Price reduction strategy

2017 ◽  
Vol 29 (3) ◽  
pp. 634-652 ◽  
Author(s):  
Waheed Kareem Abdul
Keyword(s):  
Durable Goods ◽  
Negative Impact ◽  
Structural Equations ◽  
Price Reduction ◽  
Durable Good ◽  
Price Fairness ◽  
Content Type ◽  
Reduction Strategy ◽  
Significant Negative Impact ◽  
Negative Effect

Purpose The purpose of this paper is to address consumers’ post-purchase perceptions toward the brand when it adopts price reduction strategy. The study specifically conceptualizes the effect of consumers’ price unfairness perceptions of past purchase (PUPoPP) on customer-based brand equity (CBBE) with a moderating effects of elapsed time since purchase (ETSP) and magnitude of price reduction (MPR) in situations where consumers were aware of the reduction in price of the product that they had purchased earlier. Design/methodology/approach A survey was conducted among consumers who were aware of the reduction in the price of the computer laptop which they had purchased earlier. A sample size of 214 respondents was utilized for the study. The hypotheses were tested by using partial least squares-structural equations modeling. Findings The results of the study show that there is a significant negative impact of PUPoPP on CBBE and the ETSP was found to enhance CBBE and also weaken the negative effect of PUPoPP on CBBE. Furthermore, the MPR was found to strengthen the negative effect of PUPoPP on CBBE. Originality/value The findings of this study are unique and contribute to both pricing and branding areas of research. While extant research in these areas has focused on price fairness perceptions in situations where the price of future purchase increases, particularly for frequently purchased non-durable goods, this study explored PUPoPP in situations where the firm reduces the price of a durable good such as a computer laptop.

Improving China's alfalfa industry development: an economic analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wenxin Wang
Keyword(s):  
Negative Impact ◽  
Arable Land ◽  
Secondary Data ◽  
Influential Factors ◽  
Content Type ◽  
Measurement Results ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

PurposeThis study analyzes the factors which affect the alfalfa cultivation acreage in China and estimates the development of alfalfa planting by the supply model.Design/methodology/approachBased on the characteristics and actual conditions of alfalfa cultivation in China, a naïve empirical model was created to analyze the impact of various influencing factors on the cultivation acreage of alfalfa.FindingsThe analysis of influential factors shows that China's alfalfa planting conforms to naïve price behavior. The prices of alfalfa and per capita arable land occupancy have a positive effect on the cultivation acreage, while the price of competitive crops and transportation costs have a negative effect on the production of alfalfa. Lastly, the 2012 alfalfa subsidy policy has a significant negative impact on alfalfa cultivation acreage.Research limitations/implicationsDue to the limited research on alfalfa supply in China, there is a lack of available research data and statistical data. A large number of data in this study are mainly indirect data derived and calculated from other industrial data. The measurement results may not be fully accurate.Originality/valueThis study represents the first empirical analysis of the characteristics of the factors influencing alfalfa cultivation acreage in China. The secondary data were used to analyze the influence of various control variables on the cultivation acreage of alfalfa, which is different from existing research.

scholarly journals Distance and the completion of Chinese cross-border mergers and acquisitions

2019 ◽  
Vol 14 (3) ◽  
pp. 500-519 ◽  
Author(s):  
Lijun Dong ◽  
Xin Li ◽  
Frank McDonald ◽  
Jiaguo Xie
Keyword(s):  
Mergers And Acquisitions ◽  
Negative Impact ◽  
Emerging Market ◽  
Chinese Firms ◽  
Content Type ◽  
Cross Border ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
Internationalization Strategies ◽  
Knowledge Intensive

