Marketing: Who's really minding the store globally?

In today's highly competitive global marketplace, firms have increasingly turned to outsourcing. In fact, it is not just “blue collar” jobs being outsourced, but “white collar” jobs, as well. Even marketing, “the window to the company's worldwide customer base,” is feeling outsourcing pressures. This article takes a look at the corporate implications of outsourcing global marketing functions and reports the findings of a telephone survey conducted among U.S. and Canadian marketing executives. U.S. firms were found to outsource marketing activities more frequently than Canadian firms, often at the expense of control and customer satisfaction.     

The branding challenges of Asian manufacturing firms

During the past quarter of a century, Asia has risen to become the world's factory. This trend has, however, coincided with the relative decline in value of manufacturing compared to other value adding activities, including R&D, design, and branding. This significant “value shift” has eroded the margins of manufacturing firms and sparked considerable interest among executives in Asia to design, brand, and market their own products. To date, though, this transition from being manufacturing oriented to becoming brand owners has largely only been accomplished by Japanese and Korean firms. In the rest of Asia—including in the rising giants of China and India—there are very few valuable brands. In fact, there is not a single Asian brand from a country other than Japan and Korea in Interbrand's 2008 valuation of the world's top 100 brands. Our article discusses, in depth, the challenges that Asian manufacturing firms encounter as they try to become “branders” and how these challenges can be overcome. Based on our collaboration spanning academia and consulting, we have been able to tap a wealth of information made available through research, case studies, and Interbrand's database of completed brand related assignments across Asia.     

Twin deficit or twin divergence? Fiscal policy, current account, and real exchange rate in the U.S.

In spite of concerns about “twin deficits” (fiscal and the current account deficits) for the United States economy, empirical evidence suggests that “twin divergence” is a more usual feature of the historical data, i.e., when fiscal accounts worsen, the current account improves and vice versa. This paper empirically studies the effects of fiscal policy (government budget deficit shocks) on the current account and the real exchange rate, during the flexible exchange rate regime period. Based on VAR (Vector Auto-Regression) models, we identified “exogenous” fiscal policy shocks after controlling for business cycle effects on fiscal balances. In contrast to the predictions of most theoretical models, the U.S. results suggest that an expansionary fiscal policy shock, or a government budget deficit shock, improve the current account and depreciate the real exchange rate. Increases in private savings and declines in investment contribute to the current account improvement while a nominal exchange rate depreciation, as opposed to a relative price level change, is mainly responsible for the real exchange rate depreciation. The “twin divergence” of fiscal balances and current account balances is also explained by the prevalence of output shocks, i.e. output shocks — more than fiscal shocks — appear to drive the co-movements of the current account and the fiscal balance.     

Global key account management and systems selling

Adoption of global key account management systems typically represents a response by selling companies to two inter-related structural changes in their business environment: first, the growing internationalisation of their industry and unprecedented levels of foreign competition; and second, the urgent need to retain customers of strategic importance (i.e. key accounts) against a background of centralised purchasing and supply base rationalisation. Global key account management is central to the ongoing, and often acrimonious debate captured in the slogan, “Think Global, Act Local”, suggesting serious implications for organisation structure, co-ordination/control and relationship management. Yet global key account management is under-researched and its efficacy, therefore, only partially understood. Such matters have long preoccupied executives in multi-national companies operating in industries where “systems selling” is a way of life and where practice is ahead of both theoretical development and empirical research.     

Decision under uncertainty: A poet's view The leap of judgment in a famous frost poem

Despite all the talk about decision making, uncertainty remains a factor, and no one tells executives how to deal with it. Scientific management stops at the point where nature is not rational. If help is to be found, it must come from poets and preachers, men whose business begins at the limits of rational certainty. For a “case study,” the author uses Frost's famous poem, “The Road Not Taken”—an inside view of a moment of decision. The poet confronts uncertainty by taking the leap o f judgment, beyond facts and logic. We are reminded that such leaps are possible and necessary, and that courage stands next to intelligence as an irreducible ingredient in the decision-making process.     

What a difference a word makes: Understanding threats to performance in a VUCA world

VUCA is an acronym that has recently found its way into the business lexicon. The components it refers to—volatility, uncertainty, complexity, and ambiguity—are words that have been variously used to describe an environment which defies confident diagnosis and befuddles executives. In a ‘VUCA world,’ both pundits and executives have said, core activities essential to driving organizational performance—like strategic planning—are viewed as mere exercises in futility. VUCA conditions render useless any efforts to understand the future and to plan responses. When leaders are left with little to do other than wring their hands, organizational performance quickly falls at risk. In this installment of Organizational Performance, we demonstrate that by overlooking important differences in the conditions that volatility, uncertainty, complexity, and ambiguity describe, we have disempowered leaders. We show how leaders can appreciate the differences among each of these challenging situations in order to properly allocate scarce resources to preserve and enhance organizational performance.     

