The different roles of product originality and usefulness in generating word-of-mouth

This paper explores how the dimensions of new products, specifically, the originality and usefulness of the products, influence word-of-mouth (WOM). In four studies, using lab and field setups, we find that originality and usefulness have different effects on WOM. We show that consumers spread more WOM about original products, but the valence of what they say depends on the usefulness of the product. Therefore, originality enhances the effect of usefulness such that consumers spread relatively more and more positively valenced WOM about original and useful products compared to less original but equally useful products. Conversely, consumers spread more and more negatively valenced WOM about original products that are not useful compared to less original products with the same level of low usefulness. The results indicate that product originality should be managed carefully when developing and positioning new products. Although originality increases buzz, it might lead to negatively valenced WOM when the usefulness of the product is perceived to be low.     

Product variety and the demographic transition

Why does the rate of population growth decline in the face of economic growth? We show that growing product variety may induce a permanent reduction in the demand for children and a continuous rise in income and consumption.     

比利时的财富

“请注册为‘D.E.Koninck＇的直升机的主人到咨询台前来好吗？”在首届富世生活比利时峰荟举办地科特赖克展览中心的现场．喇叭里传来这样紧急但礼貌的询问。原来，展览中心的停车场停满了兰博基尼，宾利等名车，但一位直升机的主人不慌不忙地将其两人位的飞机停在了车辆旁边。显然．这位主人宁可被罚也一心想要参加世界顶级奢侈品盛会，毫无疑问，他是对的。     

Public services for basic needs in Malaysia

This paper reports on results with respect to meeting basic needs from a larger study of the distribution of public expenditure in Malaysia. Both the paper and the larger study heavily rely on a household survey providing data on consumption of public services. The analysis shows that the poorest categories of Malaysians, namely the Malays, rural dwellers, and those living in the North, are the least well served by public utilities. But they are well represented in use of public medical care and primary education. What also emerges is that many of the poor are unable to avail themselves of certain services because their incomes are too low. If more of the poor are to have their children educated to higher levels, the out-of-pocket costs that constitute such a heavy burden for them probably will somehow have to be subsidized. If the poor are universally to have pure water and electricity it appears that fundamental changes will have to be made in policies for pricing the consumption of these services to reduce their rates to the poor.     

Inflation and the formation of expectations

This paper develops a model of expectations which generates paths that are consistent with observations that an acceleration of the monetary growth rate initially raises and eventually lowers real holdings of cash balances. It introduces a two-part expectations hypothesis where individuals are assumed to form expectations about the entire path of the price level and about the short-term inflation rate. Interaction between regressive and extrapolative elements induces a transitory rise in money holdings during the initial phase of inflation as expectations are that the process will reverse itself. Subsequently, as expectations catch up, the decline in desired holdings induces an overshooting of the inflation rate.     

Network ties and entrepreneurial orientation: Innovative performance of SMEs in a developing country

This study investigates the role of intra-cluster ties, extra-cluster ties, and entrepreneurial orientation in shaping firms’ innovative performance. We conduct our analysis on a primary data set of 120 small and medium enterprises located in the Cibaduyut footwear-manufacturing cluster, Indonesia. We explore the effectiveness of knowledge acquisition through intra-cluster ties and extra-cluster ties on innovative performance. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. Also, a combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance. Surprisingly, we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance. Over-reliance on within-cluster knowledge sharing may result in the diffusion of redundant knowledge rather than making new knowledge available to the firm. Overall, our findings point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance.     

How credibility affects eWOM reading: The influences of expertise,trustworthiness, and similarity on utilitarian and social functions

In online information settings, a few people tend to contribute, while the majority of people consume. For this latter group of readers, electronic word of mouth (eWOM) provides information about products or service experiences that rarely are available from manufacturer-controlled sources, which makes this source of information especially helpful. In turn, eWOM influences readers' attitudes, intentions, and behavior. Manufacturers also hope to monitor and positively influence eWOM content, such as by supporting and building brand communities. But eWOM readers might doubt the credibility of information if it is mostly positive, and the usefulness of eWOM information depends on its credibility. This study offers an empirical and theoretical validation of how specific utilitarian and social functions of eWOM affect attitudes toward and intentions to read eWOM. In particular, trustworthiness is the most important credibility dimension; it affects both functions. Perceived expertise also enhances the utilitarian while similarity improves the social function of eWOM.     

Local Democracy Ltd

Abstract

A number of European countries have witnessed a proliferation of local government enterprises in recent years. Norwegian local councillors are seemingly particularly exposed to this ‘enterprise fever’. Our article explores local governments' approaches to the political control of such companies. We observe a reluctance to intervene directly in the affairs of an enterprise, but there is a last-resort preparedness to take more resolute action. Lastly, in contrast to what the prototypical agency model postulates, we find that those who attach strong aspirations of increased capacity to the establishment of companies appear to lack trust in the same companies' performance capability.