Market Discipline Research Articles

Sustainability in Bank: Deposits, Investment and Interest Rate

The aim of the study is to analyze and substantiate the papers on the variables of this study using a literature review. The research method used is a qualitative literature search of scientific papers from various national and internationally renowned journals. A discussion survey found that each of the three variables was derived from the results of presenting literature reviews from dozens of academic papers using indexes of national and prominent journals, and that deposits and banking It was found that there is an effect between and both. How fluctuations in interest rates and investments in banks affect them. There are also differentiating variables discovered by researchers: business model, ownership, accountability, meeting performance, company performance, market discipline, etc

A Teaching Note on Unconscionable and Adhesive Contracts

In this article, the authors, professors of legal studies, joined by a colleague from the discipline of marketing, write about the topic of unconscionability as it relates to the common law doctrines of “freedom of contract,” caveat emptor, and contracts of adhesion. Unconscionability can be a “threshold” discussion, or it can be considered at another point in a business law or legal environment of business course under the topic of “genuineness of assent.”

Public Disclosure and Consumer Financial Protection

AbstractThe U.S. Consumer Financial Protection Bureau has released a database of consumer complaints about banks’ financial products to the public since 2013. We find a greater reduction in mortgage applications to banks that receive more mortgage complaints in local markets after the disclosures. The effect is stronger in areas with more sophisticated consumers and higher credit competition, and for banks receiving more severe complaints. The number of monthly mortgage complaints per bank exhibits faster mean reversion after the publication of the database. These findings suggest that the public disclosure of mortgage complaints enhances product market discipline and consumer financial protection.

Interfacing between blended case teaching and international case competitions as undergraduate student inquiry and literacy in Marketing programmes

This practice example explores the inquiry-based relationship for students between case teaching and international competitions in Marketing. This work is based on the premise that undergraduate Marketing students in a College of Business should experience learning through and about inquiry and enhance their research literacy as a result. Although for many students research-oriented ways of engaging them with inquiry are fairly passive experiences, we believe student engagement in case study competitions offer a primarily active and exciting learning opportunity. In a broader sense, the framework offered by Healey & Jenkins (2009) which is explored in this example, is based on the argument that research-informed inquiry is a powerful way to reinvent or reinvigorate the undergraduate curriculum because the focus is on the student as a learner - in particular that the student can be viewed as a potential producer of knowledge - and by challenging what research and inquiry are in practice, provide interesting perspectives for the Marketing discipline to consider for future programme provision.

Impact of Advancement in Information Technology in Enhancing Relationship Marketing Strategies used by SMEs in the Grocery Sector, Zimbabwe

The growth in Information Technology has re defined marketing strategies, leading to the development and the extinction of the old marketing practices. The old marketing practices had always led to many Small to Medium Enterprises (SMEs) fail to prioritise marketing as they deemed it expensive and required many protocols to be followed before implementation of the strategy. The continuous evolution of various information technology systems has of late threatened the existence of a human being in the marketing career as the carrier is swiftly being dominated by electronic devices that can effectively be commanded to interact and respond to consumer queries promptly. To date they are conflicting views on the effect of adopting information technology in the marketing discipline. The researcher seeks to validate whether information technology can enhance the up sage implementation of relationship marketing or it has come to destroy the intimate human relations consumers have with firms in the grocery sector in Zimbabwe. The researcher adopted a survey approach in data gathering and interviews were used, convenience sampling was done mainly on SMEs in Harare selected suburbs in the grocery sector. The study was informed by Hill (2006) customer loyalty stages. The major target sample of SMEs was 25, however upon conducting 19 interviews, data saturation was reached and no further data was collected. The findings from the study indicated that advancement in information technology has created many marketing platforms firms use to embrace relationship marketing although the media has failed to sustainable convert the consumers into advocates and has also led firms to lose some of its old customers who are generally technology laggards. The research recommends blending of both traditional and digital information technology based marketing platforms to ensure sustainable relationships between the company and its customers. This is based on the findings that many firms have of late abandoned traditional relationship marketing platforms only relying on virtual relations where culturally in Zimbabwe a relationship is made concrete when parties meet physically.

