Practice papers: The evolution of segmentation methods in financial services: Where next?

Over the last few years, the financial services market has seen a proliferation of new players and new channels. Customers have increased expectations of being offered the right products, at the right time and for the right reasons. Demographics and affluence have always been the backbone of segmentation tools, but is this still sufficient to meet the challenges that today's marketers face? This paper is a review of how customer segmentation has evolved within the financial services market and the corresponding demand for consumer information. It assesses whether today's segmentation tools remain sufficiently innovative to provide marketers with the information they require in order to maintain competitive advantage in a highly competitive marketplace.     

Whistleblowing and management accounting: An approach

In this paper, we consider the licensing of and codes of ethics that affect the accountant not in public accounting, the potential for an accountant not in public accounting encountering an ethical conflict situation, and the moral responsibility of such accountant when faced with an ethical dilemma. We review an approach suggested by the National Association of Accountants for dealing with an ethical conflict situation including that association's position on whistleblowing. We propose another approach based on the work of De George (1981), in which both internal and external whistleblowing are possible alternatives, for use by management accountants in an ethical conflict situation. Finally, we consider the implications of our analysis for management accounting. While most of the analysis centers on management accountants, we note the likely applicability of the analysis to accountants in the public sector. Dr. Stephen E. Loeb is Professor and Chairman of Accounting and the Ernst and Young Alumni Research Fellow at the University of Maryland at College Park. He is the author or co-author of a number of articles relating to accounting and ethics that have appeared in journals such as The Accounting Review, the Journal of Accounting Research, the Journal of Accountancy, and The Government Accountants Journal. Dr. Loeb is co-editor of the Journal of Accounting and Public Policy.Dr. Suzanne N. Cory is Associate Professor of Accounting at California State University, San Bernardino. A good deal of the work on this paper was done while Dr. Cory was a faculty member at The George Washington University.We are indebted to Lawrence A. Gorden, Allen G. Schick, Jere Francis, Lee Preston, Stanley W. Davis and two anonymous reviewers for their comments on earlier drafts of this paper. Any errors are our own.     

Work systems,corporate strategy and global markets: creative shop floors or ‘a barge mentality’?

In the US, corporate restructuring of financial and physical assets as well as work systems has been widespread. Our study examines the inter-relationship between ‘creative’ work systems and ‘destructive’ markets, using a sample of US manufacturing firms in the metalworking, jet engine production and steel processing industries.     

Explaining the Passage of Living Wage Legislation in the U.S.

Using data from various sources to describe 1,077 U.S. cities, I examine the adoption of living wage legislation between 1995 and 2006. I analyze both the decisions to adopt such legislation and the timing of such decisions. My principal finding is that, while the size and political identity of the community play a significant role, the adoption of living wage legislation is also significantly influenced by local economic circumstances. An important implication is that researchers who seek to measure the economic impacts of the legislation must allow for its endogeneity, in order to separate its economic effect(s) from its economic cause(s).     

Predicting electronic commerce adoption in Chilean SMEs

The Theory of Planned Behavior is used to predict a variety of behaviors, but its use in dealing with predicting e-commerce intentions in small-to-medium-sized enterprises (SMEs) and in developing countries is limited. We use the TPB to model intentions to adopt e-commerce among 212 managers/owners of SMEs in Chile. Hierarchical regression results show that the subjective norm and attitude constructs positively and significantly predict intentions, but the perceived behavioral control construct does not. Results can be used by developing countries, especially those in Latin America, to encourage the adoption of e-commerce among SMEs.     

Beyond nudges: Tools of a choice architecture

The way a choice is presented influences what a decision-maker chooses. This paper outlines the tools available to choice architects, that is anyone who present people with choices. We divide these tools into two categories: those used in structuring the choice task and those used in describing the choice options. Tools for structuring the choice task address the idea of what to present to decision-makers, and tools for describing the choice options address the idea of how to present it. We discuss implementation issues in using choice architecture tools, including individual differences and errors in evaluation of choice outcomes. Finally, this paper presents a few applications that illustrate the positive effect choice architecture can have on real-world decisions.     

A bed management strategy for overcrowding in the emergency department

In 2006, the Institute of Medicine cited growing visit volumes, hospital closures, financial pressures, and operational inefficiencies as the principal reasons for emergency department (ED) overcrowding and called for regulatory measures to resolve the problem. A Midwest medical center with 59,000 annual ED visits instituted a bed management strategy to decrease the need to board, or hold, admitted hospital patients in the ED awaiting transfer to an inpatient care unit. This strategy was successful in improving the hold time from an average of 216 minutes to 103 minutes, or by 52%. This allowed the staff at the hospital to care for an additional 2,936 patients. During this same time, the overall hospital mortality decreased by 0.07% and patient satisfaction scores improved 1%. The greatest outcome from this intervention was realized in the potential revenue increase of over $2 million.     

Some simple mathematical models for adoption processes: The case of the comprehensive school reform in Norway

This article reviews simple mathematical models which have been or may be used for adoptation processes. Each model's role in the explanation process is analyzed.

The case of the spread of the comprehensive school reform in Norway is used to ilustrate an adoption process. The logistic, or chain-reaction model, and a normal model for independent adoption are emphasized. The fit of the curves for the provinces and the whole country favors the logistic model. Evidence of a “neighborhood effect” at the micro-level also points to a communication process.