Systematic Influence Research Articles

Are macroeconomic factors adequate proxies for systematic influences in stock returns? A South African perspective

ABSTRACTWe investigate whether macroeconomic factors adequately proxy for systematic influences in stock returns within the South African context. We also investigate whether a commonly used solution to factor omission in macroeconomic factor models, the residual market factor, adequately reflects systematic influences not reflected by a set of macroeconomic factors. Our contribution lies in precisely quantifying the ability of macroeconomic and residual market factors to proxy for systematic drivers of returns. Systematic influences are represented by statistically derived factor scores which are then related to a set of carefully selected macroeconomic factors. We find that the identification of macroeconomic factors that proxy for systematic influences is a challenge in itself. Once identified, macroeconomic factors are poor and unstable proxies for systematic influences and the use of a residual market factor does not significantly improve the approximation of factor scores. Our conclusion is that macroeconomic linear factor models are likely to be underspecified, even if a residual market factor is included. This has implications for researchers, investors, econometricians and economists that rely on macroeconomic factor models to study financial markets.

THEORETICAL APPROACHES TO DETERMINING THE ASYMMETRIES OF THE STATE FISCAL SPACE

Introduction. Modern trends of home economics are characterized by its components diversity, a dynamic structure of evolution and a certain imbalance caused by permanent crises, increased economic, political, cultural, environmental risks, as well as significant social tensions. Further, the aftermath may be unpredictable for countries with thoroughly different levels of development. Affecting various areas of public life, fiscal space asymmetries belong to the most controversial relevant field-related issues. Meanwhile, a definition of asymmetries is often equally applied to describe the concepts of national economy’s regional or intersectoral imbalance, destruction of economic or social processes, still remaining an objective phenomenon. The issue of destructive increase is associated with incompetence of employing asymmetries in an attempt to balance and improve a socio-economic situation in the country. The purpose is to argue a notion of fiscal space asymmetry in order to define the fiscal theory key concepts and classification, to discuss a dualistic nature of their content. Results. The article reviews theoretical fundamentals by foreign and domestic scientists in the asymmetries domain, provides a detailed analysis of related elaborations, based on which the author's fiscal space asymmetry definition is suggested. Also, their influence on the optimal tax system formation is clarified. Conclusions. Fiscal space, under the asymmetries’ systematic influence, conditioned by a number of internal and external factors, is subject to certain inconsistencies that affect social advancement in different ways. It appears essential to determine the causes as well as to identify differences in question to effectively manage fiscal tools, in particular, the fiscal space asymmetries, to minimize risks, imbalance and chaos of economic development, and to reduce social tension.

Social creativity of early primary school pupils and behavioral patterns in school conflicts

According to the theory of conflict resolution, in the school, as an educational institution, systematic influences on constructive social behaviors and quality choices are possible. The study aimed to determine the relation-ship between the creative potential of early primary school pupils and their patterns of behavior in school conflicts. Early primary school pupils (N = 73; 55.1% girls) participated in the research by solving the EPoC-SOC test of po-tential social creativity. Their teachers (N = 16; 38-60 years; 96% women) assessed three patterns of pupil behavior (winning, avoiding, and cooperation). Non-standardized results were used to assess divergent-exploratory thinking as well as convergent-integrative thinking in tasks with dyad social relations and group tasks. Correlation analysis found only a statistically significant negative association between the avoidance pattern and achievement on the tasks of convergent-integrative social creativity. The obtained results suggest the need for further research on the relationship between pupils’ social competency and behavior in conflicts.

A four-point bending test apparatus for measurement- and model-based structural analysis

By means of a small-scale truss bridge, the ability of the Measurement- and Model-based Structural Analysis to detect and localise damage was examined in [1]. Although there was no noteworthy difficulty in detecting damage, it turned out that damage localisation responds sensitively to systematic influences, i.e. non-modelled properties of the mechanical model. Therefore, another experiment is being conducted to re-examine the Measurement- and Model-based Structural Analysis. For this purpose, the bending test is carried out as it has been already theoretically respectively numerically discussed in [2]. In this attempt, the systematic influences such as residual stress are kept as low as possible.

