Large Customer Base Research Articles

Online Impulse Buying Behaviour of Indian Small Town Consumers : Scale Development and Validation

E-commerce companies have started betting big on small towns to look for business opportunities, having a large customer base, and focusing on making customers to buy online as much as possible. Therefore, the study aimed to explore different dimensions of customers’ impulse buying behaviour (IBB) in an online buying environment, and further validating the extracted determinants in small towns of North India. The study included a sample of 304 small town online buyers and used exploratory factor analysis (EFA) to explore the key factors, which resulted into five key determinants of IBB ; Hedonic Online Shopping Motivation, Marketing Stimulus, Impulse Buy, Impulse Buying Tendency, and Situation Stimulus. Further, confirmatory factor analysis (CFA) was performed to evaluate validity and reliability of the identified variables of IBB. The findings revealed good internal consistency among the constructs. Additionally, all measurement model fit indices were found to be under the acceptance range, which indicated no validity concerns in the measurement model. The study provided insights on the complex impulse buying behavior of small town online consumers, which completely differs from the buyers of metro cities. Therefore, the identified determinants of customers’ online IBB will benefit e-tailors by providing them a platform to understand the buying behavior of small town consumers for designing their marketing strategies to serve them better and to gain over the competition in the e-marketplace.

Contributing Factors to Apple’s Sustainability in Malaysia’s Information and Communication Technology Industry

Apple has a large customer base in Malaysia because they offer products of superior design and features. The main objective of this study is to determine the contributing factors to Apple’s sustainability in Malaysia’s Information and Communication Technology (ICT) Industry. This study is conducted based on quantitative research with 100 targeted respondents from Malaysia. The findings indicate that the marketing strategies, brand awareness, and customer experience are the major factors of the successful pathway of Apple’s sustainability. The research concludes that Apple Industry should adapt a frequent reengineering approach where the existing and upcoming Apple products will satisfy customer needs.

A Smart City Economy Supported by Service Level Agreements: A Conceptual Study into the Waste Management Domain

The full potential of smart cities is not yet realized, and opportunities continue to exist in relation to the business models which govern service provision in cities. In saying this, we make reference to the waste services made available by councils across cities in the United Kingdom (UK). In the UK, smart waste management (SWM) continues to exist as a service trialed across designated cities, and schemes are not yet universally deployed. This therefore exists as a business model which might be improved so that wider roll-out and uptake may be encouraged. In this paper, we present a proposal of how to revise SWM services through integrating the Internet service provider (ISP) into the relationship alongside home and business customers and the city council. The goal of this model is to give customers the opportunity for a more dynamic and flexible service. Furthermore, it will introduce benefits for all parties, in the sense of more satisfied home and business owners, ISPs with a larger customer base and greater profits, and city councils with optimized expenses. We propose that this is achieved using personalized and flexible SLAs. A proof-of-concept model is presented in this paper, through which we demonstrate that the cost to customers can be optimized when they interact with the SWM scheme in the recommended ways.

