scholarly journals The cost of ignorance: reputational mark-up in the market for Tuscan red wines

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maja Uhre Uhre Pedersen ◽  
Paul Sharp
Keyword(s):  
Empirical Investigation ◽  
Geographical Area ◽  
Minor Role ◽  
Limited Area ◽  
Red Wines ◽  
Average Quality ◽  
Content Type ◽  
A Minor ◽  
The Cost ◽  
Practical Implications

Purpose This work argues for and provides an empirical investigation of the idea that imperfectly informed consumers use simple signals to identify the characteristics of wine, for example, the geographical denomination. The reputation of a denomination will thus be an important guide for consumers when assessing individual wines. Design/methodology/approach The price–quality relationship is studied in a fairly homogenous geographical area where a large number of wine types is present. This is done by using a simple OLS analysis on a database of more than 2,000 different red wines produced in a period of just four years in only one Italian region. Findings The results show that some denominations have a lower average quality score and that price differentials between denominations are linked to differences in average quality, although consumers tend to exaggerate the quality gap between prestigious denominations and others. Research limitations/implications A producer in a prestigious denomination benefits from a substantial mark-up relative to an equally good producer from another denomination. Furthermore, denomination neutral wines have a stronger price–quality relationship than denomination specific wines. Practical implications Consumers should not be misled by what is on the bottle, but should rather consult wine guides to become better informed before purchasing. Social implications The fact that quality and sensory characteristics often play a minor role in determining the price of a commodity is not immediately compatible with the postulate that consumers are well informed. Originality/value Unlike previous work, this paper investigates a limited area (Tuscany) and only red wines, thus making it possible implicitly to control for many other factors which might otherwise confound the price–quality relationship.

Shareholder risk-taking incentives in the presence of contingent capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Fatouh ◽  
Ayowande A. McCunn
Keyword(s):  
Risk Taking ◽  
Banking System ◽  
Capital Requirements ◽  
Content Type ◽  
Basic Model ◽  
Conversion Rates ◽  
A Minor ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to present a model of shareholders’ willingness to exert effort to reduce the likelihood of bank distress and the implications of the presence of contingent convertible (CoCo) bonds in the liabilities structure of a bank. Design/methodology/approach This study presents a basic model about the moral hazard surrounding shareholders willingness to exert effort that increases the likelihood of a bank’s success. This study uses a one-shot game and so do not capture the effects of repeated interactions. Findings Consistent with the existing literature, this study shows that the direction of the wealth transfer at the conversion of CoCo bonds determines their impact on shareholder risk-taking incentives. This study also finds that “anytime” CoCos (CoCo bonds trigger-able anytime at the discretion of managers) have a minor advantage over regular CoCo bonds, and that quality of capital requirements can reduce the risk-taking incentives of shareholders. Practical implications This study argues that shareholders can also use manager-specific CoCo bonds to reduce the riskiness of the bank activities. The issuance of such bonds can increase the resilience of individual banks and the whole banking system. Regulators can use restrictions on conversion rates and/or requirements on the quality of capital to address the impact of CoCo bonds issuance on risk-taking incentives. Originality/value To model the risk-taking incentives, authors generally modify the asset processes to introduce components that reflect asymmetric information between CoCo holders and shareholders and/or managers. This paper follows a simpler method similar to that of Holmström and Tirole (1998).

Use of Opuntia ficus extract as a corrosion inhibitor for carbon steel in acidic media

2014 ◽  
Vol 61 (4) ◽  
pp. 224-231 ◽  
Author(s):  
Ruben Suarez-Hernandez ◽  
Jose G. Gonzalez-Rodriguez ◽  
Gloria F. Dominguez-Patiño ◽  
Alberto Martinez-Villafañe
Keyword(s):  
Carbon Steel ◽  
Chemical Structure ◽  
Electrochemical Impedance ◽  
Green Inhibitor ◽  
Opuntia Ficus Indica ◽  
Content Type ◽  
Acid Cleaning ◽  
Static Conditions ◽  
The Cost ◽  
Practical Implications

Purpose – The purpose of this investigation is to study the corrosion inhibition of carbon steel (CS) using a “green” inhibitor, Opuntia ficus-indica, in an aerated, 0.5 M H2SO4 solution at different concentrations and temperatures. Design/methodology/approach – Weight loss determinations, surface studies, electrochemical impedance spectroscopy and potentiodynamic polarization were applied during the investigation. Findings – It was observed that Opuntia ficus-indica extract can decrease the corrosion rate of CS, and its efficiency increases with increasing concentration up to 1,000 ppm and with time, but decreases with increasing the temperature from 25 to 600C. The inhibitory activity is due to the presence of phenolic compounds in its chemical structure. Research limitations/implications – The work was done under static conditions, whereas in acid cleaning conditions, there is a dynamic system. However, the findings may apply to both the systems. Practical implications – CS is used in acidic environments in the acid cleaning industry. Social implications – Results of this work show that it is possible to reduce the cost of repair of equipment and the environmental impact of corrosion. Originality/value – There are very few investigations on the study of Opuntia ficus-indica leaf extract as a green inhibitor in an acidic environment.