外部投资者情绪会驱动内部人交易吗？--来自中国A股市场的经验证据

本文基于Probit和Tobit模型检验了投资者情绪是否是内部人交易的信息来源。结果显示：投资者情绪越高,内部人卖出倾向增加、卖出强度增大,内部人买入倾向降低、买入强度减小。投资者情绪对内部人卖出的影响大于其对内部人买入的影响效应。在控制投资者情绪后,公司未公开的季度业绩变化信息并未对内部人的卖出交易产生显著的影响,这一现象符合“前景理论”的“确定效应”。     

Incompetency training: Theory, practice, and remedies

“Incompetency training” includes formal and informal instruction that consciously (purposively) or unconsciously imparts knowledge, attitudes, beliefs, and behavior (including procedures) that are useless, inaccurate, misleading, and/or will lower performance outcomes of the trainee versus no training or training using alternative training methods. “Imparts” in the definition refers to exposing a trainee to incompetency training; such exposure is not a guarantee that the training increases the trainee's incompetence. This editorial is to stimulate research interest among scholars in incompetency training theory, evidence, and the efficacy of remedies. The editorial offers an early workbench model of incompetency training theory. The theory includes the proposition that executives and associates in firms, academia, and government organizations consciously as well as unknowingly offer incompetency training in many contexts. Increasing trainees' vigilance and ability to recognize exposure to incompetency-training may help trainees to decrease the effectiveness (impact) of exposures to incompetency training—advancing incompetency training theory and knowledge of incompetency training practice may be necessary conditions for remedying negative outcomes that follow from trainees receiving such training. Available evidence supports the first proposition and, to a limited extent, the second proposition.     

Aggregated or disaggregated information first?

Proliferation of reporting tools—such as “Online Analytical Processing” (OLAP)—and current practices of viewing information in a sequence from aggregated-to-disaggregated information are encouraged in the attention economy characterized by scarcity of human attention. The aggregated-to-disaggregated sequence in viewing information preserves scarce attentional resources by directing human attention. In a quasi-experimental setting, two sequences in viewing product profitability information—aggregated-to-disaggregated versus disaggregated-to-aggregated sequence—are contrasted. Results of 92 participating advanced accounting students reveal that consistent with conventional wisdom, the aggregated-to-disaggregated sequence directs human attention. On the other hand, the disaggregated-to-aggregated sequence facilitates knowledge application and discovery of previously undiscerned information that alters conventional understanding. Such findings shed light on the implications of directing human attention to preserve scarce attentional resources.     

Impulse buying and variety seeking: Similarities and differences

Impulse buying and variety seeking seem to emerge from similar personality traits, yet the similarities and differences in the manifestation of these behaviors have not been fully explored. Despite the common origin, research on the two constructs has diverged as definitions of the phenomena have become more elaborate. Previous research on the two constructs shows that they are classifiable as low-effort, feeling-based behaviors with hedonic undertones. A middle-range theory that provides a more comprehensive depiction of how variety seeking and impulse buying are theoretically related is necessary. One way toward such a theory is the addition of a fourth “hidden” socio-normative dimension to the three-dimensional typology of purchase behaviors that Baumgartner (2002) proposes.     

Assessing the effectiveness of guided preparation for new venture creation and performance: Theory and practice

Governments in virtually all developed countries subsidise “guided preparation” for entrepreneurial activity. Despite being so widespread, the evidence that this assistance enhances venture performance remains in dispute, primarily because of a lack of consensus over statistical approaches. This paper provides a new — to entrepreneurship scholars-approach, applying it to a programme guiding nascent and new entrepreneurs in Denmark. It concludes that the programme contributes to the survival and size of new ventures, but its impact on growth is less clear. It also finds that impact is sensitive to changing the eligibility criteria of the programme — such as requiring a modest payment from participants or selecting participants according to observable entrepreneurial characteristics.     

“Systematic combining”—A decade later

Ten years ago we published a paper in this journal: “Systematic Combining—An abductive approach to case research”. The aim of the present paper is to further articulate and emphasize key features of ‘systematic combining’ as a non-linear, non-positivist approach, in contrast to the mainstream perspectives on case research as represented, for example. The discussion revolves around three themes. First, we compare case studies based on replication logic with single case research. Second, we discuss the research processes in studies relying on these approaches. Third, we analyze the types of theories that can be developed from these two kinds of studies. We then discuss some general problems related to the assessment of the quality of the type of case studies we advocate. The paper ends with a concluding discussion addressing the opportunities available for case research, of which systematic combining is one of many alternative approaches.     

Hedonic and utilitarian shopping goals: The online experience

Marketers offering Web-based shopping typically try to provide a convenient, safe, and pleasant online environment, appropriate to addressing shoppers' functional goals. They might also try to create an experience that encourages more escapist elements of “flow”, a sense of deep involvement that is intrinsically enjoyable, because they assume that this enhanced experience leads to more online buying. The present research suggests that utilitarian flow elements that facilitate shopping may indeed increase purchasing. However, hedonic elements of flow are found to be unrelated to online buying, although they are positively related to outcomes associated with pathological Internet use.     

