Motivations and Barriers to Corporate Environmental Management

This paper integrates two conceptual frameworks, utility maximization and institutional theory, to analyze voluntary corporate environmental management. The utility maximization or economic approach centers on motivations to decrease cost, increase revenue and improve manager utility. Institutional theory emphasizes how external pressures from market and non‐market constituents shape the firm's environmental efforts. We view the two frameworks as complementary and postulate a model that includes both types of influences. Survey data from six major industries consisting of a diverse set of facilities are used to estimate the effects of economic and institutional factors on a facility's use of environmental practices and pollution‐prevention activities. Our results support the hypothesized model, and show that cost barriers, management attitudes toward environmental stewardship, company ownership and external institutional forces, including competitiveness, investor and regulatory pressures, all affect a facility's environmental practices and pollution prevention activities. Findings suggest that a multifaceted policy strategy is needed to advance corporate environmental management across diverse firms. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment     

Why customers won't relate: Obstacles to relationship marketing engagement

Due to the challenges associated with reaching consumers using traditional marketing approaches, firms increasingly rely on relational marketing tactics to increase customer patronage with the firm. Yet, consumers often actively avoid relational devices. Thus, firms have a heightened interest in factors that affect customer engagement in relationship marketing efforts. This research provides an empirical test of a model based on equity theory and previous findings regarding psychological engagement. The model predicts whether customers are willing to engage in different relational tactics offered by firms, measured by a formative, actionable Relationship Program Receptiveness (RPR) Index. The results indicate customer perceptions of the inconvenience and anticipated benefits, two factors controlled by the firm, affect RPR. In addition, customer factors, including general privacy concerns, involvement and shopping frequency, affect RPR. Managerially, the results suggest specific actions firms can take to increase the likelihood that consumers engage in relational marketing efforts.     

An examination of selected marketing mix elements and brand equity

This study explores the relationships between selected marketing mix elements and the creation of brand equity. The authors propose a conceptual framework in which marketing elements are related to the dimensions of brand equity, that is, perceived quality, brand loyalty, and brand associations combined with brand awareness. These dimensions are then related to brand equity. The empirical tests using a structural equation model support the research hypotheses. The results show that frequent price promotions, such as price deals, are related to low brand equity, whereas high advertising spending, high price, good store image, and high distribution intensity are related to high brand equity. Boonghee Yoo (Ph.D., Georgia State University) is an assistant professor of marketing at St. Cloud State University. His research interests include brand equity, cross-cultural scale development, service quality, retail productivity, Internet marketing, and marketing methodology. He has published previously in theJournal of Retailing, theJournal of Business Research, theJournal of Business & Industrial Marketing, theJournal of Service Research, and theJournal of Marketing Channels. Naveen Donthu (Ph. D., University of Texas, Austin) is a professor of marketing at Georgia State University. His research interests center on research methodology, site selection models, comparative and outdoor advertising, brand equity, Hispanic consumer research, cross-cultural issues, and customer satisfaction. His work has appeared in journals such asMarketing Science, theJournal of Marketing Research, theJournal of Consumer Research, theJournal of the Academy of Marketing Science, theJournal of Advertising, theJournal of Advertising Research, theJournal of Retailing, and theJournal of Business Research. Sungho Lee (Ph.D., University of Illinois at Urbana-Champaign) is an assistant professor of marketing at the University of Seoul, South Korea. His research focuses on understanding consumers’ cognitive processing of brand and price information, brand extension and brand equity, and advertising-driven persuasion processes. He has published previously inAdvances in Consumer Research, Asia-Pacific Advances in Consumer Research, Academy of Marketing Science-World Marketing Congress, Korean Marketing Review, andKorean Management Review.     

Role of absorptive capabilities in outsourcing the headquarters selling task in the United States

Manufacturers often outsource headquarters selling task to sales and marketing agencies. Headquarters selling task is one of the most outsourced sales and marketing functions and it entails all the activities that a manufacturer conducts in order to sell its product line to the headquarters of a retailer. Thus, effective management of headquarters selling task has a strategic importance for the manufacturer. This study examines the role of absorptive capabilities in outsourcing headquarters selling task. Using resource-advantage theory, this study proposes a theoretical model to link the resources and absorptive capabilities of the outsourcer (manufacturer) and the outsourcee (sales and marketing agency) to performance outcomes. Using data from field interviews of managers an empirical model was tested. The results showed that resources of both the outsourcer and the outsourcee are important in turning potential complementarities into higher outsourcing performance. Contrary to the common belief that outsourcing is a one-sided transaction where only the outsourcee is responsible from the performance outcomes, this study suggests that both parties involved need to combine their resource assortments in the accomplishment of the task.     

International review of ecodesign programs for products and lessons learned for China

ABSTRACT

Since the 1980s, ecodesign has emerged as a new guiding principle for integrating environmental aspects into product design and development, with the aim of reducing adverse environmental life-cycle impacts. For China, the concept of ecodesign is becoming important in advancing Chinese industrial development while mitigating the rise in national energy consumption and emissions. We reviewed 28 existing ecodesign labels and supporting programs adopted globally to identify lessons learned and best practices for the development of potential ecodesign labeling programs in China. We find that systematic framework and process and inclusion of various stakeholders in developing criteria, certification requirements and supporting policies in the form of green procurement, small local pilot subsidies, and active outreach and communication are key success factors of international programs. Based on international experiences and by leveraging existing Chinese frameworks for labeling and policies, China has an opportunity to lead in developing broader environmental criteria for a new ecodesign labeling program.     

