Durable Goods Industries Research Articles

A Study on Enhancing Sustainability in Circular Supply Chains through Green Innovations

Redefining product and service lifecycles with eco-friendly and sustainable processes, circular supply chains are green breakthroughs. Minimising waste, environmental effect, and resource efficiency are its goals. In a circular supply chain, green innovations can include product design that facilitates recycling or reuse, process improvements that reduce energy consumption and emissions, logistics solutions that optimise transportation for lower carbon footprints, and service innovations that promote sustainability. These green ideas improve supply chain efficiency and competitiveness while helping the environment. Businesses may reconcile economic growth and environmental stewardship by rethinking and rebuilding linear supply models into circular and sustainable ones, paving the way for a more sustainable future. This study examines how green innovations affect circular supply chains in Andhra Pradesh's durable goods industry. It analyses how product, process, logistical, and service green innovation improves supply chain efficiency. The quantitative research uses structured surveys to obtain data from 150 industry professionals and customers. Convenience sampling was used to acquire varied supply chain performance metrics responses. SPSS is used for rigorous regression analysis in the study. This method lets you study how green innovation affects circular supply chain performance. All green innovations improve supply chain efficiency, but green service innovation has the greatest benefit. This research provides strong evidence for green innovations in durable goods industry circular supply networks. The study emphasises ecologically friendly product creation, logistics, service delivery, and process management.

Emotional intelligence and managerial leadership in the fast moving consumer durable goods industry in India's perspective

Emotional intelligence and managerial leadership in the fast moving consumer durable goods industry in India's perspective

Stakeholder orientation and product market performance: Evidence from a natural experiment

AbstractWe examine the causal effect of stakeholder orientation on firms' product market performance. Using the staggered enactment of constituency statutes across different states as an exogenous shock that increases the extent of the stakeholder orientation, difference‐in‐difference estimations suggest that on average firms incorporated in states that adopted constituency statutes increase sales growth by 1.7% relative to firms incorporated in states that did not adopt such statutes. The effect is stronger if a firm has higher labor intensity and if a firm operates in a durable goods industry. In addition, we find that stakeholder orientation improves the quality of innovation.

Linking Workplace Exclusion with Employees’ Intention to Leave with the Mediating and Moderating Role of Self-esteem

This study aims to investigate the relationship between workplace exclusion and intention to leave with the mediating and moderating role of self-esteem. Data was collected from 200 white-collar employees working in durable consumer goods industry in Türkiye. Results showed that workplace exclusion is positively related to intention to leave and negatively related to self-esteem. Self-esteem is negatively related to intention to leave. Additionally, it was found that self-esteem has not a mediation function. Self-esteem plays a significant role as a function of moderation between workplace exclusion and intention to leave. Practice of our findings and implications for the research are discussed in this study.

The value created by the removal of cut lines: Evaluating the impact of finishing of industrial designs on purchase intention

AbstractColor, material, and finish (CMF) are essential to the competitiveness of industrial products. However, in the existing research on CMF from the consumer behavior perspective, there is an insufficient focus on finish, compared with that on color and material. Research on finish is limited to technical methods, and there is a lack of discussion about its impact on consumer purchasing behavior. This study examines the effect of cars' exterior design finish on purchase intention in Japan. The research question is, “does changing the quality of the finish by removing cut lines have a positive effect on purchase intention?” Two sets of images were used: normal images of car exteriors and images of car exteriors improved by removing cut lines. An online survey was conducted to explore the impact of a car's finish on consumers' purchase intentions in the Japanese market. The randomized controlled trial results showed that finish had a significant positive effect on purchase intention. This study analyzes the interaction of finish with consumer characteristics. A multiple regression model with interactions revealed that, among consumers who emphasize design, a higher finish quality prompted a greater positive influence on purchase intention. In design research, styling tends to attract significant attention. However, practitioners should not neglect efforts to improve finishing when manufacturing products. Companies that consider it impossible to convey to consumers the quality of products with delicate finishing need to change their mindset. These suggestions apply not only to the automotive industry but also to other durable consumer goods industries.

