Multilevel Information Presentation Strategy and Customer Reaction: An Empirical Investigation in an Online Setting

This study investigates the use of polyinstantiated information in management of customer relationships. Polyinstantiation can be used to present different information to different customers who are segmented according to some criterion, such as prior purchase behavior. An empirical study shows that presentation of multilevel benefits information affects customer satisfaction with the offer and information quality which, in turn, affect the overall Web satisfaction. This effect is independent of and comparable in size to the effect of customer prior attitude toward the Web and the Internet. Although the present study employs a Web-based retail setting, the relationships between this information presentation approach and measures of user/consumer satisfaction need not be limited to retail scenarios or to online interactions. We discuss the applicability of this technique of information control to different types of interactions between organizations and their constituents.     

Macroeconomic Fluctuations and Bank Lending: Evidence for Germany and the Euro Area

Abstract. This paper analyzes the dynamic response of loans to the private sector and of economic activity to aggregate supply, demand and monetary policy shocks in Germany and the euro area based on a standard macroeconomic VAR using sign restrictions to identify the structural shocks. The main results of this analysis are that (i) with the exception of the response to the supply shock in Germany, the response of loans to the three macroeconomic shocks is rather weak and in most cases insignificant; (ii) the 2000–05 credit slowdown and weak economic performance in Germany were primarily driven by adverse supply shocks; and (iii) the marked slowdown in credit creation in Germany over this period actually represents a realignment of the outstanding stock of loans with its deterministic level. In order to assess the role of bank lending in the transmission of macroeconomic shocks, we further perform counterfactual simulations and analyze the dynamic responses of German loan subaggregates in order to test the distributional implications of potential credit market frictions. These exercises do not indicate that credit market frictions play an amplifying role in the transmission of macroeconomic fluctuations.     

Evaluation periods and asset prices: Myopic loss aversion at the financial marketplace

Examining myopic loss aversion (MLA [Benartzi, S., Thaler, R., 1995. Myopic loss aversion and the equity premium puzzle. Quarterly Journal of Economics 110, 73–92]) in real financial markets has several merits: in repeated situations investors may learn from each other, aggregate market prices may eliminate individual violations of expected utility, and individuals may decide differently in real situations than in laboratories. We utilize a special feature at the Tel Aviv stock exchange (TASE): occasional shifts of securities from daily to weekly trading. If investors’ decisions are influenced by trading frequency manipulation, then returns should be predictably affected. MLA results in a negative relation between risk aversion and the length of the evaluation period. Thus, the longer the evaluation period is, the lower the expected return is. This intuition also suggests reduced sensitivity to economic events in longer evaluation periods. We find strong support for MLA in the marketplace when testing expected return, as well as return sensitivity.     

Property taxation in Israel: a non ad valorem approach

The arnona, the system of property taxation in Israel, is a unique form of taxation being based on a property's size (m²) and not on its discrete open market value. The actual use of the property (residential versus non-residential), its location in the municipality, type of property and its age are the determining factors for tax liability. In order to test for equity within the current system, the methodology adopted was to investigate the effect of population size, remoteness and population makeup with respect to some 80 municipalities on the levels of arnona. Although the thresholds of arnona for individual municipalities are approved by a committee of the Knesset, the present analysis indicates that the current differences in per capita amount of arnona collected by local authorities do reflect factors that would normally be expected to influence an ad valorem property tax in a market economy. It is argued that whilst the arnona is an accepted form of local authority property taxation, there are a number of fundamental weaknesses. Its application could be improved by incorporating elements of an ad valorem property tax, which would more fully reflect the socio-economic level of taxpayers and the physical condition of the built environment. However, the arnona, not being based directly on a property's market value should be of interest to countries (e.g. transitional countries of Central and Eastern Europe) who are presently introducing property taxes within an environment where property markets are not as yet fully developed.     

Exchange rate uncertainty and import prices in the euro area

This paper analyzes the effects of exchange rate uncertainty on the pricing behavior of import firms in the euro area. Uncertainty is measured via the volatility of the structural shocks to the exchange rate in a nonlinear vector‐autoregressive model framework and is an important determinant of import prices. An increase in exchange rate uncertainty is associated with a fall in prices on average, which suggests that the exchange rate risk is borne by the importers. Controlling for the origin of imports (within or outside the euro area) is important for assessing the impact of exchange rate movements on prices.     

How star women build portable skills

In May 2004, with the war for talent in high gear, Groysberg and colleagues from Harvard Business School wrote in these pages about the risks of hiring star performers away from competitors. After studying the fortunes of more than 1,000 star stock analysts, they found that when a star switched companies, not only did his performance plunge, so did the effectiveness of the group he joined and the market value of his new company. But further analysis of the data reveals that it's not that simple. In fact, one group of analysts reliably maintained star rankings even after changing employers: women. Unlike their male counterparts, female stars who switched firms performed just as well, in the aggregate, as those who stayed put. The 189 star women in the sample (18% of the star analysts studied) achieved a higher rank after switching firms than the men did. Why the discrepancy? First, says the author, the best female analysts appear to have built their franchises on portable, external relationships with clients and the companies they covered, rather than on relationships rooted within their firms. By contrast, male analysts built up greater firm- and team-specific human capital by investing more in the internal networks and unique capabilities and resources of their own companies. Second, women took greater care when assessing a prospective new employer. In this article, Groysberg explores the reasons behind the star women's portable performance.     

Preston,Ivan L., The Tangled Web They Weave: Truth,Falsity, & Advertisers,Madison: The University of Wisconsin Press, 1994

Abstract

In an experiment, children in three grade levels (second, fourth, and sixth) viewed four advertisements. The children were shown advertisements with either metaphors in both pictorial and verbal form or a literal equivalent. The sixth graders interpreted more metaphors correctly than the fourth and second graders. In terms of recall of advertised content, the sixth and fourth graders recalled brand names, products, and additional copy better than the second graders. Within each grade level, metaphors did not enhance children's recall of advertised content or perceptions of the understandability of the advertisements and liking of the advertised products. The authors speculate that metaphors are most likely to enhance recall under conditions in which the metaphor serves as a direct representation linking the metaphor to the advertised product. Their findings suggest that advertisers should be aware that young readers may have difficulty interpreting metaphors and that metaphors may not be more effective in terms of children's recall and perception of understandability than literal versions of advertisements.