Aggregating Risks with Partial Dependence Information

We consider the problem of aggregating dependent risks in the presence of partial dependence information. More concretely, we assume that the risks involved belong to independent subgroups and the dependence structure within each group is unknown. A sharp convex upper bound exists in this setting, and this constrained upper bound improves the existing, unconstrained, comonotonic upper bound in convex order. Moreover, we prove the uniqueness of this constrained upper bound and provide a characterization in terms of the distribution of its sum. Numerical illustrations are provided to show the improvement of the new upper bound.     

The inside effects of a strong external employer brand: how external perceptions can influence organizational absenteeism rates

In this study, we invoke a social identity and job resources perspective to investigate the impact of an organization’s internal and external employer brand images on employee absenteeism. Specifically, using workforce samples of 56 Belgian companies (n = 12670) and a second independent study sample (n = 4461), we assess the relative importance of the internal employer brand image (i.e. employee perceptions) and the external employer brand image (i.e. non-employee perceptions) in predicting the absenteeism rate in these organizations. Results show that corporate absenteeism decreases as internal (employee) views and external (non-employee) views of the organization decline. Results further show that the external employer brand image may be a more important driver of absenteeism than the internal employer brand image. Such results highlight that an organization’s external image may be a strong antecedent of important internal organizational behavior outcomes.     

The 2006 Asian Games: self-affirmation and soft power

This article is based on a study of the 2006 Asian Games held in Qatar. It was one of the first major international sporting events ever organised by Qatar that has since become a key location for such occasions. The purpose of this study was to explain the function of mega-events. They are associated with the event organisers to bring out the unique identity of a nation and to gain credibility with the international community through the use of an emotional dynamic. Analysis proposes to illustrate how this event affected Qatar internationally as part of soft power as well as the structuring role it played locally. The Asian Games were not to be perceived as an isolated sports event on the contrary, it was an integral part of a global strategy. Qatar needed to gain political recognition and to demonstrate its ability to organise other more prestigious sporting events. Moreover, this mega-event served a local purpose. It was essential in the process of identity affirmation. As a metaphor of society, sport had to symbolise excellence with regard to the values promoted. It was an opportunity to associate the modern aspect of sports with the traditional values of a political system and the Muslim faith. Previously, where sport was typically ingrained in the values that defined western society, Qatari leaders believed that social values could purify sports to become a method of socialisation. If mega-events were a means to increase Qatar’s influence in international relations, they also served as a cultural instrument that would impose a model for society and further increase the country’s influence.     

Perspective: A Review of Marketing Research on Product Design with Directions for Future Research

The authors provide synthesized summaries of research on product design conducted over the 20‐year period from 1995 to 2014, as well as suggestions for future research. Building on the conceptual model of product design proposed by Luchs and Swan, the current project describes research findings based on a review of 252 articles drawn from eight of the academic journals most influential to marketing thought, and identified by their inclusion of the terms “product design” or “industrial design” within their abstracts, subject terms, and/or author supplied keywords. Specifically, the authors provide integrated summaries of 25 product design subtopics organized within Luchs and Swan's original 11 product design research topic categories, which, in turn, address the following three general product design research categories: context and strategy, product design process, and product design consequences. These summaries are followed by suggested future research opportunities to address gaps in the literature. In addition to seeking inspiration for future research based on a review of extant research, the authors illustrate an approach for exploring research opportunities based on current and emerging industry trends, such as sustainability, the sharing economy, and the emergence of consumer‐oriented health and performance management products. For each identified industry trend, the authors provide illustrative design implications with consequent illustrative research opportunities. This balanced approach to identifying near‐term research opportunities based on extant research and based on industry trends, i.e., looking forward and externally, may in turn improve the potential impact of future research on both knowledge development and on industry practice.     

