Jun 2007, Volume 1 Issue 2
    

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  • A research on the relationship between suppliers' transaction-specific investments and perceived relational risks: The moderating roles of control mechanisms and relationship phases
    LIU Yi, QIAN Liping, YIN Jian
    2007, 1(2): 167-192. https://doi.org/10.1007/s11782-007-0011-2
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    This study examines the dynamic nature of suppliers  perceived relational risks arising from transaction-specific investments (TSIs) in their relationship with manufacturers, and the moderating effects of contracts and relational norms, during the developmental process of manufacturer-supplier relationship. An empirical study was conducted with data collected from 261 suppliers and manufacturers in the Chinese consumer electronic appliances sector. We found that suppliers  TSIs have a positive effect on their perceived relational risks, and in different phases of a relationship effect varies significantly. Results of the research also show that both contracts and relational norms have negative moderating effects on the relationship between suppliers  TSIs and their perceived relational risks, and moderating effects during are different across various phases of a relationship.
  • Ownership effects in consumers’ brand extension evaluations
    FU Guoqun, DING Jiali
    2007, 1(2): 193-210. https://doi.org/10.1007/s11782-007-0012-1
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    A two levels of product similarity times two levels of brand image consistency times three levels of ownerships factorial experiment was designed to explore the ownership effects when consumers evaluate brand extensions and judge parent brand after receiving brand extension information. Evidence shows that ownership effects do exist in both extension and parent brand evaluations. Brand image consistency is the most influential factor for parent brand owners while product similarity is more important factor for non-users in attitude formation towards the extension. The owners of competitive brands favor low image consistency extension more than high image consistency extension. Furthermore, there is an interaction effect between brand image consistency and product similarity for brand owners, whereas this effect is non-existent for non-owners and non-users. This again shows that brand owners care much more about brand image consistency than other consumer groups do. In evaluating a parent brand, owners and non-owners differ. The authors draw the conclusion that consumers  brand extension evaluation is more like a benefit oriented  process rather than a pure affect transfer  process.
  • Market segmentation based on customer satisfaction-loyalty links
    WANG Xia, ZHAO Ping, WANG Gao, LIU Jia
    2007, 1(2): 211-221. https://doi.org/10.1007/s11782-007-0013-0
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    There exist different views and opinions on the links between customer satisfaction and loyalty. This paper suggests that the impact of customer satisfaction on loyalty varies across customers. This study choose the cell phone industry in China as an example and segmented customers with a novel method of clusterwise linear regression, based on the association between customer satisfaction and loyalty. Results revealed sample heterogeneity in relation to the two factors. The loyalty of some subgroups is positively related to satisfaction significantly, while that of other clusters is independent of satisfaction.
  • “Pecking order” of Chinese capital market: Effects of convertible bonds’ issue announcements
    HAN Liyan, MOU Hui, XIE Duo, CHEN Zhi′an
    2007, 1(2): 254-274. https://doi.org/10.1007/s11782-007-0015-y
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    This paper empirically shows that the announcements of the issue of convertible bonds (CBs) by Chinese firms have significant negative effects on shareholders  wealth. We find that when the samples are partitioned by equity component negative market responses towards the announcements of issuing equity-like CBs are more than that of debt-like CBs. This finding is different from the pecking order hypothesis  of Myers and Majluf (1984). By analyzing the firm characteristics of convertible bond issuers, we find that the wealth effects are negatively related to equity component, firm size and issue size of convertible bonds, and are positively related to financial leverage, liquidity structure of equity, book value of non-liquidity equity and market-to-book ratio. The underlying reason of equity finance taking precedence of bond finance in Chinese capital market can be attributed the to special two-system-ownership structure  and corporate governance of Chinese listed companies.
  • How to measure brand relationship quality?
    ZHOU Zhimin
    2007, 1(2): 300-318. https://doi.org/10.1007/s11782-007-0017-9
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    The aim of this research is to develop a new evaluation approach based on a brand relationship index model (BRI model), which includes a three stage study on the indicator system; indicator weight; and indicator integration. Based on brand identity theory and interpersonal relationship theory, four-brand relationship participants and three-brand relationship natures are put forward to make up a hypothesis of twelve-dimension brand relationships. Through a series of empirical studies based on exploratory factor analysis (EFA) and confirmatory factor analysis (CFA), a five-dimension structure of brand relationships is obtained, which is the basis of the indicator system. Indicator weight is calculated by the normalization of path coefficients derived from a second order factor analysis of the five dimensions. Indicator integration is based on the Weighted Sum method. Based on these three ingredients, the brand relationship index (BRI) model is developed. According to analysis of data on ten mobile phone brands, the BRI model is tested.
  • The rational role of government in the process of attracting foreign direct investment in China
    LIU Ke, GAO Mengtao
    2007, 1(2): 319-332. https://doi.org/10.1007/s11782-007-0018-8
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    Based on consumer and manufacturer behaviors, this research describes local governments  unique role in the process of attracting foreign direct investment (FDI) . Drawing from a sample of 28 provinces plus four cities throughout China from 1998 to 2004, we construct an econometric model in this paper to analyze the common factors that influenced the result of attracting FDI . The main finding of this paper is that in the process of attracting FDI , local governments play a decisive role, which puts consumer surplus, producer surplus and the other social welfare into a basket to construct its plan for attracting FDI . The common factors which influence the result of attracting FDI  are local costs, the number of foreign-invested company, the market share of local companies, and the market share of foreign-invested companies.