Purpose The purpose of this paper is to draw attention to the significant lower completion rate of mergers and acquisitions (M&As) by firms from emerging economies (EEs) (China in particular) compared with firms from advanced economies, and identify the country- and industry-level factors that affect the completion of cross-border M&As by Chinese firms. Design/methodology/approach This study explores the effects of economic, cultural and institutional distances and target firms in technology- and knowledge-intensive industries on the completion of cross-border M&As by Chinese firms. It also examines the interplay between distance factors and technology- and knowledge-intensive industries on cross-border M&A completion. This study adopts a quantitative approach and is based on a sample of 768 announced cross-border M&A deals by firms in China between 2000 and 2015. Findings The results indicate that economic distance increases the likelihood of the completion of cross-border M&As when the target is in a more developed economy than China, but decreases when the target is in a less developed economy. Cultural and institutional distances have a significant, negative impact on the completion of cross-border M&As. In addition, target technology-intensive industries have a significant direct negative effect on cross-border M&A completion and moderate the relationship between the distance factors and the likelihood of cross-border M&A completion. Research limitations/implications The results reveal factors that affect the completion of cross-border M&As by emerging market firms (EMFs). Further research, however, is needed to discover how distance factors affect how EMFs find, evaluate and negotiate international bids. To broaden the scope of the research, data for firms from other EEs would also be required. Originality/value The study expands the literature that considers the effects of major distances on cross-border M&A completion. In addition, the importance of defining and measuring distances in the context of cross-border M&As is highlighted. Finally, the study expands knowledge on how cross-border M&As affect the internationalization strategies of EMFs by conceptualizing and testing how target industries affect cross-border M&A completion.

scholarly journals Analysis of User Needs on Downloading Behavior of English Vocabulary APPs Based on Data Mining for Online Comments

Mathematics ◽  
2021 ◽  
Vol 9 (12) ◽  
pp. 1341
Author(s):  
Tinggui Chen ◽  
Lijuan Peng ◽  
Jianjun Yang ◽  
Guodong Cong
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
User Needs ◽  
User Requirements ◽  
Functional Requirements ◽  
User Comments ◽  
Online Comments ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
New Type

With highly developed social media, English learning Applications have become a new type of mobile learning resources, and online comments posted by users after using them have not only become an important source of intellectual competition for enterprises, but can also help understand customers’ requirements, thereby improving product functionalities and service quality, and solve the pain points of product iteration and innovation. Based on this, this paper crawled the online user comments of three typical APPs (BaiCiZhan, MoMoBeiDanCi and BuBeiDanCi), through emotion analysis and hotspot mining technology, to obtain user requirements and then the K-means clustering method was used to analyze user requirements. Finally, quantile regression is used to find out which user needs have an impact on the downloads of English vocabulary APPs. The results show that: (1) Positive comments have a more significant impact on users’ downloads behavior than negative online comments. (2) English vocabulary APPs with higher downloads, both the 5-star user ratings and the increase of emotional requirement have a negative effect on the increase in APP downloads, while the enterprise’s service requirement improvement has a positive effect on the increase of APP downloads. (3) Regarding English vocabulary APPs with average or high downloads, improving the adaptability and Appearance requirements have significant negative impact on downloads. (4) The functional requirements to improve products will have a significant positive impact on the increase in downloads of English vocabulary APPs.

Three strikes and you are out?

2017 ◽  
Vol 10 (4) ◽  
pp. 417-429 ◽  
Author(s):  
Michael Carriger
Keyword(s):  
Negative Impact ◽  
Univariate Analysis ◽  
Market Valuation ◽  
Financial Health ◽  
Content Type ◽  
Financial Measures ◽  
Significant Negative Impact ◽  
Three Strikes ◽  
Underlying Disorder ◽  
The Impact

