To seek variety or uniformity: The role of culture in consumers’ choice in a group setting

One stream of research suggests that individuals in a collectivistic culture tend to follow the others’ choices in a group choice setting (e.g., Markus and Kitayama 1991). Other research, however, suggests that the choices others make have little impact on the individuals’ choices in this cultural context (e.g., Kim and Drolet 2003). The current research attempts to test these competing hypotheses by examining individuals’ choices in group choice contexts (Ariely and Levav 2000). First, comparisons of 517 meal order slips from two local restaurants in Korea with simulated outcomes indicate a profound group-level uniformity seeking in dish selections. Second, our field experiment reveals that members of a collectivist culture tend to follow group members’ choices when group influence is evident. Unlike the previous findings of studies conducted on individuals from Western cultures, selections made in accordance with the cultural norm do not result in the reduction of emotional well-being for the collectivist cultural individuals. Finally, we provide more direct evidence for the hypothesized role of culture by showing that the choices of individuals with collectivistic cultural backgrounds are associated with higher uniformity-seeking tendency compared to those of individualistic cultural backgrounds.     

The impact of product knowledge on consumer product memory and evaluation in the competitive ad context: The item‐specific‐relational perspective

Research evidence to date suggests that the combined presence of item‐specific and relational processing is necessary to induce higher memory performance of the target ad and proper evaluation of the target brand. This elaborative processing, however, requires cognitive capacity. In this paper, an item‐specific‐relational processing framework was employed to explain the roles of consumer product knowledge in the competitive and non‐competitive ad contexts. Findings from an experimental study suggest that high‐ and low‐knowledge consumers differed in product memory and evaluation in competitive and non‐competitive ad contexts. Such differences could be explained by consumers' engaging in item‐specific and/or relational processing depending on whether target brand information was presented with or without information on competing brands. It appears that competitive ad context would benefit low‐knowledge consumers by serving as a reference. In contrast, high‐knowledge consumers did not seem to be affected by ad context. Both theoretical and managerial implications are discussed. © 2011 Wiley Periodicals, Inc.     

Consumer satisfaction with a mass customized Internet apparel shopping site

The present empirically examined customer satisfaction with Internet sites that vary in the opportunity for mass customization. The expectation–disconfirmation model was used as a theatrical framework of the study. Two children's apparel sites were developed as the stimuli: one with a mid level of interactivity and the other with a high level of interactivity, for selection of clothing design options. The data from 208 respondents were analyzed using LISREL 8.72. The finding indicates that both consumers' expectations and perceived performances for the mass customized sites included positive and negative aspects. The results suggest that expectations were not a significant predictor of satisfaction for this innovative shopping experience yet satisfaction was primarily driven by the performance of the site and predicted by disconfirmation of expectations. The findings also suggest that expectations are not related to performance perceptions, possibly due to consumers' lack of familiarity with mass customization. The more interactive site yielded the more positive performance as well as overall positive satisfaction. Nevertheless, the less interactive site, which offers fewer choices than more interactive site, yielded more positive behavioural consequences. The generalization of the results of this study is limited because of lack of random sampling and use of the mock site of children's apparel product category. However, useful theoretical and managerial implications are discussed.     

How Effective Is Government Support for Korean Women Entrepreneurs in Small and Medium Enterprises?*

Women entrepreneurs are not as involved in economic activities as should be expected, despite the growing number of women entrepreneurs and increased government support in Korea. This study aims to investigate how effective the government is in terms of boosting the satisfaction of women entrepreneurs using the structural equation model. We investigated causal effect of government support policy and government support process on women entrepreneurs' satisfaction along with many other personal factors such as individual capacity, family life, social network, and business environment. The empirical results show that the government support process has the highest effect on the improvement of the satisfaction of women entrepreneurs. However, the current level of government support process is relatively low and therefore needs to be improved. It is interesting to note that the government support policy has the least effect on the satisfaction of women entrepreneurs. That is, women entrepreneurs are not sensitive to the support scale, support program, and gender‐sensitive policies currently employed in Korea. Also, we obtain the satisfaction index of women entrepreneurs according to their marital status, presence of children, age, education level, and business type. Finally, we propose improvement plans that can effectively be activated for each business type in which women entrepreneurs are involved.     

