IMC in digitally-empowering contexts: the emerging role of negotiated brands

In current digitally-empowering contexts, the Integrated Marketing Communications (IMC) paradigm may have lost its ‘original’ customer-centric focus. Drawing on service-dominant logic, the paper examines the changes to IMC when multiple sources of consumer power emerge as central in the value creation process. This change in the focus of IMC likely enables the emergence of negotiated brands, i.e. brands that focus on a marketplace where traditional marketer-created brand value may be replaced by buyer and seller co-created value. The paper argues that this novel type of brand structure represents an appropriate managerial response to multidimensional IMC approaches. As that occurs, four key issues (community-centric orientation, emergent strategy, hybrid communication mix, reciprocity-based assessment) emerge which lead to a number of research questions in the planning and execution of marketing communications in today’s digitally-empowered contexts. All these issues clearly highlight the consumers’ contributions to brand value co-creation, by reaffirming the ‘original’ outside-in perspective of IMC.     

Gradualism in free trade agreements: a theoretical justification

A notable feature of many recent trade agreements is the gradual, rather than immediate, reduction of trade barriers. In this paper we model trade liberalization as a cooperative relationship that evolves gradually in a non-cooperative environment. We show that specialization, capacity irreversibility and the development of trade-partner specific capital increase the benefit of continuing the liberalizing relationship and decrease, over time, the lowest obtainable self-enforcing tariff. By increasing the penalty of future defection, sunk costs ensure that the self-enforcing trading relationship starts slowly, but once in progress the level of cooperation continues to improve.     

Rent-to-own agreements: Customer characteristics and contract outcomes

The rent-to-own (RTO) industry, by offering immediate access to household goods for a small periodic fee with no credit check or down payment, has strong appeal to low income and financially distressed consumers. An important policy question is whether an RTO agreement is used as a rental/lease with build-in purchase option or as something more akin to an installment loan. Given the embedded options to return the item or to purchase it early, the actual rent paid by RTO customers is substantially lower than the oft-reported total rent which assumes that agreements go to term. We employ a log-normal censored regression model to analyze the influence of customer demographics as well as the transactional details of the contract on the rent paid by consumers using rent-to-own. Our main conclusions are (1) it is the “working poor” that are likely to pay more rent, (2) there appears to be a clientele effect with customers paying more rent under bi-weekly and monthly, as opposed to weekly, payment schedules, and (3) customers who exhibit delinquency in making contractual payments generally end up paying more rent. Further, our data allows some observations on annual percentage rates by illustrating the business risk present for RTO stores as well as the cross-subsidization of consumers.     

Economic reforms in Poland

The reaction of the Polish leadership to the strikes in August 1980 was to promise reforms, and a scheme of reforms has been presented in the meantime. What would be the most comprehensive attempt yet at transforming the present system, which is geared to the Soviet model, and at launching the country on a road of its own is to be undertaken by 1983. What are the prospects for this new reform scheme?     

Service level agreements: An essential aspect of outsourcing

This paper notes and explains the increasing use of service level agreements (SLAs), stresses their importance to insourcing and outsourcing relationships, proposes a taxonomy of service attributes, and recommends a hierarchical methodology for constructing SLAs. Evidence from interviews and examination of SLA documents suggests that well-designed SLAs contribute to fruitful relationships between business partners. The proposed methodology and taxonomy will simplify the time-consuming tasks of writing and negotiating SLAs. SLAs have not received academic attention proportionate to their commercial importance. Research to ascertain whether SLAs are used effectively and to seek better expression of business requirements in an SLA is appropriate.     

China: Economic reforms and WTO accession

Since its opening to the world in 1978, China has grown in excess of 9 percent and is now generally considered to be the third biggest economy in the world. It is aggressively pursuing admission to the World Trade Organization (WTO), but the United States remains at cross-purposes due to the closed nature of its markets and numerous violations of international agreements. In an effort to shed light on these issues, this article reviews the historical context, recent economic reforms, and challenges to deeper global integration in the post-Deng era. © 1998 John Wiley & Sons, Inc.     

Applying performance tests in hotel management agreements

The best performance test in a management contract is one that is fair to both managing firm and owner—and also provides an incentive for the managing firm to achieve the owner's financial objectives.     

