Understanding the role of retail store service in light of self‐image–store image congruence

The relationships among a consumer's service experience, the servicescape, and perceived value for the money spent on the service are important theoretical as well as practical issues. Little effort has, however, been devoted to understanding these in the context of the effects of consumer image–store image congruency. Image congruency has not only been shown to be valuable in relation to product choices, but has also been shown to contribute to our understanding of retail store choice and preferences. This study examines the effect of retailer service provision and the retail store environment (servicescape) on the customers' perception of value for money. The study also examines the role of self–store image congruence in the above relationships. The findings confirm the hypothesized relationships in the conceptual model (except for servicescape effects). The findings also indicate that the effects are stronger for those individuals experiencing high self–store image congruence. © 2008 Wiley Periodicals, Inc.     

Strategic marketing practices and the performance of Chinese small and medium-sized enterprises (SMEs) in Taiwan

This paper reports on a survey of the strategic marketing practices of 218 small and medium-sized enterprises (SMEs) in Taiwan. The survey's results indicate that while the higher performing Taiwanese SMEs give a higher priority to marketing than to other business functions in corporate planning, they are still sales- or production-oriented. The higher performing Taiwanese SMEs are more aware of strategic planning tools, but they make less use of them. They compete with value-added products and good buyer-seller relationships. The findings suggest that broad, small firm marketing principles, specifically generated from countries in the West, to some extent contribute to the success of Taiwanese SMEs. Interestingly, however, the specific marketing practices of these small firms are different from those of their Western counterparts. The research results provide additional evidence to support the theory that both Chinese cultural value orientations and mediating environmental factors play significant roles in shaping the attitudes and behaviour of Taiwanese owner-managers and, in turn, the marketing practices of Taiwanese SMEs.     

The Dynamic Effects of Social Security on Individual Consumption, Wealth and Welfare

This paper presents a theoretical investigation of the dynamic effects of social security on individual consumption, wealth and welfare. The framework of analysis is Yaari's (1965) life–cycle model of saving with uncertain lifetime and borrowing constraint. A simple uniform social security system as well as an actuarially fair and fully funded social security system is considered. The presence of terminal wealth depletion is shown to play a pivotal role not only in the derivation of the results but also in the outcome of the analysis.     

Speculative trading preferences of retail investor birth cohorts

This study examines the effect of investor birth cohorts on speculative investment preferences. Using retail trading and portfolio data from Finland over two decades, we find that individuals who have experienced desirable macro-economic and social conditions during adolescence, such as high gross domestic product (GDP) growth and low divorce rates, are more likely to invest in speculative stocks. A positive relation is found between the proportion of speculative-prone cohorts in the stock market and returns of stocks of lottery nature. We provide new evidence on the adverse effect of speculative investments, finding that cohorts with higher speculative investment weights on their portfolios achieve lower absolute and risk-adjusted returns. We also provide support for earlier research that identifies a positive association between recent portfolio performance and the propensity to invest in speculative stocks.     

On Pricing and Hedging the No‐Negative‐Equity Guarantee in Equity Release Mechanisms

In a roll‐up mortgage, the borrower receives a loan in the form of a lump sum. The loan is rolled up with interest until the borrower dies, sells the house, or moves into long‐term care permanently. The house is sold at that time, and the proceeds are used to repay the loan and interest. Most roll‐up mortgages are sold with a no‐negative‐equity guarantee (NNEG), which caps the redemption amount at the lesser of the face amount of the loan and the sale proceeds. The core of this study is to develop a framework for pricing and managing the risks of the NNEG.     

The robustness of output measures in property-liability insurance efficiency studies

We empirically examine two methods for measuring output in property-liability insurer efficiency studies: the value-added approach and the “flow” (or financial intermediation) approach. The approaches are not mutually consistent. The value-added approach is closely related to traditional measures of firm performance, but the flow approach is not. In addition, efficient value-added approach firms are less likely to go insolvent, while firms characterized as efficient by the flow approach are generally more likely to fail. We also find that the theoretical concern regarding the value-added approach’s use of losses as a measure of output is not validated empirically.     

The Perfect Storm: Hurricanes, Insurance, and Regulation

The intense hurricane seasons of 2004 and 2005 caused considerable instability in property insurance markets in coastal states with the greatest problems occurring in Florida and the Southeast. Insurers have substantially raised rates and decreased their exposures. While no severe hurricanes struck the United States in 2006 and 2007, market pressures remain strong given the high risk still facing coastal states. These developments generate considerable concern and controversy among various stakeholder groups. Government responses have varied. In Florida, political pressures prompted a wave of legislation and regulations to expand government underwriting and subsidization of hurricane risk and constrain insurers' rates and market adjustments. Other states' actions seem more moderate. In this context, it is important to understand how property insurance markets have been changing and governments have been responding to increased catastrophe risk. This article examines important market developments and evaluates associated government policies. We comment on how regulation is affecting the equilibration of insurance markets and offer opinions on policies that are helpful and harmful.     

Augustinian Moral Consciousness and the Businessman

Augustine of Hippo (354–430 A.D.) meditated on the transcendent attributes of numbers that accountants so skillfully employ and on the attributes of moral rules. He thereby achieved a profound awareness of their Source in Truth. Nature is also governed by numbers; it is a “melody” that, again, woos one to its Source in Beauty. Whereas some businessmen meditate to clear their minds of clutter so as to make successful business decisions, Augustine persisted beyond the mere absence of clutter. Within the stream of his own consciousness he found a focal point that led to the experience of the presence of a transcendent God in his own deeper self. The “order of love” enables one to achieve balance and a higher freedom wherein one cannot do wrong and possesses the courage to work toward building an earthly city that is just and beautiful, one that facilitates Everyman’s penetration of his own depth. Grace Natoli received her Master’s degree and Doctorate from Fordham University, having written dissertations on Augustine the Stoic and on The Actualism of Giovanni Gentile. A recipient of Fulbright and Italian government grants, she studied at the University of Genoa with Michele Sciacca, who was strongly influenced by Augustine. She studied the subjective idealism of Gentile and the objective idealism of Antonio Rosmini and of Sciacca. She is Adjunct Assistant Professor of Philosophy at St. John’s University in Jamaica, New York.     

Structural effects and spillovers in HSIF, HSI and S&P500 volatility

We adopt a BEKK-GARCH framework and employ a systematic approach to jointly examine structural breaks in the Hong Kong cash index and index futures volatility and volatility spillovers from the S&P 500 cash and futures. Multiple switching dummy variables are included in the variance equations to test for any structural changes in the autoregressive volatility structure due to the events that have taken place in the Hong Kong market. Abolishment of the up-tick rule, increase of initial margins and electronic trading of the Hang Seng Index Futures (HSIF) are found to have significant impact when US market spillovers are excluded from a restricted model. Volatility spillovers from the US market are found to have a significant impact and account for some mis-specification in the restricted model.