Assessing Brand Origin Recognition Accuracy and its Antecedents in a Developing Country

The aim of the present study was to examine two main questions regarding Indonesian consumers. First, what are the brand origin recognition accuracy (BORA) scores for both foreign brands and local brands among Indonesian consumers? Second, are socio-economic characteristics (education and income/spending), international experience (international travel and foreign language expertise), and demographic factors (age and gender) related to consumers’ brand origin recognition accuracy? The present research follows BORA procedures in the selection of 88 brands (44 foreign and 44 local brands). Questionnaires were distributed both offline and online, with 138 respondents participating offline and 163 people responding online. The BORA scores for both foreign and local brands among Indonesian consumers were relatively low (28.79% and 53.85%, respectively). BORA was also related to socio-economic characteristics, international experience, and age. In addition, men demonstrated higher BORA levels for foreign brands than women did. Most consumers were unable to differentiate brand origins because of the use of foreign languages for the brand names. Therefore, the foreign branding strategy of using languages of other countries (e.g., English, Chinese, Japanese, and so forth) that have positive images for particular product categories could be effectively employed in Indonesia.     

Block Structural Path Analysis: Applications to Structural Changes in the Indonesian Economy

The compilation of several social accounting matrices for Indonesia has enabled the analysis of some important aspects of the structure of the Indonesian economy. In the present paper, the analysis that has been conducted with structural path methods will be enhanced through the identification of a block structure for the technique. This block structural path analysis is offered as a complement to—not a replacement for—the traditional applications of this method. A new form of triple decomposition of the social accounting matrix inverse is offered to assist in identifying important changes in the structure of the Indonesian economy for 1975, 1980 and 1985.     

The impact of cultural orientation on perceived fairness over demand-based pricing

Revenue management practices are now being implemented by hotel firms on a global scale. This requires a finer understanding of how different cultures will relate to perceived unfairness that stems from the inequities inherent in demand-based pricing. In this context, individualism and collectivism as cultural constructs have been used extensively in cross-cultural research. These constructs are manifested with vertical and horizontal orientations that distinguish social patterns based on the acceptance of a hierarchy or conversely the preference over equality. The purpose of this study was to examine the relationships between vertical and horizontal orientations of individualism and collectivism with perceived price fairness over demand-based pricing. Findings indicate that vertical individualism has a significantly positive relationship with perceived price fairness. This can be attributed to the inherent acceptance of inequality in this cultural dimension combined with the emphasis of the individual over the collective unit. Marketing implications for lodging managers are discussed.     

How Costly is the Deliberate Disinflation in India? Estimating the Sacrifice Ratio

Journal of Quantitative Economics - Methods followed in earlier studies for estimating the sacrifice ratio or the real cost of deliberate disinflation have focused only on aggregate supply side...     

Integrating Production Costs in Channel Decisions

Production costs are critical in every business. In this research, we explore how variations in the manufacturer's production cost affect both the manufacturer-retailer channel relationship and the manufacturer's and the retailer's choice of a price-setting rule (e.g., a dollar-amount margin or a percentage-based margin). We employ a multidisciplinary approach that combines executive interviews, survey research, and a game-theoretic analytical model. The analytical model shows that both the manufacturer's and the retailer's price-setting rule influences the other party's approach to production cost. Therefore, the manufacturer's and the retailer's optimal choice of a price-setting rule is not invariant, as previous marketing literature has suggested; such choices depend on the shape of the production cost function. Overall, the results offer new insight into the channel outcomes in light of production costs. The empirical results support the analytical results.     

A Stakeholder Perspective for Analyzing Marketing Relationships

This paper proposes a framework that enables the application of stakeholder theory to the analysis of marketing relationships. By distinguishing between different types of stakeholder relationships, stretching from the positive to the negative side of relationships (i.e. the ladder of stakeholder loyalty), and describing the various relational factors (i.e. relationship orientation, trust, communication, learning, power, reciprocity and commitment) that shape a specific relationship, the proposed framework enables marketers to analyze their firm's diverse relationships. The paper provides a meaningful starting point for developing strategies to change the type of relationship with a specific stakeholder.     

Developing competitive technical intelligence in Indonesia

In Indonesia, political concern promotes the development of autonomy in provinces and in certain academic institutions. This paper relates that with the commencing of AFTA in 2003, there is a strong need for competitive intelligence (CI) and technology watch (TW) in Indonesian industries. The model developed takes its roots within Indonesian constraints and leads to a general guideline to introduce CI in industries and institutions in most developing countries.     

Accounting and economic consequences of CEO paycuts

Boards sometimes cut a CEO’s pay following poor performance. This study examines whether such CEO paycuts really work. We identify 1,496 instances of large CEO paycuts during the period 1994–2013. We then create a propensity-score-matched control group of firms that did not cut their CEOs’ pay and employ a difference-in-differences approach to examine the consequences of paycuts. Our results show that, following a paycut, CEOs are likely to engage in earnings management in an attempt to accelerate improvement in the reported performance and to achieve a speedier restoration of their pay to pre-cut levels. Further, we find that improvement in long-term performance after a paycut occurs only for those firms with lower levels of earnings management after the paycut. Finally, we show that paycuts are more likely to lead to unintended value-destroying consequences in the absence of high institutional ownership or when the CEO is sufficiently entrenched, thereby impairing the effectiveness of internal monitoring by boards.