The interaction effect of mobile phone screen and product orientation on perceived product size

Perceived product size is a key concern in online retail, particularly in fashion and grocery. The screen on which consumers view a product (e.g., desktop or mobile) might constitute a frame that biases size perception, on the basis of assimilation and contrast effects (pool and store theory). The rise of mobile commerce exacerbates this issue, as framing effects might be stronger versus desktop settings as screens are smaller. Further, as mobile phone's screen orientation varies situationally (vertical vs. horizontal), the perceived product size might vary, depending on the interaction of screen and product orientation. By introducing the framing ratio as a means to predict extent, dimensionality and symmetry of size biases, we generalize specific findings from extant research. Empirically, four experimental studies demonstrate that contextual frames (i.e., vertical vs. horizontal screens) and product orientation (e.g., jeans vs. shoes) interact to bias the size perception, in that sizes are overestimated on the dimension that approaches the frame (high framing ratio), compared with conditions where the frame is distant (low framing ratio). If product size is misperceived, willingness to pay might be affected (e.g., for groceries). Thus, size perceptions have a direct impact on managerially relevant variables.     

The effect of change-in-control covenants on takeovers: Evidence from leveraged buyouts

Change-in-control covenants first became commonplace towards the end of the takeover wave in the 1980s. We examine merger and acquisition activity from 1991 to 2006 to see how such covenant protection influences the wealth effects and probability of takeovers. Examining a sample of leveraged buyouts (LBOs) we find bondholders with such covenant protection experience average wealth effects of 2.30% while unprotected bonds experience ? 6.76% upon the announcement of an LBO. Furthermore, we document that the existence of bondholder change-in-control covenants cuts the firm's probability of being targeted in an LBO in half. We also find that change-in-control covenants reduce the probability of being targeted in non-LBO takeovers, but the effect appears less dramatic.     

FROM INPUT–OUTPUT TABLES TO SUPPLY-AND-USE TABLES

In 1991, Statistics Netherlands introduced the supply-and-use tables as part of the national accounts. Since then, the supply-and-use tables have been the main statistics on the production structure of the Dutch economy. They form the basis from which input–output tables are derived. The time series of supply-and-use tables starts in 1987. However, there is a need for a time series since 1970 because benchmark revisions of the Dutch national accounts would become far easier if such time series were available. Therefore, a method has been developed to derive supply-and-use tables from existing input–output tables. This article presents the algorithm.     

Introducing the paradox theory in logistics and SCM research – examples from a global sourcing context

The purpose of this paper is to introduce and explore the use of paradox theory in a logistics and SCM research context. Although logistics and SCM scholars as well as practitioners have been aware about the existence of paradoxes, they have so far lacked a more formal theoretical framework for further identification and classification of these. Framed in the four general paradox classes of learning, belonging, organising and performing, the paper outlines paradoxes inherent in the global sourcing practices of two case companies. The findings demonstrate the paradox theory to be a useful tool for a systematic illumination and classification of paradoxes valuable for practitioners, researchers as well as teachers in the domain of logistics and SCM. The paradox theory may also help to identify and emphasise inconsistencies among different research fields. This is particularly valuable for research areas built upon multiple research disciplines such as global sourcing. In conclusion, the paper suggests that the paradox theory offers a new lens through which an organisation could be better explored, described and understood.     

New danish bases of calculation in life and pension insurance

Abstract

A committee consisting of actuaries representing private life offices, private pension offices, and Statsanstalten for Livsforsikring (The State Life Insurance Institution) transacting both life and pension business, have compiled a complete set of calculation bases, which have been adopted by all Danish life and pension offices with effect as from January 1, 1966.     

Managing Diffusion Barriers When Launching New Products

In recent years there has been a growing interest in the link between new product launch activities and market success. So far, most empirical research has focused on launch activities that target customer adoption barriers. However, with such a focus the influence of other stakeholders on innovation diffusion is not taken into account. A review of diffusion research and stakeholder theory serves as a basis for discussing the influence of different stakeholder groups such as customers, dealers, suppliers, and competitors on innovation diffusion. Essentially, it is expected that addressing multiple diffusion barriers during new product launch will have a positive impact on market success. The new concept for launch activities addressing multiple diffusion barriers is tested with data on new product launches in industrial markets using a multiple‐informant approach. The results lend support to the notion that a successful launch requires activities addressing diffusion barriers related to different stakeholder groups. Specifically, barriers related to customers, suppliers, and stakeholders of the further firm environment need to be lowered during market launch. For the group of competitors, a balanced launch approach including measures to both lowering and erecting entry and diffusion barriers will increase the market success of new products. The subsequent investigation of the influence of technological turbulence, market turbulence, and product complexity on the performance relationships shows that under high uncertainty managing multiple‐diffusion barriers is of higher relevance than in more unambiguous, clear‐cut contexts. Thus, the results demonstrate that a careful management of diffusion barriers related to multiple stakeholders is a relevant task when launching a new product. The paper concludes with implications for management practice and avenues for future academic research.     

