Consumer Learning from Own Experience and Social Information: An Experimental Study

2020 ◽  
Author(s):  
Andrew M. Davis ◽  
Vishal Gaur ◽  
Dayoung Kim
Keyword(s):  
Service Quality ◽  
Rate Of Convergence ◽  
Market Share ◽  
Operations Management ◽  
Demand Uncertainty ◽  
Social Information ◽  
Demand Characteristics ◽  
Repeated Interaction ◽  
Different Types ◽  
Demand Variability

We investigate how different types of social information affect the demand characteristics of firms competing through service quality. We first generate behavioral hypotheses around both consumers’ learning behavior and firms’ corresponding demand characteristics: market share, demand uncertainty, and rate of convergence. We then conduct a controlled human-subject experiment in which a consumer chooses to visit one of two firms, each with unknown service quality, in a repeated interaction and is exposed to different information treatments from a social network: (1) no social information; (2) share-based social information, which details the percentage of people who visited each firm; (3) quality-based social information, which illustrates the percentage of people who received a satisfactory experience from each firm; or (4) full social information, which contains both share- and quality-based social information. A key insight from our study is that different types of social information have different effects on firms’ demand. First, promoting quality-based social information leads to a significantly higher market share, lower demand variability, and faster rate of convergence for a firm with significantly better service quality. Second, when the higher quality firm has only a marginal advantage over the other firm, promoting only share-based information leads to significantly higher market share and lower demand variability. A third important result is that providing only one type of social information can actually be more helpful to the higher quality firm than providing full social information. This paper was accepted by David Simchi-Levi, operations management.

Initial Coin Offerings, Speculation, and Asset Tokenization

2020 ◽  
Author(s):  
Jingxing (Rowena) Gan ◽  
Gerry Tsoukalas ◽  
Serguei Netessine
Keyword(s):  
Moral Hazard ◽  
Operations Management ◽  
Firm Value ◽  
Agency Costs ◽  
Demand Uncertainty ◽  
Customer Demand ◽  
Demand Characteristics ◽  
Operating Strategy ◽  
Mean Variance ◽  
Initial Coin Offerings

Initial coin offerings (ICOs) are an emerging form of fundraising for blockchain-based startups. We examine how ICOs can be leveraged in the context of asset tokenization, whereby firms issue tokens backed by future assets (i.e., inventory) to finance growth. We (i) make suggestions on how to design such “asset-backed” ICOs—including optimal token floating and pricing for both utility and equity tokens (a.k.a. security token offerings)—taking into account moral hazard (cash diversion), product characteristics, and customer demand uncertainty; (ii) make predictions on ICO success/failure; and (iii) discuss implications on firm operating strategy. We show that in unregulated environments, ICOs can lead to significant agency costs, underproduction, and loss of firm value. These inefficiencies, however, fade as product margins and demand characteristics (mean/variance) improve, and they are less severe under equity (rather than utility) token issuance. Importantly, the advantage of equity tokens stems from their inherent ability to better align incentives and thus continues to hold even absent regulation. This paper was accepted by Vishal Gaur, operations management.

PENGARUH KUALITAS PELAYANAN DAN PROMOSI TERHADAP PERLUASAN PANGSA PASAR PRODUK DANA TALANGAN HAJI DI BANK SYARIAH MANDIRI KCP UJUNGBERUNG DAN KCP RANCAEKEK BANDUNG

2018 ◽  
Vol 2 (1) ◽  
pp. 1-15
Author(s):  
Intan Nurrachmi
Keyword(s):  
Quality Of Service ◽  
Service Quality ◽  
Market Share ◽  
Significant Influence ◽  
Strong Correlation ◽  
T Test ◽  
Market Expansion ◽  
Difference Constraints ◽  
Branch Office

