Search results

1 – 10 of 33
To view the access options for this content please click here
Article
Publication date: 2 November 2020

Pablo Farías

This study identifies the factors that affect the knowledge of mortgage loans' total cost.

Abstract

Purpose

This study identifies the factors that affect the knowledge of mortgage loans' total cost.

Design/methodology/approach

Empirical research utilizing a survey administered through in-home interviews was conducted. This study adopts the elaboration likelihood model (ELM) theory to analyze the influence of information shortcuts and borrowers' abilities and motivations on the knowledge of mortgage loans' total cost.

Findings

The results support that the use of the price–quality cue and brand credibility have negative and positive effects, respectively, on the knowledge of mortgage loans' total cost. Households' primary income earners have a higher knowledge of mortgage loans' total cost. The results also show that the household's primary income earners who are price conscious and brand nonbelievers have more knowledge of mortgage loans' total cost.

Originality/value

Price knowledge studies in financial services, especially in the mortgage loan industry, are scarce. Consequently, understanding the price knowledge level for mortgage loans and its potential antecedents has been insufficient.

Details

International Journal of Bank Marketing, vol. 39 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Case study
Publication date: 26 September 2012

Pablo Farías

The concepts of customer lifetime value (CLV) and customer equity (CE).

Abstract

Subject area

The concepts of customer lifetime value (CLV) and customer equity (CE).

Study level/applicability

BA, MBA, MSc courses: customer equity, marketing metrics, marketing plan, marketing research. Because students are asked to complete a customer lifetime value analysis based on a range of financial and non-financial data, students will need at least a modest level of proficiency in dealing with a few basic financial accounting concepts.

Case overview

In Chile, a law passed in 2008 introduced a bidding process to be held every 24 months in the pension industry. The tender mechanism was introduced as part of a reform aimed at reducing the commissions charged by pension fund administrators and at making it easier for new players to enter the market. In early 2009, Daniel Ugarte wondered if it was finally the right time for his firm to enter the pension industry. Ugarte was asked by the board to help chart a direction for the firm. The winning criterion was the lowest management fee (commission) paid by the affiliates. The main focus of the case is a quantitative assignment that asks students to calculate how customer lifetime value (CLV) and customer equity (CE) would be affected by the commission offered.

Expected learning outcomes

These include: understanding the concepts of customer lifetime value (CLV) and customer equity (CE) and the importance of maximizing a customer's lifetime value for the firm by calculating the CLV and the CE based on a combination of financial and non-financial data.

Supplementary materials

Teaching notes are available. Consult the librarian for access.

Details

Emerald Emerging Markets Case Studies, vol. 2 no. 7
Type: Case Study
ISSN: 2045-0621

Keywords

To view the access options for this content please click here
Case study
Publication date: 1 September 2014

Pablo Farías

The focus of the case is on the concepts of customer lifetime value (CLV) and customer equity (CE). Monitoring, measuring and maximizing CLV and CE have become a key…

Abstract

Subject area

The focus of the case is on the concepts of customer lifetime value (CLV) and customer equity (CE). Monitoring, measuring and maximizing CLV and CE have become a key priority for all marketers. Instructors can introduce these concepts and its key components.

The main focus of the case is a quantitative assignment that asks students to analyze the convenience for the existing five AFPs (Administradora de Fondos de Pensiones, Pension Fund Administrator) of winning the tender. The use of CLV and CE measurements is particularly relevant. Students need to estimate the impact of pricing on the CLV and CE of the existing five AFPs.

Study level/applicability

BA, MSc, MBA Courses: CE, Marketing Metrics, Pricing. The case can also be used in courses that focus on Marketing Plan, Marketing Research or Services Marketing.

Case overview

In early 2009, Valentina Vial was given the assignment to develop the pricing strategy of Alianza to enter the pension industry. The company will propose a commission fee to compete with the country's existing five AFPs. Whichever AFP presents the lowest commission will be awarded the tender. When there are several competitors, the company must guess each competitor's likely pricing decision. In the analysis of the convenience for the existing five AFPs of winning the tender, the use of CLV and CE measurements is particularly relevant. Valentina Vial needed to estimate the impact of pricing on the CLV and CE of the existing five AFPs.

Expected learning outcomes

Understand the concepts of CLV and CE and the importance of maximizing a customer's lifetime value for the firm by calculating the CLV and the CE based on a combination of financial and non-financial data.

Illustrate the importance of adopting a long-term strategic perspective (using CLV and CE) in choosing a pricing strategy. Once a firm commits to a pricing strategy, it is difficult to shift course. Given this, the choice of pricing levels should be informed by long-term strategic thinking, including consideration of potential competitive pricing decisions.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Details

Emerald Emerging Markets Case Studies, vol. 4 no. 4
Type: Case Study
ISSN: 2045-0621

Keywords

To view the access options for this content please click here
Article
Publication date: 6 March 2017

Pablo Farías, Eduardo Torres and Roberto Mora Cortez

The purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a…

Abstract

Purpose

The purpose of this paper is to propose a new salesperson valuation model. This paper presents a calculation method for estimating both the individual lifetime value of a salesperson and the sales force equity.

