Shanghai's service apartments: Product,pricing and competition

In 1998, a total of 18 existing service apartments have been identified in Shanghai, with about a third being luxurious service apartments. The majority of the service apartments were built within the last two years. A luxurious service apartment provides hotel‐like facilities, coupled with a home‐away‐from‐home atmosphere for long‐stay guests. Typically, comprised of one or more, bedrooms, a kitchen equipped with all conceivable household appliances and many other conveniences, guests also enjoy housekeeping and laundry service packages. Shanghai, with a population of over 15 million, has made great progress in its modernization efforts, and is fast catching up to become a financial center of Asia. The foreign investors, expatriate personnel and their families constitute the potential demand for luxurious service apartment as a major type of lodging facilities in Shanghai. This paper presents a research study to identify the marketing strategies of luxurious service apartments in Shanghai. To uncover the characteristics of their operations and their clients, two surveys are conducted, one on the existing service apartments and the other on their users.     

What should we call this color? The influence of color-naming on consumers' attitude toward the product

Many companies use unique color names to differentiate products, attract consumer attention, and promote sales. This study categorizes the names of colors in detail, and uses schema incongruity and affect regulation theory to elucidate the effects of color names with different typicality and ambiguity. We identify the underlying mechanism and explore how color attribute importance and color name valence moderate the effects of the color name. The results of five studies show the following: (a) atypical-low ambiguity color names (vs. atypical-high ambiguity and typical color names) create a more favorable consumer attitude toward the product; (b) when color is the primary attribute of the product, typical color names are more effective; when color is a secondary attribute, atypical color names yield more favorable effects; (c) for positively-valenced color names, an atypical-low ambiguity naming method yields a better response, while for negatively-valenced color names, an atypical-high ambiguity naming method yields a more favorable response; and (d) the color-naming effects are mediated by perceived product uniqueness or playfulness, depending on different conditions.     

Household characteristics and the change of financial risk tolerance during the financial crisis in the United States

This study examines how household financial risk tolerance is affected during the period of 2007 and 2009, which covered the eve and trough of the financial crisis in the United States and what types of households are associated with the change of risk tolerance. Risk tolerance is measured by two objective indicators, narrowly and broadly defined stock ownership, and a subjective indicator, risk taking attitude. Using panel data from 2007 to 2009 Survey of Consumer Finances, results show that during the financial crisis, the households in general are more risk averse, indicated by withdrawing from stock markets and holding a less risk taking attitude. In addition, Black and Hispanic households are more likely and households with higher education are less likely to withdraw from stock markets. Older households are less likely to change in risk tolerance during the financial crisis, as are richer households. The findings show panel data could generate novel results and contribute to the literature of financial risk tolerance.     

Direct Election of Group Decision-Makers Can Facilitate Cooperation in the Public Goods Game

Research on social dilemma has shown that the delegation of decision-making to group leaders can increase cooperation in the collective action problem. In this paper, we show that the voting scheme used for the election of leaders could make a difference to the emergence of cooperation. We design a public goods game experiment in which actors elect leaders to make decisions on their behalf in the contribution to public goods. In particular, we compare the leadership elected from direct and indirect election systems. In direct election, a leader is elected directly by majority-votes from a group, whereas in indirect election the group is divided into smaller subgroups and a leader is elected from the elected subgroup leaders. We run a simulation model to show that direct election would choose a more cooperative leader than indirect election when voters’ preferences of leadership are not homogenous. A laboratory experiment with human subjects further indicates that people hold stronger preferences for cooperators as leaders in direct election than in indirect election, suggesting that the voting scheme has an effect not only on the processing of actors’ preferences, but also on the shaping of their preferences of leadership in the public goods dilemma.     

Valuing Seller‐Defaultable Options

This study analyzes seller‐defaultable options that allow option writers to have a free‐will right to default, along with some prespecified default mechanisms. We analytically and numerically examine the pricing, hedging, defaulting, and profitability of the seller‐defaultable options, considering three possible scenarios for seller default. Analyzing the essential implications of seller‐defaultable options, we show that the option price is positively correlated with the default fine, underlying asset price, and volatility. The seller‐defaultable option's Greeks appear more complicated than those of the plain vanilla options. The likelihood of sellers defaulting increases with the underlying asset price, interest rate, volatility, and maturity time. Subject to the default mechanism, the buyers’ trading involves a trade‐off between profits and costs. © 2012 Wiley Periodicals, Inc. Jrl Fut Mark 33:129–157, 2013     

A study to identify the training needs of life insurance sales representatives in Taiwan using the Delphi approach

This article reports a study conducted to identify the needs for continuing professional development for life insurance sales representatives and to examine the competencies needed by those sales representatives. A modified Delphi technique was used. Most life insurance companies in the USA implement an education and training plan advocated by the Life Office Management Association. Insurance companies in Taiwan implement similar education and training plans, but they do not seem to result in the successful performance of their sales representatives. Besides augmenting knowledge of various financial products and marketing approaches, this study also suggests that life insurance companies need to train their sales representatives to an adequate standard in competencies of problem solving, communication, information technology utilization, culture compatibility, emotional intelligence, collective competence and ethics.