This study departs from the hajj bailout financing facility which is a booming product because of the customer's interest, but in this case there is a difference in the target achievement between Bank Syariah Mandiri (BSM) Ujungberung KCP which is less successful in improving the hajj bailout products while the Rancaekek KCP is very superior in one consolidation Ahmad Yani Branch Office Bandung. This is what is interesting for researchers to carry out this research, the difference constraints include service quality and promotion factors. This phenomenon raises problems that must be examined, namely how the influence of service quality and promotion of market share expansion products hajj bailouts at Bank Syariah Mandiri KCP Ujungberung and KCP Rancaekek Bandung. This study aims academically to contribute in the study of Islamic economics in worksheets, especially the quality of service and promotion of market share expansion and practically expected to be able to provide input to all employees of BSM KCP Ujungberung regarding the quality of service and promotion of market expansion of bailout products. Hajj that has been successfully carried out by BSM KCP Rancaekek.The conclusion of this study is that there is a significant influence of service quality on the expansion of market share by 53.3% with a strong correlation of 0.730 and through t test, where t counts at 8.245 (> t table), then H_0 is rejected and H_i is accepted. Furthermore, there is a significant influence of promotion on the expansion of market share by 30.3% with a moderate / sufficient correlation of 0.550 through t test, where t counts is 4.219 (> t table), then H_ (0) is rejected and H_i is accepted. Then there is a significant influence of service quality and promotion simultaneously to the expansion of market share by 60.6% and a strong correlation of 0.784 and through Test F, where F count is 67.023 (> F table), then 〖H〗 _ ( 0) rejected and H_i accepted.

The Interplay Between Online Reviews and Physician Demand: An Empirical Investigation

2021 ◽  
Author(s):  
Yuqian Xu ◽  
Mor Armony ◽  
Anindya Ghose
Keyword(s):  
Service Quality ◽  
Operations Management ◽  
Choice Model ◽  
Healthcare Delivery ◽  
Online Reviews ◽  
The United States ◽  
Patient Choice ◽  
Data Set ◽  
Textual Information ◽  
Time Service

Social media platforms for healthcare services are changing how patients choose physicians. The digitization of healthcare reviews has been providing additional information to patients when choosing their physicians. On the other hand, the growing online information introduces more uncertainty among providers regarding the expected future demand and how different service features can affect patient decisions. In this paper, we derive various service-quality proxies from online reviews and show that leveraging textual information can derive useful operational measures to better understand patient choices. To do so, we study a unique data set from one of the leading appointment-booking websites in the United States. We derive from the text reviews the seven most frequently mentioned topics among patients, namely, bedside manner, diagnosis accuracy, waiting time, service time, insurance process, physician knowledge, and office environment, and then incorporate these service features into a random-coefficient choice model to quantify the economic values of these service-quality proxies. By introducing quality proxies from text reviews, we find the predictive power of patient choice increases significantly, for example, a 6%–12% improvement measured by mean squared error for both in-sample and out-of-sample tests. In addition, our estimation results indicate that contextual description may better characterize users’ perceived quality than numerical ratings on the same service feature. Broadly speaking, this paper shows how to incorporate textual information into an econometric model to understand patient choice in healthcare delivery. Our interdisciplinary approach provides a framework that combines machine learning and structural modeling techniques to advance the literature in empirical operations management, information systems, and marketing. This paper was accepted by David Simchi-Levi, operations management.

Convergence of management practices in India’s IT sector with ana priorivalidation

2018 ◽  
Vol 12 (4) ◽  
pp. 402-421
Author(s):  
Jayashree Mahesh ◽  
Anil K. Bhat
Keyword(s):  
Cluster Analysis ◽  
Operations Management ◽  
Management Practices ◽  
Qualitative Interviews ◽  
A Priori ◽  
Statistical Testing ◽  
Content Type ◽  
Empirical Survey ◽  
Different Types ◽  
Group A