"An Investigation into the impact of Product Differentiation Marketing Strategies on Consumer Decision-Making in the Consumer Durable electronic Goods industry”

"An Investigation into the impact of Product Differentiation Marketing Strategies on Consumer Decision-Making in the Consumer Durable electronic Goods industry”

Emotional intelligence and managerial leadership in the fast moving consumer durable goods industry in Indias perspective

Emotional intelligence and managerial leadership in the fast moving consumer durable goods industry in Indias perspective

The acceleration of digital communications in the durable goods industry. A study on white goods firms after COVID-19

PurposeThe purpose of this paper is to investigate how business-to-business (B2B) companies operating in durable goods use digital communications after the COVID-19 outbreak. In particular, this paper focuses on the objectives of these digital communication tools for the marketing strategies of B2B white goods firms.Design/methodology/approachAs the research objective is explorative, the authors conducted a qualitative analysis by collecting 13 semi-structured interviews with B2B marketing professionals working for white goods firms in Italy. Primary data was triangulated with secondary data about the white goods industry, such as sector reports.FindingsThe findings of this paper show an acceleration in the adoption of digital communication tools among B2B firms after COVID-19. The authors also discuss the effects in the use of such tools both in the short and long term.Originality/valueThis paper attempts to contribute to the B2B marketing literature by providing an original analysis of the consequences of the COVID-19 outbreak focusing on the use of digital communication tools among white goods firms. It also provides managerial implications for firms operating in B2B.

The Economic Costs of Financial Distress

We estimate the economic costs of financial distress by exploiting cross-supplier variation in real estate assets and leverage, and the timing of real estate shocks. We show that for the same client buying from different suppliers, its purchases from suppliers in financial distress decline by an additional 10% following a drop in local real estate prices. The effect is more pronounced in more competitive industries, manufacturing and durable goods industries, for producers of less-specific goods, and when the costs of switching suppliers are low. Our results suggest that the indirect costs of financial distress are economically important.

Q or R Factor Analysis for Subjectiveness Measurement in Consumer Behavior? A Study Case on Durable Goods Buying Behavior in Romania

The complexity of consumer behavior requires new research methods to overcome the limitations of conventional evident-based research. The aim of this paper is the comparison between two types of factor analyses, Q and R (PCA and cluster analysis) for subjectiveness measurement in the case of durable goods buying behavior in Romanian households with different levels of education and occupancy. Our study explores different subjective patterns of stimulus of 30 statements (Q-sample) by 30 Romanian households (P-sample) using the Q-sort method for collecting data. For the Q-sample inputs, results from the literature were used. Based on the 30 Q-sorts, we discovered four factors for both Q and R factor analysis, mostly different according to specific results from different methods. For the Q method, we used the labels “pragmatic”, “modern”, “traditionalist”, and “innovator. For R factor analysis and cluster, we used “traditional Romanian brands”, “real needs and power purchasing”, “sceptic versus optimistic subjectiveness”, and “negative subjectiveness”. This paper suggests the Q methodology as a structured and transparent approach to consumer behavior research by combining the in-depth subjectivity of qualitative methods and statistical rigor of factor analysis to identify groups in consumers. The research provides useful suggestions for selecting and approaching target consumer segments in the Romanian durable goods industry.

THE RELATIONSHIP BETWEEN RELATIONSHIP-ORIENTED LEADERSHIP, ORGANIZATIONAL EMOTIONAL MEMORY LEVEL AND ORGANIZATIONAL COMMITMENT

Leadership in the business environment helps to establish and maintain effective relationships between employees by reducing the level of stress at work and increasing job satisfaction. Hence, it reduces absenteeism and employee turnover as well as improves performance. The relevant literature includes studies that examine the relationship between leadership, organizational memory level, and organizational commitment. However, there is no study discussing the relationship between relationship-oriented leadership, organizational emotional memory level and organizational commitment. This research paper is the extended version of a conference paper (in 2018) that it empirically tests the effect of relationship oriented leadership on organizational emotional memory level and organizational commitment. The research was carried out with a sample consisting of 320 participants from organizations in the service sector in Istanbul in 2018 by using a survey method. The result of the research showed that 1) relationship oriented leadership has no relationship with the level of organizational emotional memory level, 2) relationship-oriented leadership has negative relationship with organizational commitment, 3) organizational emotional memory level has a positive relationship with organizational commitment. Mainly, employees were reactive to a relationship-oriented leadership style both in terms of organizational commitment and organizational emotional memory level. This research has been applied to the employees of Turkey's three major durable goods companies. As a result of this study, the relationship found between relationship-oriented leadership and organizational commitment shows a negative relationship unlike the literature. The main reason for the difference is that relationship-oriented leadership does not fit well with the working styles of those working in the durable goods industry. Instead of developing communication with employees that ends up more time pressure on them, output-oriented leadership type is seemed to be more suitable for this sector. When approached with the relationship-oriented leadership type, it was observed that the employees were less attentive to their work (because they were not warned seriously enough) and as a result, their commitment to the organization decreased. If the sector researched in this study had been different, it has been predicted that a more positive relationship between organization commitment and relationship-oriented leadership could be obtained.

