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An economic analysis is presented of the Standard Reinsurance Agreement (SRA), the contract governing the relationship between the Federal Crop Insurance Corporation and the private insurance companies that deliver crop insurance products to farmers. The paper outlines provisions of the SRA and describes the modeling methodology behind the SRA simulator, a computer program developed to assist crop insurers and policy makers in assessing the economic impact of the Agreement. The simulator is then used to analyze how the SRA affects returns from underwriting crop insurance. The results are presented in aggregate and also at the regional and individual company levels.

A better understanding of the response of shoppers in developing countries to inevitable product stock‐outs would help logisticians to put structures in place to reduce the disruption. The purpose of this paper is to examine the differences in orientations that characterize shoppers’ responses to stock‐outs in retailing environments by comparing an emerging economy, Malaysia, with a developed economy, Australia.

Randomly selected adult grocery shoppers across Kuala Lumpur, Malaysia were surveyed to examine shoppers’ behavioural response to a most recent stock‐out of their preferred dairy item. This study followed the methodology and reporting framework adopted in an Australian study.

When responding to stock‐outs of their preferred grocery items, shopping lists serve as instruments that give archetypical Malaysian shoppers, unlike their Australian counterparts, a framework to adjust their budgets and seek alternatives within the store itself rather than venture to another store. Most Malaysian shoppers’ reactions to an out‐of‐stock situation, just as their Australian counterparts, appear to be underpinned by their household size. If their preferred item is not available, the frugal and observant among Malaysian shoppers, however, are not inclined as much as their Australian counterparts, to buy more of their alternative choice, even if these substitute items are discounted.

Insight into Malaysian shoppers’ behavioural response to inadequate shelf life of perishable products, considering that they might feel impelled to act as per their shopping lists, would give members of the supply chain confidence to adopt inventory management policies that make a judicious balance between avoiding stock‐outs and ensuring stock availability with acceptable shelf life.

Malaysian frugal and observant shoppers when responding to stock‐outs of their preferred items might allow the opportunity to let a bargain pass on alternative brands or variants, because these shoppers, guided by their shopping lists, are possibly hamstrung, by budgetary constraints in not being able to make heavier purchase outlays and by likely storage constraints in their living accommodation. Retailers in Malaysia have a greater challenge than Australian retailers to dispose of stocks of grocery products that are fast approaching their expiry dates through discounting, because Malaysian shoppers may resist buying more than their immediate need.

Malaysian shoppers, inclined to carry memory scripts to assist them in their shopping efforts, are conditioned to stay within their planned budgets and when confronted with a stock‐out of their preferred item, are likely to resist buying anymore than what they had planned to buy.

Private label growth in Australia has not kept pace with the growth in private labels elsewhere. This research paper establishes that the odds of a consumer being highly pleased with a store label product when they are supportive of the quality of private labels, is more than the odds of the consumer being highly satisfied when purchasing private label products simply because they are priced significantly lower than manufacturer brands. It would therefore be useful for Australian retailers to increase investment in private label programs including changing their customers’ attitudes to the quality of private labels if they are to stay competitive.

This paper examines the contract design problem of microfinance institutions seeking to maximize outreach to the poor while remaining financially sustainable. A dynamic model of group lending is developed that shows how optimal interest rates depend on information regarding moral hazard and adverse selection problems, correlated project risks, and strategic default. Relative to traditional static models, the results indicate a dynamic model better explains the current experience with individual and group lending in developing countries.

The purpose of this paper is to give retailers an insight into consumers' capacity for feeling pleasure associated with specific purchase motivations across different product categories.

A hedonic regression model was estimated from data collected from shoppers in shopping malls that enabled the generation of implicit prices of each constituent purchasing motive.

Hedonic values of consumer motivations vary for different products categories. Convenience items, like bread, allow little scope for self‐congruence, whereas shampoo offers significant scope for pleasurable emotive appeals to boost consumers' status enhancement and social image. This study identified opportunities to create good feelings for the purchase of both bread and shampoos, by engaging shoppers' attention on themes relating to social referents and family values. Shopping items like apparel and specialty items like cosmetics offer prospects of titillating consumer motives of status and self‐image enhancement, respectively, by engaging them with reputable merchandise in reputable settings.

No insight was sought on the hedonic value of consumers' buying motivations of impulse purchases.

Products that are used in public (apparel) or whose consumption outcome is manifest in public (shampoos and cosmetics), have purchase motivations that are susceptible to hedonic appeals. On the other hand, only a few purchase motivations for products like bread, with limited “public face”, have some hedonic value. The results of this study inform retailers on choice of purchase motivations to direct engagement appeals in order to generate emotional excitement. Getting consumers to fantasize on themes relating to relevant purchasing motives could facilitate their purchase choice.

Targeting consumers' preferred urges is an efficient way to stimulate buying intentions.

The aim is to examine whether supermarkets may be losing the opportunity to increase customer purchase outlays by means of loyalty points, convertible to acquire specialty goods and services provided by “bonus partners”.

Two econometric models were constructed from data collected from 470 supermarket shoppers in one major Australian city, to predict mechanisms for making shoppers aware of loyalty points accrued on their credit card purchases and for inducing them to pay for purchases with specific credit cards linked to loyalty programmes of which they were members.

Shoppers who are aware consider specialty merchandise in exchange for loyalty points to be a significant reason for joining a loyalty programme. However, when they actively seek to pay with specific credit cards because of loyalty points do not rank the conversion into specialty merchandise as a significant reason for membership.