PurposeThe purpose of this paper is to document similarities and differences between management practices of different types of organizations in India’s IT sector through an empirical survey. The authors expected these differences to be significant enough for us to be able to groupa priorithis set of companies meaningfully through cluster analysis on the basis of the similarity of their management practices alone.Design/methodology/approachUsing a mixed-methods approach, 73 senior-level executives of companies working in India’s IT sector were approached with a pretested questionnaire to find out differences on eighteen management practices in the areas of operations management, monitoring management, targets management and talent management. The different types of organizations surveyed were small and amp; medium global multinationals, large global multinationals, small and medium Indian multinationals, large Indian multinationals and small and medium local Indian companies. The differences and similarities found through statistical testing were further validateda priorithrough cluster analysis and qualitative interviews with senior-level executives.FindingsThe management practices of multinationals in India are moving toward Western management practices, indicating that management practices converge as the organizations grow in size. Though the practices of large Indian multinationals were not significantly different from those of global multinationals, the surprising finding was that large Indian multinationals scored better than global multinationals on a few practices. The practices of small and medium Indian companies differed significantly from those of other types of organizations and hence they formed a cluster.Practical implicationsThe finding that large Indian IT multinationals have an edge over global multinationals in certain people management practices is a confirmation of the role of human resource practices in their current success and their continuing competitive advantage.Originality/valueThis is perhaps the first study of its kind to document state of specific management practices across different types of organizations in India’s IT sector and then use measures on these practices to group a priori these organizations for validation.

scholarly journals The Value Of Cre In The Formulation And Implementation Process Of Real Estate Strategies In A Company

2014 ◽  
Vol 22 (1) ◽  
pp. 58-68
Author(s):  
Jan Konowalczuk ◽  
Tomasz Ramian
Keyword(s):  
Real Estate ◽  
Market Share ◽  
Property Values ◽  
Implementation Process ◽  
Market Value ◽  
Development Projects ◽  
Property Value ◽  
Different Types ◽  
A Company

Abstract One of the fundamental ways in which an advantage over competitors can be gained in business is to develop real estate portfolios in such a way that will lead to an increase in market share and value for shareholders. This serves as justification for the formulation and implementation of specific real estate strategies regarding the best manner in which to use CRE, make decisions regarding restructuring, and carry out necessary development projects, taking into account the criteria of: location, time, and procurement options. This paper presents the formulation and realization of real estate strategies, focusing on the use of the category of property value. Moreover, the authors formulate a possible classification of CRE, which is useful from the perspective of real estate strategies, in addition to identifying and evaluating different types of property values which can be used for real estate strategies. For the majority of operational properties, these categories differ from market value. The last part of the publication provides a reference of selected valuation methods used to determine the value of CRE in the context of formulating and implementing real estate strategies.

scholarly journals Exploring the Determinants of Customer Satisfaction in Pakistan Automotive Industry

2021 ◽  
Vol 2 (1) ◽  
pp. 10-19
Author(s):  
Ahmer Muslim
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Market Share ◽  
Automotive Industry ◽  
Quality Measures ◽  
Brand Awareness ◽  
Service Offering ◽  
Business Customers ◽  
Satisfaction Model ◽  
Awareness Service

Customer satisfaction is a measure of how happy the customer is with the product or service offering of a business. Customers could be highly satisfied, satisfied, neutral, angry, or very angry. Similarly, service quality measures how best the service is meeting the customer’s expectations. The customer satisfaction element is new to Pakistan automotive industry. The industry is still depending on selling cheap, low-quality products to the customer in order to increase market share. The purpose of this research is to create a customer satisfaction model for the automotive industry in Pakistan. The result at the end suggested that price, brand awareness, service quality, and Flexibility are the determinants of customer satisfaction for this industry. This research will open the way to expand the growth of industries and allow new competitors to enter the market with quality products.