Partial refunds as a strategic price commitment device in advance selling in a service industry

Over the past decade, consumers’ strategic waiting behavior in anticipation of a price markdown has become increasingly common when advance selling is used. Recently, studies in the durable goods industry show that a partial refund strategy can activate the price-commitment mechanism to counter consumers’ strategic waiting, which is primarily driven by both consumers’ and retailers’ behaviors that discount the future. In this research, we investigate the possibility of using this partial refund strategy in a service industry context in which demand uncertainty and consumption state uncertainty act as major influential factors.We study analytical models that consider the demand uncertainty of later arrivals and the consumption state uncertainty of early arrivals over two selling periods (advance and spot selling). Our results show a consistent pattern reflecting that a partial refund strategy in which the cancellation fee acts as a price-commitment mechanism is capable of emerging as the optimal strategy. Other than the strategic commitment mechanism, the cancellation fee paid by the advance buyers who choose to cancel their advance purchase also plays a profit-enhancer role. Combining these two mechanisms, a partial refund strategy dominates both a price-matching strategy and a dynamic pricing strategy, and they are only special cases of that type of strategy. Finally, comparative statistical analyses are conducted and reveal the impacts of demand-related parameters on the optimality of the partial refund strategy. These results provide instructive guidance for sellers when utilizing the partial refund strategy in their marketing practices.

Buyback Pricing of Durable Goods in Dual Distribution Channels

Problem definition: In the U.S. automobile industry, manufacturers distribute products through dealers and rental agencies. To mediate direct competition between the two intermediaries, manufacturers adopted buyback programs to repurchase used rental cars from rental agencies and redistribute them through dealers. We investigate how the timing of buyback pricing affects manufacturers’ profitability and the intermediaries’ ordering decisions by studying two schemes: (1) a precommitted scheme in which a manufacturer precommits to a buyback price at the time of initial sale to rental agencies and (2) a postponed scheme in which a manufacturer postpones the buyback pricing decision to the time of repurchase. Academic/practical relevance: Prior research has not studied the timing of buyback pricing decisions, which is practically relevant because both precommitted and postponed schemes have been adopted by manufacturers in a range of durable-goods industries. Methodology: We used a two-period dynamic Stackelberg game between three types of firms: manufacturer, dealer, and rental agency. Results: A monopolist manufacturer earns a lower profit under the precommitted scheme than under the postponed scheme. The equilibrium buyback quantity is zero under the precommitted scheme but positive under the postponed scheme. These results can be explained by two trade-offs that only exist under the precommitted scheme. First, decreasing the buyback price increases the margin of the manufacturer’s buyback program but decreases the rental agency’s first-period order quantity. Second, increasing the first-period wholesale price offered to the dealer increases the manufacturer’s margin in the sales channel but decreases the rental agency’s first-period order quantity. When manufacturer competition in the rental market is sufficiently intense, a unique equilibrium may arise in which manufacturers choose the precommitted scheme, which maximizes the manufacturers’ profits and yields positive buyback quantity. Managerial implications: The timing of buyback pricing decisions for used durable goods critically affects the profitability of buyback programs in dual distribution channels with dealers and rental agencies. Precommitting to a buyback price may put a manufacturer at a disadvantage because of the intermediaries’ strategic adjustment of their order quantities. However, competition between manufacturers in the rental market may alleviate this disadvantage thanks to a strategic complementarity between competing manufacturers’ buyback prices.

Role of somatic markers in consumer durable brand selection in e-retail

Consumer durable goods industry is operating in a highly competitive, complex and rapidly changing business environment. Business leaders of consumer durable goods organisations know their importance of having ready to access timely, accurate, information and data for managing customer relationships across divisions. Additionally, the Indian consumer profile has changed in terms of education, income, occupation, reference group and media habits. The consumer buying preferences are rapidly changing and moving towards high-end technology products with acculturation. Products which were once considered luxury items have become a necessity because of the changing lifestyle and rising income levels. With the growth in disposable incomes, the demand for high-end products such as television, refrigerator, and air conditioners has increased considerably. Capitalising on brain nature, various marketers forayed into neuron-based marketing designs, especially based on the advertisements. The current examines the role of somatic markers in consumer durable brand selection in e-retail.

The Role of Personal Income Taxes in Corporate Investment Decisions

This paper examines the role of personal income taxes (PIT) in corporate investment decisions. Since PIT reduce consumption and increase cost of labor, investment decisions can be affected because of the inevitable link of production input factors. Using data on PIT in 30 European countries and a large sample of private firms, we find that personal income taxes substantially reduce investment. The magnitude is comparable to the effect of corporate taxes. We confirm this finding using three within-country settings where we explore local variation in PIT. Further, the PIT–investment association is stronger for lower-income earners, for firms facing more elastic employees, for firms with a stronger capital-labor-relation, for durable goods industries, and for financially constrained firms.

