Solutions to Silos: Joining Up Knowledge

Italy's health service—the Servizio Sanitario Nazionale (SSN)—has developed Europe's second largest market for healthcare public–private partnerships. This article describes the origins of private finance for SSN infrastructure, examines the programme's scale and key characteristics, and provides a capital budgeting analysis of rates of return on 14 privately financed schemes. Excess returns are being made by the investors in these projects, and there is potential for SSN procurers to achieve significantly better value for money for the Italian people than has been the case to date.     

Securing a Better Deal From Investors in Public Infrastructure Projects

Abstract

The return on capital is a major contributor to the cost of design, build, finance and operate (DBFO) contracts, under which public infrastructure is financed and delivered by private companies. The article presents a method for evaluating the rates of return targeted by bidders and applies this to 10 contracts commissioned by the UK National Health Service. The presence of significant excess returns is identified in each case. We argue that, if the rate of return projected by an investor exceeds a benchmark cost of capital, derived using standard capital budgeting techniques, then a reduction in the fee to be paid by the public authority is justified.     

The implications of the FTC's clear and conspicuous standards for the communication of credit card information to young consumers

College students are an important target market for credit card companies and are substantial users of this form of credit, even though they may not have the appropriate knowledge to make informed decisions regarding credit cards. Specific to financial services marketing, the focus of this study is to ascertain whether college-age students recall and understand disclosed information in credit card commercials. This study analyzes the effectiveness of three disclosure standards advocated by the Federal Trade Commission (FTC) which are intended to ensure that consumers (such as college students) are appropriately informed. Specifically, this study focuses on: (1) modality, (2) audience consideration and (3) distraction level present during the disclosure presentation. Tests of the impact of these standards on consumer recall and comprehension of disclosed information have been mixed and the extant research has failed to test all of the standards in combination. An important contribution that this research makes is the reconciliation of differences found in previous research, while revealing the effects that implementing multiple FTC standards has on college students’ recall and comprehension, perceptions of recall and comprehension, and attitudes and behavioral intentions.     

Analogies and Mental Simulations in Learning for Really New Products: The Role of Visual Attention

Really new products (RNPs) create new product categories or at least significantly expand existing ones. The development of RNPs is a strategic priority for most companies. However, 40% to 90% of new products fail, often due to consumers' lack of understanding of product features and benefits. Learning strategies, such as analogical learning and mental simulation, can help consumers understand the benefits of RNPs and thus may contribute to the successful development of marketing campaigns. Moreover, the presentation format of marketing communications is likely to influence consumers' understanding of the product. Pictorials have the potential to convey novel information without overloading the decision maker and thus may be a more efficient way to present information about RNPs than words. This paper contributes to a better understanding of consumer information processing in learning for RNPs. Study 1 examined the impact of (1) learning strategies (analogical learning vs. mental simulation) and (2) presentation formats (words vs. pictures) on product comprehension. Study 2 used an eye‐tracking experiment to assess how respondents' visual attention patterns may affect product comprehension. Study 1 showed that the use of words in marketing communications for RNPs is generally more effective to enhance product comprehension than the use of pictorials. However, the video glasses were a notable exception as the combination of mental simulation and pictures yielded a high comprehension level for this product. This suggests that the use of pictorials may be appropriate to convey information for products of a more hedonic as opposed to utilitarian nature. Study 2 used a combination of eye‐tracking measures and self‐reports to help illuminate the cognitive processes at work when consumers learn new product information. The results suggest that an increase in attention to an element of the advert can account for one of two underlying processes: (1) an increase in comprehension; or (2) a difficulty to understand product information which may result in consumer confusion. This study adds evidence to a growing body of literature that demonstrates the power of learning strategies such as mental simulation and analogical learning in preparing consumers for new product acceptance. The use of visual stimuli contributes to the debate on the effectiveness of words versus pictures, seldom applied in a new product development (NPD) context. These findings are integrated into a discussion of the managerial implications and the potential avenues for future research in the area.     

Mortality Inequality in the Czech Republic*

We examine the evolution of mortality and mortality inequality among the 77 districts of the Czech Republic ranked by a new poverty index, from 1994 to 2016. The country experienced dramatic improvements in mortality for all age categories and both genders, but with very little variation in inequality. Inequality in mortality has remained substantially stable, increasing only for females aged 20–64.     

Consumption‐Focused Self‐Expression Word of Mouth: A New Scale and Its Role in Consumer Research

This research represents the first systematic empirical examination of the motivation to spread word of mouth about consumption activities in order to self‐express, a phenomenon that has been observed in both the academic literature and the popular press. Consumption‐focused self‐expression is a motivation to engage in word‐of‐mouth communication that is distinct from other word‐of‐mouth motivations that have been discussed in the literature. This work defines consumption‐focused self‐expression word of mouth as communication about one's consumption activities for the purpose of expressing one's self‐concept and attracting attention to oneself. A scale to measure consumption‐focused self‐expression word of mouth is developed and shown to exhibit a consistent scale structure, acceptable reliability, and convergent, discriminant, nomological, and predictive validity. Scores on the consumption‐focused self‐expression word‐of‐mouth scale are shown to predict differences in the quantity and nature of consumers’ actual word‐of‐mouth communications via the social networking Web site Facebook.     

A Multilevel Investigation of the Role of Retail Stores in Cross-Border Shopping

This study postulates that individual retail stores play a central role in attracting tourists to engage in cross-border shopping, and it examines both individual-level and store-level effects on cross-border shopping motives and behaviors. It proposes a framework of relationships leading from cross-border shopping motives to store outcomes and destination outcomes through the mediating roles of store loyalty program benefits and store shopping satisfaction. This study further examines the cross-level direct and moderating effects of store brand image. By using a multilevel design, this study seeks to better identify the role of retail stores in tourism shopping.     

The Antecedents of Prosocial Service Behaviours: An Empirical Investigation

Frontline employee attitudes and behaviours during service encounters influence customers' perceptions of service quality. For this reason, the identification of variables that influence service behaviours is important. Much remains unknown about the factors affecting service behaviours in service settings. This study investigates service employees' attitudinal (job satisfaction and organisational commitment) and behavioural (prosocial service behaviours) responses to management strategies (internal communication, professional development and empowerment). One hundred and eighty-eight service employees contributed data, which were analysed using a structural modelling methodology. The authors found that management strategies influence service behaviours directly but the mediating role of job attitudes is not supported.     

The HR department's role in organisational performance

Research into how HR contributes to organisational performance is plentiful yet plagued by challenges. Alongside the ‘black box’ issue between HRM and performance, the time‐lag effect and the range of performance indicators applied, the role of the HR department in this relationship is critical although often ignored. A longitudinal case study is presented here that focuses particularly on this issue, and shows a complex picture of improving HR department importance alongside high‐level financial performance, but declining employee commitment and morale. The article suggests that the tensions between the rhetoric of HRM strategy, the grim reality of the employee experience and a lack of focus on human capital meant the outstanding financial performance was not sustainable in the longer term. The inherent conflict in serving both management and employees in process‐and peopleorientated roles is highlighted.