Beyond listening: the distinct effects of proactive versus responsive customer orientation on the reduction of uncertainties at the fuzzy front end of innovation

The extent to which the intensity of R&D employees' interaction with market-oriented employees, proactive customer orientation, and responsive customer orientation affect the ability to reduce product-related uncertainties at the fuzzy front end of innovation was analyzed. They investigated 160 product innovation projects in various high-tech industries and identified proactive customer orientation as an important moderator of the link between R&D employees' interaction with market-oriented employees and the reduction of product-related uncertainties at the fuzzy front end. They also found that responsive customer orientation diminishes the ability to reduce product-related uncertainties at the fuzzy front end. The theoretical and managerial implications of the results are discussed.     

Bond rating agencies and their role in bank market discipline

This study examines whether changes in the ratings of bank debt have any information content. Bank holding companies are monitored both by bank regulators and by debt rating agencies, leading to the view that duplication of effort may render superfluous the monitoring service of rating agencies. However, our results show that downgrades of bank debt are associated with statistically significant wealth losses, irrespective of whether the rating change is across rating classes or within a rating class. Moreover, the results hold even when observations with potentially confounding events are removed from the sample. These results suggest that rating agencies provide valuable information to the capital market regarding the risk exposure of bank holding companies.     

Asymmetric Trading Costs Prior to Earnings Announcements: Implications for Price Discovery and Returns

We show that the cost of trading on negative news, relative to positive news, increases before earnings announcements. Our evidence suggests that this asymmetry is due to financial intermediaries reducing their exposure to announcement risks by providing liquidity asymmetrically. This asymmetry creates a predictable upward bias in prices that increases preannouncement, and subsequently reverses, confounding short‐window announcement returns as measures of earnings news and risk premia. These findings provide an alternative explanation for asymmetric return reactions to firms' earnings news, and help explain puzzling prior evidence that announcement risk premia precede the actual announcements. Our study informs methods for research centering on earnings announcements and offers a possible explanation for patterns in returns around anticipated periods of heightened inventory risks, including alternative firm‐level, industry‐level, and macroeconomic information events.     

Product vs. customer focused industrial selling

Successfully introducing sophisticated new product innovation in industrial marketing requires a high degree of customer empathy on the part of the salesforce. This article describes a group-oriented exercise designed to improve the performance of the salesforce by their analyzing a specific new product's relative advantages, compatability, divisibility, complexity, and risk as perceived by its customers. A follow-up survey of the salesforce indicated that, as a result of this exercise, greater effectiveness and efficiency in achieving marketing objectives were realized.     

Technologically Reflective Individuals as Enablers of Social Innovation*

This paper identifies technologically reflective individuals and demonstrates their ability to develop innovations that benefit society. Technological reflectiveness (TR) is the tendency to think about the societal impact of an innovation, and those who display this capability in public are individuals who participate in online idea competitions focused on technical solutions for social problems (such as General Electric's eco‐challenge, the James Dyson Award, and the BOSCH Technology Horizon Award). However, technologically reflective individuals also reflect in private settings (e.g., when reading news updates), thus requiring a scale to identify them. This paper describes the systematic development of an easy‐to‐administer multi‐item scale to measure an individual's level of TR. Applying the TR scale in an empirical study on a health monitoring system confirmed that individuals' degree of TR relates positively to their ability to generate (1) more new product features and uses, (2) features with higher levels of societal impact, and (3) features that are more elaborated. This scale allows firms seeking to implement co‐creation in their new product development (NPD) process and sustainable solutions to identify such individuals. Thus, this paper indicates that companies wishing to introduce new technological products with a positive societal impact may profit from involving technologically reflective individuals in the NPD process.     

The Content of Internet Advertisements and its Impact on Awareness and Selling Performance

ABSTRACT

This paper investigates the different relationships consumers build with anthropomorphised devices and how these relationships affect actual and intended future usage. An exploratory, three-week empirical study of 39 informants using voice controls on their smartphone uncovered a diversity of relationships that the informants built with such devices. We complement anthropomorphism theory by drawing on extended-self theorising to identify three primary roles that emerge from consumers’ interactions with these devices. Our findings theorise the distinct ways in which consumers perceive the object agency of anthropomorphised smart devices and how these perceptions impact the consumers’ engagement and future use intentions.     

Deregulation, Deposit Markets, and Banks' Costs of Funds

Deposit interest rate deregulation and financial service innovation have led to dramatic changes in large banks' deposit composition. This paper presentes a statistical cost analysis of changes in unit costs faced by banks under comprehensive financial deregulation. The results of this paper show that the unit cost of retail deposits-demand and passbook savings deposits-has increased relative to wholesale deposits-federal funds, certificates of deposit, and money market time deposits. We show, contrary to conventional wisdom, that changes in unit costs have been caused by processing costs rather than by interest expenses.