Integration and volatility spillover amongst banks: a cross-correlation analysis

PurposeThe rising interconnectedness between international banks, at one end, allow participants to share risk and diversification which leads to stable local lending and increase in competitiveness, however, at the other end poses potential for volatility spillover and thereby contagion phenomena. Therefore, investigating the presence of co-integration amongst international banks can provide useful information about risk spillover in times of financial turbulenceDesign/methodology/approachThe authors employ wavelet correlation and wavelet multiple cross-correlation strategies, following an initial decomposition of returns series through maximal overlap discrete wavelet transformation (MODWT).FindingsThe results indicate high integration level between Citibank and Deutsche Bank whereas potential of diversification exists between pairs of Citibank–Hong Kong and Shanghai Banking Corporation and Bank of America–Deutsche Bank, with former more evident in short- and medium-term relationship and later in long-run investment horizon. This paper carries implications for investors, fund managers and policymakers in foreseeing the prospects of contagion attributable to high level integration levels.Practical implicationsImplications for cross-border banking integration includes the presence of common lender effect which appears as a dominant factor for cross-border contagion. Therefore, banks based in different countries should focus more on funds diversification rather than borrowing much from any single creditor. Furthermore, foreign operations based on subsidiaries instead of relying on direct cross-border lending can help in reducing volatility of the foreign financial resources. Nevertheless, based on the results and significant strand of existing literature, the presence of contagion is inevitable, and therefore, a careful consideration of cross-border banking supervision and co-operation by the financial authorities can help in mitigating the volatility of global capital flows.Originality/valueFirst, this study fills gap in the existing literature regarding the discussion on portfolio diversification opportunities in the banking sector. The banking sector is usually perceived as a main source of fixed income securities or financing; however, on the contrary, investors may also be interested for investments in publicly listed bank's stock. Most of the work regarding portfolio diversification revolves around capital market instruments; however, publicly listed shares of largest bank also present an avenue for diversification. Second, major fundamentals and the associated factor for banks performance are reflected in the its profits, either these profits result from large customer base or proper allocation of bank's assets, etc. Therefore, returns of these banks serve as a barometer for their performance and co-movement between any two banks can highlight the presence and extent of their underlying association. Third, the authors apply the latest extensions in wavelet techniques after decomposing returns series through the MODWT framework. This decomposition followed by wavelet estimations allow us to investigate banks integration level across different time and frequency space thereby carrying implications for both short- and long-run investors. Fourth, by analysing the presence of returns co-movements, the authors can predict the extent of plausible contagion since the recent global financial crisis of 2008–2009 used banks as the main medium of propagation of shocks. Fifth, the work presents many implications for the investment community, major trading partners associated with banks through different instruments and for policymakers so that the effect of contagion can be anticipated or at least mitigated in case of future financial turbulence.HighlightsWe investigate portfolio diversification opportunities in the banking sector.Time-frequency returns co-movements is measures by applying wavelet multiple correlation and cross-correlation techniques on decomposed return series.Deutsche Bank and Bank of America act as highest transmitter and recipient of volatility, respectively using the spillover approach of Diebold and Yilmaz (2012).Citibank and Deutsche Bank exhibit high pairwise correlation indicating no diversification benefits.Citibank exhibits high level of integration with other banks in the short- and medium-run whereas Deutsche Bank exercises high integration levels in the long-run investment period.

Integration of banks and insurance companies activities in Ukraine

The article reveals the essence of modern bancassurance and new challenges and prospects for its development in Ukraine. The definition of “bancassurance” is theoretically substantiated and the general financial and economic characteristics of Ukrainian banks is given. The normative indicators of commercial institutions are analyzed along with the main risks affecting banking and insurance activities, the possibility of their leveling are determined. The study provides theoretical and practical information on the process of banks capital of and insurance companies merging, financial and economic analysis of JSC PrivatBank – one of the largest banks in modern Ukraine, and the assessment of the financial stability of its insurance partners. The insurance Ukrainian market study concerning the detection of possible prospects for cooperation with the studied bank was done. The calculations suggest that PrivatBank can cooperate with the leading insurance companies, such as AXA Insurance and Providna recommended as new partners. It is established that bancassurance technologies have a significant place at the current stage of development of the domestic financial market. Using a large customer base and a wide network of branches and outlets, banking experts expect that revenues from the sale of insurance products in 2021 may amount to 15% of total bank revenues, as the volume of bank insurance in JSC CB PrivatBank is growing quite rapidly. The activity of banks in market conditions is subject to its general laws, and therefore requires the development of a viable mechanism for managing financial activities, aimed at increasing the competitiveness of banks. Thus, the ability of bank managers to determine the degree of financial stability of their bank as well as that of the competing banks and counterparties is essential in making decisions. Therefore, the search for ways to optimize the financial condition of the bank is one of the principles of further rapid development of the banking system in Ukraine.