Purpose Much has been written in both the management and finance literatures about the impact of downsizing on the financial health and market valuation of companies. However, surprisingly little attention has been paid to the frequency of downsizing and the impact of frequent downsizings. The purpose of this paper is to look at trends in downsizing, asking the question are companies that downsize once more likely to downsize again. The paper also looks at the impact of frequent downsizing, asking the question are frequent downsizers differentially impacted compared to less frequent downsizers. Design/methodology/approach Companies that appeared on the Fortune 500 in 2014 and were also on the list in 2008 were assessed for the impact of repeat downsizings on financial measures (profitability, efficiency, debt, and revenue) and market valuation. A trend analysis was conducted to assess the trend in downsizing and repeated downsizing from 2008 through 2014. A series of univariate analysis of variances were conducted to assess the impact of repeated downsizings on the financial and market valuation indicators. Findings Findings indicate that companies that downsize between 2008 and 2009 were more likely to downsize again in future years. And this repeat downsizing happened at a higher rate than would be expected by the percentage of companies that initially downsized. Findings also indicate that multiple downsizings had a significantly negative impact on the company’s financial performance as measured by two profitability ratios (return on assets and return on investment) and a borderline significant negative impact on the company’s market valuation as measured by stock equity, regardless of industry or initial financial health of the company. Originality/value Two competing theories were considered and the evidence found here support both. However, the “band-aid solution” theory, that downsizing may function as a band-aid addressing the symptoms that lead to the downsizing but not the underlying disorder or cause may be a more parsimonious explanation for the results here. It is hoped that these findings will inform both scholars and practitioners, giving both a clearer picture of the impact of multiple downsizings on corporate performance.

Every coin has two sides: the impact of time pressure on employees’ knowledge hiding

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xianchun Zhang ◽  
Zhu Yao ◽  
Wan Qunchao ◽  
Fu-Sheng Tsai
Keyword(s):  
Time Pressure ◽  
Negative Impact ◽  
Positive Impact ◽  
Job Security ◽  
Statistical Technique ◽  
Content Type ◽  
Individual Knowledge ◽  
Negative Effect ◽  
Knowledge Hiding ◽  
The Impact

Purpose Time pressure is the most common kind of work pressure that employees face in the workplace; the existing research results on the effect of time pressure are highly controversial (positive, negative, inverted U-shaped). Especially in the era of knowledge economy, there remains a research gap in the impact of time pressure on individual knowledge hiding. The purpose of this paper is to explore the impact of different time pressure (challenge and hindrance) on knowledge hiding and to explain why there is controversy about the effect of time pressure in the academics. Design/methodology/approach The authors collected two waves of data and surveyed 341 R&D employees in China. Moreover, they used regression analysis, bootstrapping and Johnson–Neyman statistical technique to verify research hypotheses. Findings The results show that challenge time pressure (CTP) has a significant negative effect on knowledge hiding, whereas hindrance time pressure (HTP) has a significant positive effect on knowledge hiding; job security mediates the relationship between time pressure and knowledge hiding; temporal leadership strengthen the positive impact of CTP on job security; temporal leadership can mitigate the negative impact of HTP on job security. Originality/value The findings not only respond to the academic debate about the effect of time pressure and point out the reasons for the controversy but also enhance the scholars’ attention and understanding of the internal mechanism between time pressure and knowledge hiding.

scholarly journals Complexity and the triple bottom line: an information-processing perspective

2017 ◽  
Vol 37 (9) ◽  
pp. 1142-1163 ◽  
Author(s):  
Frank Wiengarten ◽  
Muhammad Usman Ahmed ◽  
Annachiara Longoni ◽  
Mark Pagell ◽  
Brian Fynes
Keyword(s):  
Information Processing ◽  
Financial Performance ◽  
Structural Equation ◽  
Negative Impact ◽  
Triple Bottom Line ◽  
Structural Equations ◽  
Equation Modeling ◽  
Bottom Line ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of complexity on the triple bottom line by applying information-processing theory. Specifically, the paper assesses the impact of internal manufacturing complexity on environmental, social, and financial performance. Furthermore, the paper assesses the moderating role of connectivity and shared schema in reducing the potential negative impact of complexity on performance. Design/methodology/approach Multi-country survey data collected through the Global Manufacturing Research Group were utilized to test the hypotheses. The authors used structural equation modeling to test the measurement and initial structural model. Furthermore, to test the proposed moderating hypotheses, the authors applied the latent moderated structural equations approach. Findings The results indicate that while complexity has a negative impact on environmental and social performance, it does not significantly affect financial performance. Furthermore, this negative impact can be reduced, to some extent, through connectivity; however, shared schema does not significantly impact on the complexity-performance relationship. Originality/value This study presents a comprehensive analysis of the impact of complexity on sustainability. Furthermore, it provides managerial applications as it proposes specific tools to deal with the potential negative influences of complexity.

