Effects of platform quality requirement on sellers

Kybernetes ◽  
2017 ◽  
Vol 46 (7) ◽  
pp. 1204-1222
Author(s):  
Huijun Hou ◽  
Xiaoying Cheng
Keyword(s):  
Product Quality ◽  
Design Methodology ◽  
Optimal Decision ◽  
Quality Level ◽  
Risk Averse ◽  
Quality Requirement ◽  
Minimum Level ◽  
Content Type ◽  
Service Charge ◽  
Risk Neutral

Purpose The purpose of this paper is to study the effects of the requirement on product quality and refund (return service charge). Design/methodology/approach The authors set a minimum product quality level for platform to study the effects of the minimum product quality level on product quality and refund for risk-neutral sellers and risk-averse sellers, respectively. Findings For the risk-neutral sellers whose optimal product quality level is lower than the minimum level will improve the product quality to the minimum required level. However, under a certain condition with the requirement the sellers will increase refund. Similar results are found when uncertainty is incorporated into demand and return quantity. In addition, how the sellers’ optimal refund is affected by market parameters and market volatile factors is discussed. Specially, the correlation between the uncertainty of the demand and the return quantity affects sellers’ optimal decision of return service charge in many ways. Originality/value The obtained results can provide operational managers in reality with valuable suggestions in quality management for platform.

An optimal target cost contract with a risk neutral owner

2014 ◽  
Vol 21 (5) ◽  
pp. 586-604 ◽  
Author(s):  
S. Mahdi Hosseinian ◽  
David G. Carmichael
Keyword(s):  
Design Methodology ◽  
Maximization Problem ◽  
Risk Averse ◽  
Content Type ◽  
Cost Uncertainty ◽  
Target Cost ◽  
Risk Neutral ◽  
Optimal Target ◽  
The Cost ◽  
Practical Implications

Purpose – Target cost contracts are commonly used to share the monetary outcome of work or a project. However, discussion is ongoing, as to what constitutes optimal sharing. The purpose of this paper is to examine optimal sharing and derives a result for defined risk assumptions on the owner (risk neutral) and contractor (risk-averse ranging to risk neutral). Design/methodology/approach – The derivation is based on solving a constrained maximization problem using ideas from principal-agent theory. Practitioners were engaged in a designed exercise in order to validate the approach and propositions. The influence of the contractor's level of risk aversion, the cost uncertainty and the contractor's effort effectiveness are examined. Findings – The paper shows that, at the optimum, the sharing ratio between contractor and owner needs to reduce and the fixed fee needs to increase when the contractor becomes more risk-averse, the level of the cost uncertainty increases, or the effectiveness of the contractor effort decreases. Practical implications – The paper's findings provide practitioners with a useful benchmark for outcome sharing in target contracts. Originality/value – Existing work on outcome sharing in target contracts is limited to being qualitative and anecdotal in nature. This paper extends existing knowledge by providing a quantitative treatment of optimal sharing.

Innovation in infrastructure projects: an Australian perspective

2016 ◽  
Vol 8 (2) ◽  
pp. 113-132 ◽  
Author(s):  
Soroush Maghsoudi ◽  
Colin Duffield ◽  
David Wilson
Keyword(s):  
Project Management ◽  
Design Methodology ◽  
New Products ◽  
Project Managers ◽  
Lessons Learned ◽  
Risk Averse ◽  
Infrastructure Projects ◽  
Content Type ◽  
Design Project ◽  
Effective Implementation

Purpose Unlike manufacturing and research and developments, major infrastructure projects rarely emphasize or drive their objectives on the basis of innovation. This is in part because of a risk-averse culture, yet conceivably great benefits and opportunities are being lost because of this behavior. Design/methodology/approach The case for focusing on innovation in infrastructure projects is that the reasons driving innovation are not fully understood, and this impedes the effective implementation of lessons learned for the numerous innovative projects into practice more generally. The purpose of this study was to discover how innovation is produced and captured in major infrastructure projects in Australia and to understand how innovation may be replicated for future projects through refinement of design, project management, finance and procurement. Findings Engineering and project managers may find this paper helpful to better understand how innovation might happen in infrastructure projects and what different forms it can take. Originality/value The findings of this study demonstrate that people and culture drive consistent successful infrastructure outcomes more than simply the development of new products or processes.