Service-dominant logic as a unifying theoretical framework for the re-institutionalization of the marketing discipline

This manuscript addresses growing concerns about the impact and relevance of the marketing discipline and its ability to replicate itself through common theoretical, empirical, and historical-knowledge foundations available to current and future scholars and practitioners (Hunt, 2020a). Specifically, we echo the calls by Hunt (and others) for the need of more indigenous theories, the bridging of subdisciplines, and the building of stronger links between positive and normative theories. We do so by positing that service-dominant (S-D) logic can serve as a metatheoretical framework that can facilitate the development of a general theory of markets. We view such a positive, general theory of markets as a necessity for developing a mainstream, central focus of the discipline and providing a foundation for re-institutionalizing marketing as a discipline. Such a central focus is needed to develop more impactful normative theories and to overcome the increasingly extreme fragmentation among consumer behavior, marketing strategy, and macromarketing subdisciplines that threaten the cohesion and intellectual health of our domain.

Organizational Mergers and Sustainable Competitive Advantage of Almasi Beverages Limited, Kenya

In recent times, sustainable competitive advantage has become a common phenomenon worldwide. Organizations have been forced to adopt sustainable competitive advantage as a crucial strategic tool to deal with the ever-increasing global market competition. In many companies, mergers are strategic growth plans which not only helps them stay in competition but also extends their dominance, market share and margins in the global setting. Mergers facilitate firms’ fast growth and a capital market discipline mechanism improving efficient management and profit maximization. The goal of the study was to evaluate how the Kenyan beverage industry sustainable competitive advantage was affected by mergers. Specifically, the study sought to investigate the effect of economies of scale, diversification and also synergy on sustainable competitive advantage of Almasi Beverages Limited in Kenya. The study was underpinned on the following theories; the theory of efficiency, the resource-based view theory, and the hubris theory. The research utilized the descriptive research design. Secondary and primary data was utilized. Primary data was collected using a questionnaire. Blank responses were not included when analyzing the data. Descriptive statistical methods such as mean, frequency, percentages were used for analysis. Research findings were presented through graphs charts and tables. Findings revealed that revealed that Almasi Beverages sustainable competitive advantage was positively and significantly influenced by economies of scale, by diversification, and by synergy. The study concluded that economies of scale led to the firm enjoying large discounts and cheaper more affordable prices, improved capital equipment and production processes, and having quality managers working in various departments. Diversification led the firm to have a wide range of products on their product line, new designs within the organization that were aesthetically designed and were more superior in branding, and new products offerings in the organization contributed to sustainable competitive advantage. Synergy led the firm to have a stronger bargaining power for inputs, stronger bargaining position for cost of capital, and ensuring that the organization was running efficiently and in an effective manner, expediency of the logistics team in terms of their speed and responsiveness, and financial independence would all enhance the organizations sustainable competitive advantage. The study recommends that the organization should adopt a culture of continuous improvement around product improvement through innovation to ensure that it gives the firm sustained competitive advantage in the long run. In order to remain different from competitors, Almasi Beverages should focus on high product quality, fast delivery, design and new products, and unique product features. To achieve this, the study recommends that the firm should embrace differentiation as the key competitive strategy and set sufficient resources. Further, positive competitive advantage should be attained by more beverage firms in Kenya through their firm consolidation via the merger strategy.

The Islamic financial literacy and market discipline: Does gender have the moderating role?

This study contributes to examine the effect of Islamic financial literacy on market discipline and to confirm whether gender can employ as moderating variable in this model. The primary data was collected from 93 academicians who invest in Sharia mutual funds. Based on the data analysis, this study proved that there is a positive impact of Islamic financial literacy on investment’s withdrawal behaviour which indicated the market discipline. Moreover, a multi group analysis results that Islamic financial literacy has higher influence for female Sharia mutual fund’s investors in withdrawing their investments. But, the influence of Islamic financial literacy on market discipline among gender is not significantly different, therefore gender could not employ as a moderating variable in this model.JEL: G2, G23

What went wrong? The Puerto Rican debt crisis, the “Treasury Put,” and the failure of market discipline

What went wrong? Why did seemingly rational, forward-looking bond investors continue to purchase Puerto Rican debt with only a modest risk premium? Why did financial markets fail to exercise market discipline and restrict capital flows to Puerto Rico?This paper examines the hypothesis that investors believed Puerto Rican debt was implicitly insured by the U.S. government by studying a rare situation where this “Treasury Put” was extinguished. The expectation of a federal bailout was perfectly reasonable given past behavior by the federal government. Evaluating the Treasury Put hypothesis with a minimal set of assumptions is possible given three unique features of the economic environment. The key feature is an exogenous “seismic shock” – the non-bailout of the city of Detroit in 2013 that effectively extinguished the Treasury Put, estimated in this paper as 350 basis points. Institutional reforms that would eliminate the Treasury Put are considered, but none are found satisfactory. How to extinguish the Treasury Put on an ongoing basis in a democratic society remains an open question.