Bankinsurance: new challenges and development prospects in Ukraine

The article reveals the essence of modern bank insurance and new challenges and prospects for development in Ukraine. The definition of "bank insurance" is theoretically substantiated and the general financial and economic characteristics of Ukrainian banks are realized. The normative indicators of commercial institutions are analyzed and the main risks affecting banking and insurance activities and the possibility of their leveling are identified. Theoretical and practical information on the process of merging the capital of banks and insurance companies, financial and economic analysis of one of the largest banks in modern Ukraine - JSC "PrivatBank", and assessed the financial stability of its insurance partners. A study of the insurance market of Ukraine with the definition of possible prospects for cooperation with the studied bank. From the calculations, it was found that PrivatBank can be recommended to find new partners for cooperation between leading companies such as AXA Insurance and Providna. It is established that banking insurance technologies have a significant place at the present stage of development of the domestic financial segment. Using a large customer base and a wide network of branches and outlets, banking experts expect that revenues from the sale of insurance products in 2021 may amount to 15% of total bank revenues, as the volume of bank insurance in "PrivatBank" is growing quite rapidly. The activity of banks in market conditions is subject to its general laws, and therefore requires the development of a viable mechanism for managing financial activities, aimed at increasing the competitiveness of banks. Thus, the ability of bank managers to determine the degree of financial stability of their own bank, competing banks and counterparties plays an important role. Therefore, one of the principles of further rapid development of the banking system of Ukraine is the search for ways to optimize the financial condition of the bank.

Strategies Adopted by Airlines to Sustain Ticket Sales Performance Post the Zero Commission Policy: A Case of Kenya Airways (KQ)

The deregulation act has dramatically transformed the tourism distribution system since its inception in 1978. Deregulation act came up as a way to liberate the airline world from the entanglement of restrictive operating structure; this gave in the idea of cost cutting that negatively impacted the airlines and the travel agencies and slowly created a distribution gap. It also paved way to new operating environment; airline loss of goodwill among travel agents, introduction of low-cost no-frills carriers that tightened the competition cords, increased fuel prices and customer demands among others. The paper aimed at assessing the strategies adopted by Kenya Airways to sustain ticket sales post the zero commission policy. It specifically sought to establish the influence of yield management, internet and branding on determining ticket sales performance. The study employed survey design targeting Kenya airways sales staff and travel agents. The research instruments used were interviews and questionnaires. Descriptive statistics were used for data analysis. The results of the study established that Kenya airways depended on yield management in order to maintain their ticket sales management. The yield management strategy adopted includes focusing on corporate clients, price discrimination and cross selling. Further, internet with 60% presents the best alternative for airlines to bypass travel agencies in contacting their customers. Alliances such as sky team membership had also facilitated a large customer base for the airline. Kenya Airways focuses on corporate travellers and takes advantage of the hub and spoke system provided by JKIA to reroute passengers from other destinations that use airlines that are in the Sky team Alliance. The study recommends incorporation of retail customers as equal contributors to its performance in air ticket sales.

Exploring the Impact of Emotional and Spiritual Intelligence on Job Satisfaction and Turnover Intention

Purpose- Several critical factors contribute to employees' satisfaction or an attempt to stay with an organization. This paper aimed to explore the impact of emotional and spiritual intelligence on job satisfaction and turnover intention among employees in the telecommunication companies in Ghana. Design/Methodology- A cross-section research design approach was adopted. A questionnaire was used to gather data from employees in MTN, Vodafone, and Airtel-Tigo in the Kumasi Metropolis Ghana through a simple random sampling approach. Statistical Package for Social Sciences (version 26) was to process data into tables and figures to help us undertake the descriptive, correlation, and multiple regression analysis. Findings- The study results indicate that emotional intelligence positively influences the job satisfaction and turnover intentions of employees. Spiritual Intelligence was found to influence job satisfaction positively but had a negative impact on the turnover intention of employees in mobile telecommunication companies. Practical Implications- The findings highlight the relevance of emotional and spiritual intelligence in promoting job satisfaction and turnover intention relative to emotional intelligence specifically. Furthermore, it would aid organizations in the sector with a huge workforce and large customer base to critically assess issues relating to emotional and spiritual intelligence to enhance job satisfaction and minimize the intent to leave the organization.