Why didn’t it work out? The effects of attributions on the efficacy of recovery strategies

2015 ◽  
Vol 25 (6) ◽  
pp. 700-724 ◽  
Author(s):  
Víctor Iglesias ◽  
Concepción Varela-Neira ◽  
Rodolfo Vázquez-Casielles
Keyword(s):  
Design Methodology ◽  
Empirical Investigation ◽  
Service Failure ◽  
Service Recovery ◽  
Retail Banking ◽  
Content Type ◽  
Final Sample ◽  
Customer Defection ◽  
Recovery Strategies ◽  
Practical Implications

Purpose – The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure. Design/methodology/approach – The empirical investigation is carried out on the retail banking industry with a final sample of 448 real cases of customer retention or defection after a service failure. Findings – The results of the study not only highlight the relevance of intentionality as an additional factor in explaining customer defection, but also show the effects of some attributional dimensions (intentionality and controllability) on the efficacy of some recovery strategies (redress, apology and explanation) applied by companies to prevent post-complaint customer defection. Practical implications – The efficacy of the recovery strategies depends on the causal attributions that the customer makes about the service failure. Originality/value – This study analyzes not only the effects of traditional dimensions of attribution (stability and controllability), but also the additional effect that intentionality attributions may have on actual customer defection (not intentions). Moreover, it analyzes their effects on the effectiveness of recovery strategies in preventing customer defection. Most of these effects have never been empirically analyzed in the literature.

Sustainable entrepreneurship education for circular economy: emerging perspectives in Europe

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pasquale Del Vecchio ◽  
Giustina Secundo ◽  
Gioconda Mele ◽  
Giuseppina Passiante
Keyword(s):  
Circular Economy ◽  
Geographical Area ◽  
Entrepreneurship Education ◽  
Learning Objectives ◽  
Future Research ◽  
Innovation Ecosystem ◽  
Content Type ◽  
Emerging Trends ◽  
Cross Case Analysis ◽  
Practical Implications

PurposeThe paper aims to contribute to the Circular Economy debate from the Entrepreneurship Education perspective. Despite scholars' growing interest in both these research streams, scarce consideration is given to the comprehension of their mutual implications and meaning.Design/methodology/approachThe paper is based on a cross-case analysis. It compares 16 higher education programmes launched by Universities in Europe aimed to create competences and skills for Circular Economy in students with different profiles. The analysis provides a critical view of the emerging trends for the entrepreneurship education skills and competencies needed for the emerging circular entrepreneurship paradigm.FindingsThe paper discusses the main trends of Entrepreneurship Education focused on Circular Economy debate at the European level: rationale and learning objectives (why); contents (what), target students and stakeholders (who) and the learning processes (how). Four thematic areas are identified as common patterns: circular economy business model, green supply chain management, technology entrepreneurship and innovation and public policies and institutional frameworks.Research limitations/implicationsThe paper sheds new light on a still under-researched area, suggesting several implications and avenues for future research in Circular Economy and Entrepreneurship Education. Limitations regard the need to analyse education programmes from a larger geographical area, to take into consideration interesting experiences in the rest of the world and to also collect quantitative data.Practical implicationsPractical implications arise for the development of learning initiatives for the Circular Economy: learning objectives and new thematic areas focused on circular, sustainable and innovative rethinking of the process for creating value in the incumbent companies; exploring meaning and benefits of collaborative approaches and participation in the circular economy innovation ecosystem and developing advanced models for soft-skills development in terms of leadership, motivational and creative skills.Originality/valueThe debate on CE can also be rooted in the paradigm of entrepreneurship as a core process to advance knowledge on valuable and sustainable innovation.

Economic consequences of consumer repair strategies for electrical household devices

2019 ◽  
Vol 33 (4) ◽  
pp. 747-767 ◽  
Author(s):  
Jan Brusselaers ◽  
Ellen Bracquene ◽  
Jef Peeters ◽  
Yoko Dams
Keyword(s):  
Life Cycle Cost ◽  
Economic Consequences ◽  
Future Research ◽  
Data Sets ◽  
Annual Life Cycle ◽  
Content Type ◽  
Repair Strategy ◽  
Repair Costs ◽  
The Cost ◽  
Practical Implications

