Estimating Willingness to Pay for Improved Water Quality in the Presence of Item Nonresponse Bias

This article deals with the problem of item nonresponse in contingent valuation surveys using a payment-card method, by applying a grouped-data sample-selection estimation technique that is capable of imputing the missing values conditional upon a respondent's decision to answer a willingness-to-pay question. The advantage of the technique lies in its ability to utilize all of the information in the sample, permitting a more efficient estimation in the presence of item nonresponse bias. The major determinants of willingness to pay appear to be household income, number of children, education, perception of existing water quality, and identification with environmental issues.     

Wavelet Analysis of the Bombay Stock Exchange Index

The fluctuations in the rate of returns of the Bombay stock exchange are analyzed through wavelet transform. The fluctuations, in various time scales, naturally separated by the wavelets, are subjected to statistical analysis. The localization and multiresolution properties of the wavelets enable one to identify collective behaviour in the stock market and the extent of their influence at various time scales. The Gaussian nature of the rate of returns at certain scales and the periodic nature of the same, at other scales, are clearly brought out by this analysis. The utility of this approach for modeling purpose is also elucidated.

     

The different faces of coupon elasticity

Coupons account for over two-thirds of all consumer promotional efforts initiated by the manufacturers of consumer goods. In this study, the impact of coupons on brand sales is investigated and how that impact decays over the life of the coupon is demonstrated. Specifically, we present an econometric model that can capture coupon effects in terms of equivalent price reduction, account for coupon effects over time, allow inference of coupon effects when retailers decide to double or triple the coupon value, and provide both self-coupon and cross-coupon elasticities at different levels of aggregation. A widely used sales response model is adapted, and an analytical model is proposed to estimate both the self-coupon and cross-coupon (face value) elasticities of sales at the store level. From the store-level elasticity estimates for a given week, the authors analytically derive the coupon elasticities for the chain level by aggregating across stores, and over the life of the coupon by aggregating over time. The proposed sales response model is estimated with the data obtained from three markets for various product categories, and the coupon elasticities are computed. The proposed framework allows one to demonstrate the hypothetical equivalence of a shelf-price reduction for a given coupon face value in each week. Also, the effect of doubling the face value of a coupon results in more than a proportionate increase in elasticity. The authors find that both self and cross-coupon elasticities are much smaller in magnitude than the average self and cross-price elasticity measures reported in the literature.     

Planning food services for a campus setting

Providing appropriate food services in a campus setting is increasingly important due to more demanding customers and because clients have less time to go off-campus when they need to eat. Using a university campus as an example, this research looks at customer satisfaction with existing food services and explores various methods for determining where to locate new facilities. This campus currently has great needs for additional food services, and it is shown clearly where additional food services are required. Also, the methods used are compared in terms of their effectiveness in finding the solution.     

Om Prakash. Bullion for Goods: European and Indian Merchants in the Indian Ocean Trade, 1500-1800. New Delhi, India: Manohar Publishers, 2004. 426 pp. ISBN 81-7304-538-0, $48.95 (paper).

In this significant book, edited by a well-known scholar ofIndian economic history, Om Prakash attempts to provide thoroughanalysis of the interaction between the European and Indianmerchants, two important groups that participated in the tradingactivities in the region during the period 1500–1800.This was an important period in the premodern Indian historybecause of the phenomenal expansion of global contact and exchangethat led to     

On efficiency of the ratio estimator

Summary The exact mean square error for the ratio estimator of a finite population total based on simple random sampling without replacement is shown to have an expected value less than that of the variance of the ratio estimator based on Midzuno’s scheme, under a usual super-population model.     

Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis

Improving productive efficiency is an increasingly important determinant of the future of the swine industry in Hawaii. This paper examines the productive efficiency of a sample of swine producers in Hawaii by estimating a stochastic frontier production function and the constant returns to scale (CRS) and variable returns to scale (VRS) output-oriented DEA models. The technical efficiency estimates obtained from the two frontier techniques are compared. The scale properties are also examined under the two approaches. The industry's potential for increasing production through improved efficiency is also discussed.     