Design/methodology/approach

This is a conceptual paper supported by a case study.

Findings

The authors contribute to the literature by operationalizing the salesperson lifetime value concept and introducing new important aspects in comparison with previous discussions, including peer effect, recruitment/hiring cost and termination costs.

Originality/value

This manuscript theoretically and practically contributes to personnel value management in the organization and sales force financial control. The authors introduce peer effects, hiring/recruitment costs and termination costs, which are missing as a set in previous research. In addition, this paper offers a simple but robust model to practitioners’ use.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

To view the access options for this content please click here
Article
Publication date: 4 March 2019

Pablo Farías

The purpose of this paper is to examine the influence of consumer-related and bank-related characteristics on the knowledge of the total cost of consumer loans paid by…

Abstract

Purpose

The purpose of this paper is to examine the influence of consumer-related and bank-related characteristics on the knowledge of the total cost of consumer loans paid by consumers and test the hypothesized relationships between them.

Design/methodology/approach

In order to identify the proportion of consumers who do not know the total cost of consumer loans and reasons for it in the Chilean consumer loans industry, an empirical study using a survey administered through personal in-home interviews was carried out.

Findings

Results show that knowledge of a consumer loans total cost is positively associated with product satisfaction as well as recent and infrequent purchases. This study also shows that a big market segment, comprising 37.2 percent of the probability sample, represents vulnerable consumers with high self-reported knowledge but low actual knowledge of the total costs of consumer loans. This study shows that this market segment has a higher use of the price-quality cue and a higher purchase frequency of consumer loans.

Originality/value

The present study contributes to the existing literature in the following ways. First, while previous research measured only self-reported knowledge for financial services, the present study examines actual knowledge of the total cost of consumer loans. Second, while previous research for financial services only examined the effects of the use of the price-quality cue and price advertising exposure, the present study also examines 11 other determinants, which are relevant for managers, regulators and researchers.

Propósito

Este trabajo examina la influencia de las características relacionadas con el consumidor y las relacionadas con el banco en el conocimiento del costo total que se paga en los préstamos de consumo.

Diseño/metodología/enfoque

Con el fin de identificar la proporción de consumidores que desconocen el costo total que se paga en los préstamos de consumo y las razones de ello, se realizó un estudio empírico mediante una encuesta realizada a través de entrevistas personales en el hogar.

Resultados

Los resultados muestran que el conocimiento del costo total que se paga en los préstamos de consumo está asociado positivamente con la satisfacción del producto, así como con las compras recientes e infrecuentes. Este estudio también muestra que un gran segmento de mercado, que comprende el 37,2% de la muestra probabilística, representa a consumidores vulnerables con un alto conocimiento auto-reportado pero bajo conocimiento real del costo total que se paga en los préstamos de consumo. Este estudio muestra que este segmento de mercado tiene un mayor uso del precio como señal de calidad y una mayor frecuencia de compra de los préstamos de consumo.

Originalidad/valor

El presente estudio contribuye a la literatura existente de las siguientes dos maneras. En primer lugar, mientras que las investigaciones anteriores midieron sólo los conocimientos auto-reportados de los servicios financieros, el presente estudio examina el conocimiento real del costo total que se paga en los préstamos de consumo. En segundo lugar, mientras que las investigaciones anteriores para los servicios financieros sólo examinaron los efectos del uso del precio como señal de calidad y la exposición a la publicidad de precios, el presente estudio también examina otros once determinantes relevantes para los administradores, reguladores e investigadores.

To view the access options for this content please click here
Case study
Publication date: 26 November 2014

Flavio Galasso and Pablo Farías

Discussing statistical error and research design problems and the organizational implications of delivering “good news” at all cost.

Abstract

Subject area

Discussing statistical error and research design problems and the organizational implications of delivering “good news” at all cost.

Study level/applicability

This case can be used on basic courses of Public Policy, Marketing Research and Quantitative Methods.

Case overview

MIDEPLAN on July 2012 showed the results of the CASEN (Caracterización Socio-Económica or Socio-Economical Characterization) survey of 2011. The results showed that poverty was lowered by 0.6 per cent and was greatly highlighted by the media. Opposition coalition and academics started to ask questions about statistical error, which was not yet known. It was revealed that the government asked Comisión Económica para América Latina y el Caribe (CEPAL), a public organization dependent on the United Nations (UN) that was helping Chile to manage the CASEN survey, to review the results and incorporate a variable “y11,” but academics questioned it due to comparability reasons. The statistical error was revealed and it was 0.8 per cent. On October 2012, CEPAL decided to stop helping Chilean institutions.

Expected learning outcomes

The key analysis and conclusions which should arise as a result of teaching this case are: The relevance of the statistical error as a key component of research to evaluate data; the importance of fully implementing research design and accuracy of every step to reach valid results; analyze and discuss organizational implications of delivering “good news” at all cost.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email pfarias@unegocios.cl to request teaching notes.

