Contributions in Merlin

null

The customer equity concept has attracted substantial interest from academics and practitioners during the last years. While direct drivers of customer equity such as customer transactions, cross- and up-buying behavior have been well understood and researched, indirect effects, and in particular social network effects have been ignored, although it is well known that brand community influence, word of mouth communication and other social effects are powerful influencers of buying behavior and should thus not be ignored in customer management. Thus, we propose that the customer equity perspective should evolve into a customer network equity perspective. In the following, we develop and present a theoretical framework for extending current thinking on customer equity towards the network perspective. In particular, we derive, based on the social network literature, characteristics that are likely to be powerful predictors of a customer's network value. We make propositions for future research and highlight practical implications.

null

A number of empirical studies seem to reject the additive separability of preferences that is assumed in most theoretical models of the life cycle. We show that, when additive separability is abandoned and interactions between consumptions at different dates are taken into account, an interesting relation emerges between risk aversion and length of the planning horizon. Specifically, we show that when consumptions at different dates are specific substitutes, risk aversion increases with horizon length. This may explain the surprising empirical finding that individuals seem to increase the share of wealth held in risky assets as they become older. (JEL: D11, D91, G11)

We construct a life cycle model that delivers realistic behavior for both equity holdings and borrowing. The key model ingredient is a wedge between the cost of borrowing and the risk-free investment return. Borrowing can either raise or lower equity demand, depending on the cost of borrowing. A borrowing rate equal to the expected return on equity-which we show roughly matches the data-minimizes the demand for equity. Alternative models with no borrowing or limited borrowing at the risk-free rate cannot simultaneously fit empirical evidence on borrowing and equity holdings. Copyright Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

null

Quality function deployment (QFD) has had considerable success in terms of its implementation in companies. It has also been the subject of many studies in recent years. It seems, however, that there are some shortcomings in the research on this subject and in particular the lack of an adequate conceptual framework suitable for empirical research. The purpose of this paper is to address this issue. This study proposes and elaborates a model which examines QFD in relation to three dimensions of performance: improvement of product quality, reduction in costs for R&D, shorter R&D time. The model is empirically tested on data gathered on a stratified random sample of manufacturing plants through the application of valid and reliable measures. The model is tested using structural equation modeling.The results show three distinct paths of direct influence which lead, respectively, to superior economic performance. The empirical study has shown that the success of a QFD project is mainly influenced by motivated employees in the QFD project team. A comprehensive technical support for the QFD project is also a crucial key success factor. The strict organization of the QFD project is of minor, however still remarkable importance for the success.

null

null