ВПЛИВ СІМЕЙНИХ ВІДНОСИН НА ОСОБИСТІСТЬ ДИТИНИ

The article considers the main aspects of the influence of family relations on the development of personality, in particular, the younger student. Raising children is the most important area of our lives. Our children are future citizens of our country and citizens of the world. They will make history. Our children are future parents, they will also be the educators of their children. They must grow up to be wonderful citizens, good fathers and mothers. But that's not all: our children are our old age. Proper upbringing is our happy old age, bad upbringing is our future grief, it is our tears, it is our guilt before other people, before society. There are dozens, hundreds of professions, specialties, jobs: one builds a railway, another builds a house, a third grows bread, a fourth treats people, a fifth sews clothes. But there is the most universal, most complex and noble work, unique for all and at the same time original and unique in each family - it is a work of man. A distinctive feature of this work is that a person finds in it incomparable happiness. Continuing the human race, the father and mother repeat themselves in the child, and the moral responsibility for the person, for his future, depends on how conscious this repetition is. Every moment of that work, which is called education, is a work of the future and a look into the future. Raising children is a return of special forces, spiritual forces. We create a person with love - the love of father to mother and mother to father, love of father and mother to people, deep faith in the dignity and beauty of man. Beautiful children grow up in families where mother and father love each other and at the same time love and respect people. A person acquires value for society only when he becomes a person, and its formation requires purposeful, systematic influence. It is the family with its constant and natural nature of influence is designed to form character traits, beliefs, attitudes, worldview of the child. Therefore, the allocation of the educational function of the family as the main has a social meaning. For each person, the family performs emotional and recreational functions that protect a person from stressful and extreme situations. The comfort and warmth of a home, the realization of a person's need for trusting and emotional communication, compassion, empathy, support - all this allows a person to be more resistant to the conditions of modern restless life. Despite the large number of studies on the problem of raising children and youth, the socio-pedagogical conditions and factors of the educational process in the family, school and other social institutions are not analyzed in depth. Namely, they determine the strategy of education, which is outlined today in certain trends in the education of the individual in the modern conditions of Ukrainian reality.

ПІДГОТОВКА СОЦІАЛЬНИХ ПРАЦІВНИКІВ ДО ФОРМУВАННЯ СЕКСУАЛЬНОЇ КУЛЬТУРИ МОЛОДІ ЯК ЗАСОБУ ПРОФІЛАКТИКИ СТАТЕВОЇ ДЕМОРАЛІЗАЦІЇ

Introduction.The article deals with aspects of the professional preparedness of future social workers for the prevention of sexual demoralization of youth.The purposeemphasis is placed on the fact that the basis of preventive measures is the timely detection of negative psycho-pedagogical and information and organization factors.Results. The author stresses that in order to adhere to the norms, one must necessarily know them, correctly understand and be able to implement them responsibly. The enumerated factors are the criteria for deviations from the norm. Their absence or presence can establish the norm with the definition of their consequences for the society. Specifying the context of the initiated research, the article outlines the main professional roles that are being performed by a social worker.They are a consult-ant, proofreader, mentor, manager, etc. A social worker must provide a subjective and positive impact onthe personality of a young person. Methods. It is advisable to use effective preventive measures at a personal level: counseling, explanations, personal development trainings, target-oriented conversations, special treatment, etc.Originality. In this case, the constructive task of social-preventive work is the following: to prevent the occurrence of deviations of sexual behavior; direct the ideas of the young man on the moral-right attitude and understanding of sexual life; assist in mastering the fundamentals of sexual culture, taking into account the change in the negative factors that provoked the emergence of intentions to commit immoral or destructive behavior. Conclusion. Summarizing the above-mentioned, the author concluded that the state of spiritual and moral decay of some young people requires the implementation of decisive social and preventive measures. These measures include sexual education with a view to preventing sexual demoralization and raising the level of sexual culture of modern youth.Sex education should be a process of systematic and overall influence on the pupils’consciousnessin order to develop socially adequate, gender behavior with elements of sexual culture

Purchase Decision Model in the Context of Choosing a Master’s Program

Models of making a purchase decision, traditionally used in marketing, can also be applied to the choice of applicants (buyers) of an educational program. Decision-making process on choosing a master’s program differs from the one of admission to a bachelor’s degree, and thus demands a special study. It is necessary to «tune» the communication and marketing tools for each stage passed by a student in the decision-making process. However, the existing research lacks a systematic approach to considering the stages of making a purchase decision as far as a master’s program choice is concerned. This paper presents a master’s program purchase decision model, which reflects the dynamics and time frames of the decision-making process passing various stages from the first to the fourth year of the bachelor’s degree. The empirical basis of the study is the data of a 2019 survey of HSE one-to-four-year undergraduates specializing in different spheres. To construct the model based on the study of factors and sources of information influencing the students’ choice, there were identified the time intervals of the main stages (understanding the problem, searching for information, and alternatives evaluation) of the students’ purchasing decision process. The proposed model will allow master’s programs to improve their communication strategies, considering the characteristics of various stages, which should provide a systematic influence over a potential consumer within the decision-making process when choosing a master’s program.