The financial impacts of information systems security breaches on publicly traded companies: reactions of different sectors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cansu Tayaksi ◽  
Erhan Ada ◽  
Yigit Kazancoglu ◽  
Muhittin Sagnak
Keyword(s):  
Information Systems ◽  
Negative Impact ◽  
Abnormal Returns ◽  
Information Systems Security ◽  
Content Type ◽  
Publicly Traded Companies ◽  
Security Breaches ◽  
Systems Security ◽  
Significant Negative Impact ◽  
Financial Impacts

PurposeToday, information systems and technology provides a wide set of tools for companies to increase the efficiency of their businesses. Although technology offers many benefits to businesses, it also brings risks as the information systems security breaches. Security breaches and their financial impact is a constant concern of the researchers and practitioners. This paper explores information systems breaches and their financial impacts on the publicly traded companies in different sectors.Design/methodology/approachAfter a comprehensive data collection process, data from 192 events are analyzed by employing Event Study Methodology and a comparison of the results between the four highly affected sectors (Consumer Goods, Technology, Financial and Communications) is presented. The abnormal returns on the prices of stocks after the events are calculated with the Market Model. Also, the results of the Market Adjusted Model and Mean Adjusted Model are presented to support the results.FindingsWhile information systems security breaches have a significant negative impact on the Financials and the Technology sectors for all the event windows in the study ([−5, 0], [−5, 1], [−5, 5], and [−5, 10]), the significant negative impact is observed only on the [−5, 5] and [−5, 10] event windows for the Consumer Goods sector. No significant negative impact is observed in the Communications sector, in fact, the cumulative abnormal returns are positive for this sector.Originality/valueThe contribution of this paper to provide evidence about the financial impacts of the information systems breaches for businesses in different sectors. While there are studies that have previously focused on the information systems breaches and their financial impacts on businesses, to the best of our knowledge, this is the first study that compares this effect between the four highly impacted sectors. With a relatively larger sample size and broader event windows than the past studies in the literature, statistical evidence is provided to managers to justify their investments in information security and build preventive measures to secure the market value of their firms.

An empirical investigation on the impact of marketing strategy style on firm performance: evidence from public firms in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rui Wang ◽  
Liqiong Liu ◽  
Yu Feng
Keyword(s):  
Marketing Strategy ◽  
Corporate Performance ◽  
Negative Impact ◽  
Secondary Data ◽  
Listed Companies ◽  
Research Issues ◽  
Content Type ◽  
Public Firms ◽  
Negative Effect ◽  
The Impact

PurposeThe mechanism of marketing strategy style and its impact on firms are research issues received wide attention. In particular, the aggressive style of marketing strategy has been chosen by many companies, but recent studies have shown that it has a negative effect on corporate performance. This leads to the core issue of this paper – does the aggressive style of marketing strategy always had a negative impact on corporate performance? Are there any factors that can alleviate this negative impact?Design/methodology/approachBased on the resource-based theory and agency theory, this paper takes the Growth Enterprise Market (GEM) listed companies as the research objects, collects secondary data and conducts the research by regression model.FindingsThe empirical research shows that: (1) the aggressive style of marketing strategy significantly and negatively affects the performance of firm; (2) the resource constraint can moderate the main effect and resource control play a weak adjustment role.Practical implicationsIn practice, this paper confirms the adverse impact of aggressive style of marketing strategy on the performance of listed companies on GEM and inspires the industry to strengthen the control and supervision of marketing resources.Originality/valueThis paper makes up for the research gap in the field of cross-research in finance and marketing theoretically.

