Strategy convergence

In fast-changing industries like communications, having the right strategy is critical to success. Didier Bonnet and George Yip explain why business models and strategic planning must converge into strategic formulation.     

Consumer Segments Based on Attitudes Toward Luxury: Empirical Evidence from Twenty Countries

This article proposes an international segmentation of consumers based on their attitudes toward luxury. We perform a two-stage empirical study with a data set that combines samples from 20 countries. We provide a substantive interpretation of the results to show that three attitude segments dominate in a Western cultural context. We discuss several directions for future research based on the findings.     

Cross‐cultural differences on work‐to‐family conflict and role satisfaction: A Taiwanese‐British comparison

The aim of this research was to explore relations between work and family demands and resources, work‐to‐family conflict (WFC), and work and family outcomes in a cross‐cultural comparative context involving Taiwanese and British employees. Two‐hundred and sixty‐four Taiwanese employees and 137 British employees were surveyed using structured questionnaires. For both Taiwanese and British employees, work and family demands were positively related to WFC, whereas work resources were negatively related to WFC. Furthermore, WFC was negatively related to family satisfaction. More importantly, we found that nation moderated relationships between work resources and WFC, WFC and work, and family satisfaction. Specifically, work resources had a stronger protective effect for Taiwanese than British in reducing WFC, whereas WFC had a stronger detrimental effect on role satisfaction for British than Taiwanese. It is recommended that both culture‐general and culture‐specific effects should be taken into consideration in designing future WFC research and familyfriendly managerial practices. © 2010 Wiley Periodicals, Inc.     

The effect of widowhood on housing and location choices

The number of elderly persons living alone is increasing and their influence on the housing market is getting larger. This paper investigates the effect of the loss of a spouse on housing and location choices. A partner’s death induces a decrease in income which may lead to downsizing. Widowhood may also reveal new preferences, such as the need to be close to care givers and health services. We estimate the effect of a transition to widowhood on housing consumption and location choices using the French Housing Surveys. Widowhood significantly increases residential mobility, especially at older ages and for those who have children. Mobile widows tend to live closer to their relatives but do not move to co-reside with a child. Housing and location adjustments are consistent with new widows moving to dwellings that are smaller, more often apartments and in the rental sector, and on average located in larger municipalities where services are more accessible. The housing demand of widows will be significant in the next 20 years, especially the demand for small dwellings.     

Dissipative advertising signals quality: Static model with a continuum of types

Advertising and price have been shown to signal product quality. Most works limit the number of types to high and low quality. I characterize the optimal separating marketing strategy when both quality and marginal cost are uncertain and continuous variables.     

The impact of recycling on the long‐run forestry

Abstract Interest in recycling of forest products has grown in recent years, one of the goals being to conserve trees or possibly increase their number to compensate for positive externalities generated by the forest and neglected by the market. This paper explores the issue as to whether recycling is an appropriate measure to attain such a goal. We do this by considering the problem of the private owner of an area of land, who, acting as a price taker, decides how to allocate his land over time between forestry and some other use, and at what age to harvest the forest area chosen. Once the forest is cut, he makes a new land allocation decision and replants. He does so indefinitely, in a Faustmann‐like framework. The wood from the harvest is transformed into a final product that is partly recycled into a substitute for the virgin wood, so that past output affects the current price. We show that in such a context, increasing the rate of recycling will result in less area being devoted to forestry. It will also have the effect of increasing the harvest age of the forest, as long as the planting cost is positive. The net effect on the flow of virgin wood being harvested to supply the market will as a result be ambiguous. An important point, however, is that recycling will result in fewer trees in the long run, not more. It would therefore be best to resort to other means if the goal is to conserve the area devoted to forestry.     

Extending the perimeter of reflexive debate on futures research: An open framework

Theoretical and methodological crossover between the field of Futures Studies and environmental research has proven instrumental in understanding environmental long-term dynamics. However, the scale taken today by studies and research on such dynamics creates a new challenge for futurists and environmental scientists, as many set patterns of thought or research in both communities will have to be re-examined. For futurists, it will be necessary to go beyond attempts to standardize Futures Studies methods. The alternative is to promote theoretical and methodological reflexion within the rapidly expanding life-size (and not workshop size) fora of scholarly and policy debate. It will also mean overcoming the regime of metonymical hustle whereby once and again, a new school of thought tries to redefine the entire field and reduce it to its own purpose, concepts and toolkit. This paper proposes an “open” framework as a guide for each study on futures to make explicit the specific and fundamental choices it rests on. It is meant as an invitation to step back and consider new beginnings in a workspace open to the widest possible diversity and scale of approaches, as will be necessary if studies on futures are to rise to the challenges of research for sustainable development.     

Inefficiency and predictability in the Brexit Pound market: a natural experiment

Exploiting the near-experimental conditions provided by the GBPUSD exchange rate during the Brexit vote of 2016, we quantify a significant delay of the market price in reflecting the increasing probability of a Brexit outcome over the vote counting period. We claim that the Brexit outcome could realistically have been predicted hours before the market adjusted to the outcome. This inefficiency is identified by comparing the market-implied probability of a Brexit outcome with a separate probability, estimated by a standard Monte-Carlo algorithm based on a simple linear regression model, representative of what should have been easily possible in real time. The core of the method is the real-time re-calibration of ex-ante ‘pollster’ predictions for the voting district outcomes by regressing the observed voting results onto them. For comparative purposes, a study of the MXNUSD exchange rate in the 2016 US Presidential Election was done, finding that the market-implied and model-estimated probabilities moved more consistently toward the Trump outcome. Put together, this identifies a somewhat anomalous breakdown in market efficiency in the case of the Brexit vote, which we attribute to its novelty as well as a kind of political bubble and subsequent crash, generated by confirmation bias and social herding.     

Nature of the R&D/Marketing co-operation in the design of technologically advanced new industrial products

Many studies have consistently reported that success in industrial new product innovation is linked with the degree of interfacing between R&D and Marketing in the early stages of the product development process. However, very little evidence of such an interface has been reported in advanced technology firms and the relevant literature provides little empirical material on the matter.
Based on a pilot study of 23 new product projects in ten firms in the U.K. it is argued that, in many instances, firms are missing a fundamental issue in the R&D/Marketing cooperation. Too often, the interface is limited to the identification of general market need for a particular new product idea.
The paper emphasises the fact that the interface should provide the means for an efficient product design procedure between R&D and Marketing. This design link should, in turn, profit both the engineering design of the product and its future marketability. The paper also outlines the advantages and the problems inherent in the exercise and proposes a framework for implementation.