THE CONSEQUENCES OF GROWTH MAXIMISATION AND EXPENSE PREFERENCE POLICIES OF MANAGERS: EVIDENCE FROM UK BUILDING SOCIETIES. A STUDY OF THE CAUSES OF PROFIT INSUFFICIENCY DURING A PERIOD OF INCREASED COMPETITION USING DISCRIMINANT ANALYSIS

It has often been argued that the monopolistic position of building societies and the lack of constraints on policies of their managers has brought inefficiencies and managerial utility maximising results. This may be seen in society growth policies and their expense preference behaviour. When there is increased competition affecting margins some building societies may earn insufficient profits so as to threaten their financial stability. The present study uses multiple discriminant analysis to study the period 1978–1980 and verifies the hypothesis that both growth and expense preferences caused profit insufficiency which could lead to financial distress.     

Close to the customer: But is it really a relationship?

Everyone is developing relationships. Customers are being invited to have relationships with telephone companies, banks, auto dealers, airlines, and other suppliers of products and services. Relationship marketing is being touted as an effective strategy to guide companies into the next millennium. Recently there has been widespread reference to relationship marketing in the popular literature, and the concept has been embraced by many companies and organizations. There is little consensus, however, on what the concept means and even less consistency in how it is practised. What is relationship marketing? Practising marketers and articles in the trade press use the term in one way, while authors in academic journals seem often to be referring to something quite different. This paper reviews how the concept has been viewed by marketing authors and draws from social psychology to shed light on the characteristics of relationships. Some insights are drawn from a preliminary analysis of the results of focus group interviews that suggest how consumers describe their relationships with businesses.     

In Search of the “Meta‐Maven”: An Examination of Market Maven Behavior across Real‐Life,Web, and Virtual World Marketing Channels

Recently, a new set of channels for consumer and business interaction have emerged—three‐ dimensional “virtual” worlds. This study attempts to better understand the nature of market maven behavior (diffusers of general marketplace and shopping information) across three different channels—virtual worlds, the Web, and real‐life—and to examine the extent to which market maven behavior is transferable across channel context (i.e., “fluid”) or channel dependent. Using data from two surveys (one in the virtual world “Second Life” and a follow‐up Web survey for the same respondents), this paper explores differences and determinants of maven behavior. Employing partial least squares analysis, the findings indicate that market maven propensity is transferable across channels (i.e., high‐scoring market mavens retain this across channel). However, while there may be the transferability of market maven behavior across channels, the findings demonstrate that maven propensity is influenced by the channel context. Consequently, individuals with high maven propensity tend to exhibit channels in which this behavior is more prominent. Therefore, market maven behavior might not only span general product categories, but also the channel itself (i.e., maven behavior remains fairly constant—or fluid—across channel). The findings also point to possible characteristics that may be used in the identification of market mavens: market mavens typically have greater cognizance of other mavens, are technology‐savvy and individualistic, are of either gender and tend to be older and more intensive and experienced users of Web platforms and also intensive users of virtual worlds than those with low maven propensity. The findings of the study contribute to understanding market maven behavior, and provide an insight into the practices of mavens in a multichannel context, particularly in the case of the emerging channels that are virtual worlds.     

Measuring Confucian values among East Asian consumers: a four country study

This study aims to make a conceptual and empirical contribution by developing and operationalizing suitable scales to capture certain Confucian values (face saving, humility, group orientation, hierarchy and reciprocity) that can influence East Asian consumers. Based on the pertinent literature, focus group discussions with extended East Asian families and East Asian scholar interviews, we develop and validate our measures on data from over 400 respondents across four East Asian cities (Tokyo, Hanoi, Beijing and Singapore). Despite some variance, our findings signal that East Asians are highly influenced by such traditional values. Several implications are extracted and future research directions suggested.     

Exploring the fit of real brands in the Second Life 1 virtual world

Abstract

Online virtual worlds are rapidly becoming recognised as an important new channel for marketing and brand building. This paper examines the brand value of real-life brands that have moved to the virtual world of Second Life. Using axiology, we assess the value of real-life brands in the virtual world and test an exploratory model of brand fit to the virtual world. While category fit is an established construct, channel extension fit represents a new variable developed specifically to help explain brand transference to the new context. Data were collected in two phases, both in Second Life via automated avatar survey bots and via a Web survey. A total of 211 matched responses were collected and tested using partial least squares. The overall research model is strongly supported. Virtual-world brand value is strongly determined by extension attitudes driven by an assessment of how well the category of the real-life brand offerings fit with the virtual world and how well the real-life brand offerings fit with the three-dimensional virtual-world channel within which they have emerged. This implies that organisations must carefully consider not only the nature of existing brand offerings before entering into the virtual world, but also whether this new channel is indeed a suitable channel in which to be embarking on branding activities. This also has clear implications for branding activities in other social media. The paper rounds off with a discussion, implications for practice and future research, limitations, and conclusions.     

Using panel data analysis to estimate confidence intervals for the DEA efficiency of individual decision making units

This article demonstrates a methodology using panel data analysis to estimate confidence intervals for the data envelopment analysis efficiency of individual decision making units (DMUs), and the statistical significance of trends in individual DMU efficiency. The procedure accounts for stochastic variations of the inputs and outputs of the target DMU as well as stochastic variations of the inputs and outputs of its efficient benchmark peers. The procedure is demonstrated using 9 years of data from 34 Canadian paratransit agencies.     

A Cointegrating approach to budget deficits and long-term interest rates

A cointegrating approach is undertaken in this study to determine if there is a long-run equilibrium relationship between budget deficits and long-term interest rates for the United States and nine European countries. The cointegration approach consists of conducting cointegration tests and then testing several hypothesized values for the deficit and price expectations variables. The cointegration results suggest the existence of several significant cointegrating vectors for each of the ten countries, which would seem to appeal to the view of budget deficits having a positive impact on long-term interest rates. The hypothesized values for the deficit and price expectations variables are found to be too strict since the hypotheses are rejected in every case but one.     

Regulation and quality in monopoly industries

Regulating the privatised utilities has turned out to be more difficult than was expected, and the regulation that will be imposed on the water and electricity industries is likely to be different to that which the Government imposed on the telecommunications industry. By looking at the quality of British Telecom's services, some insights can be gained into why regulation has turned out to be so complex, and where the UK regulatory model may be heading.     

Cattle numbers,biomass, productivity and land degradation in the commercial farming sector of Namibia, 1915‐95

As part of a natural resource accounting project undertaken in Namibia, livestock accounts have been drawn up and are being used to analyse the relationship between numbers of livestock, rainfall, land degradation, and economic and policy variables. Part of the analysis concerns an investigation into trends in cattle numbers, changes in cattle biomass and the productivity of livestock in commercial areas. Cattle numbers increased from 1914 until 1960, then declined steadily to half that number. This decline was at least partly due to deliberate actions by farmers to improve herd productivity and production efficiency. Although beef production did not decline over this period, productivity is still lower than potential industry standards. Range degradation (bush encroachment) may have contributed to this curtailment. This investigation has implications for an understanding of long‐term carrying capacity, land degradation and rangeland management, and for agricultural development policies in Namibia and similar regions in southern Africa.