Банківська система в умовах цифрової економіки

The article is aimed at analyzing the activities of domestic banks in the digital economy. The publication proves the need to consider the digital economy as an economy based on the use of digital data and is not limited to the trade sphere. Accordingly, it is proposed to consider the process of digitalization of the banking sector as a process of transition of the banks’ activities from the traditional form to one based on the use of information and communication technologies. The digitalization process has both a negative and positive impact on the activities of banks. As a result of new technologies, the advantage of banks was leveled, which was based on the use of expensive system software for their work within the framework of the desintermediation process. Under the new conditions, large global or local tech giants have significantly influenced the market, which, having a large customer base, additionally offer them financial services. Significantly affect the market the neo-banks, which, having transferred most of the activity online, caused the need to revise the feasibility of the existence of bank branches. Fintech companies have become the main competitors of banks, which is explained by their awareness in the innovation market and great flexibility. At the same time, cooperation between banks and fintech companies is promising. The article takes into account the impact of the pandemic on the financial services market and the activities of all participants, including banks. A significant restriction of social contacts led to the transition of a large number of services online, including the banking ones. Customers of banks received a push to use mobile applications. In a pandemic, the criteria that influence the choice of the bank have significantly changed. Changing priorities towards a greater choice of remote services, the convenience of obtaining them, should be taken into account by banking institutions in their activities.

Сustomer Relationship Management System as a SaaS on Example of Insurance Broker Company

Commercial and non-commercial organizations that have a large customer base need a system that allows them to work effectively with such a base. In contrast to European practice, insurance brokerage companies in Ukraine have started to develop relatively recently. Today it is quite difficult to find a client base management system that meets all the needs of a brokerage company. Such companies are forced to either use universal customer base management systems, which often means the lack of specific functionality, or use programs from the office suite (MS Excel, MS Access). Obviously, both options have significant drawbacks.The paper describes the details of the requirements analysis and implementation of the client base management system for brokerage companies in the field of insurance. Such a system must take into account the specifics of companies and their business model in order to fully meet the requirements. The ability to work with a large number of records from any device, as well as the availability of forms and elements to display purely industry-specific indicators is a key aspect in the design and implementation of the system.Based on the results of the work, a CRM system was obtained, which fully satisfies the necessary basic requirements.The need for specialized CRM systems for brokerage companies today is acutely felt in the Ukrainian market. The specifics of the companies, as well as the special requirements for the system do not allow the full use of universal CRM systems.According to the results of the analysis of insurance needs of companies in the field of CRM-systems and its functional content, SaaS is the model that will suit the vast majority of users. This model allows you to get a working version of the product with minimal cost. In addition, the use of SaaS eliminates the need to hire specialists to maintain the stability and development of the system.The created version of the CRM system for an insurance brokerage company takes into account the basic requirements and can be used as a basis for further development of the system and its full-scale commercial use.Manuscript received 09.06.2020

Mehandi in the Marketplace

Henna has been an essential part of women’s traditional body art in many North Indian communities. In recent decades, professional henna artists have expanded their businesses to offer “walk-in” service along the sidewalks of urban market areas in addition to private at-home bookings. This study examines the skills acquisition and execution of Jaipur market henna artists in order to understand how they satisfy a large customer base that demands convenience, application speed, motif variety, and overall design excellence. In addition to conducting interviews with artists and customers, the author received training from and worked alongside a closed sample of artists. Collected market designs were compared to surveyed design booklets and magazines in order to identify elements of continuity and change in designs since 1948. The data revealed that customer demands require artist training that promotes constant innovation that in turn increases popular appeal and vitalizes the tradition of henna application.

