pay policies. Women would be more likely to benefit from a strategy of establishing labour standards and regulation than from equal-pay Directives which have little effect on the general practices and principles of pay determination.     

Habit spillovers or induced awareness: Willingness to pay for eco-labels of rice in China

The willingness to pay (WTP) for eco-labeled rice is investigated for Chinese consumers using choice experiments with information interventions. The mixed logit model shows preference heterogeneities, and the latent class model unveils two sources: pro-environmental behaviors with spillover effects, which are defined as “catalyst behaviors”, and the awareness about imperatives of ecological farming, which is defined as “induced awareness”. Classification results identify that using BP bags and sorting waste are “catalyst behaviors”. As the multivariate ordered probit model implies, consumers with higher educational attainment and family income levels are more likely to adopt these behaviors. Instead of creating the preference for eco-labels, the “induced awareness” is only found to strengthen preferences that already exist. The results of this study provide policy implications for the design of proper strategies to develop the eco-labeled food market, especially in developing economies.