Purpose The purpose of this paper is to investigate to what extent a consumer’s repair strategy impacts the annual costs of ownership of a washing machine and two types of vacuum cleaner. Design/methodology/approach The annual cost of ownership is determined by calculating the annual life cycle cost (LCC) for the respective devices. The annual LCCs of the different scenarios allow a comparison of the different repair strategy options. A Monte Carlo simulation is run to introduce parameter variability. The device’s failure rate is estimated by a combination of data sets on the devices’ performance. Findings Results demonstrate that the repair of the devices considered is a more favourable option over replacement. A consumer who aims for the lowest annual LCC should allow for a high number of repairs per device, without putting a maximum on the cost per repair. However, the consumer should become more cautious when a device approaches the end of its expected lifetime. Finally, the purchase of warranty can be interesting when the warranty covers a sufficiently long proportion of the device’s (expected) lifetime and when its cost does not exceed a threshold proportion of the initial purchase price. Research limitations/implications The costs for repair might be overestimated. Future research can focus on the reduction of repair costs following self-repair. Practical implications The results provide strong arguments in favour of repair instead of replacement of broken devices. Originality/value This is the first research to quantify the influence of consumer behaviour in the context of repair of devices on the ownership costs of these devices.

An empirical investigation of repeat buying behavior of customers of two brands in India

2014 ◽  
Vol 6 (3) ◽  
pp. 255-268 ◽  
Author(s):  
Mehir Baidya ◽  
Gautam Ghosh
Keyword(s):  
No Value ◽  
Empirical Investigation ◽  
Primary Data ◽  
Buying Behavior ◽  
Content Type ◽  
Fund Allocation ◽  
Total Process ◽  
Data Points ◽  
Repeat Purchase ◽  
Practical Implications

Purpose – The purpose of this paper is to attempt to test whether price and quality have any influence on customer repeat purchase probability. Managers should know the strategic determinants of repeat purchase probability to retain customers. Design/methodology/approach – Primary data were gathered on repeat purchase, price and quality via a survey of 400 customers of two brands in the Business-to-customer (B2C) sector. Then 380 × 4 data points to a logit model were fitted to estimate the effects of price and quality on customer repeat purchase probability. Findings – It was found that price, quality and price × quality influence customer repeat purchase probability substantially. Furthermore, the elasticities of repeat purchase probability to price and quality are quite high in both cases. Practical implications – Managers should use elasticities to determine how to allocate funds between price and quality to maximize repeat purchase probability. Originality/value – In view of the complexity of customer repeat buying behavior, this study deals with one aspect or feature of the total process, which does not mean that it has no value. By confirming two strategic determinants of customer repeat purchase probability and suggesting a simple rule of fund allocation, this work definitely adds some research of value to the relevant marketing literature.

Regulatory non-compliance and performance of deposit money banks in Nigeria

2018 ◽  
Vol 26 (3) ◽  
pp. 425-441 ◽  
Author(s):  
Ismaila Yusuf ◽  
Damola Ekundayo
Keyword(s):  
Emerging Economy ◽  
Bottom Line ◽  
Content Type ◽  
Correlational Research ◽  
And Performance ◽  
Using Data ◽  
The Cost ◽  
The Impact ◽  
Nigerian Banking ◽  
Practical Implications

Purpose The purpose of this study is to examine regulatory sanctions from an emerging economy perspective and analyzing the impact of regulators imposed monetary sanctions on banks’ performance. Design/methodology/approach The study adopted correlational research design to examine the effect of regulatory penalties on the performance of deposit money banks in Nigeria. This study used panel data from a sample of 15 deposit money banks in Nigeria for the period of 2006-2015. Multiple regression analysis was carried out. Findings Results showed that penalties imposed by regulators in the Nigerian banking industry have no significant impact on the bottom line of the defaulters. Penalties imposed on foreign exchange and international trade related infraction showed that the cost of penalties is below the benefits enjoyed from such infractions. Practical implications The insignificant impact of penalties on performance implies that deposit money banks have considered penalties imposed by regulators as operational expenses and transferred such to customers. Originality/value The study differs from other studies that examined regulatory penalties on performance by focusing on financial performance and using data from an emerging economy perceived to have weak regulatory environment.

Pro-Environmental Purchasing Behaviour during the economic crisis

2014 ◽  
Vol 32 (2) ◽  
pp. 160-173 ◽  
Author(s):  
Irene Tilikidou ◽  
Antonia Delistavrou
Keyword(s):  
Economic Crisis ◽  
Geographical Area ◽  
Future Research ◽  
Consumer Engagement ◽  
Content Type ◽  
Purchasing Behaviour ◽  
Social Desirability Effect ◽  
The Impact ◽  
First Time ◽  
Practical Implications

