A VR-Enabled Chatbot Supporting Design and Manufacturing of Large and Complex Power Transformers

Virtual reality (VR) immersive technology allows users to experience enhanced reality using human–computer interfaces (HCI). Many systems have implemented VR with improved HCI to provide strategic market advantages for industry and engineering applications. An intelligent chatbot is a conversational system capable of natural language communication allowing users to ask questions and receive answers online to enhance customer services. This research develops and implements a system framework for a VR-enabled large industrial power transformer mass-customization chatbot. The research collected 1272 frequently asked questions (FAQs) from a power transformer manufacturers’ knowledge base that is used for question matching and answer retrieval. More than 1.2 million Wikipedia engineering pages were used to train a word-embedding model for natural language understanding of question intent. The complex engineering questions and answers are integrated with an immersive VR computer human interface. The system enables users to ask questions and receive explicit and detailed answers combined with 3D immersive images of industrial sized power transformer assemblies. The user interfaces can be projected into the VR headwear or computer screen and manipulated with a controller. The unique immersive VR consultation chatbot system is to support real-time design consultation for the design and manufacturing of complex power transformers.

Product differentiation and populistic entry strategies in a mortgage market with Bertrand competition

PurposeThe purpose of this paper is to analyse the interaction between a profit maximising mortgagor and a newcomer to a mortgage market with Bertrand competition where the newcomer has a populistic entry strategy and undercuts mortgage market rates. The intention of the paper is to relate the populistic entry strategy to mortgage market characteristics and the strategic market position of both the established mortgagor and the newcomer in question.Design/methodology/approachThe paper analyses a mortgage market by combining the behaviour of a profit maximising mortgagor with that of a newcomer to the mortgage market which has a populistic entry strategy and does not maximise profits. The short-run market solution provides comparative statics on the strategic market position of both the established mortgagor and the newcomer to the mortgage market during the entry phase both related to product differentiation and to price mirroring and undercutting of mortgage rates.FindingsThe model finds a mortgage market solution where a lower mortgage rate helps the newcomer gain a customer base. As the newcomer's strategy to mirror prices makes it unable to pass-through funding cost to its mortgage rate, the strategy is unsustainable over time. The established mortgagor has a strategically beneficial position as the mortgage market rates only relate to its funding cost. Unless the newcomer has a funding cost advantage, the established mortgagor has a higher interest rate margin. Differentiation impacts the newcomers’ interest rate margin positively. If the newcomer lacks a funding cost advantage, there is a critical mirroring rate that ensures it a higher interest rate margin. The higher the newcomers’ own funding cost, the higher is the upper bound for price mirroring, relating market entry to a small undercutting of mortgage rates and a mortgage market with weak competition. The funding cost of the established mortgagor pulls pricing in the opposite direction, allowing for a lower mirroring rate and tougher mortgage market competition during entry.Originality/valueThe paper aims to contribute to the understanding of market equilibrium in the absence of profit maximising behaviour. Framing a mortgage market in terms of a duopoly where a newcomer enters with a populistic entry strategy offering a lower mortgage rate and a mortgage product with a different loan-to-value (LTV) ratio, a novel mortgage market case comes about. The populistic entry strategy produces an augmented reaction curve, crucial for the mortgage market rates.

“Hey Alexa–order groceries for me” – the effect of consumer–VAI emotional attachment on satisfaction and repurchase intention

Purpose Given the growing prominence of voice-activated artificial intelligent devices (VAIs) as the strategic market-facing technology for grocery purchases, this article aims to bring together theories on anthropomorphism, trust, emotional attachment, self-connection and self-disclosure in one conceptual framework establishing that consumer–VAI relationship has significant implications for grocery purchase satisfaction and intention to repurchase using VAIs. Design/methodology/approach The study tested seven hypotheses through a survey-based approach comprising of two studies. Findings The study empirically supports VAI anthropomorphism and trust in VAIs as predictors of consumer–VAI emotional attachment and establishes the moderating role of consumer self-disclosure. Consumer–VAI self-connection resulting from emotional attachment results in grocery purchase satisfaction and intention to repurchase using VAIs. Research limitations/implications The article offers a novel perspective on consumer–VAI relationships and the use of VAIs for grocery purchases. It establishes an agentic role of consumers when ordering groceries using VAIs, creating a deeper understanding of how consumer–VAI emotional attachment results in extensions of consumers’ self-identity, resulting in purchase satisfaction and repurchase intention using VAIs. Practical implications Establishing a consumer–VAI relationship, the article brings out the strategic importance of VAIs for marketers in grocery purchases and repurchases, which can be extended to other purchases. Originality/value The article offers a new perspective on establishing VAIs as strategically important market-facing devices by examining consumer relationships with VAIs and offering valuable insights on how consumer emotional attachment with VAIs results in satisfaction and intention to repurchase using VAIs.

Emotional capability: the missing link between information technology capabilities and innovation performanceCapacidad emocional: el vínculo perdido entre capacidades de tecnologías de la información y desempeño innovadorCapacidade emocional: O elo perdido entre as capacidades das tecnologias da informação e o desempenho inovador

Purpose There has been a great interest in the literature in understanding the incidence of information technology capabilities (ITC) on innovation performance (IP). Recently, it has been proven that this relationship is mediated by organizational factors requiring an additional effort in terms of information processing in a rational and analytical manner, including strategic market orientation and absorptive capacity; however, the role of emotions in this discussion has not been widely addressed. A scenario in which emotions are inhibited, in particular, emotional capability (EC), prevents the activation of other forms of cognition relating to intuition, experience and empathy. Therefore, the purpose of this paper is to analyze the mediating effect of EC on the relationship between ITC and IP. Design/methodology/approach The authors analyzed the statistical significance of the indirect effects through structural equations. Findings The results show the existence of partial mediation of EC. Therefore, it is evidenced that less rational constructs, such as EC, serve as a bridge between ITC and IP, on account of the improvement in information processing, the level of information technology (IT) use and virtual communication. Originality/value This finding is quite significant because it forces innovation researchers and practitioners to reconsider the prevailing study perspective that explores only analytical mediators, which implies an additional effort in terms of rational processing of information. All this because there is a risk of accentuating the cognitive overload and increasing the levels of stress that lead employees to stop receiving and using information provided by IT services, which compromises the possibility of obtaining better results in innovation.

Regional Development Banks in the World Economy

This chapter offers a revised categorization of regional development banks (RDB) through an analysis of their changing geographical operations and their shifting prioritization of five major functions—development, regional integration, market promotion, multi-polarity re-inforcement, and strategic market shaping. The authors demonstrate the first RDB were established to correct for market failure, prioritizing development with and, often, by regional integration. A second major period of RDB creation occurred in the 1990s, accompanied by a turn to promoting market-oriented functions—which shaped newly established RDB, as well as previously existing banks. The most recent period of RDB creation occurred from the beginning of the twenty-first century. RDB became more ambitious in geo-political terms and, with regard to function, adopted a more strategic approach to intervention, promoting industry and the provision of international public goods, whilst shifting to new business models with greater and more complex private sector involvement. We examine the extent to which principal-agent analysis sheds light on these complex transformations.