“How’d you sleep?” measuring business travelers’ sleep quality and satisfaction in hotels

2018 ◽  
Vol 1 (3) ◽  
pp. 188-202 ◽  
Author(s):  
Hsiangting Shatina Chen ◽  
Kimberly Severt ◽  
Yeon Ho Shin ◽  
Adam Knowlden ◽  
Tyra W. Hilliard
Keyword(s):  
Sleep Quality ◽  
Design Methodology ◽  
Demographic Characteristics ◽  
Quality Level ◽  
Fundamental Function ◽  
Content Type ◽  
Business Travelers ◽  
The Past ◽  
Quality Scale ◽  
Business Trip

Purpose The purpose of this paper is to explore business travelers’ sleep experience in hotels by measuring sleep quality and determining the extent to which hotel attributes, demographic characteristics, and hotel quality level influence their sleep quality while staying in hotels. Design/methodology/approach This study utilized a self-reported survey to obtain data from business travelers who have stayed in a hotel at least two nights for a business trip in the past 30 days. A total of 304 business travelers were surveyed in this study. Findings The results indicated that there was a difference in the factors that influenced business travelers’ overall satisfaction with sleep in mid-scale (2.5-3.5 stars) vs upscale hotels (4+stars). The findings showed that business travelers generally had lower sleep quality at hotels and they were more likely affected by noise both outside and inside the guestroom, as well as material elements inside the room. Originality/value This study represents a pioneering attempt at exploring business travelers’ sleep quality and satisfaction with sleep in hotels. Furthermore, this study contributes to the limited research addressing sleep quality as a fundamental function of hotel services. Also, this is the first study to measure business travelers’ sleep quality in hotels by using the sleep quality scale.

The allure of the bottle as a package: an assessment of perceived effort in a packaging context

2017 ◽  
Vol 26 (1) ◽  
pp. 91-100 ◽  
Author(s):  
Magnus Söderlund ◽  
Jonas Colliander ◽  
John Karsberg ◽  
Karina T. Liljedal ◽  
Erik Modig ◽  
...  
Keyword(s):  
Product Quality ◽  
Design Methodology ◽  
Soft Drink ◽  
Product Evaluations ◽  
Content Type ◽  
Perceived Effort ◽  
Quality Perceptions ◽  
The Impact

Purpose This paper aims to assess the impact of perceived effort related to packaging on overall product evaluations. Perceived effort, defined as the consumer’s perceptions of how much manufacturer effort that lies behind an offer, is assumed to contribute to evaluations by signaling unobservable characteristics of an offer. Design/methodology/approach Three between-subjects experiments were conducted with soft drink bottles, which were subject to variation in perceived effort. Findings The results show that perceived effort was positively associated with overall evaluations. The results also show that the impact of perceived effort was mediated by product quality perceptions, which indicates that effort signals quality. Originality/value Perceived effort has to date not been examined in the packaging literature. The present findings thus imply that models of packaging characteristics and their impact on consumers would benefit from including the effort aspect.

Integrated maintenance and production decision fork-out-of-nsystem equipment with attenuation of product quality

2019 ◽  
Vol 36 (5) ◽  
pp. 735-751 ◽  
Author(s):  
Shao Xiao ◽  
Zhixiang Chen ◽  
Bhaba R. Sarker
Keyword(s):  
Product Quality ◽  
Low Cost ◽  
Uncertain Demand ◽  
Quality Level ◽  
Equipment Maintenance ◽  
High Quality ◽  
Content Type ◽  
Equipment Reliability ◽  
The Impact ◽  
Production Decision