Simulating in-store lighting and temperature with visual aids: methodological propositions and S–O–R effects

Lighting and temperature are two important stimuli in sensory marketing. However, these stimuli have not yet been studied in controlled retail environments. The objective of this research is twofold: (1) to propose a methodology to infer the effect of different levels of lighting and temperature in a controlled environment with visual aids and (2) to test the impact of these simulated stimuli on environmental perceptions and behavioral intentions, following a Stimulus–Organism–Response model. This model postulates that stimuli should influence internal responses which in turn shall have an impact on behavioral responses. This research is based on the encoding and retrieval literature as well as the literature in physics, ergonomics and environmental psychology. In Study 1, we manipulated lighting and temperature levels in digital photographic images, using relevant cues (illuminance and color temperature for lighting; clothing and activity level for temperature). A between-subjects design experiment was carried out over 387 respondents: two simulated levels of lighting (bright cool light and soft warm light) × two simulated levels of temperature (slightly warm temperature and slightly cool temperature) × three types of stores (jeans store, bookstore, and furniture store). We found that under these simulated conditions, the participants accurately perceived the differences of lighting and temperature levels, as we predicted. In Study 2, the same photographs were used in a within-between subjects design over 110 participants and 330 observations. We tested the impact of these simulated stimuli on environmental perceptions (stimulating and relaxing) and behavioral intentions (intention to buy and intention to spend time in the store). Both a bright cool light and a slightly warm temperature had a stimulating effect on participants’ store perception. Under these conditions, participants also increased their intentions to buy and to spend time in the store. The stimulative perception mediates the relationship between (1) lighting and both intention to spend time in the store and purchase intention and (2) temperature and intention to spend time in the store. These results confirm the benefit of using digitally manipulated stimuli with photographs in controlled environments.     

Human resource management in relation to generic strategies: a comparison of chemical and food&drink companies in the Netherlands and Great Britain

In this paper, specific personnel policies and their relationship to generic strategies are examined in the light of the concept of human resource management (HRM). Since data from twelve Dutch and eight British companies in the food&drink and chemical industries reveal that the implementation of HRM components is subject to a societal effect–and thus HRM has a different meaning in Dutch companies than in their British counterparts–a typology of HRM at a more strategic level is proposed to facilitate the analysis of the relationship between HRM and generic strategies. Although in the majority of cases the HRM policy supports the generic strategy pursued, many problems and paradoxes remain in the analysis of an HRM–strategy fit.     

Comparison of Stakeholder Perspectives on Current Regulatory and Reporting Reforms

In the European insurance industry, regulatory and reporting frameworks are currently subject to far-reaching reforms. We focus on four of these frameworks, namely the Solvency II framework, insurance guaranty systems, the proposed IFRS 4 Phase II international accounting standards, and Market Consistent Embedded Value reporting. We present these frameworks, analyze them from the insurance company's management, investors, and policyholder perspectives, and compare them. Our analysis implies that the four frameworks need to be considered jointly, due to various interrelations and interactions. We argue that a coordinated introduction will be necessary to ensure that the regulatory burden is reduced and synergies can be utilized in the event of all four frameworks being implemented as planned. Furthermore, we analyze the challenges of a holistic, comprehensive approach to insurance reporting and regulation and its implementation in order to achieve the goals set by the frameworks.     

The impact of sustainable public procurement on supplier management — The case of French public hospitals

In the public sector, procurement managers are now required to comply with new sustainable regulations and to look for suppliers able to provide a sustainable offering. Stating that contracts can only frame part of the interaction and that parties often turn to more negotiated agreements, we investigate whether sustainable expectations within public hospitals could impact supplier management and imply rearrangements between public buyers and private providers. Data were collected from fifteen French hospitals through semi-structured interviews. Findings first highlight the sustainable expectations of public buyers from global key providers, and, second, that sustainable procurement does impact the relationship by creating new rules. Building on these results, managerial implications are suggested.     

Abundant rarity: The key to luxury growth

Although Western economies have not yet transitioned out of crisis, the luxury sector is growing again, especially at the high end. In emerging countries, the luxury sector's expansion has reached double digits. However, as luxury products continue to penetrate global markets, the prestige of brands like Louis Vuitton has not declined at all. This seems at odds with the concept of luxury being tied to rarity and exclusivity. Thus, how can we reconcile these facts with theory? In order to capture mounting demands—not only from extraordinary people, but also from ordinary individuals—luxury brands enact virtual rarity tactics, construct themselves as art, and adopt a fashion business model while deemphasizing exceptional quality and country of origin. Rarity of ingredients or craft has been replaced by qualitative rarity. Further, the cult of the designer is a potent tool in building emotional connections with a vast number of clients. Today, brands in the luxury sector are actually selling symbolic and magic power to the masses. There exists a culture gap between Asia and the West; namely, Asian consumers feel safer buying prestigious Western brands with which individuals around them are familiar. The insights offered herein provide clues for entrepreneurs attempting to launch luxury brands.