Social media gold dust

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Organizations, particularly hotels, often underutilize social media as a method of building a larger customer base, as well as a way of boosting advertising through user-generated content. Social customer relationship management and customer engagement are key facets to boosting social media use in an organization. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Community-Based Recommendations to Improve Customer Turnout at a Non-Profit Grocery Store

Abstract Objectives Aimed at improving healthy food access in a low-income neighborhood, the Salvation Army's first non-profit grocery store in Baltimore City has so far failed to attract a large customer base. The store averages just 140 customers daily and serves 500 unique families weekly, with an average transaction of $14. This study explored reasons for low usage from the perspective of community members and suggests solutions. Methods Mixed-methods formative research was conducted at DMG Foods. In-depth interviews were conducted with store staff (n = 5), wholesalers (n = 3), local store non-users (n = 4), and store users (n = 9).Interviews focused on purchasing habits, observations, prices, marketing efforts, quality of food, location, and convenience. Direct observations of store operations (n = 8) and a short demographic survey of store users with loyalty cards (n = 119) and without loyalty cards (n = 33) was also completed. All in-depth interviews were coded and analyzed using ATLAS.ti v8.4.18. Results The survey results indicated that the average amount spent at DMG Foods per loyalty customer within the last 30 days was $82. Only 11% survey respondents reported using DMG for all their grocery shopping. Reasons given for low store usage, included: (a) prices at DMG Foods are not low; (b) Non-users do not perceive DMG Foods as a food store; and (c) food quality concerns. In light of these responses, we made several recommendations, including: (a) make displays showing price differences between DMG Foods and other competitors; (b) place rebranded signs outside the store to indicate that DMG Foods is a grocery store; and (c) improve and maintain the quality of produce and meat in store. Additionally, store management should negotiate with wholesalers and distributors to obtain competitive wholesale prices. Conclusions The results of this study will be used to inform DMG Foods and to help Salvation Army refine their non-profit grocery model as they expand it to other locations in Baltimore and across the United States. Funding Sources Johns Hopkins University Bloomberg School of Public Health Department of International Health.

The Observational Microeconomics Study of the Phenomenon of Entrepreneur Resilience and Collaborative Innovative Financial Leadership in the United States

The main purpose of the research is to complete the observation of the phenomenon of entrepreneur resilience and collaborative innovative financial leadership in the United States. Starting a new business is a demanding, and stressful process creating significant changes in a business owner’s life (Yang & Danes, 2015). Due to the financial crisis in 2007-2008, chapter 9 bankruptcy in 2013, and the current insufficiency of jobs in Detroit, Michigan, many individuals had to start their microbusiness. Detroit, Michigan suffered the most extensive municipal bankruptcy filings in American history with a debt estimation close to twenty billion dollars (Washburn, 2015). The methodology is the observation all current and prior existing literature and facts available for the purpose of understanding the current phenomenon of entrepreneur financial innovation leadership. Many entrepreneurs did not have a choice but to start their own business in Detroit, Michigan. Today, entrepreneurs are stressed out, because of the lack of resources needed to provide for themselves and their families while striving to grow their business. If entrepreneurs are not resilient and innovative leadership, they will not survive. This research study confirms and theoretically proves that there is a strong need for microbusiness owners to gain more insight into the relationship between entrepreneur resilience and financial innovation leadership to survive and grow their business. Winterhalter et al. (2016) stated that smaller firms lack the resources of larger organizations to invest in financial innovation leadership to grow their business. Smallbone et al. (2012) stated that small businesses are commonly considered less resilient than larger businesses due to lack of resources, bargaining power, and are unable to spread risk across a large customer base. The critical review study can be useful for the entrepreneurs around the globe. Keywords: Resilience, Financial Innovation.