Precipitation of multiple light elements to power Earth's early dynamo

Earth has had a global magnetic field for at least 3.5 billion years, but if the iron-alloy in the core has high conductivity, it is difficult to explain this duration with energy from cooling and inner-core growth alone. Precipitation of light elements (e.g., magnesium, silicon, and oxygen) from Earth's core is a potential alternative energy source to power the dynamo. We develop a new framework of coupled thermo-chemical evolution of the Earth to consider precipitation of multiple light components from the core and their interaction with the overlying mantle layer. The precipitated material accumulates in a layer at the base of the mantle which is then continuously eroded by mantle convection. We allow the precipitation of three species (MgO, FeO, and SiO2), including their interactions not considered by most previous studies. We find that MgO, SiO2, and FeO precipitation may each dominate entropy production depending on the choice of equilibrium constants and initial model states and that the three species together can explain the duration of Earth's magnetic field across a range of plausible scenarios. Over the Earth's history, we find that the core can lose ∼1–2 wt% silicon and oxygen suggesting that light precipitation is potentially an important process for the core compositional evolution and core-mantle chemical exchange. Additionally, our results show that precipitation does not, in most cases, have a systematic influence on the timing of inner-core nucleation or magnitude of the resulting paleomagnetic signal with inner-core nucleation typically around 550 Mya. However, the onset of precipitation of individual species could produce additional sharp increases in paleomagnetic intensity at various points through Earth's history besides the inner-core nucleation event.

SYSTEMIC IMPACT ON MANAGEMENT OF INDUSTRIAL COMPLEX DEVELOPMENT BASED ON LOGISTIC APPROACH

The article investigates the systematic influence on managing the development of an industrial complex on the basis of logistic approach. It is substantiated that the current tendencies of development of economic entities testify to some contradictions of private and state interests, first of all concerning socio-economic programs of development on meso and macroenvironment, which determine the critical and most effective level and horizon of planning, determining the degree of riskiness. The model of process flow management in an industrial complex under conditions of interaction of state and market mechanisms has been formed. It is proved that the systematic influence on the development management of an industrial complex is formed on the basis of logistical infrastructure, which depends on the geographical location of economic entities, the degree of influence of state institutions, potential human capital, as well as on the structure of stakeholders at the appropriate level of functioning. The methodological basis of the article is a set of methods, including methods of scientific cognition, analysis and synthesis, systematization and scientific abstraction. The scientific basis of the conducted research is the scientific works of domestic and foreign scientists in the field of logistics. The provision of the industrial complex development management system is based on the interaction of state and market mechanisms, which increases the efficiency of influence on the micro- and meso-entities. Applying a logistical approach to solving specific problems of socio-economic and industrial development makes it possible to obtain dynamic shifts in the sectoral segments, taking into account the processes of globalization and integration of the macroeconomic environment. The systematic influence on the development management of an industrial complex is carried out on the basis of logistical infrastructure, which depends on the geographical location of economic entities, the degree of influence of state institutions, as well as the potential human capital. Solving the problems of transformation and modification of transport routes and interchanges ensures the efficiency of logistical activity at both industry and macroeconomic level. Practical importance of the introduction of a logistical autarky system, which provides appropriate independence in managing the flow processes at the regional and macro levels, is proposed.

Accurate Measurements of the Gross Calorific Value of Methane by the Renewed GERG Calorimeter