Bribery and implicit agreements: A reply to Philips

The author has elsewhere defended the view that accepting a bribe involves the violation of an implicit or explicit promise or understanding associated with an office or position that one occupies and that therefore it is prima facie wrong to accept a bribe. Michael Philips has criticized this position in a recent paper. He argues that (a) there are cases in which accepting a bribe violates no promises or agreements, and (b) there are cases in which there is no prima facie duty to refuse an offer of a bribe. The author offers replies to both of these objections.Thomas L. Carson is Associate Professor of Philosophy at Loyola University in Chicago. He was awarded the NEH Fellowship for College Teachers. He is the author of The Status of Morality (D. Reidel, Philosophical Studies Series, 1984), and he has written numerous articles concerning both ethical theory and applied ethics.     

Tax reforms in developing countries

Given the low level of tax revenue and the contradictory structure of tax legislation in many developing countries, there is broad agreement on the need for tax reforms in those countries. The following article reviews the problems associated with instituting such changes.     

Caving,role playing,and staying home: Shopper coping strategies in a negotiated pricing environment

This interpretive study reveals specific behaviors that shoppers enact in order to cope with the tensions they experience in an environment where negotiated pricing is the expected norm. Consumers experience inner conflict, or tension, when they feel that a pleasant shopping experience may only be attained at the risk of a poor financial outcome. These tensions, derived from 34 depth interviews with auto shoppers, include “truth versus deception,” “self‐presentation versus testing the limits,” and “reciprocation versus looking out for number one.” Some coping strategies emanating from these tensions include using analogies, role playing, and bringing one's own audience. Implications for academicians and retailers are discussed. © 2004 Wiley Periodicals, Inc.     

On the role of retaliation in trade agreements

This paper analyzes the role of retaliation in trade agreements. It shows that, in the presence of private information, retaliation can always be used to increase the welfare derived from such agreements by the participating governments. In particular, it is shown that retaliation is a necessary feature of any efficient equilibrium.We argue that retaliation would not be necessary if governments could resort to international transfers or export subsidies to compensate for terms-of-trade externalities. Within the current world trading system, though, in which transfers are seldom observed whereas export subsidies are prohibited, the use of the remaining trade instruments in a retaliatory fashion might be optimal. The model is used to interpret the retaliatory use of antidumping observed in the last decades, and the proliferation of these measures relative to other trade remedies.     

Banking reforms in East Central Europe

The first step towards the establishment of a banking sector geared to the market economy, the introduction of a two-tier banking system, has long since been taken by the countries of East Central Europe. A large number of shortcomings are still to be found in their banking systems, however, and the speed of reforms, after a lightning start, has slowed down to a snail’s pace.     

Influence factors of trust building in cooperation agreements

Trust is a key success factor in cooperation agreements. Therefore, identifying the factors that make the greatest contribution toward building trust is fundamental for an understanding of cooperation agreements. This paper analyzes two factors that might contribute to generating trust for successful agreements during the initial stages of the relationship. These factors are the partner's reputation and prior partnering experience. The study aims to confirm and complete the understanding of the relationship between these two variables and the success of cooperation agreements, by examining the indirect effect, through trust building, that these factors have on the success of agreements. The study analyzes these relationships by applying a structural equation model on the basis of partial least squares (PLS) methodology. The total impact of previous cooperation experience and the partner's reputation on the success of cooperation agreements is strong, positive, and significant.     

Corporate governance reforms in China and India: Challenges and opportunities

In this article, we examine the evolution of corporate governance reforms in the emerging economies of China and India. We first describe the two major driving forces behind governance reforms in these countries: privatization and globalization. After summarizing the evolution of governance reforms in each context, we identify four major obstacles that impede their implementation in both countries, namely: (1) lack of incentives, (2) power of the dominant shareholder, (3) underdeveloped external monitoring systems, and (4) shortage of qualified independent directors. Next, we highlight practical implications of these governance challenges for foreign firms contemplating, or already involved in, major investments in these emerging economies. We emphasize that foreign firms that are sensitive to context-specific challenges are more likely to put in place appropriate contractual or other safeguards, as well as identify more practical and meaningful forms of participation in the governance of their ventures. Finally, we conclude with some implications for future research.     