The Effect of Organizational form on Information Flow and Decision Quality: Informational Cascades in Group Decision Making

This paper identifies a disadvantage to decision making in a team. We show that in some cases available information is lost due to sequential communication that results in informational cascades. Although incentive contracts exist that prevent cascades, in some cases these contracts do not maximize shareholders' expected residual value and cascades are tolerated in equilibrium. Cascades never occur in hierarchies that exogenously prevent communication. However, when the firm is organized as a hierarchy (and the agents are given the optimal hierarchical contract), in some cases agents will collude and sequentially communicate, admitting the possibility of cascades. In these cases, the principals must monitor and enforce the hierarchical process. When monitoring costs exceed the cost of cascades, the team is the optimal organizational form.     

Globalization and Voluntary Environmental Management in Developing Countries

Weak capacity to enforce regulations and sanction violators, and an emphasis on economic growth in developing countries has led to concerns about worsening environmental conditions and the potential for these countries becoming pollution havens for multinational corporations. International environmental standards, voluntary programs, and public disclosure programs have gained popularity because they engage market participants in providing incentives for self-regulation and have the potential to substitute for the lack of domestic regulatory capacity. This paper analyzes the motivations for firms to undertake voluntary environmental management and reviews the empirical evidence on the type of firms participating in such initiatives and their effectiveness in improving environmental performance. We also consider the special case of China that has witnessed dramatic globalization following its acceptance into the World Trade Organization and participation by its firms in global supply chains. We conclude with a discussion of the effectiveness of these efforts as a substitute for weak regulatory and civic society pressures in these countries.     

Speed-profile-based road segmentation for accident occurrence modelling for hilly terrains

Modelling the accident occurrences per unit length of the road requires segmentation of road stretch. In the case of hilly terrains, homogeneity-based approach results in extremely small sections thus creating a biased accident data. This result is due to the high variations in geometry along the length of the road stretch. Constant length sections do not consider the effect of road's characteristics, hence may lead to undesirable results. It is hypothesized that the speed profile of a vehicle moving in free-flow conditions is governed by the road geometry as well as the road side environment. In this paper, a new methodology based on speed profile of a test vehicle (passenger car) has been proposed for segmenting a road stretch passing through hilly terrain. Comparative analysis of the results obtained from the constant length segmentation approach and the proposed approach shows that the later approach is producing statistically better results. Relatively more parameters were found to be statistically significant in the model based on speed-profile-based segmentation. Grade length, which could be one of the major parameters in hilly terrains, was found to be statistically significant only in the model based on speed-profile-based segmentation.     

Where the twain shall meet? A study of best practices to resolve retailer–supplier acrimony in post-audit recovery of trade promotion dollars

Abstract

Deductions and claims to recover trade promotions incentives through post-audit of previous years’ transactions is a highly contentious but prevalent practice in the industry. Retailers, given their low margins of operations, are motivated to seek every opportunity to obtain extra incentives from suppliers to boost their profits. They often hire third-party post-auditors to scrub through all their transactions and “deal sheets” or supplier agreements to search for potential unclaimed trade promotion dollars promised by suppliers in prior years. Third party auditors have an incentive to also make dubious claims as they are compensated on contingency fees of a percent of claims recovered. Such practices lead to acrimony between retailers and suppliers. They often have differing viewpoints and opinions about the contextual terms of the trade promotion deals itself leading to an opinion “chasm” that is sometimes difficult to bridge. The resulting tension among retailers and suppliers, along with regulatory compliance under the Sarbanes–Oxley Act, and prevailing questions on the role and practices of post-auditors, motivated this study. Conducted over a 24-month period with extensive collaboration and research discussions between the study team and responsible managers from leading US retail and manufacturing companies. The distinctive mix of academic rigor and practitioner relevance was the hallmark of this study that involved three retail summits conducted with industry participants to discuss the research method and its resultant findings. Evidence suggests that transactional discrepancies will continue to happen, despite technological advances, because of large volume of transactions and multiplicity of complex trade promotion methods in vogue in the retail world. So, as long as there are claim opportunities, post-audit recovery practices will continue, confounding the darker side of the retailer–supplier relationship. Through a multi-stage and multi-level study, and data from a variety of sources, we identify best practices in post-audit recovery and suggest ways to reduce associated conflict and improve relationship satisfaction.     

Why negative brand extension evaluations do not always negatively affect the brand: The role of central and peripheral brand associations

This research introduces the concept of brand association centrality and distinguishes central brand associations (CBAs) and peripheral brand associations (PBAs). Study 1 shows that the consistency with CBAs and PBAs influences perceived brand extension fit. However, the brand extension consistency with CBAs positively affects consumer–brand extension evaluations, while the brand extension consistency with PBAs does not have a significant effect. Study 2 demonstrates the mediating role of perceived fit between brand extension consistency with CBAs and brand extension evaluations. The study shows that the more inconsistent the product extension is with CBAs, the more the brand's image is altered and the faster brand evaluations deteriorate. In contrast, the brand extension inconsistency with PBAs does not affect brand evaluations.