Promoting business ethics through annual reports

Growth in socially responsible investing among consumers should encourage them to seek information on business ethics activities during investment decisions. A content analysis of corporate annual reports shows differences in promotion of business ethics activities between 2010 and 2012, across products and on United States (US) Dow Jones Sustainability Index (DJSI) inclusion. Greater discussion in 2012 than 2010 was found for compliance in general and ethical treatment of employees and risk-reduction activities among DJSI-listed consumer goods providers, potentially reflecting increased interest in these activities. Results also showed that DJSI-listed companies are missing an opportunity to promote their ethical activities and the DJSI’s third-party verification of their ethical commitment to interested investors. Besides not optimizing their appeal to investors wishing to support ethical businesses, public companies inadequately use annual reports to demonstrate their commitment to ethics to other potential stakeholders such as activists, regulators, competitors, suppliers or the media.     

Consumer satisfaction with a mass customized Internet apparel shopping site

The present empirically examined customer satisfaction with Internet sites that vary in the opportunity for mass customization. The expectation–disconfirmation model was used as a theatrical framework of the study. Two children's apparel sites were developed as the stimuli: one with a mid level of interactivity and the other with a high level of interactivity, for selection of clothing design options. The data from 208 respondents were analyzed using LISREL 8.72. The finding indicates that both consumers' expectations and perceived performances for the mass customized sites included positive and negative aspects. The results suggest that expectations were not a significant predictor of satisfaction for this innovative shopping experience yet satisfaction was primarily driven by the performance of the site and predicted by disconfirmation of expectations. The findings also suggest that expectations are not related to performance perceptions, possibly due to consumers' lack of familiarity with mass customization. The more interactive site yielded the more positive performance as well as overall positive satisfaction. Nevertheless, the less interactive site, which offers fewer choices than more interactive site, yielded more positive behavioural consequences. The generalization of the results of this study is limited because of lack of random sampling and use of the mock site of children's apparel product category. However, useful theoretical and managerial implications are discussed.     

Delisting from EU HACCP certification: Analysis of the Philippine seafood processing industry

This paper employs firm level benefit-cost and supply chain analyses to explore the reasons why a majority of Philippine seafood processing firms discontinued EU HACCP between 2004 and 2005. Results indicate that only 38% of firms remained certified, as they gained significantly from retention of EU markets, gained access to US markets, captured new buyers, and reduced product wastage. However, 62% of the initially certified firms abandoned certification, as they did not realize most of the anticipated benefits from certification and continuing certification was not economically viable. Delisting by some processors led to profit losses among their raw fish and input suppliers amounting to $4–6 million per year, representing approximately 6–9% of the value of Philippine seafood exports to the EU and mainly affecting small aquaculture fish suppliers.     

How product representation shapes virtual experiences and re-patronage intentions: the role of mental imagery processing and experiential value

Despite the lack of physical contact, innovative technologies in online stores are able to engender compelling virtual product experiences. The primary objective of this study is to clarify the mechanisms through which these virtual product experiences occur. The study proposes and tests a model in which mental imagery processing and consumers' perceptions of experiential value function as potential mechanisms through which virtual experiences in online stores are established, thereby determining re-patronage intention. The model was tested in an experimental study investigating two versions of a fast fashion online store that varied in terms of product representations: dynamic (i.e., a mix-and-match feature allowing the creation of visual images of apparel combinations) and static (i.e., rigid pictures). A sample of 660 valid cases involving individuals of Generation Y (born in 1977–1994) was obtained. The structural equation modeling technique was used to analyze the proposed research model. The results indicate that the dynamic mix-and-match technology arouses more mental images of physical product interaction than do static pictures. Moreover, mental imagery processing can be considered an important underlying source of online experiential value, which consumers subsequently exploit with repeated visits to the online store. By introducing psychological constructs such as mental imagery and perceived value, this study augments prior research on online product experiences by proposing and validating the underlying mechanisms through which the way of representing products affect consumer responses. Finally, both theoretical and practical contributions of the findings are discussed, as well as directions for further research.     

Investment banking in the gulf: A case study of investcorp in bahrain

Investcorp is a low-profile investment banking company that was originally founded on the tiny island of Bahrain in the Arabian Gulf. Although little known to the general public, the company is a major player in North American and European investment markets. This case study presents a profile of the company, its founder, Nemir Kirdar, and his three “founding friends.” It relates details of the company's successes and explores how these were achieved. As most of the original Management Committee members are preparing to retire, efforts are being made to ensure the continuing prosperity of the company. This requires the risky step of appointing an almost completely new management team. Readers are invited to reflect on the likely success of this strategy and whether Investcorp's focus on North America and Europe remains appropriate in a global marketplace.     

A mechanism for reducing small-business customer waiting-line dissatisfaction

This paper presents a technique whereby a small business (i.e. a one-cash register operation) can reduce customer waiting-line time dissatisfaction in the purchase stage of the consumer decision process. When the queue length reaches or exceeds critical value N^*, another employee is temporarily transferred to the role of ‘server assistant’ to increase the effective service rate; when the queue length eventually decreases to a second critical value N_*, the server assistant returns to primary duties. An optimal customer-reneging decision model is utilized to model the reneging character of the queue. Simulation experiments confirm key hypotheses concerning the behaviour of the queue and compare the effectiveness of a computed (N^*, N_*) policy with that of alternatives.     

A rose by any other name …: Color‐naming influences on decision making

Companies dealing in colors (e.g., paint companies, the cosmetic industry) spend enormous amounts of time and money selecting names to accompany their various product lines in an attempt to maximally appeal to and lure in consumers. In two experiments, the current research examines the extent to which such naming strategies have an impact on consumer behavior. Across both experiments, participants rated either color swatches (Experiment 1) or products (Experiment 2) that had either generic names (e.g., brown) or fancy names (e.g., mocha) attached to them. The results of each experiment revealed that names significantly influence how colors are perceived, and that fancy names result in significantly more favorable ratings than do generic names. Both theoretical and applied implications of this phenomenon are discussed. © 2006 Wiley Periodicals, Inc.