Due to the commercial transfer of billions of cubic meters of natural gases, the knowledge of the gross calorific value (GCV) of the main natural gas components and, in particular, of methane, is of outstanding interest. On the basis of previous work carried out by a Groupe Européen de Recherches Gazières (GERG)–Physikalisch-Technische Bundesanstalt collaboration, the so-called GERG calorimeter was further developed on the hardware as well as on the software side. With the renewed GERG calorimeter, the GCV of CH4 could be determined with unprecedented precision and accuracy. Important elements for improving the measuring methodology of flame calorimetry included the in situ calibration of the mass of the burned gas, the determination of the actual exhaust gas temperatures, and the detection of the water input by countercurrent water absorption from ambient air. For the first time, it was possible to determine the GCV not only via direct online weighing of the mass of burned gas but also via the stoichiometric water balance with a consistency of about 3.5 ppm. Based on 27 weighings of the mass of burned gas, the real-gas GCV of methane is determined as Hs(CH4) = 890 202.1 J mol−1 with a confidence interval of ±52.6 J mol−1 (t95% = 2.056). This value is by ΔHs/Hs = (−0.0436 ± 0.0059)% below the real-gas GCV of Hs(CH4) = (890 590 ± 380) J mol−1 (k = 2) converted according to ISO 6976:2016. The difference can be explained by systematic influences as well as by failures in the stoichiometric water balance in all other measurements.

Systematic Balance Exercises Influence Cortical Activation and Serum BDNF Levels in Older Adults.

We sought to investigate whether systematic balance training modulates brain area activity responsible for postural control and influence brain-derived neurotrophic factor (BDNF) mRNA protein expression. Seventy-four older adults were randomly divided into three groups (mean age 65.34 ± 3.79 years, 30 females): Classic balance exercises (CBT), virtual reality balance exercises (VBT), and control (CON). Neuroimaging studies were performed at inclusion and after completion of the training or 12 weeks later (CON). Blood samples were obtained to measure BDNF expression. The study revealed significant interaction of sessions and groups: In the motor imagery (MI) condition for supplementary motor area (SMA) activity (Fat peak = 5.25, p < 0.05); in the action observation (AO) condition for left and right supramarginal gyrus/posterior insula (left: Fat peak = 6.48, p < 0.05; right: Fat peak = 6.92, p < 0.05); in the action observation together with motor imagery (AOMI) condition for the middle occipital gyrus (laterally)/area V5 (left: Fat peak = 6.26, p < 0.05; right: Fat peak = 8.37, p < 0.05), and in the cerebellum–inferior semilunar lobule/tonsil (Fat peak = 5.47, p < 0.05). After the training serum BDNF level has increased in CBT (p < 0.001) and in CBT compared to CON (p < 0.05). Systematic balance training may reverse the age-related cortical over-activations and appear to be a factor mediating neuroplasticity in older adults.

ОСОБЛИВОСТІ МОТИВАЦІЇ ВІЙСЬКОВОСЛУЖБОВЦІВ ДО ВІЙСЬКОВО-ПРОФЕСІЙНОЇ ДІЯЛЬНОСТІ

The article deals with the urgent problem of motivation for military activity. The theoretical analysis of scientific literature indicates that the motivation for military-professional activity of military personnel is a complex system of motives that activates and directs the person to professional activity. Purpose. The aim of the article is to present the results of the study of features of motives for joining military service and features of motivation of servicemen with different military service experience. An empirical sample included of 126 military personnel by persons, ranging in age from 20 to 46 years. Methods. In order to study the peculiarities of the motivational component of the structure of psychological readiness of military personnel for military professional activity, we used the author’s questionnaire Determining the influence of internal and external factors on the psychological readiness of mobilized persons to military service. Among the methods of mathematical and statistical data processing, Student’s t-criterion for independent measurements, the Z-transform procedure and factor analysis have been used. Results. It has been found out that the motivational component that exerts a systematic influence on the internal and external factors of the structure of psychological readiness of military personnel through the implementation of stimulating, regulatory and meaning-forming functions. It has been established that the main motives for joining the military are: self-realization, recognition, patriotism (desire to defend the Motherland) and solving personal problems. It has been found out that the greater military service experience; the more likely there are positive thoughts on the news of the call. Persons with experience of contract service demonstrate a more positive attitude to military service, the importance of its passage; have a higher level of motivation to perform military professional activity than persons without experience of military service. Conclusions. The positive attitude towards the professional activity of the military, the internal motivation, the general level of psychological readiness for military service increases with service experience.

Accumulation of foreign currency reserves and risk-taking

We assess whether the accumulation of foreign currency reserves in the Asia-Pacific region may have unintended consequences in the form of increased private sector risk-taking. To do so we carry out a country-specific daily data event study analysis of the relationship between official announcements of reserves stocks and various proxy measures of risk-taking. Overall, our results suggest that reserves accumulation exerts no systematic influence on risk-taking.