Just how unethical is American business?

This study of reports in the business news between January 1, 2000 and June 30, 2005 found that as of 1999, 40 corporations in the Fortune 100 had committed behaviors that can be considered unethical. The behaviors of concern included three types of fraud (accounting, securities, and consumer), discriminatory practices, undisclosed executive pay, antitrust activities, patent infringement, and other violations of the law. Based on the “unacceptability” of the misdeeds committed, this article ranks the 40 firms into three categories. Further, it uses the research on business ethics and the behaviors of executives, boards of directors, and even government officials to suggest why these unethical behaviors were allowed to happen. Finally, it concludes with recommendations for improving business behavior, and suggests important roles for future business leaders and the broader American public.     

Not all adaptive selling to omni-consumers is influential: The moderating effect of product type

Computer-mediated technologies have resulted in a proliferation of the omni-channel consumer (OCC) who shops for products and services using mobile, online, and traditional retail channels. While OCCs may have greater access to information, they do not necessarily have access to accurate information; hence the salesperson has both a challenge as well as an opportunity to use adaptive selling techniques when selling to the OCC. To better understand under what circumstances the salesperson can best be utilized to bring about the sale with the OCC, this research develops and evaluates a model of adaptive selling behaviors when selling to omni-channel consumers around the globe. Adaptive selling behaviors are conceptualized as having two dimensions, non-interactive and interactive adaptation. The efficacy of these two types of adaptive selling behaviors depends upon product type (utilitarian, hedonic) and OCCs' perceived control over the buying situation. To test the hypotheses, survey data was collected from global OCCs in four different countries and evaluated using path analysis. Results suggest salesperson’s influence depends upon product type and salesperson's adaptive selling behavior.     

The effect of culture on perception and cognition: A conceptual framework

Researchers are increasingly recognizing the role of culture as a source of variation in many phenomena of central importance to consumer research. This review addresses a gap in cross-cultural consumer behavior literature by providing a review and conceptual analysis of the effects of culture on pre-behavioral processes (perception and cognition). The article highlights a series of important perceptual and cognitive differences across cultures and offers a new perspective of framing these differences among cultures—that of “culturally conditioned” perceptual and cognitive orientations. The article addresses several theoretical issues and suggests directions for future research as well as managerial implications.     

Does the “management approach” contribute to segment reporting transparency?

Segment reporting creates an opportunity for companies to add value to the information they disseminate about their industry and geographic operations. This article examines the “management approach” to segment reporting from a user perspective that should be of great interest to corporate financial executives. The management approach to segment reporting requires companies to report segment financial information consistent with the way they manage their businesses. We conclude that, despite more segment data being reported, the potential of the new management approach to significantly benefit users is compromised by uneven compliance among reporting companies. The complicity of external auditors in compliance shortcomings should concern all stakeholders in the financial reporting process. Noting two high-profile examples of accounting fraud, we comment on how the management approach sheds light on Enron's operations, while WorldCom concealed important segment information due to probable auditor malfeasance.     

A commentary on “Understanding Dog-Human Companionship”

“Understanding Dog-Human Companionship” is important insofar as the article is a quantitative study that validates many qualitative studies of the human-dog relationship and the meanings that dogs have to their owners. The article suggests questions about consumer behavior that go beyond dog ownership. Aspects of dog ownership could be applied to ownership or “consumption” of many things — including cars, spouses, and children.     

Functional magnetic resonance imaging in consumer research: A review and application

Although the field of psychology is undergoing an immense shift toward the use of functional magnetic resonance imaging (fMRI), the application of this methodology to consumer research is relatively new. To assist consumer researchers in understanding fMRI, this paper elaborates on the findings of prior fMRI research related to consumer behavior and highlights the features that make fMRI an attractive method for consumer and marketing research. The authors discuss advantages and limitations and illustrate the proposed procedures with an applied study, which investigates loss aversion when buying and selling a common product. Results reveal a significantly stronger activation in the amygdala while consumers estimate selling prices versus buying prices, suggesting that loss aversion is associated with the processing of negative emotion. © 2011 Wiley Periodicals, Inc.     

Using the forced metaphor-elicitation technique (FMET) to meet animal companions within self

This article describes research tools that permit zoomorphistic explications of self-viewing of human self-behavior in terms of the behavior of animals. Transference theory, archetypal, culture, and early experiences propositions also serve to inform the etic interpretations of an informant's zoomorphistic self-report. The article describes applications of the forced metaphor-elicitation technique (FMET) that provides case-study data including storytelling and paradox resolution by informants. The article closes with advocating acceptance of Gigerenzer's proposal that method can drive theory advancement. The discussion reviews relevant literature on examining dual thinking processes by humans—implicit and explicit beliefs, attitudes, decision processes, and behavior. The research evidence helps to decode consumers' implicit thinking and behavior toward products and brands; such evidence serves to inform ourselves and brand executives of consumers' dreams about brands and how such dreams become reality—or what prevents consumers from buying the brands playing roles in consumers' stories crafted through implicit thinking.