Policy uncertainty and bank’s funding costs: The effects of the financial crisis, Covid-19 pandemic, and market discipline

This paper examines the impacts of economic policy uncertainty (EPU) on bank funding costs using the 2001–2021 data of US banks. We document consistent evidence of a negative relationship between EPU and bank funding costs, implying lower bank funding costs during a time of high EPU, consistent with the hypothesis that economic agents tend to reallocate their assets into safer investments, such as bank deposits during high uncertainty. Large banks are likely to benefit most during high EPU when experiencing lower costs of funds compared with other banks, suggesting the “too-big-to-fail” perception of depositors. Cross-sectional analysis indicates that depositors require safer banks to pay lower rates, indicating the existence of market discipline. The cost-decreasing effects of policy uncertainty are less pronounced during the global financial crisis than the Covid-19 crisis.

Horizontes de decolonização em marketing: uma proposta com base na crítica à colonialidade da teoria da globalização de mercados

Abstract The most recognized theories in marketing were mostly written by authors from the Global North, who were revered within the field for their ideals. Among these, one that deserves to be highlighted is Theodore Levitt, with the theory of globalization of markets, which is considered relevant to this day. However, when analyzing the theory of globalization of markets and the interpretations made about it through a decolonial perspective from Latin America, one can see how much it reproduces coloniality. Therefore, this article analyzed, from the decolonial perspective, with particular attention to the concept of coloniality of power - and its derivations, the coloniality of knowledge, and the coloniality of being - how coloniality is present in the theory of globalization of markets developed by Theodore Levitt. This theory stands for a racial asymmetry between peoples, positions itself as a superior epistemological perspective, and promotes a convergence toward ways of Being associated with the Eurocentric world. However, knowing that this is just one of the theories that make up marketing and reverberate the same colonial logic, the decolonization of marketing in Brazil is proposed. We suggest incorporating the thoughts of authors such as Lélia Gonzalez and Ailton Krenak, who critically debate issues related to globalization, capitalism, and markets. The use of subaltern knowledge outside the area is a theoretical dare necessary to construct a marketing discipline that is less asymmetrical and more consciously oriented to deal with the complexities and challenges of this context.

Market Discipline and Its Impact on Investment Intention: An Analysis of Information and Disclosure Factors

This study aims to measure the effect of market discipline on investment intentions, using the Theory of Planned Behavior (TPB) and focusing on the information and reporting aspects, such as financial and accounting reports, statements from auditors, and disclosures. Non-Probability Sampling was used to survey 300 respondents, and the smartPLS application was used for data analysis. The findings reveal that investors' understanding of market discipline in information and disclosure aspects influenced their investment intention and disciplined excessive risk-taking behavior. However, this study is limited to a specific set of indicators and does not cover all aspects of market discipline, making it unique from previous studies.

Fiscal Limits and the Pricing of Eurobonds

This paper proposes a methodology to price bonds jointly issued by a group of countries—Eurobonds in the euro-area context. We consider two types of bonds; the first is backed by several and joint guarantees (SJGs), and the second features several but not joint guarantees (SNJGs). The pricing of SJG and SNJG bonds reflects different assumptions regarding the pooling of debtors’ fiscal resources. We estimate fiscal limits for the six largest euro-area economies over 2008–2021 and deduce counterfactual Eurobond prices. For the five-year maturity, SNJG bond yield spreads would have been about three times larger than SJG ones over the estimation sample. Hence, issuing SJG bonds could result in gains at the aggregate level. Notwithstanding, our model also predicts that gains may temporarily vanish in periods of acute fiscal stress. We finally envision postissuance redistribution schemes, whereby gains stemming from the issuance of SJG bonds could be shared among participating countries; we argue that these schemes may alleviate the reduction in market discipline resulting from common bonds issuance. This paper was accepted by David Sraer, finance. Funding: This work has benefited from financial support from the Swiss National Science Foundation [Grant 182293]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4740 .

