Does New Information Technology Lower Media Quality? The Paradox of Commercial Public Goods

We define commercial public goods as goods that are broadcast via television, radio, newsprint, or websites for which consumption is non-rival and non-exclusive, and revenue is generated mainly through advertising alongside a product in a two-sided market. With new information technology the fixed cost of entry in these markets has substantially declined. We demonstrate that as fixed costs of entry decline in a competitive media market, lower industry concentration results in lower resources to each firm for the production of commercial public goods. The counterintuitive result of new information technology is that it may result in lower quality news reporting and a less-informed population. The result may hold even when consumers exhibit preferences for diversity in media outlets.     

User Perceptions of Mobile and Online Channels for Purchasing Financial Products

ABSTRACT

This study investigates users' perceptions of costs and benefits of mobile versus online, PC-based, channels for accessing financial information and completing financial transactions. Results indicate that, in the financial services context, the mobile channel has no perceived advantages over the online channel. The older online channel does have several perceived advantages related to transaction cost, risk, ease of use, meeting financial goals, and information accessibility. The channels are similar on four dimensions, but most of the similarities arise because the online and mobile channels enable purchase of the same financial products. Finally, users are more willing to use the mobile channel for less risky tasks (accessing information) than they are for more risky tasks (buying financial products).     

Trust as a Mediator of Channel Power

Abstract

Thriving longterm channel relationships require trust. Previous empirical work and metaanalysis have emphasized the central role of trust but its potential as a mediator of power has not been tested empirically. A model is proposed that hypothesizes a central, mediating effect for trust between power constructs (power asymmetry, coercive and noncoercive application of power) and key behavioral and attitudinal relationship outcomes (conflict, cooperation and satisfaction). The model is tested on a large sample (N = 887) in a single channel where there is a variable, but generally asymmetric, power relationship between principal and agent, as exists in many franchise and agency channels. Trust was not affected directly by the level of power asymmetry, but rather the way power was used, either coercively or noncoercively raised or lowered trust. Trust was found to mediate the impact of the way power is used on the agent's perception of cooperation, satisfaction, and conflict, emphasizing the pivotal role of trust in understanding the behavioral aspects of channel behavior.     

Performance in Product versus Service Supplier Relationships

ABSTRACT

Today's rapidly changing and competitive marketplace has forced channel members to devote increased attention and resources to providing consumers with a seamless delivery of products and services. This seamless delivery occurs through social integrative relationships between channel members, supported by the application of information technology. Achieving integration is a difficult task that may vary based on whether a product or a service is involved. This paper proposes that manufacturer integrative relationships with product suppliers may develop with lower levels of seamless delivery when compared to manufacturer integrative relationships with service suppliers. Further, the paper discusses how the application of information technology may impact manufacturer-supplier relationships and performance.     

Running an Orderly House

Abstract

Urban renewal in the UK has led to town and city centres offering young people a lively night life. Unfortunately, it is also connected with drink-related crimes. Many people do not use pubs and bars because they feel threatened. In order to attract such customers, the owners and managers need to act positively to prevent unacceptable behaviour. The use of properly trained door staff and participation in a local Pubwatch scheme, which can ban trouble makers from all pubs and bars in the locality, have provedto be helpful. Such information mightbe useful to some US outlets.     

Evaluation of Alternative Market Channels for Farm-Raised Catfish

Abstract

Catfish producers have traditionally marketed catfish to centralized processing plants that eviscerate and fillet the fish for distribution to the food service sector and to retail markets. However, low prices offered by the processing plants since December of 2001 have fallen short of the breakeven costs for some farmers. Developing alternative marketing channels that offer higher prices to catfish producers have been suggested to help improve farmers' revenue by spreading price risks. The objective of this study was to examine the effect of alternative marketing channels and average size on the average price of farm-raised catfish. The results of this analysis suggest that catfish farmers can increase the average price received for live food-sized catfish by decreasing the percentage of fish marketed to processing plants and live haulers, while increasing the percentage of fish marketed to retail outlets in an average size range of 0.57 kg to 0.90 kg. This can be achieved with on-farm value-added processing. However, retail outlets are relatively limited and may not provide a solution to large-scale producers of the catfish farming industry.     

Best Practice Channel Management

Abstract

In this article, a global marketing channels consultant identifies and discusses the best practices in channel management. The author argues that a channel effectiveness is largely predicated on both the channel system and the channel partner effectiveness. A framework is posited that includes dimensions of systemic costs, controls and coverage, as well as channel member competencies and commitment. The author suggests that channels management practices ultimately increase stakeholder value.     