PurposeEquipment reliability significantly impacts productivity, and in order to obtain high equipment reliability and productivity, maintenance and production decision should be made simultaneously to keep manufacturing system healthy. The purpose of this paper is to investigate the joint optimization of equipment maintenance and production decision fork-out-of-nsystem equipment with attenuation of product quality and to explore the impact of maintenance on the production and cost control for manufacturers.Design/methodology/approachA multi-period Markov chain model fork-out-of-nsystem equipment is set up based on the assumption that the deterioration of equipment is a pure birth process. Then, the maintenance cost, setup cost, inventory holding cost, shortage cost, production cost and the quality cost are analyzed with the uncertain demand and the attenuation of product quality stemmed from equipment deterioration. The total lowest cost per unit time and its specific calculation method are presented. Finally, the robustness and flexibility of the method are verified by a numerical example and the effects of equipment deterioration intensity and attenuation of product quality are analyzed.FindingsThe result shows that the joint decision model could not only satisfy the uncertain demand with low cost and strong robustness but also make the output products high quality level. In addition, the attenuation of product quality would influence the equipment maintenance and production decision and leads to the production waste and increases the operation cost greatly.Originality/valueImplications derived from this study can help production maintenance managers and reliability engineers adequately select maintenance policy to improve the equipment efficiency and productivity with high quality level at a relatively low cost.

Sensor technology, ever more important to packaging: a highlight at PackExpo

Sensor Review ◽  
2012 ◽  
Vol 32 (3) ◽  
pp. 199-202 ◽  
Author(s):  
Richard Bloss
Keyword(s):  
Quality Assessment ◽  
Product Quality ◽  
Design Methodology ◽  
Government Regulation ◽  
Sensor Technology ◽  
Content Type ◽  
Current Production ◽  
Depth Interviews ◽  
Production Problems ◽  
Practical Implications

PurposeThe purpose of this paper is to review the PackExpo Show (packaging technology), with emphasis on the new sensor innovations and applications to packaging on display.Design/methodology/approachIn‐depth interviews with exhibitors of sensors of all types at the PackExpo Show.FindingsSensing in packaging once was just weighing it but now it is product inspection, quality assessment, leakage and much more.Practical implicationsPackaging customers now have sensor technologies available to address government regulation concerns, product quality and the traditional weight and size factors.Originality/valueSensor users will find information about the latest in new sensing technologies which may assist them in solving current production problems.

scholarly journals Innovation intensity of military-connected firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Iman Harymawan ◽  
Fajar Kristanto Gautama Putra ◽  
Amalia Rizki ◽  
Mohammad Nasih
Keyword(s):  
Design Methodology ◽  
Negative Relationship ◽  
Investment Policy ◽  
Intensity Level ◽  
Risk Averse ◽  
Content Type ◽  
Listed Firms ◽  
Innovation Activities ◽  
Innovation Intensity ◽  
The Military

PurposeThe study aims to examine the military-connected firms' risk preference, specifically in the innovation intensity level context. The authors argue that firms with military-experienced top management have conservative and risk-averse behavior, influencing the innovation investment policy.Design/methodology/approachThe authors use nonfinancial Indonesian-listed firms from 2010 to 2018 amounted to 2,504 firm-year observations.FindingsThe authors document a negative relationship between military connection with both innovation activities and outputs. The additional analysis documents that risk-preferences of military-connected firms will be drastically changed when the industry has a high digital level, which confirms that risk-averse military-experienced management is less dominant with adaptation skill. The authors also identify that veterans did not need a long tenure to influence firms' innovation investment policy. Lastly, the result is robust due to various endogeneity tests employed.Originality/valueThis study further examines military-connected firms' technological innovation compared to prior studies and enriches the related literature.

Basing a claim on “negatives free”: when does it serve as a quality cue?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hsuan-Hsuan Ku ◽  
Yi-Ting Chang
Keyword(s):  
Consumer Behavior ◽  
Product Quality ◽  
Regulatory Focus ◽  
Design Methodology ◽  
Perceived Quality ◽  
Consumer Market ◽  
Content Type ◽  
Quality Perceptions ◽  
Product Promotion

