Ankita Bhatia, Arti Chandani, Rajiv Divekar, Mita Mehta and Neeraja Vijay
Innovation is the way of life and we see various innovative techniques and methods being introduced in our daily life. This study aims to focus on digital innovation in the wealth…
Abstract
Purpose
Innovation is the way of life and we see various innovative techniques and methods being introduced in our daily life. This study aims to focus on digital innovation in the wealth management domain. This study examines the effect of usage of robo-advisory services in investment decision-making and behavioural biases, i.e. overconfidence and loss aversion. Such studies are more pronounced in developed countries and little has been studied about investor behaviour in association with advisory services in developing countries such as India.
Design/methodology/approach
Overconfidence and loss-aversion biases, investment decision-making and advisory services questions are measured using a five-point Likert scale. The number of respondents was 172 investors. A purposive sampling is used for gathering responses from investors. Structural equation modeling model was run using AMOS 22 version software package.
Findings
The authors found that behavioural biases positively and significantly influence the irrationalities of investment decision-making. The findings of this study also provide empirical evidence that the usage of robo-advisory services, by individual investors, is still incapable of mitigating behavioural biases, such as overconfidence bias and loss-aversion bias.
Research limitations/implications
The sample size of this study could be a limiting factor. This study is limited only to two biases, while other behavioural biases affect the investment decision-making of the investors, which can be considered for future research along with the impact of robo-advisory services in different socio-cultural backgrounds.
Practical implications
This study will assist fintech start-ups, banks, architecture of robo advisors, product owners and wealth management service providers improvise their products, platforms and offerings of these automated advisory services. This could help individual investors to mitigate their behavioural biases in investment decision-making.
Social implications
This study is useful to society as the awareness of robo-advisory services is very less, at present, and there is a need to increase the usage of these services to extend the benefit of this to the lower stratum of society. These services would be useful to all investors who find it difficult to afford financial advisors and help them mitigate their behavioural biases for investment decision-making.
Originality/value
This study is the first of its type that establishes the linkage between behavioural biases, digital innovation in fintech, i.e. robo-advisory services and individual investor’s investment decision-making in individual investor of the Indian stock market.
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Rajiv Mehta, Rolph E. Anderson and Alan J. Dubinsky
The primary intent of this research was to determine whether the perceived importance of various rewards is influenced by the career stage of sales managers. This study found that…
Abstract
The primary intent of this research was to determine whether the perceived importance of various rewards is influenced by the career stage of sales managers. This study found that sales managers in different career stages have distinct intrinsic and extrinsic reward preferences that may ultimately affect motivation and productivity. Although several statistically significant differences in intrinsic and extrinsic reward preferences were discerned, some reward perceptions were found to be uniform regardless of sales manager career stage. Sales management implications, limitations, and directions for future research are offered.
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This study empirically explores one of the important channel issues – the relationship between various channel support given to channel partners and the perceived (by managers…
Abstract
This study empirically explores one of the important channel issues – the relationship between various channel support given to channel partners and the perceived (by managers) goal‐orientation of a firm. Results from an emerging market, India, indicate that perceived orientation towards both profitability and market share is not associated with any of the channel support considered. Growth orientation however is strongly associated with most of the channel support activities – both business (e.g., business advice, pricing and ordering assistance, and personnel training) as well as marketing (advertising support, sales promotional material, and inventory management assistance) oriented activities. In contrast, perceived sales volume orientation is only associated with advertising support and business advice, however, the relationship is negative. These findings have interesting implications for channel management and channel motivation.
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Caroline M. Fisher, Cassandra C. Elrod and Rajiv Mehta
The success of implementing Deming's management method depends on the ability of managers to operationally define and measure Deming's 14 Points. Tamimi et al. developed a set of…
Abstract
Purpose
The success of implementing Deming's management method depends on the ability of managers to operationally define and measure Deming's 14 Points. Tamimi et al. developed a set of operational measures for these 14 Points. They tested the validity and reliability of their instrument using a sample of firms that were involved in implementing TQM practices from one to five years out from implementation. This paper aims to examine this issue.