A Multidisciplinary Survey on Service

2012 ◽  
Vol 3 (4) ◽  
pp. 13-37 ◽  
Author(s):  
Nikolaos Loutas ◽  
Konstantinos Tarabanis ◽  
Vassilios Peristeras
Keyword(s):  
Computer Science ◽  
Operations Management ◽  
Service Provision ◽  
Global Economy ◽  
Holistic Approach ◽  
Reference Source ◽  
Related Literature ◽  
Different Types ◽  
The Common ◽  
Marketing Operations

The rising importance of service for the global economy has resulted in a significant number of efforts to define and interpret its meaning. In this vein, this article identifies and organizes related literature following a holistic approach. The authors study service from different perspectives, both business-related and technical ones, e.g., marketing, operations management, and computer science. A total of 47 definitions of service are finally reviewed. They’ve found out: (1) How is service perceived and defined by different disciplines and (2) What are the common service species according to related literature. The authors observe that in the business realm service falls under either of the following two categories: service as a set of value-creating activities and service as a transformation. Due to ICT revolutionizing service provision, significant work has also been conducted in order to study technology-enabled services. The authors identified different types of technology-enabled services, namely e-services, SOA services and Web services. The main contribution of this article lies in the broadness, completeness and cross-disciplinarily of the literature covered, thus being able to stand as a reference source of knowledge for service analysts, engineers and practitioners.

scholarly journals Optimal Advertising Budget Allocation across Markets with Different Goals and Various Constraints

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Xingyuan Wang ◽  
Fuan Li ◽  
Fan Jia
Keyword(s):  
Market Share ◽  
Current Literature ◽  
Budget Allocation ◽  
Decision Models ◽  
Sales Volume ◽  
Allocation Decision ◽  
Multiple Markets ◽  
Advertising Budget ◽  
Different Types ◽  
Allocation Decisions

Advertising budget allocation across multiple markets has drawn considerable attention in recent years. To expand previous research and fill a gap in the current literature, this study proposes two decision models for optimal budget allocation decisions across multimarkets with different goals and various constraints. In addition to the market parameters proposed by the Vidale–Wolfe model, the present study incorporates market goals and advertising objectives into budget allocation decisions. Different types of markets are defined in terms of the goal set for market share or profit. Given the characteristics of different markets, two separate decision models are developed. Model I aims to maximize sales volume given a fixed advertising budget, while model II seeks to minimize the advertising budget given a total of targeted sales volume for all the markets. Solutions to the two models are discussed, and a numerical example is provided to demonstrate how to apply the models in making budget allocation decision.

Faktor-Faktor yang Mempengaruhi Keputusan Pemilihan Jasa Ekspedisi JNE (Studi Pada Konsumen Pengguna Jasa JNE Di Semarang)

2019 ◽  
Vol 18 (3) ◽  
pp. 245-258
Author(s):  
Sonya Clausis Dea ◽  
Mirwan Surya Perdhana
Keyword(s):  
Service Quality ◽  
Word Of Mouth ◽  
Brand Image ◽  
Social Information ◽  
Purposive Sampling ◽  
Customer Trust

Terdapat faktor-faktor yang mempengaruhi keputusan pemilihan jasa ekspedisi JNE, yaitu Delivery package, Capability adoption customer, Brand image, word of mouth, Customer trust , Social information, dan Service quality. Populasi dalam penelitian ini adalah para konsumen pengguna jasa JNE di  Semarang.  Metode yang digunakan adalah metode purposive sampling dengan jumlah sampel sebanyak 200 responden. Teknik analisis data pada penelitian ini menggunakan analisis regresi dengan SEM AMOS. Berdasarkan dari hasil pembahasan pada bagian sebelumnya, maka dapat ditarik kesimpulan sebagai berikut : (1) Delivery package berpengaruh positif terhadap keputusan pemilihan jasa ekspedisi JNE. (2) Capability adoption customer  berpengaruh positif terhadap keputusan pemilihan jasa ekspedisi JNE. (3)  Brand image berpengaruh positif terhadap keputusan pemilihan jasa ekspedisi JNE. (4)  WOM  berpengaruh positif terhadap keputusan pemilihan jasa ekspedisi JNE. (5) Customer trust  berpengaruh positif terhadap keputusan pemilihan jasa ekspedisi JNE. (6) Social information berpengaruh positif terhadap keputusan pemilihan jasa ekspedisi JNE. (7) Service quality berpengaruh positif terhadap keputusan pemilihan jasa ekspedisi JNE.

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