Details

Emerald Emerging Markets Case Studies, vol. 4 no. 7
Type: Case Study
ISSN: 2045-0621

Keywords

To view the access options for this content please click here
Article
Publication date: 29 July 2014

Pablo Farías

The purpose of this paper is to examine the impact of business group characteristics on firm‐operating performance in Chile.

Abstract

Purpose

The purpose of this paper is to examine the impact of business group characteristics on firm‐operating performance in Chile.

Design/methodology/approach

Using a multiple regression model, this study examines the effect of business group characteristics (interlocking of directors, management concentration, and business group specialization) on operating performance (ROA growth) in a sample of 104 publicly traded Chilean firms.

Findings

It is documented that, except for interlocking of directors, the two other business group characteristics (management concentration and business group specialization) are significantly related to the operating performance of firms belonging to Chilean business groups. These findings suggest that Chilean business groups would improve or deteriorate the performance of their affiliated firms modifying its characteristics.

Originality/value

Too little is known about the effect of business group characteristics on firm‐operating performance in Latin American countries such as Chile because there is no research that analyses its impact on firm‐operating performance in the region.

Details

Academia Revista Latinoamericana de Administración, vol. 27 no. 2
Type: Research Article
ISSN: 1012-8255

Keywords

To view the access options for this content please click here
Article
Publication date: 25 May 2012

Enrique Manzur, Rodrigo Uribe, Pedro Hidalgo, Sergio Olavarrieta and Pablo Farías

The purpose of this study is to test the viability of comparative advertising in Chile.

Abstract

Purpose

The purpose of this study is to test the viability of comparative advertising in Chile.

Design/methodology/approach

Data were collected via controlled experimentation. The study employed a 3 (comparative advertising intensity: noncomparative, indirect comparative, and direct comparative)×2 (product category involvement: low, high)×2 (sponsor brand's relative market share: market leader, other brand) between‐subjects factorial design.

Findings

The results suggest that direct and indirect comparative advertisements are not more effective than noncomparative advertisements in Chile. Additionally, data do not support the idea that the effect of comparative advertising intensity is moderated by the product category involvement and/or by the sponsor brand's relative market share. Since comparative advertising was not shown to be more effective than noncomparative advertising, the authors hypothesize that it is due to cultural biases and the novelty of comparative advertising in Latin America, as expressed through negative message believability.

Practical implications

While experimental research is not sufficient to establish the generalized non‐superiority of comparative advertising in the region, the results support the idea that comparative advertising might not be more effective than noncomparative advertising for many marketing campaigns in Latin America.

Originality/value

Several recent studies have investigated international differences in advertising practices. Most of these address advertising in general, leaving the transferability of comparative advertising practices largely unexplored (White Nye et al.). Analyzing the case of Latin America is highly relevant due to the limited development that exists with respect to comparative advertising in the region.

To view the access options for this content please click here
Article
Publication date: 1 January 2014

Enrique Manzur, Sergio Olavarrieta, Pedro Hidalgo‐Campos and Pablo Farías

The purpose of this paper is to examine two popular price promotion strategies – price matching guarantees (PMGs) and everyday low prices (EDLP) – and their effects on…

Abstract

Purpose

The purpose of this paper is to examine two popular price promotion strategies – price matching guarantees (PMGs) and everyday low prices (EDLP) – and their effects on Chilean consumer behavior in terms of consumer perceptions of low prices, search behavior and purchase intention.

Design/methodology/approach

A quasi experiment with three scenarios was conducted to test price promotion effects. Subjects were instructed to respond a questionnaire that included the dependent variables.

Findings

Results show that EDLP and PMG strategies increase perceptions of low prices and affect purchase intentions. These effects are significantly higher for stores offering EDLP than PMG. However, when consumers are exposed to two or more price promotion strategies (rather than one) they reduce their purchase intentions for a specific store and increase their search intentions.

Research limitations/implications

This is an initial study exploring the effects of price promotion strategies on consumers. Future research could test the hypotheses advanced in the study across different samples and contexts (supermarkets, department stores, convenience stores, and other retailers) and might privilege external validity, using experiments mimicking decisions with real consequences.

Practical implications

Retailers and marketers in Latin America – particularly those companies stressing price or value as their differential advantage – should consider the use of price promotions when designing marketing strategies. On the other hand, retailers should be aware that an intensive use of these of promotions could lead to increases in consumer search behavior.

Originality/value

While findings from the USA suggest that price promotion strategies can be effective in several contexts, there has been a limited number of studies addressing whether such strategies are effective in other countries, particularly in Latin America and emerging nations.

Details

Academia Revista Latinoamericana de Administración, vol. 26 no. 3
Type: Research Article
ISSN: 1012-8255

Keywords

To view the access options for this content please click here
Book part
Publication date: 19 June 2012

Abstract

Details

Performance Measurement and Management Control: Global Issues
Type: Book
ISBN: 978-1-78052-910-3

1 – 10 of 33