Experience and facilitating conditions as impediments to consumers’ new technology adoption

The recent proliferation of new technologies and impediments to their adoption has made predicting new technology adoption/use complex and challenging. This paper aims to compare the predictive ability of behavioural expectation (BE) and behavioural intention (BI) given such impediments. BE predicts an attempt to perform a targeted behaviour, whereas BI predicts the likelihood of actually performing a targeted behaviour. An online longitudinal experiment was designed to examine the effects of two contrasting sources of impediments to new technology adoption: experience (internal) and facilitating conditions (external). The results confirm the tendency of subjects, who responded to BI measures, to make overestimations when they think they have more control over the (internal) impediments, and to make exaggerated underestimations when they think they have less control over the (external) impediments. Moreover, it is found that subjects who responded to BE measures have a stronger adoption–use correlation compared to subjects who responded to BI measures regardless of the type of impediments encountered. This study offers a basis for marketers to increase the rate of consumers’ adoption/use of new technology such as mobile applications. The research identifies boundary conditions to the predictive ability of BE and BI in the context of mobile applications adoption/use.     

Forecasting Medical Net Discount Rates

Determining the present value of future medical costs is an important issue for a variety of public and private entities. This article examines the time‐series properties of medical net discount rates and considers the implications for forecasting. The article provides evidence that the standard autoregressive moving average forecasting model may be improved by modeling the time‐varying volatility characteristics of the medical net discount rates.     

Contents of Volume 15

Volume Contents

Contents of Volume 15     

The Differential Growth Effect of FDI across US Regions

In this paper we examine and assess the differential impact of FDI on growth in eight US regions, as defined by the Bureau of Economic Analysis (BEA). The results show that the manufacturing FDI–growth relationship tends to vary across regions. In particular, while the New England, Mideast, Great Lakes, Rocky Mountains and Far West regions experienced a positive growth effect of manufacturing FDI over the sample period 1977–2001, other regions showed little evidence of such a relationship. Using disaggregated data across manufacturing sectors, we also find that there are great regional variations concerning the FDI–growth nexus, and only the Great Lakes and Far West regions experienced a beneficial impact of FDI on growth in all five manufacturing sectors examined.     

The impact of personalised incentives on the profitability of customer retention campaigns

Traditional approaches to managing customer churn have typically concentrated on those customers most likely to defect. While accurately predicting customer churn probability is important, this metric alone does not sufficiently empower managers to make optimal decisions. Hence, the current study focuses on the relationship between retention incentives and profit maximisation. Specifically, we improve existing churn management practices by: (1) allowing for customer heterogeneity in incentive redemption behaviour, (2) introducing the dependence of the probability of accepting an incentive on its monetary value, and (3) offering an improved model for developing retention campaigns. We support our conclusions with empirical data and simulations and make tangible managerial recommendations.     

A Time Series Approach to Examining Regional Economic Resiliency to Hurricanes

Hurricanes disrupt business processes and activities, energy distribution and consumption, and services of infrastructure and lead to a reallocation of resources and their uses. This research models the relationship among economic and engineering measures of the state of the built environment in order to provide insight into a region's ability to withstand and recover from a future hurricane. As such, we provide a quantitative approach to modeling and measuring a region's economic resiliency. The findings have implications for developing strategies for long‐term sustainability of economic regions.     

Brand Management in Small to Medium‐Sized Enterprises*

Although an impressive body of literature has emerged focusing on the critical activities involved in brand management for larger organizations with well‐established brands and substantial marketing budgets, no research has been undertaken to examine branding within small to medium‐sized enterprises (SMEs). The present study therefore seeks to assess the nature and scope of brand management within an SME context. Findings show significant differences between small and large organizations along 9 of the 10 brand management dimensions reported in Keller's brand report card. Moreover, different brand management practices are associated with business performance in SMEs. Implications of the study are highlighted, limitations noted, and directions for future research outlined.     

Monetary Policy and Stock Returns

The Standard & Poor stock market composite index is examined to determine how much of the variance in returns can be explained by monetary policy. The note employs the econometric technique of generalized forecast error variance decomposition developed by Koop et al . ( Journal of Econometrics , vol. 74, 1996, pp.119–47) and Pesaran and Shin ( Economics Letters , vol. 58, pp.17–29). Unlike the traditional orthogonalized decomposition, the generalized version is invariant to the ordering of the variables in the underlying vector autoregression. The results provide important information about the relationship between monetary policy and the stock market.