Neighborhood effects and trial on the internet: Evidence from online grocery retailing

For traditional retailers the customer pool is largely bounded in space, whereas an Internet retailer can obtain customers from a wide geographical area. We examine customer trials at Netgrocer.com, and drawing on studies in marketing and economics conjecture that exposure spatially to proximate others (through direct social interaction or observation), can influence decisions of those who have yet to try. Trials arise from utility-maximizing behavior and the model is estimated as a discrete time hazard. The data span: (1) 29,701 residential zip codes, (2) 45 months of transactions since inception, and (3) zip code contiguity relationships. The estimated neighborhood effect is significantly positive and economically meaningful.

Spatial Models in Marketing

Marketing science models typically assume that responses of one entity (firm or consumer) are unrelated to responses of other entities. In contrast, models constructed using tools from spatial statistics allow for cross-sectional and longitudinal correlations among responses to be explicitly modeled by locating entities on some type of map. By generalizing the notion of a map to include demographic and psychometric representations, spatial models can capture a variety of effects (spatial lags, spatial autocorrelation, and spatial drift) that impact firm or consumer decision behavior. Marketing science applications of spatial models and important research opportunities are discussed. This paper is based upon the discussions of the Spatial Models in Marketing seminar at the Sixth Invitational Choice Symposium, June 2004. Eric T. Bradlow, Bart Bronnenberg and Gary J. Russell served as co-chairs of the session.     

Dynamics of Cooperation: At the Brink of Irrelevance*

abstract Alliances have become commonplace. This has led to a considerable number of academic and professional publications on alliances and, more recently, on the dynamics of cooperation. However, the body of knowledge on the dynamics of cooperation developed so far is characterized by fragmentation, lack of coherence and non‐comparable research output. There is no consensus on paradigmatic beliefs, which hampers theoretical progress. As a result, there is what we call an academic gap. Moreover, the literature on the dynamics of cooperation often studies research questions that are irrelevant to managers' needs. As a consequence, there is also a managerial relevance gap. The emergence of these two gaps is primarily due to the choice of assumptions, the emphasis on originality, and the use of a variety of methodological approaches. Nevertheless, we believe it is still possible to reverse the trend and make the literature on the dynamics of cooperation more relevant.     

The use of multi-criteria decision-making methods in the integrated assessment of climate change: implications for IA practitioners

Integrated assessment (IA) considers interactions of physical, biological, and human systems in order to assess long-term consequences of environmental and energy policies such as limits on greenhouse gas emissions, and other strategies to negate climate change. Users of IA face the daunting task of interpreting large amounts of data and uncertainties. Multi-criteria decision-making (MCDM) methods can help users process IA data, understand policy tradeoffs, and learn how their value judgments affect decisions. We held a workshop during which climate change experts tested several MCDM methods for using IA outputs to rank hypothetical policies for abating greenhouse gas emissions. Participants also evaluated several methods for visualizing tradeoffs under both certainty and uncertainty cases. This paper explores potential roles for MCDM in IA identified during the workshop, along with implications for IA design and implementation. We summarize the workshops’ results regarding intertemporal discounting (a type of MCDM weighting judgment), visualization of impacts, how MCDM methods can help users to incorporate their background knowledge, and how MCDM can improve understanding of tradeoffs and the importance of value judgments. A key result is that the interest rates IA experts recommend for discounting future impacts depend strongly on what type of impact is being discounted, as well as upon the exact phrasing of questions used to elicit rates from the experts.     

WHAT EMPLOYERS LOOK FOR IN HIRING INSURANCE PROFESSIONALS

Abstract: The authors surveyed managers and personnel directors who make hiring decisions for risk management and insurance companies to determine what traits they seek in college students.     

Getting the Unemployed Back to Work: The Role of Targeted Wage Subsidies

This paper examines alternative approaches to wage subsidy programmes. It does this in the context of a recent active labour market reform for the young unemployed in Britain. This New Deal reform and the characteristics of the target group are examined in detail. We discuss theoretical considerations, the existing empirical evidence and propose two strategies for evaluation. The first suggests an ex-post trend adjusted difference in difference estimator. The second, relates to a model based ex-ante evaluation. We present the conditions for each to provide a reliable evaluation and fit some of the crucial parameters using data from the British Labour Force Survey. We stress that the success of this type of labour market programmes hinge on dynamic aspects of the youth labour market, in particular the pay-off to experience and training.     

When customers disappoint: A model of relational internal marketing and customer complaints

The objective of this study is to examine internal marketing relationships and their influence on salesperson attitudes and behaviors in retail store environments. The authors investigate the moderating role of customer complaining behavior on the nature of these relationships. Specifically, they examine the relationship between organization-employee and supervisor-employee relationships and their association with salesperson job motivation and commitment to customer service. Customer complaints are expected to have differential moderating effects on the relationship between organizational and supervisory support and these salesperson outcomes. Our hypotheses were tested using a sample of 392 retail employees within 115 stores of a national retail organization. The model was partially supported. Theoretical and managerial implications are explored.