Legal and Illegal Production and Trade Under Monopoly with Transaction Cost

Using illegal trade in narcotics as an example, where regular seizure of part of the merchandise by the law‐enforcing authorities imposes a transaction cost on the monopolist supplier, this paper demonstrates the result that a higher transaction cost might increase the volume supplied for trade. The result of the formal model also applies to the opposite situation, e.g. when trade is legal, as in seventeenth‐ and eighteenth‐century maritime trade, but pirates illegally seize part of the merchandise to impose a transaction cost on the traders. The more general implications of this analysis are also discussed.     

Identifying Customer Loyalty Supporting Factors in the Retail Banking Context: An Empirical Examination

This article aims to identify factors which support customer loyalty, either through dedication or by imposing constraints, and subsequently empirically analyzes the relationship between identified factors and the attitudinal and behavioral component of loyalty in the context of retail banking. Data collected from a sample of 293 retail banking customers have been analyzed through structural equation modeling. The study results suggested two constraint promoting factors and one dedication promoting factor which supported loyalty. The study contributes to knowledge by empirically testing the qualitative model and coming out with empirically proven dedication-promoting and constraint-promoting loyalty supporting factors.     

Consumer decision‐making styles and post purchase behaviour of poor for Fast Moving Consumer Goods

More than half of the world's population is poor. Certainly, their purchasing power cannot be compared with that of the riches, but it is their collective purchase potential which makes them a substantial market. The fast moving consumer goods (FMCGs), on the other hand, are the fourth largest industry in the world. FMCGs are relatively low cost products and the poor, by necessity, spend a significant amount of their income on FMCGs. So, by virtue of being a large consumer base for FMCGs, the poor are a promising market for the FMCG marketers. But little is known about their buying behaviour for FMCGs as only a few studies have been conducted on them in this regard. This study aims to explore their shopping orientations towards price, quality and brand for FMCGs in the context of one of the largest developing countries like India by exploring their consumer decision‐making styles (CDMSs), especially their price consciousness, quality consciousness, brand consciousness and brand loyalty. Besides it, it also explores their post purchase behaviour and testifies its mechanism with the above mentioned CDMSs in the present context through structured equation modelling.     

Demand for fish in Asia: a cross‐country analysis*

Fish demand patterns in nine Asian countries were investigated using a multistage budgeting framework allowing a disaggregated approach to analysing fish consumption. This paper highlights the heterogeneity of fisheries products in terms of species, sources and cultural responses of consumers, factors that are important in fish demand under the Asian setting. Specifically, fish demand by income groups were compared to determine how the low‐ and high‐income households respond to price and income changes. Results showed that the estimated price and income elasticities of all fish types included in the study were relatively more elastic among the poorer households.     

Estimating loss of ecosystem services due to paddy straw burning in North-west India

Crop residue burning is severe in rice–wheat cropping system of North-western states (Punjab, Haryana, Uttarakhand, and western Uttar Pradesh) of India, where mechanized harvesting of rice using combine harvesters is a common practice, and management of leftover residue in the short window of 10–15 days for timely sowing of wheat is a formidable task. Moreover, there is a lack of user-friendly, cost-effective, and economically viable options and, around 23 million tonnes of rice residue is burnt annually in the region. Burning biomass not only pollutes environment but also results in loss of appreciable amount of plant’s essential nutrients. Straw burning releases soot particles, nitrogen oxides, sulphur dioxide, carbon dioxide, carbon monoxide, and polycyclic aromatic hydrocarbons, thus causing serious deterioration in atmospheric quality and human health hazards. We attempted to identify and quantify the environmental cost of paddy straw burning in North-west India. Using extant coefficients, it is estimated that cost of paddy residue burning is INR (Indian National Rupee) 8953?per?ha, and the social cost of burning is INR 3199 crores per annum in the region.     

Financial regulation and securitization: Evidence from subprime loans

We examine the consequences of existing regulations on the quality of mortgage loans originations in the originate-to-distribute (OTD) market. The information asymmetries in the OTD market can lead to moral hazard problems on the part of lenders. We find, using a plausibly exogenous source of variation in the ease of securitization, that the quality of loan origination varies inversely with the amount of regulation: more regulated lenders originate loans of worse quality. We interpret this result as a possible evidence that the fragility of lightly regulated originators’ capital structure can mitigate moral hazard. In addition, we find that incentives which require mortgage brokers to have ‘skin in the game’ and stronger risk management departments inside the bank partially alleviate the moral hazard problem in this setting. Finally, having more lenders inside a mortgage pool is associated with higher quality loans, suggesting that sharper relative performance evaluation made possible by more competition among contributing lenders can also mitigate the moral hazard problem to some extent. Overall, our evidence suggests that market forces rather than regulation may have been more effective in mitigating moral hazard in the OTD market. The findings caution against policies that impose stricter lender regulations which fail to align lenders’ incentives with the investors of mortgage-backed securities.     

Experiencing the real village – a netnographic examination of perceived authenticity in rural tourism consumption

There is an upsurge of research interest regarding authenticity in contemporary tourism consumption as modern tourists have been found to prefer involve in real backstage experiences to participating in pseudo-events and mass congregations. This paper presents a netnographic analysis of tourists’ reviews on village destinations and explores how authenticity is experienced by tourists in a village setting and the indicators pertaining to it. Trip Advisor reviews of three Indian villages were downloaded and analysed. Findings reveal that tourists consider authenticity as a critical factor in rural village experience. The indicators of rural authentic experience and their implications are also highlighted.     

Customer engagement: the construct,antecedents, and consequences

In this study, we highlight the need and develop a framework for customer engagement (CE) by reviewing the marketing literature and analyzing popular press articles. By understanding the evolution of customer management, we develop the theory of engagement, arguing that when a relationship is satisfying and has emotional connectedness, the partners become engaged in their concern for each other. As a result, the components of customer engagement include both the direct and the indirect contributions of CE. Based on the theoretical support, our proposed framework elaborates on the components of CE as well as the antecedents (satisfaction and emotion) and consequences (tangible and intangible outcomes) of CE. We also discuss how convenience, nature of the firm (B2B vs. B2C), type of industry (service vs. product), value of the brand (high vs. low), and level of involvement (high vs. low) moderate the link between satisfaction and direct contribution, and between emotions and indirect contribution of CE, respectively. Further, we show how customer engagement can be gained and how firm performance can be maximized by discussing relevant strategies.     

The impact of fairness on trustworthiness and trust in banking

Abstract

Theorists and empirical researchers in marketing and other fields suggest that fairness is important in underpinning trust, which, in turn, is integral to developing and maintaining buyer–seller relationships. However, empirical investigation of fairness in the domain of marketing has, to date, been limited. Consequently, the relationship between fairness and trust is not well understood. Thus, the purpose of this study is to provide a fully developed social exchange model examining the differential effects of various dimensions of fairness on trustworthiness and customers’ trust. Data were collected from customers of banks and were analysed using confirmatory factor analysis and structural equation modelling. Findings of the study show that perceptions of fair treatment on the part of customers are important in driving trustworthiness and engendering trust.