Using a customer-Level marketing strategy to enhance firm performance: A review of theoretical and empirical evidence

It is becoming increasingly apparent from the literature that marketers need to consider customer-level information when they generate a marketing strategy for the firm. In this article, the authors develop a customer-focused framework that uses a marketing strategy with an overall objective of maximized financial performance. This strategy is driven by seven customer-level marketing tactics and shows how actual customer data can be used to generate an actionable marketing strategy leading to optimal levels of profitability, customer equity, and shareholder value. In addition, the authors discuss a successful implementation of this strategy for several business-to-business and business-to-consumer firms and offer insights as to how to customize an implementation strategy for any firm, along with presenting potential challenges a firm may encounter during the implementation process. Several suggestions for future research are offered to explore and harness this newly available evidence. V. Kumar (VK) (vk@business.uconn.edu) is the ING Chair Professor of Marketing and the executive director of the ING Center for Financial Services at the University of Connecticut. He spends his time by transferring his knowledge (however little it may be) to his two daughters about customer lifetime value, diffusion models, forecasting sales and market share, retailing, and marketing strategy. J. Andrew Petersen (apetersen@business.uconn.edu) is a doctoral candidate in marketing at the University of Connecticut. His research interests include customer lifetime value, word-of-mouth effects, and customer-level marketing strategy. His research has been published inMarketing Research Magazine and theJournal of the Academy of Marketing Science.     

Salespeople’s use of upward influence tactics (UITs) in coping with role stress

Researchers’ attentions have recently focused on how salespeople cope with role stress. This study focuses on salespersons’ use of six upward influence tactics (UITs) with the immediate sales manager, and how salespeople use UITs to lessen the impact of two role stressors (perceived role conflict and role ambiguity) associated with the sales job. The study also evaluates the potential moderating role of UITs on relationships between role stress and manager satisfaction and propensity to leave. Analysis of data gathered from a heterogeneous sample revealed differences in use of UITs between salespeople classified as either high or low in role stress. Salespeople who perceive high role conflict employ assertiveness and upward appeal UITs more frequently. Salespeople who perceive high role ambiguity use exchange and coalition-building UITs more frequently. Results also suggest that salespersons’ use of assertiveness and ingratiation UITs exacerbate relationships between perceived role ambiguity and two outcomes: satisfaction with supervisor and propensity to leave. Implications of the study findings for sales managers are reviewed, as are implications for further research. His research interests are in the areas of personal selling and sales management. His work has appeared inJournal of Education for Business, Journal of Marketing Theory and Practice, and various national and international conference proceedings. Jeffrey K. Sager, Ph. D., conducts research in the areas of salesperson turnover and job stress. His work has appeared in theJournal of the Academy of Marketing Science, Journal of Personal Selling and Sales Management, andJournal of Business Research. His research interests are in the fields of strategic management and organizational behavior. His research has been published in theAcademy of Management Journal, Journal of Applied Psychology, and several other journals.     

Are gold,USD, and Bitcoin hedge or safe haven against stock? The implication for risk management

This study investigates whether gold, USD, and Bitcoin are hedge and safe haven assets against stock and if they are useful in diversifying downside risk for international stock markets. We propose a combined GO-GARCH-EVT-copula approach to examine the hedge and safe haven properties of gold, USD, and Bitcoin. We then examine the attractiveness of these assets in reducing stock portfolio risk by using downside risk measures estimated by the proposed approach and other competing models. We also evaluate the relative performance of the proposed model in reducing downside risk with the competing models. The findings of the study indicate that the USD is the most valuable hedge and safe haven asset closely followed by gold, while Bitcoin is the least valuable. It is also observed that the proposed combined approach performs best in reducing the portfolio downside risk. The findings of this study are of significance for portfolio managers and individual investors who wish to protect the portfolio value during market turmoil.