An Empirical Study of Consumer Switching from Traditional to Electronic Channels: A Purchase-Decision Process Perspective

Gupta, Alok; Bo-chiuan Su and Walter, Zhiping
International Journal of Electronic Commerce Vol. 8 Issue 3, p131-161

This paper examines the relationship between purchase decisions and channel-switching intentions. A theoretical model that explains channel-switching intentions was tested with a sample of 337 consumers. The results show a 52 percent tendency to switch from off-line to on-line across four product categories: books, airline tickets, wine, and stereo systems. The order of the switching tendency was consistent with the products’ search and experience attributes. Logistic regression analysis across product categories shows that differences in channel-risk perceptions, price-search intentions, evaluation effort, and waiting time have a significant impact on consumer switching from off-line to on-line shopping. Consumers who purchase on-line perceive significantly lower channel risk, search effort, evaluation effort, and waiting (delivery) time on-line than off-line and express significantly higher price-search intentions on-line than off-line. Consumers attracted to off-line channels also perceive lower search-cost and higher price-search intentions on-line than off-line, but their perceived on-line search effort and price-search intentions are significantly lower than for consumers attracted to on-line channels. These results support the important influence of the examined factors on channel switching. They also suggest that demographics may not be an effective basis for market segmentation.

Assessing Perceived Risk Of Consumers In Internet Airline Reservations Services

Cunningham, Lawrence F., Gerlach, James and Harper, Michael D.
Journal of Air Transportation Vol. 9 Issue 1, p. 21-35

This research investigates the premise that the use of Internet airline reservation systems is perceived to be riskier than traditional airline reservation systems. Unlike previous studies on perceived risk that typically focused on the relationship of perceived risk and information search, this study examines the dynamics of perceived risk throughout the various stages of the consumer buying process. A survey of 159 respondents reveals that perceived risk for both traditional and Internet airline reservation services follows a systematic pattern throughout the consumer buying process. Perceived risk for both traditional and Internet airline reservation systems falls during information search but recovers and rapidly increases as consumers approach the moment of purchase. When viewed as a dynamic process, perceived risk for Internet airline reservation services shows more radical changes in risk levels than the traditional service. Another major finding of this study is the discovery of a risk premium for Internet airline reservation services that permeates all stages of the consumer buying process.

Measurement equivalence and multisource ratings for non-managerial positions: Recommendations for research and practice.

Diefendorff, James M., Silverman, Stanley B., & Greguras, Gary J.
Journal of Business and Psychology Vol. 19, p. 399-425.

The present investigation applies a comprehensive sequence of confirmatory factor analysis tests (Vandenberg & Lance, 2000) to the examination of the measurement equivalence of self, peer, and supervisor ratings of non-managerial targets across several performance dimensions. Results indicate a high degree of measurement equivalence across rater sources and performance dimensions. The paper illustrates how this procedure can identify very specific areas of nonequivalence and how the complexity of a multisource feedback system may be represented using such procedures. Implications of these results and recommendations for both research and practice are offered.

CEO succession planning: An emerging challenge for boards of directors

Biggs, Errol L.
Academy of Management Executive Vol. 18 Issue 1, p. 105-107

The article discusses the importance of chief executive officer (CEO) succession planning for corporate success. In a recent survey of public-corporation CEOs conducted by the National Association of Corporate Directors, CEO succession had risen to the second most important issue facing boards of directors. As in the past, one way to avoid the hassle of searching for a new CEO is to have the successor often be an internal candidate already identified and groomed to take over when the current CEO steps aside. The board’s role in succession planning comprises several tasks. Although the CEO is the central player in the process, the board should understand this is a joint duty and not one delegated solely to the CEO. Many organizations have found it is beneficial to go outside the organization to look for a new CEO. To minimize the disruption created when a CEO departs unexpectedly, an internal individual can be designated as the acting CEO. No two succession scenarios are identical and therefore a variety of possible conditions may confront the board as it faces the challenge. A primary internal candidate may thus need to be passed over as CEO-designate as part of a bargaining position or in deference to perceived equity with the other entity.

The Rise and Fall of a Dot-Com: Lessons Learned from LivingCo

Scott, Judy E.
Annals of Cases on Information Technology Vol. 6, p. 1-21

LivingCo was founded with a vision of revolutionizing the U.S. furniture industry by exploiting technological opportunities. It won accolades for its innovative website and generated considerable consumer interest, becoming at one stage one of the most highly trafficked sites on the Internet. Oracle named LivingCo a poster child because it was one of the first e-tailers to successfully deploy their software in both the front and back ends of the business. Furthermore, industry analysts considered many of its strategic plans promising. However, LivingCo ran into problems coping with overspending, high traffic on its website, integrating its technology with its subsidiary, suppliers who were wary of channel conflict and customers, who were, in general, slow to adopt the new way of shopping for furniture


Eckard, F. Woodrow
Economic Inquiry Vol. 42 Issue 1, p. 101-110

Price dispersion in 1901 is analyzed using a unique U.S. government survey yielding retail prices for four products at more than 1500 stores nationwide. Three of these products are still sold today, allowing comparisons based on modern survey data. Despite the introduction of significant search cost-reducing technology during the intervening century, dispersion appears to be lower in 1901.

Debiasing Balanced Scorecard Evaluations

Roberts, Michael L., Albright, Thomas L. and Hibbets, Aleecia R.
Behavioral Research in Accounting, Vol. 16, Issue 1, p. 75-88

Lipe and Salterio (2000) found that superiors disregarded half of the information when using a Balanced Scorecard to evaluate the performance of two divisional managers. Only common measures affected the superiors’ holistic evaluations, defeating the purpose of the Balanced Scorecard. Our study examines whether disaggregating the Balanced Scorecard results in evaluations consistent with the intent of the Balanced Scorecard approach. Results indicate the disaggregated strategy allows superiors to utilize unique as well as common measures, thus overcoming the common-measures bias. In addition, we find Balanced Scorecard performance evaluations explain more than half the variation in subsequent compensation decisions.

Stock Exposures in Portfolios with Options

Arak, Marcelle
Journal of Wealth Management Vol. 6 Issue 3, p. 19-25

Describes a procedure for combining options with outright stock holdings to get an accurate view of overall exposure to each company’s equity price. Examination of long call options in a portfolio of stocks and bonds; Measurement of an investor’s exposure to a stock; Procedures for calculating effective shares.

Reclaiming Your Future: Entrepreneurial Thinking in Health Care

Edward J. O’Connor, and C. Marlene Fiol
American College of Physician Executives

This is a book about entrepreneurial thinking and its application to health care settings. It is a book about building an enduring success. It is about entrepreneurial leadership, ways of thinking and approaches used to produce success by entrepreneurs, and application of these ideas to the world of health care, which is desperately in need of new answers to ever-increasing challenges. The purpose of this book is to view health care challenges through the lens of entrepreneurial solutions so that current challenges and opportunities open the door to an ever-stronger and more effective health care delivery system.

University of Colorado Denver Business School