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

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.

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.

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.

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

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.

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.

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.

Teaching notes are available. Consult the librarian for access.

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.

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.

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.

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.

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

This study aims to assess how department store websites can add online retail brand equity. A quick, relatively easy and low-cost diagnostic tool for stakeholders (e.g. retailers, investors) is presented.

A content analysis of department store websites in the USA and Latin America was conducted.

The findings show that Latin American and US department store websites exhibit acceptable use of online retail brand equity dimensions related to emotional connection and trust. In contrast, compared to their US counterparts, Latin American department store websites show weak usage on some of the dimensions of responsive service nature, online experience and fulfillment. The results also show that higher online retail brand equity is positively associated with average daily time on site. This indicates the usefulness of this index for developing effective websites to creating online retail brand equity.

This study suggests that Latin American department stores should improve three dimensions of online retail brand equity: responsive service nature, online experience and fulfillment. The online retail brand equity index presented can serve as a diagnostic tool for department store managers to monitor the online retail brand equity they are building on their websites. It is also possible to analyze the websites of competing department stores and monitor the long-term impact of modifications made to their websites and those of competitors.

This paper proposes an easy-to-apply index to assess online retail brand equity through website design partially. In addition, this research is the first to evaluate how Latin American department store websites, compared to those in the USA, are building online retail brand equity.

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.

This is a conceptual paper supported by a case study.

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.

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.

This paper explores which market and product category characteristics could influence the use of foreign language brand names (i.e. whether a brand uses a foreign language versus local language brand name) in some of the largest Latin American countries.

Hypotheses are tested using 880 brands from 39 product categories and nine Latin American markets using a hierarchical logistic regression.

Results revealed that foreign language brand names are more likely to be used in product categories related to local infrastructure, high-tech and global community. In contrast, local language brand names are more likely to be used in product categories associated to subscriptions. Findings also suggest that Hofstede's national cultural dimensions are significant factors. Finally, the results revealed that foreign language brand names are more likely to be used in markets with a low level of foreign language proficiency.

This paper shows the importance of considering market and product category characteristics and their potential influence on local versus foreign language branding in Latin America – an ignored issue in previous research.

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.

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.

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.

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.

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.

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.

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.

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.

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

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

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.

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.

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

Contemporary changes have occurred in country-level policies and tourists’ intentions in recent years. The role of maintaining a country’s image is trendy in crisis control but has not yet been discussed in domestic tourism research. Extending the Stimulus Organism Response model, this study aims to focus on “trustable WOM creation” in China. In addition, it aimed to discover how behavioral changes encourage domestic tourism intention (DTI).

This study explored the mediating role of DTI and the moderating role of maintenance of country image (MCI) for trustable word of mouth (WOM) creation. Using the snowball sampling technique, a structural equation modeling analysis (Smart PLS-4) was employed to analyze the data of 487 Chinese tourists.

Findings confirm that behavioral changes positively encourage domestic tourism and discourage international tourism, with significant negative moderation by MCI. MCI has an insignificant positive moderating effect between government-media trust and DTI. Furthermore, DTI positively and directly affects the creation of trustable WOM. In addition, it had a 20% mediation effect (VAF%) between behavioral changes and WOM creation, higher than the rejected mediation effect (12%), in the causal relationship between government-media trust and WOM creation.

WOM creation varies from different behavioral changes, but findings suggest that government-media trust and DTI influenced it significantly. Based on the study findings, the government and media can enhance domestic tourism by maintaining the country’s image. These findings both encourage and control the recovery of tourism.

This study provides a theoretical explanation for tourists' behavioral changes during the pandemic. Moreover, it shows that despite avoiding international tourism due to behavioral changes and government-media trust, MCI moderation with the mediation effect of DTI can create trustable WOM. To the best of the authors’ knowledge, this is the first study to theoretically promote tourism through DTI-induced psychology as a mediator and an organism affect prevailing among Chinese tourists.

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

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.

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.

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.