Role of Somatic Markers in Consumer Durable Brand Selection in E-retail

Consumer durable goods industry is operating in a highly competitive, complex and rapidly changing business environment. Business leaders of consumer durable goods organisations know their importance of having ready to access timely, accurate, information and data for managing customer relationships across divisions. Additionally, the Indian consumer profile has changed in terms of education, income, occupation, reference group and media habits. The consumer buying preferences are rapidly changing and moving towards high-end technology products with acculturation. Products which were once considered luxury items have become a necessity because of the changing lifestyle and rising income levels. With the growth in disposable incomes, the demand for high-end products such as television, refrigerator, and air conditioners has increased considerably. Capitalising on brain nature, various marketers forayed into neuron-based marketing designs, especially based on the advertisements. The current examines the role of somatic markers in consumer durable brand selection in e-retail.

Customers’ Risk Factor Disclosures and Suppliers’ Investment Efficiency

ABSTRACTThis study examines the effect of downstream firms’ (i.e., customers’) risk factor disclosures contained in annual reports on the investment efficiency of upstream firms (i.e., suppliers). We find that more informative disclosures of customers’ risk factors are associated with less under‐ or overinvestment by suppliers. In addition, this inverse association is stronger when the suppliers are at a bargaining disadvantage, when they operate in the durable goods industries, and when they are more concerned about the volatility of future demand. Overall, our results suggest that risk factor disclosures provided by firms in their annual reports contain useful information that could potentially help their suppliers achieve better investment efficiency.Divulgation d'information sur les facteurs de risque des clients et efficience de l'investissement des fournisseurs

Intra-firm and Arm's Length Trade During the Global Financial Crisis: Evidence from Korean Manufacturing Firms

In this paper, we investigate and compare the different patterns of intra-firm trade and arm's length trade during the global financial crisis. Intra-firm trade refers to the cross-border flow of goods between related parties, and arm’s length trade refers to the cross-border flow of goods between unrelated parties. Using firm-level data from the Korean manufacturing sector from 2006 to 2009, we employ two approaches that complement each other, accounting decomposition and fixed effects regression analyses. Our accounting decomposition result reveals that aggregate-level intra-firm trade is more responsive to shocks during the global financial crisis compared to arm’s length trade, particularly in durable goods industries. The decline in intra-firm trade during the crisis is largely driven by extensive margins while the changes in arm’s length and total trade are largely driven by intensive margins. The fixed effects panel regression results show that firms’ involvement in the global value chain is the most significant determinant for the decline in a firm’s trade growth during the crisis, where the negative effect is stronger for arm’s length trade than for intra-firm trade, and is more pronounced in durable goods industries than in non-durable goods industries.

Improving Remanufacturing Core Recovery and Profitability Through Seeding

Through analytical modeling and a numerical study grounded in observations from automotive remanufacturing, this study examines seeding—selling new products as remanufactured at the start of a new product's lifecycle—in order to increase core recovery quantities, to allow firms to start efficient remanufacturing earlier, and to fulfill demand for remanufactured products throughout the product's lifecycle. Though seeding has received little attention in the academic literature, many durable goods industries, such as automotive parts and heavy equipment remanufacturing, employ seeding because a lack of used units (cores) significantly constrains their remanufacturing operations. The results reveal that the cost of producing a new unit and the shape of the product lifecycle curve are key determinants of the profitability of seeding. Specifically, if the price of the remanufactured product is less than the cost of producing a new unit, then the profitability of seeding is impacted negatively when the product lifecycle ramps up slowly or when there is a large time lag for the recovery of seeded units. In effect, initial sales of seeded units at a loss for a longer period reduces and potentially nullifies the benefits of seeding. Conversely, if initial sales of seeded units are profitable, then a slower ramp‐up of the product lifecycle or a large time lag for the recovery of seeded units has a positive impact on the profitability of seeding because seeding under these circumstances allows the firm to meet demand for remanufactured products profitably earlier in the lifecycle. The results from a numerical study indicate that seeding increases total remanufacturing profits by an average of 23% and a maximum of 40% over the product's lifecycle.

The Economic Costs of Financial Distress

We estimate the economic costs of financial distress by exploiting cross-supplier variation in real estate assets and leverage, and the timing of real estate shocks. We show that for the same client buying from different suppliers, its purchases from distressed suppliers decline by an additional 10% following a drop in real estate prices. The effect is more pronounced in more competitive industries, manufacturing and durable goods industries, for less-specific goods, and when the costs of switching suppliers are low. Our results suggest that the indirect costs of financial distress are driven mostly by clients reducing their purchases from distressed suppliers.