Consumer response to and choice of customized versus standardized systems

Recent research on customization suggests that a need exists to examine conditions under which selling customized versus non-customized offerings will be more beneficial to vendors. To this end, this paper empirically evaluates consumer response to and choice of customized systems (offerings that are integrated and customized) in relation to standardized systems (offerings that feature integration but not customization). Through a series of studies, we demonstrate that the relationship between a buyer's systems purchase strategy and their future repurchase intentions toward the seller is moderated by a buyer characteristic (that is, a consumer's insight into his/her own preferences, or the degree to which a consumer can confidently and consistently express his or her true preferences) as well as a seller characteristic (retailer reputation). Given that consumers who are experts have greater insight into their own preferences than novices, our work also suggests that this greater insight into one's own preferences is a plausible explanation for why experts are more likely to choose a customized system. The main practical implication of our research is that it prompts managers to challenge the contention in some mass customization writings that customized offerings have universal appeal. Although the participants in our studies also tended to be more attracted to customized systems in general, this proclivity was lower for consumers with less product category expertise. This is important because our results convey that repurchase intentions towards a vendor will be higher after the purchase of a non-customized system by those consumers who lack insight into their preferences. As such, firms should try to propose customized systems only to those prospective buyers who possess strong preference insight, and propose standardized systems to those buyers who do not.     

Reassessing the role of Chinese workers in problem solving: a study of transformational leadership,trust and security in ‘lean’ manufacturing

In this paper, we study leadership style and organizational culture, elements that, we argue, are conducive for Chinese shop-floor employees to participate in problem solving in ‘lean’ manufacturing. Power distance and the concern for saving face potentially hinder employees' willingness to participate in such problem solving, but our findings support the notion that transformational leadership helps to overcome these barriers. The relationships are not straightforward, however, and by examining the complexities, this research may provide insights into this dilemma.     

Integration or disintegration? Human resource implications of a common corporate language decision in a cross-border merger

The primary purpose of introducing a common corporate language in cross-border mergers is to integrate two previously separate organizations and facilitate communication. However, the present case study of a cross-border merger between two Nordic banks shows that the common corporate language decision may have disintegrating effects, particularly at organizational levels below top management. We identify such effects on performance appraisal, language training and management development, career paths, promotion and key personnel. Our findings show that top management needs to work through the consequences of the language decision upon those who are expected to make such a decision work.     

On the efficiency of fair trade

The first part of this paper reviews five major theoretical approaches that describe the fundamental causes of poverty, with particular attention to what these theories imply about government policy towards markets and the need for immediate poverty alleviation. Different causal theories have very different policy implications; it is difficult to recommend specific anti-poverty policies with making assumptions about the nature of economic markets and of individual behavior. The paper ends with comments about how to make these choices, arguing that the greater moral onus one associates with poverty, the more willing one should be to adopt less efficient strategies that do more to raise incomes among the poor. The interconnections between markets and social and political systems—which often disadvantage poor populations—suggests that some market regulations and targeted programs may be necessary to reduce poverty, especially if these can be implemented with minimal corruption and monitored for effectiveness.     

Are all trade agreements equal? The role of distance in shaping the effect of economic integration agreements on trade flows

Review of World Economics - How does geographic distance affect the impact of trade agreements on bilateral exports, and through what channels? This paper examines these questions in a gravity...     

Accounting for Respondent Uncertainty to Improve Willingness-to-Pay Estimates

In this paper, we develop an econometric model of willingness to pay (WTP) that integrates data on respondent uncertainty regarding their own WTP. The integration is utility consistent, there is no recoding of variables, and no need to calibrate the contingent responses to actual payment data, so the approach can “stand alone.” In an application to a valuation study related to whooping crane restoration, we find that this model generates a statistically lower expected WTP than the standard contingent valuation (CV) model. Moreover, the WTP function estimated with this model is not statistically different from that estimated using actual payment data suggesting that, when properly analyzed using data on respondent uncertainty, CV decisions can simulate actual payment decisions. This method allows for more reliable estimates of WTP that incorporate respondent uncertainty without the need for collecting comparable actual payment data. Dans le présent article, nous avons élaboré un modèle économétrique d’estimation qui internalise l’incertitude des répondants quant à leur propre consentement à payer. L’internalisation est fidèle à la notion «d’utilité»; il n’a pas été nécessaire de transformer les variables ni de calibrer les réponses des répondants avec des paiements réels. L’application de la méthode n’est donc pas dépendante d’autres données ou méthodes. Dans une étude d’évaluation sur le rétablissement de la grue blanche d’Amérique dans laquelle ce modèle a été utilisé, nous avons trouvé que le consentement à payer attendu était statistiquement plus faible que celui obtenu à l’aide de la méthode d’évaluation contingente standard. Par ailleurs, la fonction de consentement à payer estimée à l’aide de ce modèle n’est pas statistiquement différente de celle estimée à l’aide de paiements réels. Cette observation autorise à penser que, lorsque le modèle tient compte des données sur l’incertitude des répondants, les décisions obtenues à l’aide de la méthode d’évaluation contingente peuvent simuler les décisions obtenues à l’aide de paiements réels. Cette méthode permet d’obtenir des estimations du consentement à payer plus fiables, lesquelles intègrent l’incertitude des répondants sans la nécessité de collecter des données comparables de paiements réels.     

The Demand for, and Impact of, Learning HIV Status

This paper evaluates an experiment in which individuals in rural Malawi were randomly assigned monetary incentives to learn their HIV results after being tested. Distance to the HIV results centers was also randomly assigned. Without any incentive, 34 percent of the participants learned their HIV results. However, even the smallest incentive doubled that share. Using the randomly assigned incentives and distance from results centers as instruments for the knowledge of HIV status, sexually active HIV-positive individuals who learned their results are three times more likely to purchase condoms two months later than sexually active HIV-positive individuals who did not learn their results; however, HIV-positive individuals who learned their results purchase only two additional condoms than those who did not. There is no significant effect of learning HIV-negative status on the purchase of condoms.