The role of design in the future of digital channels: Conceptual insights and future research directions

PurposeIn the past channel literature has looked to other disciplines in developing and refining their theories, models and methods in order to evolve the field. This paper traces such history and highlights the substantial changes caused by the digital age. In light of this, the inclusion of design theory into future channel management is presented to overcome existing concerns.Design/methodology/approachA comprehensive review of literature on the history of channels, the emotional experience (people), limitations of digital innovation (technology) and the role of design (business) has been conducted to create a new approach, built upon the theory of the techno-economic innovation model.FindingsThe findings of this study propose design-led channel management as a new research area, providing novel research questions and future research directions. The inclusion of design and emotion theories indicates that the future of digital channel design requires a deeper understanding of customers and needs to go beyond technological advances.Theoretical implicationsThe findings provide an opportunity to explore dynamic theories and methodologies within the field of design that will broaden the horizons and challenge existing notions in channel literature.Originality/valueThis paper is the first paper that introduces the theory of Emotionate, as the next evolution of channel literature. The value of Emotionate lies in providing a new design-led process of integrating emotion to provide advice to practitioners as well as identifies research areas for academia, thereby extending the reach and richness of this emerging research field.     

Mobile Phone Use,Transaction Costs,and Price: Evidence from Rural Vegetable Farmers in Cameroon

ABSTRACT

The widespread use of mobile phones in Cameroon should be translated into increased farmers’ income by reducing information-search costs. This study seeks to investigate the effects of mobile phone use on transaction costs related to price information search. Ordinary least-square estimations reveal a positive relationship between mobile phones use and transaction costs. The results show that farmers’ use of mobile phones increases their transaction costs for carrots and tomatoes, unlike for cabbages. This paper suggests the establishment of vegetable information centers that can serve as an interface between stakeholders in agriculture by channeling adequate and timely information to farmers.     

Traditional bazaar or supermarkets: A probit analysis of affluent consumer perceptions in Hanoi

Abstract

This paper sheds light on the preferences and behaviour of Vietnamese consumers in an emerging market economy. We analysed survey data of affluent consumers in Hanoi by using a binary choice Probit model for traditional bazaars versus supermarkets. The purpose of the analysis was to measure the factors which influence decision-making by consumers when selecting particular retail outlets for shopping. Our results show that freshness, price and convenience are important in shaping the choice by consumers for traditional outlets for fresh food, while price played a key role in selecting shopping outlets for processed food and drinks and non-food products. The results provide a basis for understanding the strengths and weaknesses of the old and the new retail outlet formats.     

Monitoring Policy and Organizational Forms in Franchised Chains

Franchising is nowadays a prominent way to organize the distribution sector. While previous literature suggests that monitoring issues are a critical determinant of organizational choices, it is rather silent on the optimal monitoring strategy once the organization of the chain is set. In this article, we analyze the monitoring policy of chains with both franchised and company-owned units. We develop a model in which a chain monitors its outlets under asymmetric information on local demands and managers’ efforts. We show that partial monitoring (i.e., when the franchisor monitors only a subset of its outlets) represents an optimal monitoring policy. Second, we identify the units that should be monitored. Finally, we discuss the impact of information technologies and outlet location on monitoring policy and how it may affect the proportion of franchised and company-owned units within the mixed chains.     

The CALM Method

Abstract

This paper addresses the need for an assessment/summative evaluation regarding the CALM (The Consignment Auction Li—quidation Marketing) Method of Mass Product Distribution. Originally developed and initiated in 1993, in response to the common need business organizations have for product liquidation outlets, this nontraditional form of distribution targets audiences contemplating the distribution of products, including manufacturers, wholesalers, retailers, and other entrepreneurs.

The topic of distribution is considered to be one of four primary “marketing tools” referred to as the “marketing mix.” In addition to distribution, the other three components of the marketing mix are product, price, and promotion. The mass distribution of products via consignment auction liquidation outlets may be viewed as an additional channel of distribution. However, mass consignment auction liquidation on a national basis has not been adequately assessed or evaluated. There is little published about this type of product distribution.

The effectiveness of the CALM Method utilized on a national basis and covering a 10-year time span is presented. Effectiveness was largely assessed through statistical observations of the effect of various independent variables on the dependent variable, “auction outlet profitability.” Independent variables include geographic location/region of each consignment auction outlet; population size of each consignment auction outlet's community; merchandise type; consignment term, etc. The CALM Method yields the opportunity for profitable liquidation of mass quantities of merchandise on a national basis. This assessment/summative evaluation yields the opportunity for insight regarding the method's actual effectiveness and adds to the limited amount of research found in this area of mass distribution.     

Consumers' Online Information Search for a New Restaurant for Dining-Out

ABSTRACT

By Nelson (1970)'s categorization, purchasing a service such as dining-out at a new restaurant is ‘experience-oriented’ in its nature, and its quality cannot be easily searched before the actual consumption. However, it has been suggested that the interactive nature of the Internet will improve market efficiency by creating a new channel of communication that allows the provision of information about experience attributes in a readily available format (e.g., other consumers' rating online). The paper empirically investigates this notion by exploring consumers' online information search behavior for a new restaurant for fine dining. The extent of usage of various online information sources and the perceived importance of each source are investigated in the United States and in Taiwan. Results show that information from other consumers is considered more important than information from sellers, but that US consumers favor non-Internet sources of information while Taiwanese consumers favor online sources.     