Purpose Individuals concerned about safety comprise a significant share of the consumer market today. This paper aims to provide the results of a study on when a front-of-package (FOP) claim about “no added negatives” can serve as a quality cue. Design/methodology/approach Four between-subjects experiments examine consumers’ quality perceptions in responses to the absence-focused claims and also identifies brand parity (Studies 1a and 1b) and the associated launch of inconsistent alternatives as moderators (Study 2) and investigate the extent to which the quality signaling value of absence-focused claims varies as a function of message regulatory focus (Study 3). Findings Research shows that a unique absence-focused claim indicates product quality (Studies 1a and 1b). However, there could be a cost in terms of reduced perceived quality when adding an inconsistent alternative to a brand (Study 2). Furthermore, consumers associate greater product quality with absence-focused FOP claims if an appeal is framed as prevention-focused rather than promotion-focused benefits (Study 3). Originality/value This study advances knowledge on the effects of front-of-package claims on consumer behavior and benefits marketers in determining effective front-of-package messages for product promotion.

Designing two-period decentralized service chain incentives with the consideration of customer acquisition and retention

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tian Wang ◽  
Yunan Duan ◽  
Yangyang Liang
Keyword(s):  
Principal Agent ◽  
Customer Acquisition ◽  
Risk Averse ◽  
Content Type ◽  
Service Chain ◽  
Incentive Model ◽  
Risk Neutral ◽  
Fixed Part ◽  
The Impact ◽  
Incentive Strategy

PurposeThe authors address a two-dimensional (both customer acquisition and retention) incentive in a decentralized service chain consisting of a risk-neutral brand and agent (or averse). Design/methodology/approachThe authors focus on the relationship between acquisition and retention, that is, retained customers (repeated purchases) are based on and come from the acquired (new) customers in the former period. The authors also design a two-period separate incentive on both dimensions.FindingsThe authors found that a targeted incentive strategy should be applied for achieving more revenue when the incentive intensities are relatively small. Otherwise, the brand needs to adjust the targeted incentive strategy into incentivizing the opposite dimension, particularly on acquisition. Under the optimal contract, the brand needs to be very careful with deciding the fixed part of the incentive salary and the incentive intensities on both dimensions. For example, the fixed salary initially decreases and then increases in the incentive intensities. For the optimal incentive policies, the brand should incentivize acquisition but outsource retention if the agent is risk-neutral. When the agent is becoming risk-averse, the brand should lower its incentive intensity as the risk degree and variances become larger. Interestingly, the brand may benefit from introducing risks.Originality/valueThe study contributes to the literature by considering the following points. First, the authors extend the principal-agent incentive model by considering two-period decisions of customer acquisition and retention. Second, based on the two-period principal-agent problem, the authors design separate incentive intensities on acquisition and retention, respectively. While, most of the literature focused on acquisition incentives. Third, different from other works focusing on either risk-neutral or risk-averse environments, the authors consider both and compare the cases of risk-neutral and risk-averse to analyze the impact of risk on the optimal decisions and the brand's expected profit.

Family firms and their participation in cross-border acquisition waves: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Fuad ◽  
Vinod Thakur ◽  
Ashutosh Kumar Sinha
Keyword(s):  
Design Methodology ◽  
Family Firms ◽  
Risk Averse ◽  
Firm Age ◽  
Content Type ◽  
Family Control ◽  
Temporal Clustering ◽  
Cross Border ◽  
Simulation Based ◽  
The Relationship

PurposeFrom the socioemotional wealth (SEW) perspective, family firms prioritize non-financial goals and show risk averse behaviour towards conducting acquisitions. In this paper, we study family firms' acquisitive behaviour while participating in CBA waves. Scholars have largely treated the cross border acquisition (CBA) wave and non-wave environments as homogeneous. We theorize that these two environments differ in their uncertainty and risk profiles on account of temporal clustering of acquisition deals. Accordingly, based on the SEW perspective, we examine the preference of family firms to participate in CBA waves.Design/methodology/approach The paper is based on CBAs conducted by Indian family firms between 2000 and 2018. These waves are identified by conducting a simulation based methodology.FindingsOur findings suggest that foreign institutional ownership, firm age and acquisition relatedness moderate the relationship between family control and participation in CBA waves.Originality/valueOur paper contributes towards the acquisitive behavior of family firms and their participation in CBA waves.

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