Numerous studies have measured short‐term behavioural response to variable pricing, but affective responses have been under‐researched. Trust is a focal point for this…
Numerous studies have measured short‐term behavioural response to variable pricing, but affective responses have been under‐researched. Trust is a focal point for this research, which assesses the affective consequence of variable pricing as applied using revenue management techniques. This paper aims to address this issue.
A longitudinal, quantitative approach was used to measure respondents' level of trust. The sample was divided into a control group which received constant price messages, and an experimental group, which received variable price messages. In stage one, respondents were presented with hypothetical scenarios of restaurant pricing over a period of six weeks. In stage two, a hotel chain's database was used to send control and experimental messages over a period of six months.
There is mixed evidence for the proposition that variable pricing leads to distrust by consumers. While there was evidence for this in stage one, the evidence from stage two was more complex. A profile emerged of relatively young, male, highly educated frequent purchasers who were more likely to trust a company using variable pricing compared with older, female, infrequent purchasers of lower educational attainment.
It is probably not variable pricing itself that leads to mistrust of a company, but an individual's knowledge of the “rules” by which variable pricing operates. The high levels of trust recorded by younger, highly educated frequent purchasers suggests acceptance by them of the rules of variable pricing, and the benefits and problems associated with the practice.
This research informs management strategies that seek ever‐finer price discrimination through the use of customer databases and individually targeted price offers. Some customer segments may be amenable to variable pricing and will happily play along with the company's “rules”. Other groups may not understand such rules, and in these circumstances may distrust a company that practises variable pricing.
This study uses a longitudinal approach to measure issues of trust and fairness perceived in companies' efforts at price discrimination. Previous studies have tended to measure the success of variable pricing/revenue management practices through short‐term measures of behavioural response (e.g. increase in sales). This study incorporates an affective measure into the assessment of consumers' response to variable pricing.
A new modern style of wine has emerged in Hungary which draws heavily on the wine making and wine marketing success of the so‐ called New World. Examining two very…
A new modern style of wine has emerged in Hungary which draws heavily on the wine making and wine marketing success of the so‐ called New World. Examining two very different wine companies, one foreign‐owned, the other indigeneous, this article highlights the success of these initiatives, illustrating how they have boosted Hungarian wine exports and helped create a positive image for Hungarian table wine. Such approaches cannot be followed exclusively, however. Hungary will never be able to export all its production to the west. Attention still needs to be paid to both domestic demand for the old oxidised wine styles as well as demand in the other export markets in the former COMECON countries. This should help to provide a softer landing for an industry struggling with the upheavals of the last three years. The article concludes that Hungary's willingness to experiment and adopt western methods, together with its relative economic and political stability, suggest that the Hungarian wine industry could and should become the centre for innovation in Eastern Europe.
The financial analysis of international investment decisions is complex. The basic methodology which homes in on incremental cash flows needs to be refined in order to…
The financial analysis of international investment decisions is complex. The basic methodology which homes in on incremental cash flows needs to be refined in order to focus upon cash flows which are remittable to the parent company, for it is only these that would logically add shareholder value. Build in the complications of two lots of tax and changing exchange rates and the equation looks anything but simple. But there is another complexity too which renders the traditional discounting methodology less than wholly appropriate. And this applies not just to international investment but to any situation where capital is committed with an option to expand or curtail embedded in it. This is not to say that the typical model cannot be adapted to meet the situation. It can and it is not too difficult.
This paper summarises key issues arising from a comprehensive research monograph and accompanying discussion paper on social enterprise that reviewed over 150 sources. It…
This paper summarises key issues arising from a comprehensive research monograph and accompanying discussion paper on social enterprise that reviewed over 150 sources. It aims to provide insight into the future development of the social enterprise research agenda, and how to attract scholars new to the field to contribute to it.
The paper seeks to identify and address some of the difficulties faced by social enterprise researchers, in terms of defining their field, overcoming institutional pressures that may deter scholars from tackling the social enterprise research agenda and in dealing with some of its complexities.
In developing the monograph, two key themes were diversity and distinctiveness. Social enterprise is a form of business that is distinctly different to conventional commercial enterprise and that has an extraordinary diversity in organisational form, legal structure, purpose, culture, scale and scope. There are also a number of “paradoxical” elements to the research agenda for social enterprises arising from their “hybrid” nature.
These findings create many challenges for researchers, practitioners and policy‐makers, not least in terms of defining social enterprises consistently, and also in terms of understanding what makes them different to commercial enterprises and what the implications of those differences are.
The insights provided by this discussion should help to resolve and explain some of the debates and conceptual and practical difficulties that have hampered the development of the social enterprise research agenda.
It must be difficult for many to contemplate the numerous changes in progress and projected without wondering why it all has to happen now. Of course, there have always been with us those who would change everything, even those who would spoil; all seemingly unable to leave anything alone; unwillingly to let us be for what we are. Then there are those who dislike change of any kind in their familiar environment and strangely, children are the most conservative of us all, and others who do not object to change when it is necessary, but only when it is change merely for the sake of change. The changeover to the metric system, or to use one of the grating terms of the new technological language, metrication, must be accepted as a natural sequence to decimal currency and advances in industry. A revolution in weights and measures, it will indeed present very great problems throughout the country and at all levels, which will dwarf those presented by the switch to decimal coinage, for at worst, these may be just confusing to the general public and a price‐raiser in small‐value commodities, despite assurances to the contrary.
In this chapter, we describe the rise and fall of Germany’s Neuer Markt from its promising start to its ultimate failure. We show that the Neuer Markt was designed to…
In this chapter, we describe the rise and fall of Germany’s Neuer Markt from its promising start to its ultimate failure. We show that the Neuer Markt was designed to serve the special needs of small and medium sized growth firms. However, some regulatory flaws, insufficient means to enforce the rules, the IPO frenzy and the bursting of the stock market bubble destroyed its reputation beyond recovery. The closing of the Neuer Markt and the rebranding and restructuring of the entire Frankfurt stock market indicate the seriousness of the crisis of German public equity markets.