Customer satisfaction: Cost driver or value driver? Empirical evidence from the financial services industry

We investigate the relation between customer satisfaction, customer servicing costs, and customer value in a financial services firm. We find that customer satisfaction is positively associated with future customer servicing costs, as well as with customer value. The relation between customer satisfaction and customer value appears non-linear; higher customer satisfaction appears to have a higher return for the most profitable customer segments. Our findings indicate that customer satisfaction is a value driver; however, customer satisfaction is not cost-free and managers have to consider the costs, as well as the benefits, of increasing customer satisfaction.     

Shortcomings in the Measurement of Innovation: Implications for Accounting Standard Setting

Innovation is nowadays a fundamental determinant of value creation in business companies and economic growth. Therefore, the measurement of innovation has become a significant concern both for business companies and governments. Traditionally, attempts to measure innovation have adopted a macroeconomic approach, as they have been largely based on broad surveys. However, no attempt has been made to date in order to complement the information provided by such surveys with aggregated data obtained from the financial reports of individual companies. This paper analyses the conceptual and methodological problems underlying the measurement of business innovation by means of surveys and discusses the lack of ability of accounting standards to accurately reflect innovative activities in the financial statements of business firms.In the light of the evidence provided by the empirical studies published to date, we analyse the Spanish situation by reviewing innovation studies conducted by the National Institute of Statistics (INE), and assessing the relationship between the value relevance of accounting information and the firm's technological level. Our results suggest that both, micro- and macroeconomic approaches towards the measurement of innovation have significant shortcomings. Thus, a joint effort seems to be needed in order to overcome the methodological limitations affecting innovation studies based on surveys and those relying on financial accounting information. Despite their limitations, surveys provide a sound basis for the identification of trends, key factors and explanatory variables. On the other hand, financial statements could provide a sound basis for the measurement of innovation if they included more relevant information on the intangible determinants of the value of companies. This has obvious implications for the standard setting process.     

Risk Estimation and Value-of-Information Analysis for Three Proposed Genetic Screening Programs for Chronic Beryllium Disease Prevention

Genetic differences (polymorphisms) among members of a population are thought to influence susceptibility to various environmental exposures. In practice, however, this information is rarely incorporated into quantitative risk assessment and risk management. We describe an analytic framework for predicting the risk reduction and value-of-information (VOI) resulting from specific risk management applications of genetic biomarkers, and we apply the framework to the example of occupational chronic beryllium disease (CBD), an immune-mediated pulmonary granulomatous disease. One described Human Leukocyte Antigen gene variant, HLA-DP beta 1*0201, contains a substitution of glutamate for lysine at position 69 that appears to have high sensitivity (approximately 94%) but low specificity (approximately 70%) with respect to CBD among individuals occupationally exposed to respirable beryllium. The expected postintervention CBD prevalence rates for using the genetic variant (1) as a required job placement screen, (2) as a medical screen for semiannual in place of annual lymphocyte proliferation testing, or (3) as a voluntary job placement screen are 0.08%, 0.8%, and 0.6%, respectively, in a hypothetical cohort with 1% baseline CBD prevalence. VOI analysis is used to examine the reduction in total social cost, calculated as the net value of disease reduction and financial expenditures, expected for proposed CBD intervention programs based on the genetic susceptibility test. For the example cohort, the expected net VOI per beryllium worker for genetically based testing and intervention is $13,000, $1,800, and $5,100, respectively, based on a health valuation of $1.45 million per CBD case avoided. VOI results for alternative CBD evaluations are also presented. Despite large parameter uncertainty, probabilistic analysis predicts generally positive utility for each of the three evaluated programs when avoidance of a CBD case is valued at $1 million or higher. Although the utility of a proposed risk management program may be evaluated solely in terms of risk reduction and financial costs, decisions about genetic testing and program implementation must also consider serious social, legal, and ethical factors.     

Winning the interviewing game

Those who don't "interview well" are not likely to receive the job offer, despite their qualifications. A job interview is actually a fierce competitive activity that offers only two grades: an A or F. By nature, physicians are competitive; they like to win. Infrequent interviewees are prone to making easily corrected mistakes, such as showing no enthusiasm or having poor eye contact. The key for interviewing success is preparation--doing research, developing a personal statement, and role-playing practice interviews. View the interview as a sales call whose bottom-line goal is to achieve an offer, or at least to let you leave with the option to return for future discussions.     

Voluntary Siting and Equity: The MRS Facility Experience in Native America

This article focuses on aspects of intragenerational and intergenerational equity in the context of a unique policy experiment: the effort of the U.S. government to site a monitored, retrievable storage (MRS) facility for high-level civilian nuclear waste. This process and its outcomes are examined from both normative and subjective perspectives. While the MRS siting process was designed to be equitable, its eventual focus on Native American communities raises profound questions about environmental justice, as well as procedural, outcome, and intergenerational equity in cross-cultural contexts. The diverse reactions among Native American tribes demonstrate that translating theoretical concepts of equity into practice is an extraordinarily complex exercise. The MRS siting process, instead of being a bold policy experiment that promoted equity, emerges substantially flawed after its implementation in the Native American context.     

