What Drives Individual Investors to Invest in Mutual Funds in a Developing Economy

Purpose: The aim of this study is to investigate factors that influence investment in mutual funds by individual investors in a developing economy. Drawing insights from the theory of planned behaviour, the study identified and tested the effect of awareness, attitude, financial literacy and preference for other competing investments on intention to invest in mutual funds by individual investors. Design/Methodology/Approach: Data was collected from 280 respondents in Zambia. Data was analysed using correlations and hierarchical regression models. Findings: The study reveals that awareness and attitude towards mutual funds significantly influence intention to invest in mutual funds. Surprisingly, financial literacy and preference for other investments do not significantly affect an individual investor’s intention to invest in mutual funds. Implications/Originality/Value: This study contributes to the financial services marketing literature by increasing understanding of individual investors’ investment decisions and drivers that influence intention to invest in mutual funds in Zambia. The study recommends that mutual funds marketers should invest more in building awareness and positive attitude towards investment in mutual funds in order to develop retail demand. Also, investment companies and financial services marketing policy makers should carefully consider their financial literacy programmes as the study reveals that financial literacy and competing investments are not significant drivers.

PENENTUAN RUTE DISTRIBUSI KERAMIK DENGAN METODE SAVING MATRIX (STUDI KASUS: PT. LUCRO INDO JAYA)

ABSTRACTDistribution is part of logistics, with a fundamental function for the company. Distribution made from a source to various destinations makes this activity quite complex because the distribution channels that are adrift with a long-distance make the number of costs incurred for shipping. This study aims to minimize the delivery distance traveled in the distribution of ceramics to more than one retail by using the saving matrix method. The saving matrix method can schedule vehicles to distribute products from the central warehouse to several shipping routes. This research was conducted using data in the form of ceramic supply at the company, retail demand data, distance data, and shipping cost of ceramics in January-December 2018 with a total of 10 (ten) customer destinations located in Tangerang-Jakarta. The saving matrix method is optimized by using the method of Farthest Insert, Nearest insert and Nearest Neighbor in determining vehicle scheduling by sorting shipments that are considered more optimal. The results of this study are obtained savings of 14.5% with a total distance that was previously 302.9 km to 258.9 km and savings in shipping costs by 15% which previously was Rp 1,756,150,000 to Rp 1,501,047,326. The use of the saving matrix method is able to improve the order of shipping routes of the company's distribution so that it reduces shipping mileage and reduces the company's operating costs in terms of product distribution.Keywords: distribution, distance minimization, routing, saving matrixABSTRAKDistribusi merupakan bagian dari logistik, dengan fungsi fundamental bagi perusahaan. Pendistribusian yang dilakukan dari suatu sumber keberbagai tempat tujuan menjadikan kegiatan ini cukup komplek, dikarenakan jalur distribusi yang terpaut dengan jarak yang panjang menjadikan besarnya biaya yang dikeluarkan untuk pengiriman. Penelitian ini bertujuan meminimumkan jarak pengiriman yang ditempuh dalam distribusi keramik ke lebih dari satu retail dengan menggunakan metode saving matrix. Metode saving matrix dapat menjadwalkan kendaraan untuk melakukan pendistribusikan produk dari gudang central ke beberapa rute pengiriman. Penelitian ini dilakukan dengan menggunakan data berupa persediaan (supply) keramik pada perusahaan, data permintaan (demand) kebutuhan retail, data jarak dan biaya pengiriman keramik pada bulan Januari-Desember 2018 dengan total 10 (sepuluh) tujuan pelanggan yang berlokasi di Tangerang-Jakarta. Metode saving matrix dioptimalkan dengan penggunaan metode Farthest Insert, Nearest insert dan Nearest Neighbor dalam menentukan penjadwalan kendaraan dengan mengurutkan pengiriman yang dinilai lebih optimal. Hasil dari penelitian ini adalah diperolehnya penghematan sebesar 14,5% dengan total jarak yang sebelumnya 302,9 km menjadi 258,9 km dan penghematan biaya pengiriman sebesar 15% yang sebelumnya sebesar Rp 1.756.150.000 menjadi Rp 1.501.047.326. Penggunaan metode saving matrix mampu memperbaiki urutan pengiriman rute distribusi perusahaan sehingga mengurangi jarak tempuh pengiriman dan mengurangi biaya operasional perusahaan dalam hal distribusi produk.Kata Kunci: distribusi, minimasi jarak, routing, saving matrix

Traditional US retailers that can adapt will flourish

Significance Walmart had also joined Microsoft to bid for TikTok’s US assets, seeing the video-sharing app boosting its digital media business. The legacy retailer’s transformation provides a counter-narrative to the ‘retail apocalypse’ story and underlines the Darwinian evolution of the sector that underpins the consumption-driven economy. Impacts Retail demand will remain depressed until employment returns to pre-recession levels, which may not be until well into 2021. The pandemic will amplify the weaknesses of retailers that were struggling before COVID-19. Chapter 11 bankruptcies will rise among indebted discretionary retailers such as apparel stores, especially in the mid-priced bracket. Real wages will remain subdued and income inequality is likely to rise; this will sustain discount retailers and own-label brands.

User innovation and network effects: the case of video games

New models of knowledge creation are emerging, where the user community is a major source of innovation development. But, how does user innovation impact on producer sales, and the other way round? In this article, the mutual benefits deriving from the user–producer interaction are analyzed in terms of network effects and on a basis of a unique panel dataset of weekly observations in the context of video games and their user-generated, free modifications. The estimates of a system of equations modeling the original good’s retail demand function and the user innovation dynamics show that user-generated complements spur the demand for the original product and smooth the consumer price sensitivity. User innovation increases with the crowd of complementors up to a certain threshold and decreases afterwards, thus following a non-monotonic pattern.