No insight was sought on the relative importance of attitudes and implications of social influences on attitude formation and behavioural intention with respect to the accumulation of loyalty points.

Specialist retailing planners can configure product offerings attractive to customers' lifestyles and broader interests on the basis of shared insights into buying patterns and personal details captured during their enrolment in affiliated loyalty programmes with “bonus partners”.

The paper offers an actionable strategy for customer retention and enhancement.

This study, conducted in Thailand, aims to examine the effect of interaction of country‐of‐origin (COO), brand equity and product purchase involvement on consumers' evaluation and purchase preference of Thai brands of fashion apparel made in three nominated Asian countries of varying levels of manufacturing competence.

Data from a field survey were analyzed through a 2×2×3 factorial design and the influence of a particular factor over the others in specific scenarios was observed.

This study suggests that if low purchase involvement apparel with high brand equity is sourced from a country‐of‐origin of low perceived competence, the superior reputation of the brand encourages consumer partiality to the apparel's quality and purchase inclination. However, this study has evidenced that a brand of modest equity sourced from the under‐developed economy is capable of getting greater consumer support for its higher end fashion products than for its standard apparel.

That consumers are comfortable with the quality of high‐end fashion items sourced from lesser developed countries suggests that low equity brands ought not to feel discouraged to enter the high end of the fashion market particularly if they can offer a price advantage and promise of guaranteed quality.

A more expansive paper would allow for analysis of interaction effects of additional combinations of country's competence, brand equity and purchase involvement on consumers' evaluation and purchase preference.

This study informs brand owners of consumer expectations of high and low complexity products, made in countries of differing manufacturing competencies, to deliver desired level of performances.

Significant number of consumers in Australia patronizes non‐scanning stores in spite of not being issued itemized receipts for the goods they purchase. In order to understand the attitude of consumers to receipts that give only limited information, shoppers exiting non‐scanning stores were surveyed for their use of purchase receipts. This study compares consumers' use of purchase receipts issued by non‐price scanning stores and those issued by price scanning stores. It appears that shoppers are largely indifferent to the details on the purchase receipt except when they are concerned with returning or exchanging the item(s) purchased.

The purpose of this research is to examine consumers' perception of the difference between customised/modified products and brand stereotypes, and the extent of brand's impact on consumers' decisions to customise their purchases. Current literature is rife about the shift from the dominance of brands in directing consumer choice to the contemporary ascendancy of individualism reflected in customising products.

A structured questionnaire containing 23 variables relating to brand perception and customisation was administered to more than 500 random shoppers leaving two shopping centres in an Australian city during a two‐week period. Results were used to construct two econometric models aimed at predicting consumers' perception of the difference between customised/modified and brand stereotypes and the extent that consumers' decisions to customise their purchases were affected by brand names.

The results show that factors, other than the motive of and the satisfaction from customising the product, with a significant influence on the perceived difference between customised items and brand stereotypes, have little in common with factors that impel consumers to customise/modify their purchases based on the imagery of brands. A significant reason why consumers self‐engage with composing their product purchases is to satisfy their desire for quality and genuinely believe that their compositions are appreciably different from brand stereotypes thus vindicating the theory of self‐congruency. Indeed, there is evidence that the extent brands influence customers to tailor their purchases, depend on the stores from which consumers make their purchases.

The research did not ask questions on the extent of influence of brands on purchase behaviour of made‐to‐order products in relation to every specific durable product tested. These items conceivably have different buying protocols and therefore future research may want to consider a larger sample size with dedicated respondents for each type of item that was modified or customised. Meaningful comparisons can then be made across each of these items to identify the intrinsic and extrinsic product appeals of customised items that consumers may find more compelling than the pull of established stereotypes of brands.

Brand owners might consider setting up “virtual” stores that offer templates to adjust their stereotypes in order to accommodate specific styles and perspectives of customers.

In an era when individualism is getting increasing currency, this study aims to introduce service providers in the retail industry to how much of a role brands play in influencing the specifications of adjusted and customised products.

To identify the factors that influence shoppers' satisfaction with their “primary” grocery store, and those that encourage them to continue patronising it despite being presented with a significant inducement to shop elsewhere.

A structured questionnaire containing 31 variables relating to shopping behaviour and satisfaction was administered to 934 shoppers leaving a number of grocery stores in an Australian city during a two‐week period. Results were used to construct two mathematical models predicting customer satisfaction and store loyalty, from which two research hypotheses were derived.

The results of model estimation show that factors with a significant influence on store satisfaction have little in common with others that impel shoppers to remain loyal to one store. Indeed, there was no evidence in this study that shoppers' overall satisfaction was by itself a significant influence on continued patronage.

The questionnaire did not ask questions, judged to be intrusive, relating to respondents' income level, education background, employment status or household size – characteristics known to have a bearing on perception of risk associated with switching to an unfamiliar store and hence potentially to inhibit action. It would be instructive in future research to assess the extent to which demographic characteristics mediate perceptions of financial, psychological and social risk, and their influence on satisfaction and loyalty.

Retailers often do not recognise that what influences customer satisfaction is not the same as what engenders store loyalty, and consequently do not allocate scarce resources systematically among tactics influencing one or the other. Unless they are vigilant to changing consumer behaviour patterns, they will not be able to isolate in their strategy the elements of the retail mix that could insulate their loyal customers from responding to competitors' special offers.

This study introduces intelligence gatherers and strategic planners in the retail context to an important distinction between general satisfaction and specific loyalty.