How product usage influences consumer satisfaction

This paper reports on an empirical investigation of the effect of product usage on consumer satisfaction in the context of consumer durables. It conceptualizes three dimensions of usage-usage frequency, usage function and usage situation-and examines the impact of these usage dimensions on satisfaction. Results of a field survey using five consumer durables suggest that the usage dimensions influence satisfaction through corresponding dimensions of usage disconfirmation, independent of the effect of performance disconfirmation on satisfaction. The specific dimensions of usage disconfirmation which influence satisfaction vary by product.     

Is Cost-of-Service Regulation Worth the Cost?

Cost-of-service regulation that reduces prices will also reduce incentives to control cost. Increased output counteracts this trend when there are economies of scale. We derive closed-form approximations for the maximum cost increase that leaves a positive welfare gain when regulation reduces price by some percentage. To be useful to regulators, these approximations depend only on demand elasticity and the ratio of fixed to total cost. For low demand elasticities typical of regulated industries, price must fall by half to outweigh cost increases of as little as 2%. Cost-of-service regulation appears to reduce welfare unless economies of scale are strong. These conclusions may be reversed if regulators favor consumers, but only a slight bias in favor of the firm exacerbates them. Regulatory methods that preserve incentives to be efficient by divorcing price from cost become more appealing.     

An econometric analysis of the main components of M3 in the Euro area

An Econometric Analysis of the Main Components of M3 in the Euro Area. — The main result is that the four components of M3 in the euro area can be explained in terms of a small set of explanatory variables (nominal GDP and interest rates) for the sample period January 1990 — September 1999 both in terms of levels and as shares of M3. Moreover, overall cointegration tests broadly support the hypothesis of long-run stability of the demand for the components of M3 and for M3 itself in nominal terms. Around the start of Stage Three of Monetary Union significant substitution between the components of M3 is detected. A refinement of the empirical analysis takes into account the correlation of the unexplained movements of the individual components using the SUR technique.     

What Will Consumers Pay for Social Product Features?

The importance of ethical consumerism to many companies worldwide has increased dramatically in recent years. Ethical consumerism encompasses the importance of non-traditional and social components of a company's products and business process to strategic success – such as environmental protectionism, child labor practices and so on. The present paper utilizes a random utility theoretic experimental design to provide estimates of the relative value selected consumers place on the social features of products.     

The Role of Innovation in Upgrading in Global Value Chains

ABSTRACT

We examine the role of innovative efforts in industries from the perspective of global value chains (GVCs). We set up a simple model and empirically test it using patent and bilateral export decomposition data. The model shows that innovative activities assumed to decrease the cost of conducting high-skilled tasks can upgrade the position of the industry in GVCs. This is also supported by data on patents and GVC-related data from the OECD and the Asian Development Bank. The empirical results reveal that a higher number of patent applications are closely related to more production of intermediate goods rather than assembly.     

Health state utilities associated with treatment options for acute myeloid leukemia (AML)

Abstract

Aims: Acute myeloid leukemia (AML) treatment typically involves remission induction chemotherapy followed by consolidation chemotherapy. New treatments for AML have recently been introduced, including a chemotherapy formulation called CPX-351, which is administered via less time-intensive IV infusion than the standard “7?+?3” continuous infusion regimen of cytarabine plus an anthracycline. The purpose of this study was to estimate utilities that could be used in economic modeling of AML treatment.

Materials and methods: In time trade-off interviews, participants from the UK general population valued 12 health states drafted based on literature and clinician interviews. To identify disutility associated with chemotherapy, two types of induction and four types of consolidation were added to an otherwise identical health state describing AML. The decrease in utility when adding these chemotherapy regimens represents the disutility of each regimen. Five additional health states were valued to estimate utilities associated with other AML treatments.

Results: Two hundred participants completed interviews. Mean (SD) utilities were 0.55 (0.31) for pre-treatment AML and 0.66 (0.29) for AML in temporary remission. Adding any chemotherapy significantly decreased utility (p?<?0.0001). Induction had a mean disutility of –0.11 with CPX-351 and –0.15 with 7?+?3. Mean disutility for consolidation ranged from –0.03 with outpatient CPX-351 to –0.11 with inpatient 5?+?2. Utilities are also reported for other AML treatments (e.g. transplant, low-intensity chemotherapy).

Limitations: One limitation is that the differences in adverse event profiles between the treatment regimens were based on clinician opinion. Future use of CPX-351 in clinical trials or clinical settings will provide additional information on its adverse event profile.

Conclusions: While all chemotherapy regimens were associated with disutility, regimens with shorter hospitalization and less time-intensive infusion were generally perceived as preferable. These utilities may be useful in cost-utility models comparing the value of AML treatments.     

Visitors' Motivation for Attending the South Beach Wine and Food Festival,Miami Beach,Florida

The objective of this study was to identify the major factors that motivated visitors to attend the South Beach Wine and Food Festival in Miami Beach, Florida, and determine whether these factors varied among the visitors from the United States, Canada, South America, Europe, and Asia. A survey of 475 visitors to South Florida was conducted in February 2006. Forty‐four motivational items were factor analyzed. The seven factors that motivated first‐time visitors to the festival were the desire to taste new wine and food, enjoy the event, enhance social status, escape from routine life, meet new people, spend time with family, and get to know the celebrity chefs and wine experts. A significant difference in motivation among the five national groups of visitors was found in the area of family influence. Implications of the study results are discussed.     

Assessment of Medical Tourism Development in Korea for the Achievement of Competitive Advantages

Medical tourism is a rapidly growing industry in which people travel to other countries to receive medical treatments. In 2010, Korea attracted 81,789 foreign medical tourists who spent approximately US$100 million. The aims of this study are to analyze general trends in the medical tourism market, identify problems, or obstacles that affect the development of medical tourism in Korea, provide solutions to overcome these obstacles, and propose better policies. This study employed qualitative research methods, including content analysis of written publications and in-depth interviews. According to the results of the analysis of Korean medical tourism, the weaknesses of the system include insufficient promotion, the lack of a centralized administrative support system, the absence of differentiation strategies with respect to competing nations, an insufficient number of medical tourism professionals, and an inadequate legal system. In addition, this study identified threats that include competition from other countries offering medical tourism, the emergence of new competitors in East Asia, unexpected global crises, and international antagonism against Korea. This article discusses solutions addressing these weaknesses and threats and presents strategies that Korea can adopt to become one of the premier destinations for medical tourism.