Liquid consumption and Islam: The Continual Drift Adjustment (CDA) framework

PurposeThe purpose of this paper is to explore the tendencies of liquid consumption in Muslim communities and analyse its impact on Muslims’ consumption practices from the holistic perspective. Liquid consumption refers to a transient and less-materialised mode of consumption that requires both minimal attachment to possessions and hybrid ownership.Design/methodology/approachThis is a conceptual paper that is based on the distinction between Islam as a holistic perspective and Islamic practice as it is applied in different contexts and situations. The Continual Drift Adjustment (CDA) framework of Muslim consumers’ behaviour is developed to be deployed as an analysis framework.FindingsThe CDA framework maintains that some problematic cases of Muslim consumption behaviours indicate the drift towards disbalance. Depending on their nature, liquid consumption practices can have different impacts on the drift. Liquid consumption practices underscored by instrumental dissemblance, intellectual insecurity and spiritual scepticism intensify the drift, whereas the incorporation of spiritual sincerity, faithful submission and existential gratefulness into practices and behaviour helps to attenuate the drift.Research limitations/implicationsThis research contributes to the theory of liquid consumption by incorporating the religious perspective. Liquid consumption in Islam is a complex area of research, specifically considering the ambivalent meanings of liquidity in Islamic thought.Practical implicationsMarketers of liquid consumption solutions must be aware of these offerings’ double-edged impact on the well-being of Muslim communities. Muslim consumers should be guided towards spiritual sincerity, faithful submission and existential gratefulness in the best way possible, although it must be noted that the customary techniques of marketing would lean towards stimulating the disbalance.Originality/valueThis research is unique because it deals with a topic that has not been researched in the Islamic marketing discipline to this date.

Inclusivity and Diversity: A Systematic Review of Strategies Employed in the Higher Education Marketing Discipline

This paper reports on a systematic review into inclusivity and diversity in the higher education marketing discipline. Thirty-one studies met the inclusion criteria and are analyzed to identify the inclusion and diversity identities that have been studied, synthesize strategies that have been identified as successful in supporting inclusion and diversity in the classroom and propose a future research agenda to further scholarly understanding within the marketing discipline. The findings suggest that most prior studies have focused on cultural diversity or diversity in general, and the strategies identified as effective were (a) utilizing technology to support inclusion and diversity, (b) developing curriculum that takes into consideration the diverse society we live in, (c) integrating projects into curriculum that are focused on diversity and inclusion, and (d) considering extra-curricular activities to deepen students’ inclusivity and diversity skills.

From warrior to guardian: An autoethnographic study of how consumers think about and interact with the natural world

AbstractConsumers are increasingly concerned about how their interactions with the natural world affect both the health of that environment, and their own well‐being and enjoyment of life. More aware consumers seek to make sense of the natural world around them and consider how their consumer behavior impacts this environment. How actors notice and bracket ecologically material cues from a stream of experience and build connections and causal networks between these has been referred to as ecological sensemaking. This research examines ecological sensemaking in a specific context, that being in the experience of catch‐and‐release fishing. Data were gathered through a process of autoethnographic inquiry obtained over the course of four fishing trips. The results reflect the process of ecological sensemaking pertaining to the experience. Through the findings, we propose a new concept, ecological reasoning, which seeks to provide a critical link between ecological sensemaking and ecological embeddedness. Using this new concept, the research contributes to extant understanding of how consumers think about and interact with the natural world. Apart from constructing an overarching narrative of the experience, four subnarratives are also identified, in a chronological sequence that comprises the entire experience of catch‐and‐release fishing. The findings have implications for the broader management and marketing disciplines seeking to establish better ways of interacting with the natural world, both for themselves and their consumers.

