Exploring store format development and its influence on store image and store clientele – the case of IKEA’s development of an inner-city store format

Abstract

A changed technological landscape and radically changed consumer behavior are forcing retailers to rethink their business models, retail formats, and retail offerings. The global retailer IKEA is no exception in this development. Recently, the traditional IKEA format, which has been so successfully duplicated across the world over the years, has been complemented with other formats that are new and innovative for IKEA. Based on an empirical investigation of consumer perceptions of the store format development in Hamburg-Altona, Germany, the present study explores format development and its influence on store image and clientele, considering also the purpose of visiting IKEA and how this seems to have changed with the introduction of the new format. We also discuss the core aspects of the IKEA formats, and the fact that although some things have changed, others have stayed the same to preserve the IKEA image.     

Consumer Power: A Comparison of the Old Economy and the Internet Economy

From the very beginning of the Internet, a decisive shift from supplier power to consumer power was predicted by several authors and is still maintained in recent literature. Although the Internet has grown rapidly within the last years and electronic markets have evolved, a theoretical framework for consumer power on the Internet still cannot be identified. Few authors have taken efforts to apply common concepts of power theory to the characteristics of the Internet. Based on the concept of French and Raven, this paper analyses consumer power in traditional markets and then compares it to the situation on the Internet. This comparison shows that the Internet enables consumers (a) to overcome most information asymmetries that characterize traditional consumer markets and thus obtain high levels of market transparency, (b) to easily band together against companies and impose sanctions via exit and voice, and (c) to take on a more active role in the value chain and influence products and prices according to individual preferences. A broad literature review reveals that empirical findings confirm these hypotheses to a great extent. The authors conclude by summarizing the results and drawing implications from two different angles, namely from a marketing and a consumer policy perspective.     

Relationship development in Greenfield expansions

This paper investigates conceptually how new Greenfield subsidiaries develop relationships over time. We focus our analysis on the earliest start-up stage of new Greenfield subsidiaries, and on the dynamics of relationships development with five different groups of actors within the MNC and the local environment of the new Greenfield. We argue that relationship strength, or the intensity of interaction and resource exchange, depends on the new Greenfield's degree of dependence or interdependence within these relationships and develop propositions based on institutional theory, resource dependency theory and network approaches. In the concluding sections we suggest directions for future work to enhance understanding of the dynamics of relationship management in new Greenfield expansions.     

Preferences of Scotch malt whisky consumers for changes in pesticide use and origin of barley

In a case study related to Scotch malt whisky production, this study analyses consumers’ perceptions and preferences regarding two aspects that have emerged in the debate on sustainable production and consumption, and on environmentally responsible food choice, namely (i) the use of pesticides in agriculture, and (ii) the provenance of food ingredients. We carried out a choice experiment to investigate preferences and estimate Willingness to Pay of Scotch malt whisky consumers for pesticide use restrictions and the potential impact on the production of one of its essential ingredients, barley. Using latent class models, we find that about half of the respondents are non-demanders with respect to both attributes, and only a third of the sample population are willing to pay for further pesticide restrictions. Demand for more environmentally responsible production of Scotch malt whisky is therefore limited, indicating that in the case of Scotch malt whisky, consumers are not likely to be key to driving sustainable production. With respect to barley provenance, being able to claim a 100% Scottish product could be a plausible commercial option for some producers to pursue in a competitive market. Methodologically, the scale-adjusted latent class model proved to be successful in uncovering preference heterogeneity and its sources, in including non-demanders in the analysis and in accounting for differences in scale amongst respondents.     

Do the skilled and prime-aged unemployed benefit more from training? Effect heterogeneity of public training programmes in Germany

This study analyses the treatment effects of public training programmes for the unemployed in Germany. Based on propensity score matching methods, we extend the picture that has been sketched in previous studies by estimating the treatment effects of medium-term programmes for different skill and age groups. Our results indicate that programme participation has a positive impact on employment probabilities and earnings for almost all sub-groups. We find little evidence for the presence of heterogeneous treatment effects, and the magnitude of the differences is quite small. Our results thus – at least in part – conflict with the strategy to provide training increasingly to individuals with better employment prospects.     

Youth unemployment

Youth unemployment has been on the rise since the beginning of the crisis in 2008. Even more troublesome is the dramatic rise in the number of youth not in employment, education or training, which has led to widespread concerns about the impact on social cohesion and fears of a “lost generation”. Given the extreme differences in youth unemployment levels among member states, it is clear that no single labour market policy will be appropriate throughout the EU. There may, however, be opportunities for mutual learning on how to combat youth unemployment. This Forum explores youth unemployment in the EU via case studies of England, Belgium, Spain, Poland and Ireland. It also examines Germany’s dual vocational training system as one potential solution.     

Solvency II – towards a new insurance supervisory system in the EU

This article describes the current state of affairs in the EU Solvency II project. The background and international context of the project is discussed, as well as the general outline of a future EU solvency system. In particular, several areas where further technical work is needed are outlined. These topics could provide interesting objects of study for professionals of actuarial sciences as well as to those of other related sciences.     

Test–Retest Reliability of Choice Experiments in Environmental Valuation

The paper presents the results of the first test–retest study on choice experiments in environmental valuation. In a survey concerning landscape externalities of onshore wind power in central Germany, respondents answered the same five choice sets at two different points in time. Each choice set comprised three alternatives described by five attributes, and the time interval between the test and the retest was eleven months. The analysis takes place at three different levels, investigating choice consistency at the choice task level and repeatability of the latent construct utility at the level of parametric models as well as at the level of willingness-to-pay estimates. At the choice task level we observed 59?% identical choices. The parametric analysis shows that the test and retest estimates are not equal, even when we control for scale, that is, differences in the error variance. However, comparing the marginal willingness-to-pay estimates among test and retest reveals only a statistically significant difference for one of the attributes. Overall, this indicates a moderate test–retest reliability taking into account that consistency at the choice task level overlooks the stochastic nature of the process underlying discrete choice experiments.     

Rekommunalisierung: Renaissance öffentlicher Unternehmen?

The decision to provide services of general interest by public or private enterprises has to be based on the following key issue: should one refer to these services as public goods? This question cannot be answered generally but has to be addressed on a case-tocase basis. Although there are some tendencies for remunicipalisation, especially in the energy sector, empirical studies show a lack of evidence about actual remunicipalisation of public service provisions and its impacts. To explain why local governments in Germany are presently thinking about remunicipalising some services there are changing factors to be identified. However, a closer look at the changing determinants makes clear that there are other options apart from remunicipalisation. Local politicians may have many reasons for providing services by public entities. The most relevant reason is nevertheless the option to organise and govern these services which are relevant for the local community.