EQUIVALENCE OF CASH FLOWS WHEN COMPOUNDING OCCURS LESS FREQUENTLY THAN THE CASH FLOWS

A method for determining the equivalent cash flow when compounding occurs less frequently than the cash flow is presented. Existing methods for determining the equivalence of cash flows ignore the time value of money and, hence, are not satisfactory. A prorated simple interest is used for calculating the interest within the compounding period. An example utilizing the proposed method is presented.     

Marginal risk aversion and preferences in a betting market

An individual's behavioural attitudes toward variance and non-symmetry in the payoff distributions of pari-mutuel gambles are empirically examined using the von Neumann - Morgenstern expected utility of wealth paradigm. Preferences over payoff distributions for a representative bettor are estimated from observed payoffs at a greyhound racetrack. The results indicate that the representative bettor exhibits increasing absolute risk aversion and, given that the representative bettor is locally non-satiated with regard to wealth, exhibits preference for variance and aversion to positive skewness in the payoff distributions of the gambles examined.     

The antecedents and consequences of customer-centric marketing

As we enter the twenty-first century, the marketing function remains concerned with serving customers and consumers effectively. The authors propose that just as the marketing function gradually shifted from mass marketing to segmented marketing in the twentieth century, it will increasingly move toward customer-centric marketing in the next century. In the practice of customer-centric marketing, the marketing function seeks to fulfill the needs and wants of each individual customer. The antecedents of customer-centric marketing are the increasing pressure on firms to improve marketing productivity, increasing market diversity in household and business markets, and technology applicability. On the basis of the shift toward customer-centric marketing, the authors expect increased importance of marketing as a “supply management” function, customer outsourcing, cocreation marketing, fixedcost marketing, and customer-centric organizations. This article highlights the implications of customer-centric marketing as well as the boundary conditions that will affect its adoption. Jagdish N. Sheth is the Kellstadt Professor of Marketing in the Gouizeta Business School at Emory University. He has published 26 books and more than 200 articles in marketing and other business disciplines. His book,The Theory of Buyer Behavior (with John A. Howard), is a classic in the field of consumer behavior and is one of the most cited works in marketing. His other books includeMarketing Theory: Evolution and Evaluation (with David Gardner and Dennis Garrett) andConsumption Values and Market Choices: Theory and Applications (with Bruce Newman and Barbara Gross). Rajendra S. Sisodia is Trustee Professor of Marketing at Bentley College. Previously, he was an associate professor of marketing and director of executive programs at George Mason University and an assistant professor of marketing at Boston University. He has a Ph.D. in marketing from Columbia University. He has published more than 40 articles in journals such asHarvard Business Review, Journal of Business Strategy, Marketing Letters, andMarketing Management. He has also authored about two dozen cases, primarily on strategic and marketing issues in the telecommunications industry, as well as a number of telecommunications industry and company analyses. Arun Sharma is an associate professor of marketing at the University of Miami. He has published more than 30 articles in marketing and his interests are in the area of market and marketing evolution.     

Destination brand experience and visitor behavior: the mediating role of destination brand identification

ABSTRACT

Destination branding has emerged as a critical tool for achieving competitive advantage through various conceptualizations, focusing on various aspects of branding. This research examines the role of destination brand experience (DBE), a new conceptualization, in assessing the holistic and unified view of tourism destinations. The conceptual model proposed in this research has been validated using structural equation modeling, based on the primary responses collected from 312 and 262 foreign visitors for study 1 and study 2 respectively, conducted at two different tourism destinations in India. Findings of both the studies suggest that various dimensions of DBE have a varied influence on destination brand identification (DBI), which subsequently affects both tourists’ trust and loyalty toward tourism destinations. In addition, DBI emerges as an important mediator for the relationship between DBE and destination trust (DT) as well as DBE and destination loyalty (DL). The study provides several implications for destination marketers about building trust and loyalty among tourists using DBE and DBI.     

NAVIGATING REFORMS: LESSONS FROM INDIA

In the 2008 Wincott Lecture, the author argues that huge obstacles stand in the way of desperately needed economic reforms in India. Liberalisation initiatives have been undermined by poor governance, ineffective institutions and powerful vested interests. Unless these problems are addressed, high rates of economic growth are unlikely to be sustained in the long term.     

STRATEGIC RULES ON SPECULATION IN THE FOREIGN EXCHANGE MARKET

In this article we specify the conditions for profitable speculaion in the foreign exchange market with spot and forward contracts. We derive the unique strategic rules from the initial two‐choice situations in a given environment. Finally, in a more complex structure involving covered arbitrage, speculative profits are computed with iterative plays. JEL classification: F310     

Public Sector Banks in India: Rationale and Prerequisites for reform

This paper contributes to the debate on public sector banks by suggesting several rationales for government ownership of banks in India. The paper then proceeds to argue that due to high economic costs, the current public sector banking system is unsustainable. Although a policy of wider private ownership was introduced in the 1990s, it is suggested that there are several prerequisites to be met before such a reform can be more fully implemented. It is argued that these prerequisites arise from the rationales for government ownership, and they include a credible bank regulatory regime, and government promotion of co‐operative banks and credit unions.     

Fertility, Labor Force Participation and the Relative Income Hypothesis:

Abstract . AN empirical test with Canadian data was made of the relative income hypothesis which states that fertility and labor force participation depend upon relative income, where relative income refers to the current family income level relative to the family's desired income level. The interpretation of the desired income level is modified slightly to mean that it is determined not by the past parental income, as originally formulated, but by contemporaneous income levels of other age groups. An empirical model of labor force participation is estimated for the post-war period. The results on the whole tend to provide empirical support for the relative income hypothesis. The post-war baby boom, which led to a decline in the income of young adults relative to that of older age groups, had the effect of increasing participation rates of young adults, especially of young (married) women.     

Toward an Improved Definition of Poverty

This paper is motivated by the observation that the type and the combination of assets are associated with the likelihood of poor households' experience of shock. Focusing on the case of adivasi households in the south Indian state of Kerala, we find that the type, number and combinations of specific assets (primarily social and physical capital) yield varied magnitudes of association with households' experience of shock, which is a measure of vulnerability. Thus, going beyond mere welfare considerations, social policies that prioritise and sequence the type and combination of asset building based on contextual factors help minimise the incidence of shocks and improve livelihood choices.