Service value revisited: Specifying a higher-order, formative measure

Recent marketing literature pays particular attention to customer value because of the potential impact on customer behavior and, ultimately, firm performance. Whereas some studies conceptualize customer value in a unidimensional manner, more recent approaches take a multidimensional approach, generally conceptualizing value as composed of various benefits and sacrifices. However, nearly all of these studies consider value components in a reflective manner, which is not only problematic but in many cases conceptually incorrect. In addition, recent customer value research includes service components to define and operationalize the construct. This study suggests that customer value in service contexts, or service value, represents a higher-order, formative construct with benefit and sacrifice components. Specifically, the authors propose a formative model of service value with four components: service quality, service equity, confidence benefits, and perceived sacrifice. A multiple-industry study substantiates the contention that this higher-order, formative approach best models value. The results theoretically and empirically support the conceptualization of service value with formative components, and the measure is robust and works well across multiple service contexts.     

The impact of social media and offline influences on consumer behaviour. An analysis of the low-cost airline industry

This study analyses the impact of social media as well as offline environments upon tourist online purchase and recommendation behaviour of low-cost airline services. Drawing on the Theory of Reasoned Action (TRA), this research considers the effect of offline social influences (interpersonal and external influences) and analyses online Consumer-to-Consumer (C2C) information exchanges as a driver of customer attitude towards online purchases. We propose that these factors improve online repurchase intentions and positive word-of-mouth communication (WOM and e-WOM) in low-cost settings. Using structural equation modelling, the conceptual model is tested with a sample of 441 Spanish Internet buyers of low-cost airline services. Interpersonal offline influences (e.g. friends, relatives, and family) have a significant effect on online repurchase intentions and WOM but do not affect e-WOM. External offline influences (e.g. media and experts), however, only affect consumer intentions to recommend future purchases of low-cost airline services on social networking travel sites and have no effect on online repurchase intentions or WOM. Findings also show that online C2C information exchanges influence attitude which, in turn, has a significant effect on repurchase intentions WOM and e-WOM.     

How terrorism affects the economic performance? The case of Pakistan

We examine application of the Economics of Crime Monitoring Model (ECM-Model) Ruiz Estrada and Ndoma (J Policy Model 36:867–882, 2014) on Pakistan terrorism activities. The application of ECM-Model is used to evaluate the impact of terrorism on the economic performance of Pakistan economy. First part of the research work is related to introduction and background of study. The second section is associated with the theoretical and conceptual frame work that explains how terrorism affects the economy. The third part of the paper describes the methodology of the model. The fourth part of this research paper elaborates the results of the study. The second last part of the paper is the econometrics techniques and results which support the model and last part of the research work is conclusion and recommendations.     

Understanding the Pro-plaintiff Bias in Consumer Protection Legal Processes

Using information from the Peruvian administrative consumer system from 1998 to 2010, the paper assesses hypotheses taken from selection theory in the context of legal disputes (Priest and Klein, The Journal of Legal Studies 13(1):1, 1984) and political science. Hypotheses from selection theory regarding the influence of plaintiff stakes, informational asymmetry and, to a lesser extent, litigation costs on both selection decisions and trial outcomes were confirmed. In addition, the results corroborate other implications of selection theory, such as the non-random nature of selection processes. However, no evidence has been found regarding the theory’s prediction that the share of plaintiff victories at trial will converge to 50%. The results also show that in the Peruvian consumer protection system, plaintiffs win more often than do defendants, suggesting the pre-eminence of pro-consumer trial standards over other factors. Moreover, the evidence confirms the hypotheses taken from “party capability theory” (Galanter, Law & Society Review 9(1):95–160, 1974) regarding the influence of litigant characteristics on consumer protection legal outcomes. Finally, the results also demonstrate the relevance of ideological and attitudinal factors as determinants of consumer administrative trial decisions.     

Antecedents of Deviant Behavior: Psychological and Non-Psychological Factors and Ethical Justifications

Employee Responsibilities and Rights Journal - An integrative model of ethical justifications in organizations is proposed. The model recognizes the roles of psychological and non-psychological...     

Impact of cause-related marketing on consumer advocacy and cause participation: A causal model based on self-reports and eye-tracking measures

Cause-related marketing improves corporate image and consumer attitudes toward brands. An important research gap is how the visual attention paid to cause-related cues in social media affect consumer attitudes and behaviors. In the present study, we analyze the moderating role of the visual attention paid to Instagram-based, cause-related posts on the impact of consumer perceptions (i.e., corporate image), beliefs (trust), and attitudes (i.e., corporate social responsibility [CSR] support) on behavioral intentions (i.e., cause participation, consumer advocacy, and intention to share posts) for fast-food restaurants. Data for the study were collected in a between-subjects experiment with 123 participants. Visual attention was measured using eye-tracking technology, and consumer attitudes and behavioral intentions through an online survey. The results show that the greater the attention paid to images (amount and duration of fixations) and the more revisits made lead to more positive attitudes and behaviors toward the cause and the company. On the other hand, the more time spent looking at the company's responses to negative user-generated content weakens the relationship between trust and consumer advocacy toward the company. These results can help practitioners design appropriate cause-related marketing strategies in social media.     

The Effect of Changes in Income Shifting on Affiliate Managers' Internal Reporting Decisions*†

This study examines the interplay between tax and internal reporting incentives among affiliates of multinational corporations (MNCs). MNCs face limited information flows that may prevent affiliates' performance metrics to be responsive immediately to changes in the firm's tax planning. Using granular data of affiliates belonging to MNCs from 21 European countries, our study provides new empirical evidence of affiliate internal reporting responses induced by changing tax plans. When high-tax-rate countries tighten income shifting rules, we first document that income shifting is reduced and low-tax-rate affiliates have less income. Second, we predict and document that managers of these low-tax-rate affiliates offset this decrease in profits by managing upwards a key performance metric: affiliate earnings. Our results are consistent with firms not quickly adjusting the affiliate managers' incentives in the face of changing tax planning strategies, and affiliates managing reported earnings to offset the effect of changes in the tax planning of the firm. Cross-sectional analyses provide further evidence consistent with the theory underlying the main tests. The results support the policy of tightening income shifting rules when the objective is to reduce income shifting, and firms' central management would benefit from considering the implications of changing tax plans on the assessment of local managers.