Purpose – Examination of Pro-Environmental Purchasing Behaviour (PPB) and its potential components. Investigation of the number and the size of relevant consumer segments. Determining the factors able to describe the segment of frequent pro-environmental purchasers. This paper aims to discuss these issues. Design/methodology/approach – Investigation of PPB as a total multi-item variable. Disclosure of the PPB components. Examination of the Purchase component and disclosure of its clusters. Focus on the cluster of frequent purchasers. Estimation of the demographic, attitudinal and psychographic variables able to describe and predict these consumers. Findings – Two components of PPB were found, namely Conservation (high consumer engagement in this) and Purchase (low consumer engagement in this). Inside the Purchase component of PPB three clusters were found, indicating, respectively, low, average and relatively high consumers’ involvement. Consumers in Cluster 3 (frequent pro-environmental purchasers) are fewer than in the past. They were found to be negatively influenced by environmental unconcern attitudes and Materialism, while they were positively affected by locus of control over politics and Universalism. Research limitations/implications – No demographic profile of frequent purchasers. Geographical area limited (a potential) generalisation of results. Social desirability effect. Future research with reference to evolutions in pro-environmental post-purchasing or non-purchasing behaviours during the years of economic crisis. Practical implications – Fewer consumers would buy ecological products if these were not comparable enough with the conventional products in terms of price and efficacy. Originality/value – First effort to explore the impact of the economic crisis on PPB in Greece. Encompassed new categories of ecological products. Revealed two components inside PPB (Purchase and Conservation) as well as number and size of consumer segments inside the Purchase component. Formulation of a partial profile of the frequent pro-environmental purchasers. Impact of Universalism on PPB was for the first time examined.

Effect of religiosity on luxury consumer behavior: the case of the Tunisian Muslim

2017 ◽  
Vol 8 (1) ◽  
pp. 74-94 ◽  
Author(s):  
Fawzi Dekhil ◽  
Hajer Boulebech ◽  
Neji Bouslama
Keyword(s):  
Geographical Area ◽  
Research Work ◽  
Academic Research ◽  
Luxury Brands ◽  
Content Type ◽  
Repurchase Intentions ◽  
Luxury Brand ◽  
Personal Orientation ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to describe the effects of religiosity on attitude and personal orientation toward luxury brands and on purchase and repurchase intentions. Determining the effects of religiosity on the consumers’ behavior toward luxury has proved to be a crucial matter. As far as the authors know, academic research on this topic is almost non-existent. This is an exploratory study at the level of the direct effects of religiosity. Following a literature review, a model was constructed to represent the various interrelationships between the variables investigated in this research. Design/methodology/approach A quantitative study was conducted among 227 individuals having varying levels of religiosity. The authors verified, before, that those interviewed have purchased a luxury brand. Findings The findings show that religiosity does not hinder the consumption of luxury brands. Indeed, the authors detected a positive relationship between attitude and personal orientation toward luxury brands and the level of religiosity. The effect of religiosity on attitude and personal orientation is stronger for persons having higher incomes. Moreover, this effect is slight more marked among women. Research limitations/implications Just as for all other research work, it is important to identify the limitations of this study. The authors need only to acknowledge its exploratory nature for these relationships to be identified as preliminary ones and as the first elements of proof rather than as a conclusive demonstration. This research suffers from certain other limitations, especially concerning its convenience sampling and the fact that it covered only a limited geographical area, namely, the capital, Tunis, and its adjacent suburbs. Practical implications This research has shown that whatever the level of religiosity, its effect is stronger among persons having a high income. Therefore, Muslims, whatever their religiosity, can be a target for marketers and luxury brand. Social implications Islam is not against luxury brand but against ostentation. Originality/value It is the first research, as the authors know, that study the relationship between religiosity and consumer luxury behavior, especially among Muslims.

Corporate investment in social responsibility versus dividends?

2012 ◽  
Vol 8 (2) ◽  
pp. 199-207 ◽  
Author(s):  
Michel T.J. Rakotomavo
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Design Methodology ◽  
Corporate Investment ◽  
Cash Flows ◽  
Cost Of Equity ◽  
Content Type ◽  
Corporate Social ◽  
The Cost ◽  
Practical Implications

PurposeThe paper aims to examine whether corporate investment in social responsibility takes away from expected dividends.Design/methodology/approachThe article builds two hypotheses that are tested empirically through the analysis of 17,670 US firm‐year observations covering the period 1991‐2007. The tests are conducted in both univariate and multivariate settings.FindingsThe evidence supports the hypothesis that mature firms tend to invest more in corporate social responsibility (CSR). Specifically, firms investing highly in CSR tend to be larger, more profitable, and with greater earned (rather than contributed) equity. The evidence also supports the hypothesis that CSR investment does not subtract from dividends. Instead, CSR effort and dividend tend to increase together. Thus, CSR investment tends to be effected by companies who can afford it, and it does not lower value by lowering investors' expected payout.Practical implicationsThese results imply that spending resources on CSR does not lower the cash flows paid out to investors. When combined with the finding that CSR lowers the cost of equity, they also mean that CSR increases the value of a company's stock.Originality/valueThis is the first study that explicitly links CSR to the dividend flow.

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