Do depositors discipline the banking sector? Evidence from an emerging economy

PurposeMarket discipline is an important part of financial regulation, under Basel II and III. This paper aims to provide evidence on market discipline in Pakistan. Specifically, the authors have analyzed the impact of CAMEL variables on costs of funds and deposit switching.Design/methodology/approachThis study has used panel data related to different banking and macroeconomic variables. The sample period is 2004–2017 so it has covered the changing regulations that became binding for banks under Basel II and III. Quarterly data has been collected from the financial disclosure of publicly listed banks. The total number of banks in the sample is 26. Among these, 24 are publicly listed. Foreign banks have not been included because their activities in Pakistan are quite limited.FindingsIt has been found that efficiency, liquidity, asset quality and capital adequacy are negatively related to costs of funds for banks. Capital adequacy, liquidity and profitability are negatively related to deposit switching.Research limitations/implicationsThese results indicate the presence of market discipline and have generated valuable implications for bank managers and regulators.Originality/valueIn this study, the case of Pakistan is interesting. The country has experienced financial liberalization that sought to avoid government intervention and encourage a more “market-based” approach. This change in the system was made more pronounced by the privatization of nationalized banks, improvement in the market structure, reduction in barriers to entry and consolidation of smaller banks. As a result, the banking system has emerged as an important source of financing and it provides us motivation to look deeper into depositor discipline in banking sector.

Can social marketing be the key to social change in India?

PurposeThis paper provides a managerial overview of social marketing in India to improve the understanding about its nature and utility in addressing the needs of India's social sector.Design/methodology/approachThe study employs a qualitative research methodology by conducting an extensive review of relevant theories, concepts and past studies related to social marketing, focusing on the Indian context. Select case studies have also been studied and presented to elucidate how social marketing programs are conducted by various forms of organisations in India.FindingsFirst, the meaning of social marketing, its distinction from commercial marketing and some pertinent challenges faced by social marketers are discussed. Thereafter, a brief overview of the role of competition, cost and barriers towards conducting an effective social marketing program is provided. Lastly, we propose a scheme of organisations sponsoring social marketing in India and discuss the future perspectives.Practical implicationsThe study enables a deeper understanding of social marketing discipline for policy makers, social marketing professionals and organisations sponsoring social marketing initiatives in India.Originality/valueThe paper contributes to the literature on social marketing in the Indian context by conducting a broad overview with the aim of improving the understanding of social marketing which may help realise its full potential in the future.

Managerial marketing and behavioral marketing: when myths about marketing management and consumer behavior lead to a misconception of the discipline

AbstractMarketing has become accepted and proven in science and practice over the past decades. Many principles of marketing have become self-evident, but have led to gross generalizations and simplified thought patterns. This article examines myths and metaphors in marketing. A distinction is made between myths of managerial marketing and of behavioral marketing. In both sub-disciplines, we are often dealing with complex and invisible phenomena that occur in a variety of contexts. Attempts to explain these phenomena are therefore particularly prone to the emergence of myths or misconceptions. From a managerial perspective, topics such as the philosophy and leadership role of marketing, the generation of innovation success, the development of strategic competitive advantages, and brand management are reflected. Since the change from a sellers’ market to a buyers’ market, consumer behavior research and marketing have been closely intertwined. Therefore, findings from consumer behavior research form a central basis for successful decisions in marketing management. Based on this background, the second part of the article focuses on myths of consumer behavior research, here addressing unconscious phenomena in consumer behavior, mainly the discussion of subliminal priming (and its impact on manipulation) and unconscious perception as well as of unconscious motives, and approaches to implicite attitude measurement. Finally, implications are derived as to what extent the presented phenomena and the unveiling of myths have an impact on marketing management and on consumer behavior research and what roles these disciplines should take in the future. In the era of climate change and digital transformation, particular challenges are emerging. Thus, facts and not myths should determine the future path of the marketing discipline.

Applications Analyses, Challenges and Development of Augmented Reality in Education, Industry, Marketing, Medicine, and Entertainment

This study aims to develop systematic research about augmented reality (AR) problems, challenges, and benefits in the current applications of five fields of interest. Articles were selected from scientific, technical, academic, and medical databases of digital journals and open access papers about AR. Therefore, the method used to develop the investigation was PRISMA, which allowed us to observe interesting facts and coincidences about complexities and successful cases of AR implementation in the disciplines of education, marketing, medicine, entertainment, and industry. The summary provided in this study was the result of the exploration of 60 recent articles found and selected by relevance using the PRISMA method. The main objective of this paper is to orient and update researchers regarding current applications, benefits, challenges, and problems in AR implementation for future studies and developments.