Policy and practice in the United Kingdom

Abstract: The UK currently has well-developed but very fragmented systems and structures for consumer protection in banking and financial services, including legislation, regulatory bodies and various forms of self-regulation. At the time of writing, the government has launched proposals for a much more integrated, statute-based system that would cover a large part of the market place and that would be implemented by a single new regulatory body, the Financial Services Authority. However, a number of significant details are still absent from the proposals or are the subject of strong criticism, either from the industry side or from consumer organizations. Also, some types of life assurance, non-life insurance and most mortgage lending may remain outside the proposed new system. It remains to be seen when the proposals will become law and what precise form they will take.     

Are Consumer and Brand Personalities the Same?

Current discussions of brand personality refer to a personified brand image, that is, a brand image that can possess any attributes of consumers, rather than brand personality. From a conceptual and methodological critique of the literature, this paper applies the definition of personality to brand personality, and tests the idea using a peer‐rating methodology that focuses on each individual's perception of a brand (the brand × subject structure). The results reveal that consumers reflect their personalities by the brands they use, but the relationship between brand choice and symbolic dimensions (i.e., extraversion, agreeableness, neuroticism, and openness to experience) is much stronger than the relationship with functional dimensions (i.e., conscientiousness). Moreover, the pattern of this relationship remains consistent across symbolic and utilitarian products, which implies that consumers choose brands with similar personalities to theirs across various products. The study concludes that an abridged personality scale, based on the Big Five, can be applied to both brands and consumers. © 2012 Wiley Periodicals, Inc.     

Sodium and ready meals: a survey of Irish consumer awareness

The aim of the study was to gain an understanding of Irish consumer attitudes towards ready meals and current sodium issues in Ireland. A questionnaire was distributed to 357 consumers via convenience quota sampling to a range of nationalities in both rural and urban/city areas of Ireland. The survey revealed that a high proportion of respondents (45%; n = 161) were worried about the amount of salt they consumed. Despite this, 58% (n = 207) stated they never look at the sodium/salt contents on nutritional labels with 68% (n = 244) claiming that sodium/salt contents would never affect their buying choice. The survey also uncovered that 76% (n = 270) of the Irish consumers surveyed consider ready meals to be high in sodium and 80% (n = 285) consider them to be an unhealthy option. Despite this, 50% (n = 179) of the respondents consumed a ready meal at least once a week with a further 17% (n = 59) consuming them two to three times a week. Of those who did consume ready meals, 78% (n = 191) chose them due to their convenience. A total of 75% (n = 269) of all the respondents said they would choose a chilled ready meal over its frozen counterpart. The reason for this being attributed to the fact that chilled ready meals were perceived to be healthier (44%; n = 158) and of better quality (54%; n = 194) than their frozen counterparts. Results from this study highlight the need for concerted actions involving consumers, manufacturers and retailers to reduce sodium levels in Irish ready meals, as despite being reasonably aware of the sodium issue consumers were not making informed choices to reduce sodium/salt consumption.     

The practices of effective managerial coaches

Coaching is a frequently cited, but less often effectively implemented, developmental tool for enhancing managerial performance at all levels. The purpose of this paper is to identify and explore the practices junior managers consider to be most critical for senior managers to employ when implementing coaching as a performance improvement practice. In this research, we engaged 45 focus groups consisting of 225 middle managers from over twenty different US organizations to explore the issue of managerial coaching and its implications for organizations and individual managers.     

Bankruptcy as a Control Device in Economies in Transition

We examine in this paper the design of a liquidation, or bankruptcy, policy in a partially centralized economy characterized by imperfect information. We employ a two-period model to analyze the effects of an optimal liquidation rule on the efficiency of resource allocation and choice of managerial effort when managers have private information about effort and firm productivity. First-period investment is used by the regulator to discipline the manager and to extract information. The tradeoff between disciplinary effect and information extraction might be best solved by implementing inefficient liquidation policies. Inefficiencies in liquidation policies can occur even if the regulator believes that he is facing a given type of firm with probability close to one. J. Comp. Econom., June 1995, 20(3), pp. 265-301. Cornell University, Ithaca, New York 14853-7601.     

Homotheticity and Non-Radial Changes

Färe and Mitchell(1992) have shown that cost functions for a multi-output firmobey a particular output-scaling law if and only if the underlyingproduction technology is ray-homothetic. Multi-output firms,however, frequently change their output mix in addition to theirscale. Therefore, it is important to identify technologies thatpossess relatively tractable analytical characteristics whensubjected to non-radial changes in the output vector. This paperconsiders additive and other, more general, changes in the outputvector. One result shows that the cost function obeys an ``output-translationlaw' if and only if the input correspondence is input homothetic,thus suggesting that ``input homotheticity' is more than justan ``input-scaling' property.     

Professional forecasts of interest rates and exchange rates: Evidence from the Wall Street Journal’s panel of economists

We analyze economists’ forecasts of interest rates and exchange rates from the Wall Street Journal. We find that a majority of economists produced unbiased forecasts but that none predicted directions of changes more accurately than chance. Most economists’ forecast accuracy is statistically indistinguishable from a random walk model in forecasting the Treasury bill rate, but many are significantly worse in forecasting the Treasury bond rate and the exchange rate. We also find systematic forecast heterogeneity, support for strategic models predicting the industry employing the economist matters, and evidence that economists deviate less from the consensus as they age.     

Unemployment insurance with hidden savings

This paper studies the design of unemployment insurance when neither the searching effort nor the savings of an unemployed agent can be monitored. If the principal could monitor the savings, the optimal policy would leave the agent savings-constrained. With a constant absolute risk-aversion (CARA) utility function, we obtain a closed form solution of the optimal contract. Under the optimal contract, the agent is neither saving nor borrowing constrained. Counter-intuitively, his consumption declines faster than implied by Hopenhayn and Nicolini (1997) [1]. The efficient allocation can be implemented by an increasing benefit during unemployment and a constant tax during employment.