Design/methodology/approach
In this study, which retested their measurement items, data were collected from over 100 manufacturing and service companies of all sizes across the USA and Canada. The data were analyzed using similar statistical analysis procedures and comparisons were made with the results of Tamimi et al.'s study.
Findings
The results replicated the study by Tamimi et al. and supported their operational definitions with two exceptions. The scales for “Eliminating slogans and targets”, and “Taking action to accomplish the transformation”, were not found to be reliable in either the original or the current study. These two scales need to be modified and new questions are suggested in the paper.
Research limitations/implications
The response rate for this study was high. However, self‐selection to participate and self‐reported responses could lead to some bias in responses.
Originality/value
The resulting operational definitions should prove useful to organizations interested in adopting Deming's management method.
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Rajiv Mehta, Trina Larsen and Bert Rosenbloom
The manufacturer depends on channel members for the performance of marketing functions. Therefore, the channel participants need to co‐operate with one another while…
Abstract
The manufacturer depends on channel members for the performance of marketing functions. Therefore, the channel participants need to co‐operate with one another while simultaneously pursuing independent as well as systemic goals. Examines how co‐operation among distribution channel members can be fostered through the use of participative, supportive and directive leadership styles foster channel member co‐operation and assesses the relationship between co‐operation and channel member performance. Develops a conceptual model and empirically tests the linkages among the variables on data drawn from a survey of key informants in a sample of automobile dealerships. Shows that participative, supportive and directive leadership styles are directly related to channel member co‐operation, which, in turn, is positively associated with channel member performance.
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Alan J. Dubinsky, Rajiv Mehta and Rolph E. Anderson
States that little empirical work is available as a guide in the design and implementation of sales manager training programs. Examines the relationship between trainee…
Abstract
States that little empirical work is available as a guide in the design and implementation of sales manager training programs. Examines the relationship between trainee satisfaction with sales manager training (a measure for training effectiveness) and the format, site, instructor, instructional method, and content of the program. Reports results of a survey of sales managers in field sales organizations. Indicates that training satisfaction is associated with all five issues. Offers direct implications for enhancing sales manager training programs.
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Rajiv Mehta, Trina Larsen, Bert Rosenbloom, Jolanta Mazur and Pia Polsa
Marketing channels exist in an increasingly competitive international and global environment. Consequently, many firms have reengineered their marketing channels systems by…
Abstract
Marketing channels exist in an increasingly competitive international and global environment. Consequently, many firms have reengineered their marketing channels systems by placing greater emphasis on fostering higher levels of cooperation among international channel participants. However, there are relatively few studies that explore cross‐cultural issues in marketing channels. Thus, investigating whether cultural differences influence how channel participants react to a firm’s channel strategies is an important issue that needs to be addressed. This study comparatively examines channel leadership styles, cooperation, and channel member performance across three divergent national cultures. More specifically, the study seeks to assess whether employing uniform channel strategies produces similar responses from channel members in different countries. Using data drawn from a sample of automobile dealerships in the USA, Finland, and Poland, inconsistent results were found, which suggest that using leadership stylesto foster cooperation among channel members across different national cultures on a standardized basis is not an appropriate channel strategy. Based on the findings, international channel management implications, limitations, and directions for future research are proferred.
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Rajiv Mehta, Alan J. Dubinsky and Rolph E. Anderson
As firms seek to prosper in a fiercely competitive global economy, cooperative inter‐firm alliances among members of the value chain are increasingly being forged. In the area of…
Abstract
As firms seek to prosper in a fiercely competitive global economy, cooperative inter‐firm alliances among members of the value chain are increasingly being forged. In the area of marketing channels, strategic alliances among international channel partners have become the norm as well. Thus, identification of inter‐firm influence strategies – such as different leadership styles – used by the channel captain to motivate international channel partners becomes increasingly important. More specifically, in administering a firm’s marketing channels, participative, supportive, and directive leadership styles may be effective in eliciting channel partners to exert higher levels of motivation, which, in turn, may be associated with higher levels of performance. The linkages among leadership styles, motivation, and performance are empirically examined on data drawn from a sample of automobile distributors in the USA, Finland, and Poland. International channel management implications are discussed, limitations of the study are identified, and directions for future research are suggested.