Do early adopters upgrade early? Role of post-adoption behavior in the purchase of next-generation products

In examining the adoption of innovations, marketing researchers have generally assumed that the early adopters of one product are more likely to be early in adopting the next generation of products. However, there seems to be a missing link between buyers' first adoptions and their next-generation purchases, or upgrades. This paper tries to fill the gap by incorporating users' post-adoption behavior into the model of buyers' product upgrade behavior on the successive versions of innovations. Survey data on cell phone purchases in Korea confirm the idea that the post-adoption behavior, particularly the use of innovative features, plays a critical role in developing users' intention to upgrade.     

Organizational characteristics and the CRM adoption process

The purpose of this study is to identify the status of Customer Relationship Management (CRM) adoption and explore the influence of organizational characteristics on the CRM adoption process in the Korean fashion industry. Using Rogers' [Rogers EM. Diffusion of innovation. New York: Free Press; 1995] innovation decision process model as the conceptual basis, this study surveyed 94 Korean fashion companies to investigate the persuasion, decision, and implementation stages of CRM adoption. Organizational variables included firm characteristics (size, strategy, maturity of information system), product characteristics (category, fashion position, seasonality), and CEO characteristics (age, education). The most frequently used CRM technology is the development of a customer database, whereas the mostly frequently mentioned benefits of CRM are encouraging repurchase. Moreover, respondents' perceptions of CRM benefits affect CRM adoption, influencing the use of various CRM technologies. Organizational strategy, maturity of information system, and product category all significantly influence the adoption process. Empirical findings provide further support for the innovation decision process model developed by Rogers [Rogers EM. Diffusion of innovation. New York: Free Press; 1995] and the CRM adoption model can be used when fashion companies do strategic planning and evaluate the possibility of adopting CRM strategies.     

PRICING IN AN INCOMPLETE MARKET WITH AN AFFINE TERM STRUCTURE

We apply the principle of equivalent utility to calculate the indifference price of the writer of a contingent claim in an incomplete market. To recognize the long-term nature of many such claims, we allow the short rate to be random in such a way that the term structure is affine. We also consider a general diffusion process for the risky stock (index) in our market. In a complete market setting, the resulting indifference price is the same as the one obtained by no-arbitrage arguments. We also show how to compute indifference prices for two types of contingent claims in an incomplete market, in the case for which the utility function is exponential. The first is a catastrophe risk bond that pays a fixed amount at a given time if a catastrophe does not occur before that time. The second is equity-indexed term life insurance which pays a death benefit that is a function of the short rate and stock price at the random time of the death of the insured. Because we assume that the occurrence of the catastrophe or the death of the insured is independent of the financial market, the markets for the catastrophe risk bond and the equity-indexed life insurance are incomplete.     

Further Evidence of Unsatisfied Clienteles in International Capital Financing

Numerous studies find that shareholders do not gain from the security sales. This study documents a significant exception, new capital offerings by Japanese banks. Market reactions to these sales are significantly positive; however, these issues have two unusual features. First, new convertible bonds and equity shares are simultane-ously offered. Second, the issues are often denominated in multiple currencies and sold in multiple countries. Tests indicate that the multiple markets/multiple currency feature is strongly related to abnormal performance. These findings are consistent with an unsatisfied clientele in international security sales of creditworthy firms.     

Stock Return Seasonalities in Asia Pacific Markets*

This study documents the existence of strong day-of-the-week effects for most of the Asia Pacific markets. There are also more day-of-the-week variations in the non-January months than in January and there is also a ‘Rogalski’ effect for returns on Monday, Tuesday, Friday and Saturday. Moreover, some turn-of-the-lunar-year effects are found for some markets. Unlike the industrialized markets, month-of-the-year variations are not consistent with the tax-loss selling hypothesis in most of the Asia Pacific markets. This study also finds it hard to reject the hypothesis that day-of-the-week variations of Asia Pacific markets are similar to that of the U.S. market after adjustments for time zone differences, especially for smaller markets.     

The Earnings Information Content of Dividend Initiations and Omissions

Previous studies have found that dividend initiations and omissions convey important information about subsequent earnings changes. However, this finding may be subject to a sample survival bias. We find that survivorship does not affect the positive relation between dividend changes and past earnings changes. Also, we find dividend omitting firms are able to generate significantly positive earnings one to two years after the omission. However, contrary to previous findings, firms' earnings are not significantly increased following the dividend initiation. The results suggest that survivorship tends to bias inference toward finding that dividends signal future earnings.     

Paradigms,Conventions and the Entrepreneur:

Abstract Criticism of the book by Choi is expressed by Professor Pressman and responded to by the author. Three problems are noted. These deal with ambiguities in the concept of paradigms and conventions, the relationship between them, and how individual feelings of envy and the notion of social conventions fail to provide a good justification for fully supporting entrepreneurship.     

The trade‐off of reliability for relevance within a stewardship setting

In a single period stewardship setting in which an agent has some reporting discretion, we identify the types of reporting discretion that lead to relevant and reliable reporting. We also provide instances when the reporting discretion available to the agent will cause these two characteristics of reporting to be in conflict. Copyright © 2001 John Wiley & Sons, Ltd.