Shopping online? The role of imagination and gender

2019 ◽  
Vol 53 (12) ◽  
pp. 2604-2628 ◽  
Author(s):  
Manveer K. Mann ◽  
Yuping Liu-Thompkins
Keyword(s):  
Purchase Intention ◽  
Negative Impact ◽  
Experimental Studies ◽  
Product Evaluation ◽  
Brand Experience ◽  
Content Type ◽  
Female Consumers ◽  
Product Use ◽  
Negative Effect ◽  
The Impact

Purpose This study aims to examine gender differences in the impact of imagining product use on purchase decisions. The authors argue that while imagination can enhance purchase intention for female consumers, it can be detrimental to male consumers. This study explores the conditions under which imagination can be turned into a positive device for male consumers. Design/methodology/approach Three experimental studies were conducted. The first two studies illustrate the differential effects of imagination on males vs females. Given the negative effect found among males, the third study focused exclusively on male consumers to identify conditions under which the negative impact of imagination on these consumers can be alleviated. Findings Studies 1 and 2 show that while an imagination tactic has positive or no effect on female consumers, a generic imagination request lowers male consumers’ purchase intention. Focusing on potential ways of alleviating this negative effect, Study 3 shows that for males without prior brand ownership experience, imagining product use in a less-typical context can increase purchase intention. Research limitations/implications The results provide evidence that gender impacts the effectiveness of imagination in improving product evaluation. Furthermore, the context of imagination and previous brand experience can be used together to determine how male consumers respond to imagination. Practical implications The study’s findings warn against the blind use of imagination tactics. Instead, retailers need to customize imagination tactics based on gender, previous brand experience and product usage context. Originality/value To the best of the authors’ knowledge, this is one of the first papers to examine the impact of gender on the influence of imagination on product evaluation.

Are independent directors’ political connections valuable?

2020 ◽  
Vol 11 (2) ◽  
pp. 299-315 ◽  
Author(s):  
Yanyu Chen ◽  
Wenzhe Zheng ◽  
Yimiao Huang
Keyword(s):  
Firm Value ◽  
Negative Impact ◽  
Listed Companies ◽  
Political Connections ◽  
Independent Directors ◽  
The Political ◽  
Political Connection ◽  
Exogenous Shock ◽  
Content Type ◽  
Negative Effect

Purpose The purpose of this paper is to use difference-in-difference method (DID) to study the influences of independent directors’ political connection on firm value. Design/methodology/approach File No. 18 by the Organization Department of the Communist Party of China Central Committee requires that the leading cadres in party and government offices are not allowed to act as independent directors; this restriction applies to retired officials as well. As a result, many listed companies lose the political connections of officers as independent directors. This paper takes it as an exogenous shock to evaluate the influence of the political connection of independent directors on firm value, effectively alleviating the endogeneity problem existing in previous studies. Findings The research finds the following: under the policy of compelled resignation, the loss of political connection of independent directors has a prominent negative impact on firm value; and compared to state-owned enterprises, the firm value of private enterprises receives a greater negative impact. However, the political advantage of state-owned enterprises is not obviously influenced. In the regions with worse external market environments, due to a greater reliance on resources brought about by political connection, the policy has a much greater influence on their listed companies. Research limitations/implications The study faces several limitations, each of which represents a potential research direction. First, our analysis is based on the policy effects on the firm’s current Tobin’s Q and finds a negative effect of losing political connections. However, the long-term effects are still unclear, as some studies find a negative effect of political connections. Second, the paper focuses on one channel in which political connections may affect firm value. Other channels, such as subsidies and loans from state-owned banks, which need more granular data, should be explored in the future. Practical implications The use of DID model can better objectively evaluate the implementation effects of ban policies and alleviate endogenous problems, which is also enlightening for further perfection of the system of independent directors in the A-share market. Social implications It enriches existing researches of the value of independent directors from the perspective of political connection, which is conducive to understanding the influence and channel on the firm value after the loss of political connection and the value of independent directors in the corporate governance in a more comprehensive and accurate manner. Originality/value This paper extends the relevant research on the value of the political connection of independent directors from the perspective of political connection and enlightens the evaluation of the effect of ban policies.

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