A Note on the Tax Treatment of Private Pensions and Individual Savings Accounts

The UK government is planning to introduce stakeholder pensions from April 2001 as an alternative to existing personal pensions for people on moderate earnings. But stakeholder pensions are only one way to save for retirement; the new tax‐free Individual Savings Account (ISA) is another. This note compares the tax treatments of pensions and ISAs and assesses the conditions under which the tax treatment of private pensions is more generous than that of an ISA to a basicrate taxpayer – the typical target for stakeholder pensions. The abolition of dividend tax credits paid to pension funds in July 1997 reduced the relatively tax‐favoured position of pensions, but the tax‐free lump sum means that private pensions continue to be a tax‐favoured form of saving at most reasonable rates of return. We show that employer contributions to private pensions are particularly tax‐favoured.     

Trends in Charitable Giving

The charitable giving of UK households has changed considerably over the past 20 years. In particular, the proportion of households giving to charity fell by 5 percentage points between 1974 and 1993–94. An increase in the average size of donations meant that total voluntary income increased in real terms over the period, but, since 1988, voluntary income has stagnated. The greatest falls in the number of givers are among households in their twenties and thirties. There are clear trends in giving across households by age and income, with younger and poorer households tending to give less. But not only are today's younger households less likely to give than today's middle-aged households; they are also less likely to give than today's middle-aged households did when they were young. These generational trends in giving do not bode well for levels of voluntary income in the future. JEL classification: D12. D16.     

DIMENSIONS OF SATISFACTION WITH PURCHASES OF WOMEN'S DRESSES: BEFORE AND AFTER GARMENT CARE

The purpose of this research was to assess the appropriateness of grouping evaluative criteria used by women in their dress purchases according to instrumental, expressive, and market aspects. Respondents from a random telephone sample were divided into two groups, ‘Care’ and ‘Nocare’, according to whether or not the consumers had cared for (washed or cleaned) their dresses at the time satisfaction was measured. For both groups, factors were generated which were representative of the three aspects of evaluative criteria proposed. The factors reflected expressive, price, selection/size, and performance dimensions of clothing satisfaction. Hence, in analysing clothing satisfaction, researchers must recognize that several functions are served by clothing and reflect these in the research methodology.     

The Use of Management Control Mechanisms to Mitigate Moral Hazard in the Decision to Outsource

Using archival data from the U.S. passenger airline industry, this study examines whether management control mechanisms aimed at mitigating moral hazard explain outsourcing decisions over and above transaction cost economics (TCE) determinants documented in prior research. Consistent with TCE theory, we find that in‐house production efficiencies and our proxy for transaction risk (i.e., deriving from transaction infrequency, transaction complexity, and relationship‐specific investments) significantly explain the extent of outsourcing of aircraft maintenance. We extend TCE insights to show that incentive delta (i.e., the sensitivity of CEO portfolio holdings to stock price changes) strengthens the negative association between production efficiencies and outsourcing while incentive vega (i.e., the sensitivity of CEO holdings to stock return volatility) weakens the negative association between transaction risk and outsourcing. Monitoring strengthens the negative association between in‐house production efficiencies and outsourcing, but has no effect on the transaction risk–outsourcing relation. The results suggest that the use of outsourcing to achieve cost savings is promoted through both incentive contracts and monitoring, but outsourcing to achieve the desired risk level is promoted only through incentive contracts.     

Implementing Market Segmentation Strategies in UK Personal Financial Services: Problems and Progress

Most academic research into segmentation in the financial services industry has focused on alternative analytical approaches and base variables; relatively little attention has been paid to implementation issues, despite managementS concerns about the practicality and usefulness of segmentation. Some significant barriers to effective implementation of segmentation have been encountered by major financial services firms. This paper reviews these barriers, and finds that weaknesses in customer data, and the importance of a good fit with the company'S distribution channels, can limit the range of segmentation approaches that a company can adopt, while the organisational context, structure and strategic positioning canfail to support effective segmentation. The paper also considers some of the newer entrants to the financial services industry, and finds that they are making progress in all of these areas.     

The effect of country of origin on purchase behaviour: an intercept study

In the present study, consumers were intercepted and surveyed at point of purchase to measure the influence of country of origin on apparel purchase behaviour. In addition, actual consumer awareness of the country of origin of the garment purchased was measured. The findings offer an indication of the relationship between consumer attitudes and purchase behaviour with regard to country of origin. This information may prove useful to retailers involved in or considering involvement in ‘American made’ promotions. Results also offer the residual benefit of gauging the impact of the Crafted With Pride ‘Made in the U.S.A.’ campaign 6 months after the introduction of intense promotion.     

Building Donor Relationships: An Investigation into the Use of Relationship and Database Marketing by Charity Fundraisers

The Paper reports empirical research into the use of fund - raising databases by UK Charities. The findings suggest that using a fund - raising database is not enough, by and of itself, to improve effectiveness in building donor loyalty. Rather, relationship and effectiveness in building donor loyalty. Rather, relationship and databasse marketing principles need to be applied in the use of the database to achieve greater loyalty from the charity's donors.     

Understanding Parental Beliefs and Attitudes about Children's Sexual Behavior: Insights from Parental Style

Parental style theory is used to explore how parents differ with regard to parental roles, attitudes, and perceptions about the consequences of teens engaging in sex. Findings from a survey of 150 parents indicate that parental style influences parents’ attitudes and beliefs concerning teen sex. Also, since parents do not have confidence about conveying sex‐related information to children, an opportunity may exist for empowering parents on how to discuss these topics with them. Such empowerment may be accomplished by provision of information to parents through health organizations and the government on how to engage in such conversations with children.