Understanding Large-Scale Dynamic Purchase Behavior

In modern retail contexts, retailers sell products from vast product assortments to a large and heterogeneous customer base. Understanding purchase behavior in such a context is very important. Standard models cannot be used due to the high dimensionality of the data. We propose a new model that creates an efficient dimension reduction through the idea of purchase motivations. We only require customer-level purchase history data, which is ubiquitous in modern retailing. The model handles large-scale data and even works in settings with shopping trips consisting of few purchases. As scalability of the model is essential for practical applicability, we develop a fast, custom-made inference algorithm based on variational inference. Essential features of our model are that it accounts for the product, customer and time dimensions present in purchase history data; relates the relevance of motivations to customer- and shopping-trip characteristics; captures interdependencies between motivations; and achieves superior predictive performance. Estimation results from this comprehensive model provide deep insights into purchase behavior. Such insights can be used by managers to create more intuitive, better informed, and more effective marketing actions. We illustrate the model using purchase history data from a Fortune 500 retailer involving more than 4,000 unique products.

The Monetization of Innovation

We develop a dynamic model of the innovative firms that invest in monetization, which represents the process of generating revenues from services provided to customers at no charge. The model reflects the challenges faced by firms that operate via the Internet, whose dynamics are shaped by the decoupling of customer acquisition and revenues growth. Our model captures and explains why such firms often build a large customer base and become highly valued while continuing to suffer losses — traditional models would struggle to explain this pattern. Counterfactual analysis reveals that monetization uncertainty slows technological advancement by diverting resources away from innovation.

The Impact of Information and Communication Technology (ICT) on Rural Banks Management. A Case Study of Atiwa-Rural Bank Limited in Ghana

The objective of this study is to assess the strategic Impact of Information, Communication and Technology (ICT) in the rural banking sector and the benefits of introducing ICT in Ghana. SPSS and Microsoft Excel were used to analyze the responses. The study reveals that the Atiwa Rural Bank lacks the desired technologies to support its operations but also had the advantages of limitation of customers’ waiting time, fast business with customers, cut down on its operating costs, provision of convenient banking services to its customers and attraction of a large customer base thereby increasing its revenue volume and also experiencing a sharp increase in its profit level since the deployment of Information, Communication, and Technology into its systems. Again, Lack of funds, as well as restrictive ICT policies by supervisory bodies like the Bank of Ghana and the ARB Apex Bank, were found to be influencing against the utilization of Information, Communication, and Technology. The study recommended that the management of Atiwa rural banks should attempt to bring on board more innovative technologies to help the bank survive the current wave of competition in the banking industry so as to contribute its roles to the economic development of the nation.