New technology in UK retailing: Issues and responses

Technology application in retailing has a considerable history, with applications for the most part aimed at labour cost reduction. The technologies now being applied in retailing and distribution however differ from these earlier ones in a fundamental way. The new technologies in micro‐electronic based computing and micro‐electronic communications differ by being general purpose and flexible and by developing very rapidly. The new technology is enabling changes to take place in the distribution channel. The areas of applications of the new technology and the applications and reasons of technology introduction are analysed in this paper.     

The Impact of Internet Commerce on Do-It-Yourself Investing in the IT Sector

ABSTRACT

Recent advances in networking, telecommunications, and the Internet have greatly decreased the problem of information asymmetry for the small investor. Previously, brokerage firms maintained tight control over information thus “encouraging” the investor to partake of their services. The removal of this structural impediment has empowered small investors to take greater control of their personal financial affairs. For those interested in self-directed investing in the growing IT sector, Direct Stock Purchase programs (DSPs), Dividend Reinvestment programs (DRIPs), American Depository Receipts (ADRs), and IT Sector Mutual Funds offer many attractive benefits to shareholders and corporations alike. These investment programs of IT-related firms are examined here.     

Information seeking,external search and “shopping” behaviour: Preliminary evidence from a planned shopping centre

It has long been argued that consumers compare the wares of several retail outlets before the purchase of expensive or ego‐intensive goods. Yet the substantial literature on pre‐purchase information seeking suggests otherwise. Relatively little external search or “shopping” behaviour actually takes place. This discrepancy is attributable to the shortcomings of the pre‐purchase research tradition which relies largely upon retrospective interviewing and treats each product in isolation, despite the prevalence of multipurpose shopping expeditions. By unobtrusively observing the behaviour of shoppers in the Park Centre, Belfast, this paper demonstrates that consumers indulge in “shopping” activity, though much of this is incidental to the main purpose of the trip. Consumers appear to take the opportunity afforded by habitual or unavoidable “chore” shopping expeditions to gather, in an informal manner, information on the many and varied offerings of the marketplace.     

Consolidation by merger: the UK beer market

This paper examines the determinants of market structure in the UK brewing industry over 1949–1969. Sutton (Sunk costs and market structure: price competition, advertising, and the evolution of concentration, 1991) points to technology and advertising races as two key drivers of market concentration. This study uses an own-built longitudinal data set of the population of firms and breweries, and reveals the importance of institutional factors in explaining the dynamics of market structure. The practice of tying outlets to brewers and legal restrictions on opening retail outlets, together with a permissive policy towards mergers, made acquisition of medium-sized firms and brewery closure (shortly after acquisition) the main driving mechanism towards industry consolidation. During this period, the number of firms and plants fell sharply (by 74% and 60%, respectively) and production rose (by about 25%), with no firm entry and just one new brewery opening. As a result, concentration increased and the market transformed from a highly fragmented one into a stable oligopoly.     

Pricing over Alternative Distribution Channels

Abstract

Pricing issues can become complex and confusing to marketing students. Pricing issues can become even more confusing when prices at each level of the distribution channel are considered. This paper introduces a “what-if” spreadsheet approach to helping students develop a working understanding of how pricing decisions affect distribution channel strategy. Classroom experience with the approach has demonstrated its viability as a computer-assisted learning exercise for this complex topic.     

Consumer Perceptions of Kosher Products

ABSTRACT

The demand for kosher food has grown markedly during recent years, largely due to their perception as healthier, “safer,” more nutritionally enhanced value, and improved hygienic preparation conditions. This perception was verified by a survey conducted in Israel with 440 respondents. Both groups, younger and older age, secular and religious people, perceive the term kosher in a beneficial light, affecting the public view of food products as well as fast-food outlets. The survey, which was conducted in Israel, could be utilized as a pilot furnishing and facilitate a basis for further studies in other countries. The data highlights the vast market potential entailed in improving consumer perception of overall quality. Given the elevated perceived image of kosher food as “healthier” and of an enhanced quality, this study provides an essential marketing tool and detailed information in order to enable both manufacturers and retailers to expand the kosher segment and corner a larger share of the food market.     

The determinants of cross-border equity flows

We explore a new panel data set on bilateral gross cross-border equity flows between 14 countries, 1989-1996. We show that a “gravity” model explains international transactions in financial assets at least as well as goods trade transactions. Gross transaction flows depend on market size in source and destination country as well as trading costs, in which both information and the transaction technology play a role. Distance proxies some information costs, and other variables explicitly represent information transmission, an information asymmetry between domestic and foreign investors, and the efficiency of transactions. The geography of information is the main determinant of the pattern of international transactions, while there is weak support in our data for the diversification motive, once we control for the informational friction. We broaden the scope of our results by presenting some evidence linking the results on equity transactions to equity holdings.