Changing Perceptions and Changing Behavior in Customer Relationships

We formulate a theoretical model in which we postulate that if customers' behavior is perceived as not optimal, customers will adjust this behavior based on their current satisfaction and payment equity. Furthermore, customers will also include new experiences. In our empirical study we particularly investigate customer referrals and the amount of services purchased. Our results show positive effects of current satisfaction and payment equity on referrals, while also changes in satisfaction and payment equity affect customer referrals. With respect to the amount of services purchased, our estimation results reveal a positive significant effect of only changes in satisfaction.     

The ethical benefits of trust-based partnering: the example of the construction industry

As inter-organisational relations represent an increasingly important element in business the ability to build sustainable relationships becomes a key skill. To achieve sustainable relationships parties need to move from a low trust/low ethics base to a high trust/high ethics base in their relating. This paper uses data from a study into trust-based partnering in the construction industry to demonstrate that ethics is integral to trust building. The data supports the proposition that ethical partnering, which is characterised by reliability, delivery of promises, open and honest communications, respect and reciprocity, and a willingness to act reasonably towards each other, is the most effective model for parties seeking to build sustainable relationships.     

Diffusion of Hospital Innovations in Different Institutional Settings

This paper purports to analyze a hospital's adoption of both product and process innovation as a quanta! choice. The impacts of this decision on physicians, while depending on institutions that differ between the US and continental Europe, are shown to feed back to the hospital, influencing the profitability of the innovation. Recent changes of hospital finance give rise to testable comparative predictions in both institutional settings     

The Impact of Socially Responsible Investment on Human Resource Management: A Conceptual Framework

Socially responsible investment (SRI) has increasingly assumed a major role in global equity markets. In this article we argue that the continued growth in investors seeking to align their ethical concerns with their investment strategies may influence the way in which the employment relationship is managed in publicly-listed corporations. After tracing the historical development of SRI, its implications for the conduct of human resource management (HRM) are examined. We conclude by analysing a number of the key problems associated with investor confidence in SRI funds and present a range of suggested techniques for improving screening methodologies.     

All's not fair in pricing: An initial look at the dual entitlement principle

A new theory in economics (Kahneman, Knetsch, and Thaler, 1986a, b) contends that consumer judgments of seller fairness can explain why sellers in many industries do not raise prices to ration off excess demand. In a small study focusing on automated teller machines (ATM) fees, we obtain empirical support for KKT's prediction that unjustified price increases are perceived as unfair, while cost justification legitimates a price increase in consumers' eyes. We also find, however, that fairness perceptions are not significantly related to behavioral intentions (as the theory would suggest). Many respondents felt the fee was unfair but would not switch banks because of switching costs, while others felt the fee was fair but would switch banks because of the cumulative cost. Research directions are discussed.     

A Social and Economic Model for Europe

The problems that social and labour market institutions are facing today are often attributed to globalisation and ageing. This article argues that globalisation merely exposes inherent weaknesses in social institutions while ageing aggravates them, but that neither of the two phenomena is the fundamental cause of the challenges. Moreover, there is no inherent trade-off between social and economic policies, but to reconcile the policies comprehensive modernisation is needed. Each country can face the challenges should they wish to do so and converging to a single social model is neither needed nor wanted. Finally, European (economic) and national (social) policies become increasingly intertwined and this calls for a new role for Europe. * Bureau of European Policy Advisers, European Commission. The authors would like to thank Tassos Belessiotis for his valuable comments. The authors would also like to thank their colleagues Declan Costello, Georg Fischer, Agnes Hubert, Frédéric Lerais, Mattias Levin, Roger Liddle and Jér?me Vignon. In addition valuable comments by Lans Bovenberg, Gosta Esping-Andersen, Ruud de Mooij, Frederick van der Ploeg and Fritz Scharpf were appreciated. The views expressed in this article are the views of the authors and do not bind the European Commission.     

Assessment of vehicle speeds on different categories of roadways in Ghana

Empirical evidence from road safety literature suggests that vehicular speed is an important risk factor in the incidence and severity of road traffic crashes globally. Speed studies are at rudimentary stages in developing countries, thus making vehicular speed research imperative. The main aim of the study was to establish two major speed parameters, namely, the mean and dispersion, and their implications for more extensive and long-term speed monitoring in Ghana. Research workers stationed themselves in a parked car and used a radar gun to unobtrusively measure the travelling speeds of 28,489 vehicles at 15 different inter-urban locations on three highway categories. Excessive speeding is very pervasive on all highway categories in Ghana. Travelling speeds through settlements where a speed limit of 50 km/hour is mandatory were particularly excessive. Generally, 98%, 90% and 97% of vehicles exceeded the posted speed limit of 50 km/hour on national, inter-regional and regional roads respectively. Mean speeds and speed dispersions (as assessed by the standard deviations) through built-up areas were 81.3 +/- 17.3 km/hour on national roads, 64.7 +/- 12.3 km/hour on inter-regional roads and 72.6 +/- 13.4, km/hour on regional roads. On rural undivided highways with an 80 km/hour speed limit, mean and speed dispersions were 90 +/- 18.9 km/hour on national roads, 80.1 +/- 16 km/hour on inter-regional roads and 84.4 +/- 15.6 on regional roads; also translating into 66%, 47% and 60% of vehicles exceeding recommended speeds. In all cases, speed dispersions were notably higher than the value of 10 km/hour generally found in developed countries. Excessive speeding and wide speed dispersions are highly prevalent on Ghana's highways. These factors likely account for the high incidence of traffic crashes and fatalities in Ghana. An integrated speed monitoring and control programme and by-passing small and medium settlements would be required for the reduction of speed-related crashes, fatalities and injuries.     

Are the developing countries in reality “Exporters of capital”?

The developing countries have missed no opportunity at any of the great international conferences in recent years to raise the demand for larger capital transfers by the developed countries. Whether compliance with this demand can really contribute to narrowing the North-South gap must however be doubted. According to the following calculations interest payments, royalties and—overt or hidden— profit retransfers have already reached such an amazing dimension that the developing countries would in reality have to be regarded as “capital exporters”.