COMPETITIVE STRATEGIES IN THE MARKET OF TOURIST SERVICES OF UKRAINE

Introduction . Modern life events and globalization processes that are taking place around the world have given impetus to the development of business in the service sector. A large number of the working population, which was previously engaged in production, is now declining. Automation and informatization of all life and production processes allows a person to reorient in the areas of their professional activities and forms of recreation. Today, most of the working population is involved in the creation and provision of services. The market of tourist services is the most promising; the demand for it is formed daily and has a constant and special nature of orders, so the offers become diverse. However, with increasing competition, the development of its market is complicated by the slowdown in the formation of customer bases, and therefore requires the use of appropriate strategies to develop all segments and marketing niches. Purpose . Substantiation of the need for strategic thinking in the implementation of production activities in the market of tourist services, analysis of current trends and existing competitive strategies that is inherent in each segment. Operators of the market of tourist services, as well as the availability and feasibility of applying competitive strategies. Results . The study substantiates that it is impossible only by simple planning of their own activities to withstand competition in the market, retain their customers, gain a large customer base and get a stable income for continued existence and growth. The planning process does not anticipate rapid changes and the impact of factors that over time either increase or transform, which complicates production processes. In today's market conditions, a more effective mechanism for effective management of the production process is forecasting, which takes into account and attempts to predict the strength of external and internal factors influencing the market, allows staff to think systematically and take into account the intuitive vision of complex issues. In essence, we are talking about cognitive planning of tourism activities in accordance with the list of services that will be in constant demand. The strategy of leading the market of tourist services is implemented by reducing costs or prices for services. This strategy in Ukraine is used by those travel agencies that either begins their careers or in the process of developing new travel services, creating new markets and new customers. The diversification strategy is the engine of any progress, and the travel services market is no exception. Urbanization and globalization, lifestyle changes and other perceptions of the world require tour operators to find new competitive offers. The strategy of focusing on the development of the market of tourist services is essentially an in-depth specialization, focus on a specific niche, namely the target group of customers of tourist services, or geographical concentration. In this aspect, it is interesting that when considering domestic tourism, the market of tourist services is more often focused on regions that differ in zone features, cultural monuments and other objects. Tourists of the domestic market consciously go on vacation to the region, which in their imagination has some differences from another region Originality. The tools of strategic planning of operators in the tourism market are identified, namely: 1) competitive strategies that embody and take into account the differences between service customers, markets, segments, prices and other offers; 2) management of organizations and staff, which is a powerful motivator and implementer of strategic goals; 3) economic indicators for assessing both quantitative and qualitative parameters of the service sector, expanding the range and attracting additional customers; 4) formation of client bases and development of marketing offers with definition of advantages in the price of service or focusing on innovative tendencies of the offer of tourist services. All this together gives a strategic idea of the development of the market of tourist services and the basis for choosing one of the existing competitive strategies. Conclusion . All the above arguments prove the need for strategic thinking and orientation of the domestic market of tourist services on forecasting and cognitive modelling of processes. It is also proved that Ukrainian tour operators have all the grounds and tools to use competitive strategies in planning their own business. And Ukraine has great potential and underdeveloped niches in the market of tourist services and is an attractive focus for foreign tourists. Such approaches to the organization of the tourism business will allow developing both domestic and foreign tourism, to compete with other operators in this market.

Tackling Industrial-Scale Supply Chain Problems by Mixed-Integer Programming

SAP's decision support systems for optimized supply network planning rely on mixed-integer programming as the core engine to compute optimal or near-optimal solutions. The modeling flexibility and the optimality guarantees provided by mixed-integer programming greatly aid the design of a robust and future-proof decision support system for a large and diverse customer base. In this paper we describe our coordinated efforts to ensure that the performance of the underlying solution algorithms matches the complexity of the large supply chain problems and tight time limits encountered in practice.

The impact of lending on bancassurance activity

Abstract Due to financial crisis, and especially because of prudence in lending (retail, micro, and corporate), banks are looking for new sources of income, and bancasurance is clearly a potential source of revenue. Thus, in the financial market, the interests of two major components of it are met: banks maximize commission income, and insurers make access to the large customer base of banks. Bancassurance is a distribution channel of insurance products through bank branches, bringing important advantages for banks, insurance companies and customers. The main advantage for the bank is that earns fee amount from the insurance company, the insurance company increases customers data base and market share, the client satisfy his financial needs and requests in the same institution. Considering that in Romania, banks and insurers do not provide information on the number of insurances sold via the bancassurance distribution channel, as well as commissions obtained by banks for the insurance sale, to determine the development of bancassurance in Romania, we used the statistical data provided by the National Bank of Romania, on credit growth and data provided by The Financial Supervision Association, on the evolution of gross written premiums. Bancassurance is one of the most important insurance distribution channels, accounting for approximately 36% of the global insurance market, in 2016, Europe’s insurers generated total premium income of €1 189bn and had €10 112bn invested in the economy. Regarding to the risks of bancassurance business for banks and insurers, they mainly concern distinct capital requirements for the banking and insurance systems, which will be covered by the Basel III and Solvency II directives. This paper aims to analyze the influence of credit on the bancassurance activity in the last 5 years in Romania, the economic, political and legal factors that have a negative impact on the development of bancassurance, and also the calculating the correlation coefficient r (Pearson’s coefficient) and his result.