Future disassembly and recycling technology: results of a Delphi study

This article presents the results of a Delphi study that was carried out between November 1996 and March 1997. The subject of this study is future disassembly and recycling technology for the electronics and the automotive industry. The results reflect the opinions of a panel of about 70 specialists, preselected by the authors. Issues in this Delphi Study range from the possibilities for automatic disassembly and sophisticated material separation and sorting techniques to the development of recycling output prices. All issues were investigated for technological feasibility and for economic attractiveness. The main conclusion of this study shows that obstacles for future disassembly and recycling technology are of an economic rather than a technological nature. Automatic disassembly will probably gain importance in the next 25 years, but only for specific product categories. Sorting and separation techniques will become increasingly sophisticated.     

The future of European development aid

Development assistance represents one mechanism for the redistribution of global wealth. This article examines key external challenges that the development aid systems in the EU currently confront. Among the most important elements of the changing backdrop against which decisions on preparing EU development cooperation for the future will be made are the increasing differentiation of countries within the developing world and the rise of new global development actors, and the growing prominence of issue linkages between security and development and the environment and development. These challenges raise important questions for the EU concerning the future rationale and organization of development assistance.     

Dynamic Spanning in the Consumption-Based Capital Asset Pricing Model

Under the assumptions of the Consumption-based Capital Asset Pricing Model (CCAPM), Pareto optimal consumption allocations are characterized by each agent's consumption process being adapted to the filtration generated by the aggregate consumption process of the economy. The wealth processes of the agents, however, are adapted to the finer filtration generated by aggregate consumption and the conditional distribution of future aggregate consumption. Therefore, in order to achieve Pareto optimal consumption allocations, a sufficiently varied set of assets must exist such that any wealth process adapted to this finer filtration can be implemented by dynamically trading in that set of assets. We provide sufficient conditions for the existence of such a set of assets based on dynamically trading contingent claims on aggregate consumption. In addition, we give sufficient conditions for the existence of equilibria in a dynamically effectively complete market in which agents are only able to trade in contingent claims on aggregate consumption, the market portfolio of firms, and a (numeraire) zero-coupon bond. We demonstrate the role of short- and long-term contingent claims on aggregate consumption for the implementation of Pareto optimal allocations in the presence of short- andlong-term risks. In addition, in the presence of personal risks, we demonstrate the role of insurance contracts.     

Balancing Development Costs and Sales to Optimize the Development Time of Product Line Additions*

Development teams often use mental models to simplify development time decision making because a comprehensive empirical assessment of the trade‐offs across the metrics of development time, development costs, proficiency in market‐entry timing, and new product sales is simply not feasible. Surprisingly, these mental models have not been studied in prior research on the trade‐offs among the aforementioned metrics. These mental models are important to consider, however, because they define reality, specify what team members attend to, and guide their decision making. As such, these models influence how development teams make trade‐offs across the four metrics to try to optimize new product profitability. Teams with such an objective should manage to a development time that minimizes development costs and to a proficient market‐entry timing that maximizes new product sales. Yet many teams use mental models for development time decision making that focus either just on development costs or on proficiency in market‐entry timing. This survey‐based study uses data from 115 completed NPD projects, all product line additions from manufacturers in The Netherlands, to demonstrate that there is a cost to simplifying decision making. Making development time decisions without taking into account the contingency between development time and proficiency in market‐entry timing can be misleading, and using either a sales‐maximization or a cost‐minimization simplified decision‐making model may result in a cost penalty or a sales loss. The results from this study show that the development time that maximizes new product profitability is longer than the time that maximizes new product sales and is shorter than the development time that minimizes development costs. Furthermore, the results reveal that the cost penalty of sales maximization is smaller than the sales loss of development costs minimization. An important implication of the results is that, to determine the optimal development time, teams need to distinguish between cost and sales effects of development time reductions. To determine the relative impact of these effects this study also estimates the elasticities of development costs, new product sales, and new product profitability with regard to development time. Armed with this knowledge, development teams should be better equipped to make trade‐offs among the four metrics of development time, development costs, proficiency in market‐entry timing, and new product sales.