On the antecedents of corporate severance agreements: An empirical assessment

This study of major corporations (n=481) provides an empirical assessment of the effects of several corporate governance variables (CEO duality, boards of director composition, officers and directors common stock holdings, institutional common stock holdings, number of majority owners) on the adoption of so-called severance agreements. A discriminant analysis indicates a significant multivariate function. Wilks lambda univariate analyses suggest that the percentage of common stock held by owners and directors and number of majority stock holders are the more robust discriminators. Dan R. Dalton is Professor of Management and Director of Doctoral Programs, Graduate School of Business, Indiana University. Formerly with General Telephone & Electronics (GT&E) for thirteen years, he received his Ph.D. from the University of California. Widely published in business and psychology, his articles have appeared in the Academy of Management Journal, Academy of Management Review, Journal of Applied Psychology, Journal of Business Ethics, Strategic Management Journal, Journal of Business Strategy, Behavioral Science, and Human Relations, as well as many others. He is the co-author of Case Problems in Management, Applied Readings in Personnel and Human Resource Management, and the forthcoming Absenteeism, Transfer, Turnover: An Interdependent Perspective. Professor Dalton is also co-principal investigator working on a five year grant provided by the General Motors Foundation in the general area of personnel policy. Paula L. Rechner is an Assistant Professor in the area of Strategic Management at the University of Illinois, Champaign-Urbana. She received her Ph.D. from Indiana University in 1986. Her primary research interest is corporate governance; specifically, her work has focused on corporate boards of directors and board leadership. In addition, she has been actively involved in research projects concerning strategic decision making, corporate control issues, and improving research methodology. Her articles have appeared in Organizational Behavior and Human Decision Processes, Strategic Management Journal, and Academy of Management Executive, as well as others.     

Overlapping free trade agreements and international trade: A network approach

In our work, we have analysed the effect of the hub‐and‐spoke nature of free trade agreements (FTA s) on trade. Contrary to previous analyses, we have considered the effects of the country's position in the FTA network on the bilateral trade of the hub country. We have conducted an in‐depth analysis of the global network of FTA s, focusing particularly on its evolution in the last 15 years. We have utilised a panel data set covering the period 1960–2010 to investigate the effects of the hub‐and‐spoke on trade. Our results show that the countries that are more connected to FTA s export more than those that are less involved, although not all the partner countries you can connect with are the same. An increase in the number of spokes that have no link between them has, on average, a negative effect on the trade of the hub, which indicates that signing FTA s with every country is not the optimal strategy for increasing trade. However, if we consider the way new FTA s change the relative position of a country, we can see that if new FTA s make the country more central or less constrained in the network, these new agreements have a strongly positive and significant pro‐trade effect.     

Trade effects of the Europe agreements: A theory-based gravity approach

We analyze normalized productivity differences for 15 developing Latin American countries and four firm types: National Domestic, National Exporter, Foreign Domestic, and Foreign Exporter. There are no productivity thresholds for viability, export activity, or multinational activity, but we do find a clear size productivity premium and development productivity premium in the manufacturing sectors. We also find a clear foreign-ownership productivity premium, both for domestic firms and for exporting firms and both for manufacturing sectors and services sectors. In contrast, we only find an export productivity premium for national firms in the manufacturing sectors.     

Mars or Mercury redux: The geopolitics of bilateral trade agreements

We analyse the role of economic and security considerations in bilateral trade agreements. We use the pre‐World War I period to test whether trade agreements are governed by standard gravity variables, or by instead—or in addition—geopolitical factors. While we like others find support for standard gravity variables, we also find that defence pacts boost the probability of trade agreements by as much as 20 percentage points. Our estimates imply that were the U.S. to alienate its geopolitical allies, the likelihood and benefits of successful bilateral agreements would fall significantly. Trade creation from an agreement between the U.S. and E.U. countries would decline by about 0.6 per cent of total U.S. exports.     

Air France： A New World of Travel Pleasure to France

On Top Resa Tourism Fair, Deaiiville, Sop.2003 Chairman Jean-CwU Sliinetta declared:“The launch in 2003 of Air France‘s new travel concept is a major step in our long-termcommitment to customer satisfaction. It will have taken over 300 million euros in investments and five years of work to bring this project to fruition, 300,000 working hours to refit 69 aircraft, the delivery of 15 new fully-equipped aircraft, 290 third-generation self-service kiosks,50% more personal space in I‘Espace Premiere (First-Class Cabin) and 27% more in I‘EspaceAffaires (Business Class) a project such as this will enable us to significantly strengthen ourposition as an Airline Major in Europe and worldwide.”