Separating generalizable from source-specific preference heterogeneity in the fusion of revealed and stated preferences

Preference heterogeneity is one of the central behavioral concepts in applied econometrics. Its centrality is particularly evident in the choice modeling literature, notably in its widespread application to environmental and health economics, marketing, and transport. Despite conceptual and empirical advances in modeling preference heterogeneity, the generalizability of preference heterogeneity to different decision contexts and different data generation processes remains an open question. The basic premise of this paper is that latent sources of preference heterogeneity can be decomposed into components general to decision contexts and others specific to them. We study the structure of preference heterogeneity in different data generation processes with the goal of reliably identifying common (presumably generalizable) and specific (presumably not generalizable) sources of preference heterogeneity. The contribution of the paper is both conceptual and methodological, leading to the testing of five rival model specifications which together elucidate the heterogeneity structure present in two preference data sources of the same choice behavior. In the empirical application, we find that the multitrait-multimethod model of preference heterogeneity has the best fit and most sensible interpretations, indicating that while each data source contributes uniquely to certain heterogeneity components, both data sources contribute also to common (generalizable) preference heterogeneity. Recognition of the separability of the common versus source-specific preference heterogeneity will lead to more reliable and accurate demand model forecasts and assessments of welfare impacts

Incentives and monitoring: impact on the financial and non-financial orientation of capital budgeting

Purpose While investment decisions may be financial decisions, there is a growing recognition that they are also often non-financially based decisions. The purpose of this study is to report findings focused on the project selection stage of capital budgeting, which has the objectives of exploring for: the relative degree of emphasis decision makers attach to a financial and non-financial orientation in capital budgeting; and the role, if any, that two agency theory variables have on the relative degree of emphasis: a personal incentive for project go-ahead and monitoring of project outcomes through a post-audit

Measuring Consumer Loyalty : the loyalty orientation scale

Reflecting its importance to thc financial success of organisations, interest in consumer loyalty continues unabated. However, there are still many unanswered questions about its conceptualisation and measurement.These questions must he resolved before academics and practitioners can usefully apply the concept. We argue that consumer loyalty is best conceptualised as a multi-dimensional phenomenon. Based on this multi-dimensional view, we develop and test a new measure of consumer loyalty. We hypothesise a threedimensional structure containing affective, temporal and instrumental dimensions, Results from a preliminary test are reported. The results indicate that the construct can be reprcxeuted with two dimensions: affective and temporal loyally. As an additional check on the reliability of our results, we find significant correlations between these two dimensions and a measure of behavioural loyalty

Measurement properties of rankings and ratings

Ratings are the dominant approach to construct measurement in the social and behavioral sciences, including the applied business disciplines. The literature documents problems with the use of ratings, but workable alternatives are few. This paper proposes the use of rankings for construct measurement. Rankings and ratings are systematically evaluated using multitrait-multimethod (MTMM) structural equations modeling. MTMM models partition the variation in measures into trait, method, and error components. The assessment presented here favors rankings for construct measurement for the brand context studied. The analysis presents a test of the brand signaling model that propose

Corporate sponsorship of a cause: the role of identification in purchase intent

Nonprofit organizations (NPOs) have attracted significant levels of support from corporate sponsors over the past decade. Despite this significant and continuing interest, very little is known about how consumers perceive and respond to corporate sponsors of NPOs. Drawing on social identity theory, the authors propose that willingness to purchase sponsoring firms' products be related to consumers' identification with an NPO. Possible antecedents of identification with an NPO are also modeled, including the prestige of an NPO, consumers' affiliation with an NPO, and their motivation to support a cause. As predicted, the results find a positive relationship between consumers' identification with an NPO and their intentions to purchase sponsors' products. The results also suggest an important role for identification with an NPO in mediating the relationships between the antecedents studied here and consumers' purchase intentions. Finally, the moderating effects of biodata (life experiences) on several modeled relationships are examined. (C) 2003 Elsevier Inc. All rights reserved

Towards an understanding of creativity and innovation within professional services and marketing

Greatly increased competition in the professional services and marketing sectors has reinforced the need for firms to develop an organisational culture that facilitates adaptation to changing conditions and competitive threats. More generally, competitive changes within business environments require new and creative ways of organising and managing firms. In order for marketing practitioners to be ahead of competitors in identifying and meeting customer needs, creative thought is essential. An organisational culture that supports creativity and facilitates the adoption of innovative practices, products and services, improves a firm’s ability to remain competitive within an uncertain environment. This paper presents a conceptual model of an organisational culture supporting creativity and innovation. The model posits relationships between creativity and innovation and organisational performance. The main contribution of the paper is to build a foundation for future research directed primarily towards exploring the relationships in the theoretical model of interest. Implications for marketing practitioners are also considered

Organizational culture, innovation, and performance: a test of Schein's Model

Innovation is the key to organizational survival and therefore the study of processes that support innovation should be of interest to researchers and practitioners alike. Schein's multi-layered model of organizational culture offers a useful framework for thinking about processes that foster innovation. A defining characteristic of the model is the subtle but important distinctions between the varied "layers" of organizational culture (i.e., values and norms, artifacts and behaviors). The basic assumption of this study is that Schein's model offers a tractable explanation of cultural processes that support organizational innovation, especially in service firms. Despite the intuitive appeal and practical value of Schein's conceptual framework, empirical research in relation to the model is limited. This paper develops a rationale for an empirical model based on Schein's conceptual model; the study reports a test of an empirical model. Data collected from approximately 100 principals of law firms provides a suitable empirical context for a test of the model. The findings generally support the hypothesized relationships. A key result is how layers of organizational culture, particularly norms, artifacts, and innovative behaviors, partially mediate the effects of values that support innovation on measures of firm performance. The findings have implications for theory and practice, especially in relation to building an organizational culture within professional service firms that fosters innovative behavior. (C) 2013 Elsevier Inc. All rights reserved

Discrete choice experiments: A research agenda for experimental accounting

Purpose This paper aims to introduce and illustrate how discrete choice experiments (DCEs) can be used by accounting researchers and present an agenda of accounting-related research topics that might usefully benefit from the adoption of DCEs. Design/methodology/approach Each major phase involved in conducting a DCE is illustrated using a capital budgeting case study. The research agenda is based on a review of experimental research in financial accounting, management accounting and auditing. Findings DCEs can overcome some of the problems associated with asking decision-makers to rank or rate alternatives. Instead, they ask decision-makers to choose an alternative from a set. DCEs arguably better reflect the realities of real-world decision-making because decision-makers need to make trade-offs between all of the alternatives relevant to a decision. An important advantage that DCEs offer is their ability to calculate willingness-to-pay estimates, which can enable the valuation of non-market goods. Several streams of experimental accounting research would appear well-suited to investigation with DCEs. Research limitations/implications While every effort has been made to ensure that this illustration is as generic to as the many potential studies as possible, it may be that researchers seeking to utilise a DCE need to refer to additional literary sources. This study, however, should serve as a useful starting point. Practical implications Accounting researchers are expected to benefit from reading this article by being: made aware of the DCE method and its advantages; shown how to conduct a DCE; and provided with an agenda of accounting-related research topics that might usefully benefit from application of the DCE methodology. Originality/value It is the authors' understanding that this is the first article directed to accounting academics regarding the conduct of DCEs for accounting research. It is hoped that this study can provide a useful platform for accounting academics to launch further research adopting DCEs