Organizational Learning in Global Purchasing: A Model and Test of Internal Users and Corporate Buyers*

This research examines a model centered on organizational learning in purchasing. Two different studies are conducted to test the hypotheses among purchasing users (Study 1) and buyers (Study 2). The user sample consists of users representing 355 strategic business units of a Fortune 500 multinational corporation. The buyer sample consists of corporate buyers of 200 multinational corporations drawn from the membership directory of the National Association of Purchasing Management (NAPM). In each study, the focus is on the learning relationships between corporate buyers and internal users in the purchasing organization. Based on the two studies, the results suggest that organizational learning in the purchasing process is influenced by the organizational culture factors of localness, transformational leadership, and openness. Organizational learning has a positive effect on information processing in the purchasing system, which, in turn, has a positive influence on the cycle time of the purchasing process.     

Expert Study to Select Indicators of the Occurrence of Emerging Mycotoxin Hazards

This article describes a Delphi‐based expert judgment study aimed at the selection of indicators to identify the occurrence of emerging mycotoxin hazards related to Fusarium spp. in wheat supply chains. A panel of 29 experts from 12 European countries followed a holistic approach to evaluate the most important indicators for different chain stages (growth, transport and storage, and processing) and their relative importance. After three e‐mailing rounds, the experts reached consensus on the most important indicators for each of the three stages: wheat growth, transport and storage, and processing. For wheat growth, these indicators include: relative humidity/rainfall, crop rotation, temperature, tillage practice, water activity of the kernels, and crop variety/cultivar. For the transport and storage stage, they include water activity in the kernels, relative humidity, ventilation, temperature, storage capacity, and logistics. For wheat processing, indicators include quality data, fraction of the cereal used, water activity in the kernels, quality management and traceability systems, and carryover of contamination. The indicators selected in this study can be used in an identification system for the occurrence of emerging mycotoxin hazards in wheat supply chains. Such a system can be used by risk managers within governmental (related) organizations and/or the food and feed industry in order to react proactively to the occurrence of these emerging mycotoxins.     

Agent‐Based Modeling to Simulate Contamination Events and Evaluate Threat Management Strategies in Water Distribution Systems

In the event of contamination of a water distribution system, decisions must be made to mitigate the impact of the contamination and to protect public health. Making threat management decisions while a contaminant spreads through the network is a dynamic and interactive process. Response actions taken by the utility managers and water consumption choices made by the consumers will affect the hydraulics, and thus the spread of the contaminant plume, in the network. A modeling framework that allows the simulation of a contamination event under the effects of actions taken by utility managers and consumers will be a useful tool for the analysis of alternative threat mitigation and management strategies. This article presents a multiagent modeling framework that combines agent‐based, mechanistic, and dynamic methods. Agents select actions based on a set of rules that represent an individual's autonomy, goal‐based desires, and reaction to the environment and the actions of other agents. Consumer behaviors including ingestion, mobility, reduction of water demands, and word‐of‐mouth communication are simulated. Management strategies are evaluated, including opening hydrants to flush the contaminant and broadcasts. As actions taken by consumer agents and utility operators affect demands and flows in the system, the mechanistic model is updated. Management strategies are evaluated based on the exposure of the population to the contaminant. The framework is designed to consider the typical issues involved in water distribution threat management and provides valuable analysis of threat containment strategies for water distribution system contamination events.     

Water Adherence Factors for Human Skin

On incidental dermal exposure to chemicals in water, a key exposure factor is the amount of water adhering to skin. Although soil adherence factors have been developed for risk assessment, measurements of water adherence on human skin have not been described. In the Environmental Protection Agency's (EPA's) dermal risk assessment guidance, dermal dose from environmental exposures is based upon the flux rate across the skin, which assumes that an unlimited amount of chemical is available for absorption. This assumption is applicable to certain exposure scenarios such as swimming and bathing. However, exposures to contaminated water frequently involve scenarios where the available chemical is limited by the amount of water adhering to the skin, for example, during accidental splashes. We conducted studies in human volunteers to investigate water adherence per unit area of skin after brief contact with water. In two sets of experiments, either water was applied with a micropipette to 10‐cm² areas of the lower leg, foot, and hand, or the foot and hand were briefly immersed in water. In males, using a micropipette, water adherence ranged from 1.93 (foot) to 7.13 μL/cm² (lower leg). In females, it ranged from 1.10 (lower leg) to 4.83 μL/cm² (hand). Hand and foot immersion resulted in relatively higher values of 6.89 and 5.17 μL/cm², respectively, in males, and 5.40 and 6.39 μL/cm² in females. Water adherence was affected by amount of body hair and type of exposure. Water adherence factors can be used to calculate the applied dose per unit area for exposures involving intermittent water contact.