Proper Motions of Stellar Streams Discovered in the Dark Energy Survey

Abstract We cross-match high-precision astrometric data from Gaia DR2 with accurate multiband photometry from the Dark Energy Survey (DES) DR1 to confidently measure proper motions for nine stellar streams in the DES footprint: Aliqa Uma, ATLAS, Chenab, Elqui, Indus, Jhelum, Phoenix, Tucana III, and Turranburra. We determine low-confidence proper-motion measurements for four additional stellar streams: Ravi, Wambelong, Willka Yaku, and Turbio. We find evidence for a misalignment between stream tracks and the systemic proper motion of streams that may suggest a systematic gravitational influence from the Large Magellanic Cloud (LMC). These proper motions, when combined with radial velocity measurements, will allow for detailed orbit modeling that can be used to constrain properties of the LMC and its effect on nearby streams, as well as global properties of the Milky Way’s gravitational potential.

Features, Opportunities and Application of Control Cards Accumulated Sum. Part 2. Numerical Method for Assessing the Disorder of a Technological Process

The article continues to consider the possibility of maintaining the technological process in a statistical control state with the use of cumulative sum charts. A numerical method for estimating the statistical controllability of a process using a scheme of decision intervals based on a computational algorithm is considered.&#x0D; Cumulative sum charts can provide an out-of-control process detection and, unlike a regular Shewhart charts, allow determine quickly and accurately the process change area, as well as when corrective action is required. Unlike the graphical method using the V-mask, when the mandatory presence of an operator is required to monitor the state of the process, the numerical estimation method using the decision interval scheme can be automated and provide appropriate signals without operator involvement.&#x0D; The method under consideration reveals a point in time when a change in process cannot be caused solely by the influence of random causes, that is, there is a significant systematic influence, a disorder of the process and a shift in the primary level of adjustment. The use of the same V-mask allows to solve the opposite problem: when fixing the moment of disorder of the technological process to determine what time this event took place.&#x0D; When constructing a V-mask, its «opening angle» is directly related to the maximum permissible displacement of the process and, based on the requirements for the quality of the technological pro­cess, it is necessary to have an aggregate (set) of such V-masks. When applying the numerical method, this problem does not occur.&#x0D; The article shows the equivalence of graphical and numerical methods theoretically and numerically, which, given the certain undoubted advantages of the latter, proves the prospect of its application.

Mechanical activation and characterization of micronized cellulose particles from pulp fiber

Ball milling has been widely used for cellulosic fiber pulverization and de-crystallization, but most of the previous milling studies are focused on the micro-structural change and crystallinity reduction of cellulose, few of them have evaluated the systematic influence of milling conditions and the energy efficiency. The objective of the study is to investigate and understand the effect of various ball milling parameters on the pulp fiber grinding performance. Ball mill time, rotational speed, charge ratio, mill ball diameters, and initial moisture content of pulp fiber were studied systematically from planetary ball milling. The pulverized particle size, particle morphology, crystallinity change, bonding disruption, thermal stability, specific surface area, and energy efficiency were evaluated during the milling process. Results revealed that cellulose fiber was mainly pulverized during the early milling stage (˜20 min) and different variables led to changes regarding to the final particle size and shape. After refinement, the crystallinity and the thermal stability of the pulp fiber decreased, from the weakening or disintegration of the inter and intra hydrogen bonds of the cellulose chains. The specific surface area increased by 4˜5 times with the particle size reduction, while the milling energy efficiency decreased after 40 min of milling time.

The influence of faulting style on the size-distribution of global earthquakes

We derive a unifying formulation, reliable at all scales, linking Anderson's faulting theory with the earthquake size-distribution, whose exponent is known as the b-value. Anderson's theory, introduced in 1905, related fault orientation to stress conditions. Independently, laboratory measurements on acoustic emissions have established that the applied differential stress controls their b-value. Our global survey revealed that observed spatial variations of b are controlled by different stress regimes, generally being lower in compressional (subduction trenches and continental collisional systems) and higher in extensional regimes (oceanic ridges). This confirmed previous observations that the b-value depends on the rake angle of focal mechanisms. Using a new plunge/dip-angles-based b-value analysis, we also identified further systematic influences of faulting geometry: steep normal faults (also typical of the oldest subduction zones) experience the highest proportion of smaller events, while low-angle thrust faults (typical of youngest subduction zones) undergo proportionally larger, more hazardous, events, differently from what would be expected by only allowing for rake-angle dependency. To date, however, no physical model has ever been proposed to explain how earthquakes size-distribution, differential stress and faulting styles relate to each other. Here, we propose and analytically derive a unifying formulation for describing how fault orientation and differential stresses determine b-value. Our formulation confirms that b-values decay linearly with increasing differential stress, but it also predicts a different dip-dependent modulation according to the tectonic environment, opening up new ways of assessing a region's seismic hazard.

