The antecedents and consequences of customer-centric marketing

As we enter the twenty-first century, the marketing function remains concerned with serving customers and consumers effectively. The authors propose that just as the marketing function gradually shifted from mass marketing to segmented marketing in the twentieth century, it will increasingly move toward customer-centric marketing in the next century. In the practice of customer-centric marketing, the marketing function seeks to fulfill the needs and wants of each individual customer. The antecedents of customer-centric marketing are the increasing pressure on firms to improve marketing productivity, increasing market diversity in household and business markets, and technology applicability. On the basis of the shift toward customer-centric marketing, the authors expect increased importance of marketing as a “supply management” function, customer outsourcing, cocreation marketing, fixedcost marketing, and customer-centric organizations. This article highlights the implications of customer-centric marketing as well as the boundary conditions that will affect its adoption. Jagdish N. Sheth is the Kellstadt Professor of Marketing in the Gouizeta Business School at Emory University. He has published 26 books and more than 200 articles in marketing and other business disciplines. His book,The Theory of Buyer Behavior (with John A. Howard), is a classic in the field of consumer behavior and is one of the most cited works in marketing. His other books includeMarketing Theory: Evolution and Evaluation (with David Gardner and Dennis Garrett) andConsumption Values and Market Choices: Theory and Applications (with Bruce Newman and Barbara Gross). Rajendra S. Sisodia is Trustee Professor of Marketing at Bentley College. Previously, he was an associate professor of marketing and director of executive programs at George Mason University and an assistant professor of marketing at Boston University. He has a Ph.D. in marketing from Columbia University. He has published more than 40 articles in journals such asHarvard Business Review, Journal of Business Strategy, Marketing Letters, andMarketing Management. He has also authored about two dozen cases, primarily on strategic and marketing issues in the telecommunications industry, as well as a number of telecommunications industry and company analyses. Arun Sharma is an associate professor of marketing at the University of Miami. He has published more than 30 articles in marketing and his interests are in the area of market and marketing evolution.     

Credit Default Swaps: Risk Hedge or Financial Weapon of Mass Destruction?

Credit default swaps (CDSs) are contracts between buyers and sellers of protection against default. They are a form of debt insurance, or more precisely derivatives contracts that investors buy to either insure against or profit from a default. In this way CDS contracts act as a form of debt insurance in that they provide a means of protection against credit risk. In the aftermath of the global financial crisis, the CDS earned the reputation of a ‘financial weapon of mass destruction’. Why? Is this charge justified? This paper shows that the reality is more complex: CDSs carry benefit as well as costs, and the risks associated with them can be mitigated through prudent supervision.     

Fiscal deficits,banking crises and policy reversal in a semi-open economy

We study the effect of domestic policies and external shocks in a semi-open economy characterized by incomplete liberalization of the financial sector. We argue that in such transition economies stabilization programs can have a negative impact on the fiscal imbalances, offsetting to some extent the very achievement of the stabilization program. We develop a simple general equilibrium model which allows propagation of shocks in the presence of government guarantees and imperfect capital mobility. We also empirically test the impact of positive foreign interest shock on the Indian economy using a reduced form VAR approach. The econometric evidence, though broadly consistent with the main predictions of the model, suggests no significant impact of foreign interest rate shock on output and credit. We conclude that incomplete liberalization of the financial sector in transition economies has two effects. It reduces i) exposure to external financial shocks (like the current credit crisis) and ii) ability to deal with real sector shocks (which may arise from global recession in the medium term) due to endogenous policy reversals and presence of government guarantees.     

亚洲面临核心通胀率上升的挑战

【摩根士丹利5月29日】近几个月，我们一直担心日本之外亚洲地区（AXJ）的核心通胀率出现周期性上升。现在看来，这种担忧正在成为现实。2008年4月，AXJ的总体通胀率达到7．5％，达到9年半以来的高点；扣除石油和食品价格的核心通胀率也达到了3．8％。另一方面，以GDP为权重，AXJ地区政策利率的加权平均值为6．75％，3月期国债收益率的加权平均值为4．95％。     

An exploration of the moderating role of buyer corporate culture in industrial buyer-seller relationships

In this study, the authors examine industrial buyer-seller relationships, exploring the influence of buyer perceptions of their relationships on their repurchase intentions. In particular close relationships as opposed to pure transactions, are examined. Using data collected from buyers of industrial goods and services, the authors examine the association between buyers' perceptions of relationship quality and repurchase intentions and the moderating effect of the corporate culture of the buying firms. The results suggest a significant relationship between buyer perceptions of the relationship and their repurchase intentions, as well as a significant moderating effect of buyer firm corporate culture. The implications of these findings for the study of marketing relationships, as well as for marketing practice, are also offered. Kelly Hewett is an assistant professor of marketing at Winthrop University. Her research focuses on the management of relationships between buyers and sellers as well as between headquarters and foreign subsidiaries in managing the marketing function globally. Her research has been published in theJournal of Marketing, Journal of International Marketing, andPsychology and Marketing. R. Bruce Money is an associate professor of international business at the Moore School of Business, University of South Carolina. His research interests include international aspects of business-to-business marketing, word-of-mouth promotion, services marketing, and negotiation. His research has been published in theJournal of Marketing, Journal of International Business Studies, andSloan Management Review. Subhash Sharma is a professor of marketing and the Charles W. Coker Sr. Distinguished Foundation Fellow at the Moore School of Business, University of South Carolina. His research interests include research methods, pricing, CRM, and e-commerce. His research has been published in major marketing and related journals, and he serves on the editorial review board of theJournal of Marketing, Journal of Marketing Reserch, andJournal of Retailing.