The History of Electricity Restructuring in California

This paper aims to provide an objective history of electricity restructuring in California from the mid-1990s to the immediate end of the “California Energy Crisis” in June 2001. We discuss the restructuring debate that led to the restructuring law (AB1890), and describe how the new structure worked after it took effect in April 1998. We discuss the course of events during the crisis, and factors contributing to it, including the supply-demand balance in California and in the West, rising gas prices, the complexity of the market design, market power, and the regulatory decision to cap retail but not wholesale prices.     

A Comparative Value Chain Analysis of Smallholder Burley Tobacco Production in Malawi – 2003/4 and 2009/10

Smallholders grow the majority of Malawi's main export crop – burley tobacco. We analyse this value chain segment for the 2003/4 and 2009/10 seasons. The comparison shows smallholder profits in 2003/4 were limited by two main factors: a cartel of leaf merchants at auction and inefficient marketing arrangements. In 2009/10, there was greater competition at auction, improvements in marketing, tighter state regulation (including minimum prices) and much more contract farming. The paper concludes by reflecting on aspects of the political economy of the tobacco industry at national and global levels.     

Free Trade Areas in East Asia: Discriminatory or Non‐discriminatory?

The debates on regional trade arrangements in East Asia focus on whether the RTAs can be net trade creating or diverting, and whether they impede multilateral trade liberalisation or not. This paper attempts to answer these questions by quantitatively estimating the economic impact of possible East Asian free trade areas based on a bilateral gravity model, and evaluating the main characteristics of the proposed FTAs. We find that the trade creation effect expected from the proposed East Asian FTAs such as a China‐Japan‐Korea or an ASEAN plus three (China, Japan, Korea) FTA will be significant enough to overwhelm the trade diversion effect. We also judge that East Asian FTAs will likely be a building block for a global free trade.     

Consumers’ use of information intermediaries and the impact on their information search behavior in the financial market

An information intermediary is a human or a nonhuman party designed to assist consumers in information processing. The current study identifies factors determining the likelihood of using human information intermediaries and the effects of using information intermediaries on the amount and the pattern of overall information search. The proposed model is built based on a value‐intention framework and tested in the context of financial investment decisions. The results indicate that a low level of perceived expertise in financial management, a large amount of total financial assets, and a high opportunity cost of time enhance the perceived value of information intermediaries, thus increasing the likelihood of using information intermediaries. We also find that the use of information intermediaries is positively associated with the overall extent of information search and influences the likelihood of using other information sources.     

Building the case for financial education

The need for financial education among Americans is often demonstrated with alarming rates of bankruptcy, high consumer debt levels, low savings rates, and other negative outcomes that may be the result of poor family financial management and low financial literacy levels. The collective response by public and private organizations to the accepted and often demonstrated need for financial education has been impressive in size and scope. This article provides an overview of the wide range of programs aimed at improving Americans’ financial literacy as well as a short review of the current evidence of the effectiveness of financial education programs. We advocate for the adoption of a comprehensive framework or approach to evaluation to assist those currently delivering, and planning to deliver, financial education and highlight some of the key challenges. A five‐tiered approach to program evaluation is described and outlined to provide a general framework to guide financial education evaluation.     

Linking customer resources to firm success: The role of marketing program implementation

Drawing from both resource-based view and dynamic capabilities theory, this research investigates how customer resources (i.e., knowledge and network size) influence firm performance through marketing program implementation. The current research shows that customer resources are critical to the development and execution of marketing programs, which can then lead to firm success. Through surveying 269 retailers, this study finds that while customer knowledge directly affects marketing program implementation, it does not directly influence firm performance. In contrast, customer network size not only directly contributes to marketing program implementation and firm performance, but also serves as a significant moderator.