Technology and Optimal Segment Size

Increasingly, there is greater appreciation of the impact of technology on marketing practice. Many strategies like mass customization, relationship marketing, interactive marketing, etc., have gained increased attention, in part, from advancements in manufacturing and information technology. In this paper, we formally examine how technology has made such strategies economically feasible through its impact on optimal segment size. We build on Lancaster's model of product differentiation to derive an equation that exposes the invisible hand of technology. This equation shows how technology influences marketing practice through its effect on optimal segment size. In addition, the equation provides a formal explanation for the apparent paradox of mass customization; that customized products can be mass-produced profitably, without the benefit of large production volumes. We then use this equation to gain a more insightful view of the history of segmentation.Madison S. Wigginton Professor of Management and Director of the Center for Service Marketing     

Get ready for the L-bomb: A preliminary social assessment of longevity technology

The societal impacts upon various sectors of the United States population resulting from the retardation of the cellular aging process in men and women is the subject of this study. Significant biomedical research advances of recent years, as well as future fruitful areas of bio-science exploration in genetic programming, parabiosis, vitamin therapy, body temperature control, calorie quality and quantity intake, and the control of free radicals in body compounds, indicate the life span of the present generation may be expanded by a considerable number of years. The potential impact upon various sectors of our societal structure and institutions would be enormous. This study proposes to evaluate and assess the impact of the resultant population alteration upon seven major social variables (employment, income, resource consumption, education, the social service load, social institutions, and legal problems). This will be analyzed over a number of ten year time segments.The study will attempt to determine the effects of longevity technology upon the social impact variables within the framework of five basic working lifetime scenarios as follows: (1) normal working lifetime, (2) extended working lifetime, (3) delayed working lifetime, (4) segmented working lifetime, and (5) divided working lifetime. Two computer models of the United States—a demographic and an econometric—will be used to systematically measure the implications of these scenarios for the social impact variables.     

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Altruism,Warm Glow and the Willingness-to-Donate for Green Electricity: An Artefactual Field Experiment

The ongoing liberalization of electricity markets in most western countries forms the background of our artefactual field experiment. Using a Cheap talk design [R.G. Cummings and L.O. Taylor. American Economic Review 89 (1999) 649–665] with supplementary monetary incentives, we test for presence of “warm glow” motivations [J. Andreoni. Journal of Political Economy 97 (1989) 1447–1458; Economic Journal 100 (1990) 464–477] in the willingness-to-donate for electricity generated from renewables. Our data from 200 participants supports impure altruism, that is, individuals benefit from both contributing to environmental quality and its current level when opting in favor of green electricity. Furthermore, we find evidence of crowding-out as well as crowding-in effects. Depending on the knowledge of people about electricity markets and the types of electricity contracts offered, “all-or-none” contracts are most likely to bring about crowding-out effects.     

Do business customers perceive what salespeople believe? Perceptions of salesperson adoption of innovations

A salesperson's commitment and effort toward an innovation can determine whether the customer agrees to buy it, such that customers' perceptions of such commitment and effort are critical. But these perceptions also might differ fundamentally from the salesperson's self-perceptions of commitment and effort. Therefore, this paper presents a theoretical framework of the relation between salesperson-perceived and customer-perceived commitment and effort, as exhibited by the salesperson while selling an innovation, which represents salesperson adoption. In the framework, job satisfaction factors also exert contingent, moderating effects. The authors gather unique, dyadic data from surveys of salespeople and their (potential) business customers during visits to sell a conventional, incremental innovation, complemented by objective purchase data gathered from company records. Three key insights emerge fromt this study. First, salespeople's own perceptions of their commitment and effort have only moderate influences on customers' perceptions of salespeople's commitment and effort. Second, customers seem to recognize salesperson effort more readily than salesperson commitment, although salesperson commitment has a higher sales performance impact than salesperson effort. Thus, sales managers should seek to encourage and support both the commitment of salespeople and also perceptions of that commitment among customers. Third, while a higher organizational support or job autonomy strengthens customers' perceptions of salesperson adoption, a higher pay satisfaction diminishes it. Thus, firms might need to find ways to increase the support for the salespeople and their autonomy and to reduce salespeople's satisfaction with their (direct) payments. In total, these findings suggest significant scientific and managerial implications.     

Financial crises,price discovery,and information transmission: a high-frequency perspective

This paper examines the price discovery processes before and during the 2007–2009 subprime and financial crisis, as well as the subsequent European sovereign crisis, for American and German stock and bond markets, as well as for U.S. Dollar/Euro FX. Based on 5-s intervals, we analyze how asset prices interact conditional on macroeconomic announcements from the USA and Germany. Our results show significant co-movement and spillover effects in returns and volatility, reflecting systematic information transmission mechanisms among asset markets. We document strong state dependence with a substantial increase in inter-asset spillovers and feedback effects during times of crisis.     

The impact of advanced vocational education and training on earnings in Sweden

Researchers have established a relationship between greater education and training and higher earnings but it is difficult to infer that the former causes the latter if those with higher earnings tend to engage in more education and training. The present study attempts to control for ability and family background to see if stronger inferences can be made about education and training as the independent variable. The study focuses upon advanced vocational education and training (AVET) in Sweden. This is post‐secondary school education for individuals who are 20 years of age or older. The aim of this article is to estimate the effects of AVET on earnings by controlling for selection bias. We used various approaches such as instrumental variables, Hausman–Taylor estimates, fixed effects estimates and propensity score matching to achieve this aim. A panel, or longitudinal, data set for eight different labor markets in Sweden for the period 1996–2008 was used. The results indicate that earnings from AVET are higher than the return on investment in comprehensive education. The average effect on income is estimated to be in the range of 3–8 percent.