Unlocking the power of marketing: understanding the links between customer mindset metrics,behavior, and profitability

Recent evidence about the central role played by perceptual constructs in driving performance outcomes has produced a renewed interest in studying customer mindset metrics (CMMs; e.g., satisfaction, service quality, and loyalty intentions). However, we still lack a proper understanding of how (i.e., process) and to what extent (i.e., magnitude) these CMMs ultimately translate into profitability at the customer level. In this study, we integrate CMMs into an individual-level framework of customer behavior and profitability and provide a conceptual understanding of the process through which these metrics influence customer profitability. Specifically, we propose three mechanisms through which CMMs affect customer behavior and profitability: behavioral effect, marketing effectiveness effect, and marketing efficiency effect. We empirically test this framework across two distinct contexts, a B2B high-tech firm and a B2C telecommunications firm. The results demonstrate that these unobservable CMMs have a significant and multi-dimensional impact on customer behavior and customer profitability. Furthermore, we compute the increases in customer behavior and customer profitability that each firm can expect due to increases in CMMs to help firms improve resource allocation and make better decisions about how much (and when) to invest in CMMs.     

Ökonomische Wurzeln des Populismus

Increasing populism in developed Western countries such as Germany can be traced to various causes, including economic ones. In these countries, advancing globalisation and technological progress lead to labour market and income effects that have had a negative impact on certain groups of people (wage reduction, increase in the risk of unemployment). The fear of such developments — whether justified or unfounded — results in the desire for political decisions that push back the catalysts of these economic developments. Therefore, international trade with low-wage countries and labour saving technological progress in particular often breed populist parties.     

Rezensionen

Ohne Zusammenfassung     

Industry margins and the business cycle: Some new microeconomic evidence

Analysis of margin flexibility is an important item on the research agendas in macroeconomics and industrial economics. Using a new panel data set for U.S. manufacturing industries, we offer new evidence on the cyclical sensitivity of price-cost margins and on the concentration-margins debate in industrial organization.     

Identification and Use of Efficient Faces and Facets in DEA

This paper provides an outline of possible uses of complete information on the facial structure of a polyhedral empirical production possibility set obtained by DEA. It is argued that an identification of all facets can be used for a characterization of basic properties of the empirical production frontier. Focus is on the use of this type of information for (i) the specification of constraints on the virtual multipliers in a cone-ratio model, (ii) a characterization of the data generation process for the underlying observed data set, and (iii) the estimation of isoquants and relevant elasticities of substitution reflecting the curvature of the frontier. The relationship between the so-called FDEF approach and the cone-ratio model is explored in some detail. It is demonstrated that a decomposition of the facet generation process followed by the use of one of the available (exponential) convex hull algorithms allows for an explicit identification of the facial structure of the possibility set in fairly large DEA data sets. It is a main point to be made that the difficulties encountered for an identification of all facets in a DEA-possibility set can be circumvented in a number of empirical data sets and that this type of information can be used for a characterization of the structural properties of the frontier.     

Quits,recission of quits,and constructive discharge in arbitration

This article explores the arbitral criteria involved in cases when grievants quit or appear to quit their jobs, and then change their minds. It looks at factors that arbitrators take into account in determining when a voluntary resignation has taken place. The principles or guidelines for rescinding a quit are also reviewed. When a quit is forced by some action of the employer, arbitrators generally consider this situation to constitute a constructive discharge, and if such a finding is made, will review the discharge to determine whether it meets just cause standards.Donald J. Petersen is also an arbitrator listed on the panels of the American Arbitration Association, Federal Mediation and Conciliation Service, the Public Employee Panels of the State of Iowa, and the Wisconsin Employment Relations Commission. He is a member of the National Academy of Arbitrators.     

Trade dynamics in Cape Town township informal foodservice – a qualitative and supply chain study

The township cash economy of fast food, takeaways, and prepared meals is collectively termed ‘informal foodservice’. An analysis of a five-township ～3800 microenterprise census, and qualitative supply chain investigation of 50 informal foodservice retailers and 75 consumers revealed a well-established although deeply informal trade predominated by women preparing takeaway foods and conducting street braai (BBQ). The business demonstrates high dependence on the immediate place of operations which includes local input suppliers and selling to a narrow pool of trade from immediate (walking scale) neighbourhoods. Supply chains are short, linked to formal agriculture and wholesale sectors. Informal foodservice is heavily utilised by local residents on a regular basis who spend up to R218 per week on products (potentially 30% of income) from these outlets. These enterprises make a substantial contribution towards satisfying local food demand whilst serving an important social protection and neighbourhood relationship function.     

Knowledge Sharing in Interorganizational Product Development Teams: The Effect of Formal and Informal Socialization Mechanisms*

Working collaboratively with suppliers is increasingly cited as a “best practice” in product development. The importance of sharing knowledge between buyer and supplier in this context has been well recognized, although comparatively little research exists on the interorganizational socialization mechanisms that facilitate it. The present research proposes and tests a theoretical model of the impact of formal and informal socialization mechanisms on the level of knowledge sharing within interorganizational product development projects and the subsequent effect on buyer firm performance. Results from this study of 111 manufacturing organizations in the United Kingdom largely support its hypotheses. It is revealed that informal socialization mechanisms (e.g., communication guidelines, social events) play an important role in facilitating interorganizational knowledge sharing, whereas formal socialization mechanisms (e.g., cross‐functional teams, matrix reporting structures) act indirectly through informal socialization to influence knowledge sharing. The results also show that interorganizational knowledge sharing is positively associated with supplier contribution to development outcomes, which, in turn, improves buyer product development performance and, ultimately, financial performance. Product development managers are encouraged to build social ties between interorganizational development teams to increase the flow of knowledge and to improve both product development outcomes and financial performance.     

Analysen und Berichte

Enste and Wicher suggest that political regulation is always wealth-reducing. However, their analysis neglects various relevant determinants of the wealth indicator. Economic wealth cannot be estimated from the quantity of regulation, as quality and other aspects matter. Hence, political acumen is required. Enste and Wicher reply to criticism of the regulation index and the analysis of the impact of regulation on education. They argue that they neither ignore the positive effects of regulation (taken into account with the data on good governance indicators) nor demand a zero regulation policy. Instead, the main goal of the analysis is to provide an international comparison for “better regulation”.