Experimental verification in static tests of a computational method for detecting the position of a defect

This paper presents the results of an experimental study of the detection of a defect in steel plates based on an optimisation algorithm using small amplitude homogenisation. In a first approximation using numerical simulation, this method detected inclusions using boundaries measurements obtained from static tests in the context of linear elasticity. We study the performance of such method by introducing direct measurements of real experiments. The defects in the specimens generate very small perturbations in displacements and therefore, it was necessary to perform several experimental realisations of the test procedure for dealing with random and systematic influences. We included in the analysis practical engineering considerations such as bolted and welded connections, a typical experimental setup and limited instrumentation. Detection results using experimental measurements shows that it is possible to use this method in real applications and that the results are improved when using an iterative scheme, although with limitations. For instance, the need to use larger measurement zones than those used in numerical simulations in order to avoid potential bias in the detection of defects due to errors in measurement. In this sense, it is also necessary the validation of support and loading conditions used in the simulations.

EUROPEAN REGIONAL POLICY: GENERAL CHARACTERISTICS, CHALLENGES AND PROSPECTS FOR UKRAINE

The work is devoted to the study of the main features of European regional policy. EU regional policy is the quintessence of experience for countries facing the need to address similar legal issues. The need to bring the national system of public authority and public administration closer to European standards, to develop an effective model of regional governance, etc., calls for an in-depth study of European regional policy. To date, Ukraine is not a member state of the European Union, although the constitutional consolidation of Ukraine's European course gives every reason to believe that the orientation towards positive European experience and the shortcomings that EU member states have already encountered in implementing regional policy are not only extremely relevant, but also vital to the Ukrainian state at the present stage of constitutional change. In the current context, it is impossible to formulate mechanisms of state regional policy, without taking into account the current trends used by the international community. Since 2014, regional policy inUkrainehas begun to take on a European Union regional policy. The existing legislation regulates the fullest extent of public relations in the field of regional policy during the independence ofUkraineand meets European standards. State regional policy faces the challenge of providing each region with the full potential to maximize its internal potential while maintaining national interests. The current stage of the state is characterized by the exercise of systematic influence on the improvement of regional policy. Although many problems (disproportionate development of the regions, the dynamics of transformation processes in the economic development of the country, etc.) still require their solution, the correctness and productivity of the course chosen by the Ukrainian state is demonstrated today.

Climbing the down escalator

PurposeThis paper aims to examine the effect of customer-to-customer (C2C) interaction while using a service on the willingness of consumers to engage in altruistic customer participation (CP) or co-production efforts aimed at helping other customers. It further examines the role of consumer skepticism toward the service category in moderating the effects of C2C interaction on altruistic CP and customer satisfaction.Design/methodology/approachA survey methodology was used to collect data from 374 consumers of health-care services in India. The data collection involved interviews of patients visiting diabetes clinics and focused primarily on the interaction between customers and their willingness to participate in educating members of the community on diabetic self-care.FindingsThe analysis shows that C2C interaction positively affects customer satisfaction and willingness to engage in altruistic CP. Consumer category skepticism does not moderate the effect of C2C interaction on customer willingness to engage in altruistic CP. However, category skepticism does have the moderating effect of significantly reducing the positive effect of C2C interaction on customer satisfaction.Research limitations/implicationsData for this study were collected via interviews of consumers in India. Each consumer was interviewed by a trained interviewer. Although the authors do not detect any systematic influence in the results, the possibility of bias is acknowledged. Regarding the research implications, the finding that category skepticism does not moderate the effect of C2C interaction on willingness to engage in altruistic CP suggest that ultimately consumers may have stronger commitment and loyalty to themselves and that their relationships with the firm’s might be peripheral.Practical implicationsThe study finds that consumer skepticism toward a service category can have adverse effects for service co-creation. The authors advise managers in troubled industries not to focus exclusively on improving brand differentiation but to also consider working with major industry players and regulators to address the deepest fears of consumers.Originality/valueThe findings have implications for the service dominant logic of marketing in that it suggests that category skepticism is disruptive to the value integration process on which service co-creation relies for value creation. This has strong implications for how managers should structure their interaction processes with customers and for future research that seeks to them prove customer productivity.