Separating the Wheat from the Chaff: FMS, Flexibility and Socio-organizational Constraints

In contrast to arguments that flexible manufacturing systems (FMS) are highly versatile configurations that are only prevented from machining a wide range of parts by extrinsic constraints, this article contends that FMS are a genre of configurations that combine flexibility and intrinsic constraints in a variety of permutations, depending on a user's intended objectives. Empirical evidence is used to identify the factors that shape the levels of constraint in particular FMS and to identify instances where intrinsic constraints impede performance. Suggestions are made for initiatives to facilitate the continued use of FMS with the highest levels of intrinsic constraints that have hitherto hindered performance when the FMS users' manufacturing needs changed. Occupational structures that promote a polarization between staff with engineering knowledge and those responsible for defining general strategic objectives are suggested as a potential obstacle to such initiatives.     

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.     

The reluctant Hong Kong consumer: purchasing travel online

Hong Kong consumers have embraced the web but appear reluctant to buy airline tickets online, suggesting that perceptions of risk outweigh perceived convenience. In this study we identify that both risk and convenience factors are associated strongly with willingness to purchase, particularly privacy, security and poor customer service, time savings, site usability and information provision. We identify further that the experienced shopper is only moderately satisfied and that satisfaction appears to be associated strongly with willingness to make further purchases. Overall, findings suggest that although consumers recognize a number of benefits, there is deep‐rooted resistance to buying this particular product online. The explanation may lie in a combination of the physical density of the Hong Kong market, love of the whole shopping experience and a desire to minimize risk. We conclude that to tempt consumers online airlines and agents must target the Hong Kong market with a clear value proposition which includes user‐friendly sites, streamlined payment procedures, on‐ and offline customer support, price‐related promotions and tailored offline services which reinforce online offerings.     

THE MOMENT FORMULA FOR IMPLIED VOLATILITY AT EXTREME STRIKES

Consider options on a nonnegative underlying random variable with arbitrary distribution. In the absence of arbitrage, we show that at any maturity T , the large-strike tail of the Black-Scholes implied volatility skew is bounded by the square root of  2| x |/ T   , where x is log-moneyness. The smallest coefficient that can replace the 2 depends only on the number of finite moments in the underlying distribution. We prove the moment formula , which expresses explicitly this model-independent relationship. We prove also the reciprocal moment formula for the small-strike tail, and we exhibit the symmetry between the formulas. The moment formula, which evaluates readily in many cases of practical interest, has applications to skew extrapolation and model calibration.     

Interference of Picture and Brand Name in a Multiple Linkage Ad Context

This study investigates the superiority effects of picture incongruency and brand name suggestiveness on recall of target benefit claims. Depending on the juxtaposition of the picture and brand name with these claims, a relevant picture can interfere with and inhibit recall of a brand name claim under selected conditions. Specifically, recall of brand name claim was higher under an irrelevant rather than a relevant picture condition. Similarly, a suggestive brand name interfered and diminished recall of a picture claim compared to a nonsuggestive brand name. Additionally, the recall patterns of the picture (source) versus the picture claim (target) under various incongruency conditions showed that the effectiveness of picture incongruency on traditional picture recall measure cannot be extended to picture-related claim recall performance. Explanations based on theoretical extensions to the associated network model and interference theory are furnished together with the managerial implications regarding the effective use of picture incongruency and brand name suggestiveness.     

Tourists’ intention to visit a country: The impact of cultural distance

Culture has long been recognized as a possible reason why people in different countries make different decisions, but research into its impact in tourism contexts has been limited. This study addressed this gap by examining the influence of cultural distance on tourists’ destination choices. Five cultural distance measures were examined. Of the five measures, perceived cultural distance and Clark and Pugh's index were found to be most strongly related to Australian tourists’ intentions to visit a variety of holiday destinations. The perceived cultural distance measure appeared to be a better predictor and offers some advantages to researchers as it allows respondents to include relevant cultural information in tourism research. However, as Clark and Pugh's method provided similar information, cultural differences can be inferred when it is not possible to survey tourists directly.     

Evaluating travel website motivational communication using a structural equation modelling approach

This study examines online information value structure and its motivational communication competence using the motivational language theory (MLT). MLT explains how communication acts directed by managers to employees generate a greater motivation for work. Five information value dimensions — functional, hedonic, innovation, aesthetic and sign — were identified through literature on the subject of MLT and applied to online information. This study confirmed the multidimensionality of online information and proposed four online information dimensions: experiential (hedonic–innovation), sign, functional and aesthetic. The findings also suggested that experiential (hedonic–innovation) and functional information values have significant effects for travel motivation, including exploration, family togetherness, novelty, escape and socialisation. Copyright © 2010 John Wiley & Sons, Ltd.