Search results for: purchasing decisions
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 489

Search results for: purchasing decisions

489 Consumers’ Perceptions of Noncommunicable Diseases and Perceived Product Value Impacts on Healthy Food Purchasing Decisions

Authors: Khatesiree Sripoothon, Usanee Sengpanich, Rattana Sittioum

Abstract:

The objective of this study is to examine the factors influencing consumer purchasing decisions about healthy food. This model consists of two latent variables: Consumer Perception relating to NCDs and Consumer Perceived Product Value. The study was conducted in the northern provinces of Thailand, which are popular with tourists and have received support from the government for health and wellness tourism. A survey was used as the data collection method, and the questionnaire was applied to 385 consumers. An accidental sampling method was used to identify the sample. The statistics of frequency, percentage, mean, and structural equation model were used to analyze the data obtained. Additionally, all factors had a significant positive influence on healthy food purchasing decisions (p<0.001) and were predictive of healthy food purchasing decisions at 46.20% (R2=0.462). Also, these findings seem to underline the supposition that consumer perceptions of NCDs and perceived product value are key variables that strengthen the competitive effects of healthy-friendly business entrepreneurs. Moreover, it reduces the countries' public health costs for treating patients with the disease of NCDs in Thailand.

Keywords: healthy food, perceived product value, perception of noncommunicable diseases, purchasing decisions

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488 Education of Purchasing Professionals in Austria: Competence Based View

Authors: Volker Koch

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This paper deals with the education of purchasing professionals in Austria. In this education, equivalent and measurable criteria are collected in order to create a comparison. The comparison shows the problem. To make the aforementioned comparison possible, methodologies such as KODE-Competence Atlas or presentations in a matrix form are used. The result shows the content taught and whether there are any similarities or interesting differences in the current Austrian purchasers’ formations. Purchasing professionals learning competencies are also illustrated in the study result.

Keywords: Competencies, education, purchasing professional, technological-oriented.

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487 The Influences of Marketing Mix on Customer Purchasing Behavior at Chatuchak Plaza Market

Authors: Bundit Pungnirund

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The objective of this research was to study the influence of marketing mix on customers purchasing behavior. A total of 397 respondents were collected from customers who were the patronages of the Chatuchak Plaza market. A questionnaire was utilized as a tool to collect data. Statistics utilized in this research included frequency, percentage, mean, standard deviation, and multiple regression analysis. Data were analyzed by using Statistical Package for the Social Sciences. The findings revealed that the majority of respondents were male with the age between 25-34 years old, hold undergraduate degree, married and stay together. The average income of respondents was between 10,001-20,000 baht. In terms of occupation, the majority worked for private companies. The research analysis disclosed that there were three variables of marketing mix which included price (X2), place (X3), and product (X1) which had an influence on the frequency of customer purchasing. These three variables can predict a purchase about 30 percent of the time by using the equation; Y1 = 6.851 + .921(X2) + .949(X3) + .591(X1). It also found that in terms of marketing mixed, there were two variables had an influence on the amount of customer purchasing which were physical characteristic (X6), and the process (X7). These two variables are 17 percent predictive of a purchasing by using the equation: Y2 = 2276.88 + 2980.97(X6) + 2188.09(X7).

Keywords: Influences, Marketing Mixed, Purchasing Behavior.

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486 Behavior of Czech Consumers during Crisis

Authors: M. Stoklasa, H. Starzyczna, P. Sykorova

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This paper presents partial results of primary research on consumer purchasing behavior in times of crisis. It starts with brief theoretical debate on purchasing behavior and short secondary research related to the issues, which is used for the comparison of results. For purpose of collecting data, questionnaire survey was given to 355 respondents in Moravian-Silesian region. Hypotheses deal with the relationship of the financial situation of the respondents and their purchasing behavior. The research analysis disclosed that consumers change their behavior during crisis and MS region has some specifics compared to other regions.

Keywords: Crisis, financial situation, consumer behavior, postponement of purchases, consumer credit.

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485 Organization of the Purchasing Function for Innovation

Authors: Jasna Prester, Ivana Rašić Bakarić, Božidar Matijević

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Innovations not only contribute to competitiveness of the company but have also positive effects on revenues. On average, product innovations account to 14 percent of companies’ sales. Innovation management has substantially changed during the last decade, because of growing reliance on external partners. As a consequence, a new task for purchasing arises, as firms need to understand which suppliers actually do have high potential contributing to the innovativeness of the firm and which do not. Proper organization of the purchasing function is important since for the majority of manufacturing companies deal with substantial material costs which pass through the purchasing function. In the past the purchasing function was largely seen as a transaction-oriented, clerical function but today purchasing is the intermediate with supply chain partners contributing to innovations, be it product or process innovations. Therefore, purchasing function has to be organized differently to enable firm innovation potential. However, innovations are inherently risky. There are behavioral risk (that some partner will take advantage of the other party), technological risk in terms of complexity of products and processes of manufacturing and incoming materials and finally market risks, which in fact judge the value of the innovation. These risks are investigated in this work. Specifically, technological risks which deal with complexity of the products, and processes will be investigated more thoroughly. Buying components or such high edge technologies necessities careful investigation of technical features and therefore is usually conducted by a team of experts. Therefore it is hypothesized that higher the technological risk, higher will be the centralization of the purchasing function as an interface with other supply chain members. Main contribution of this research lies is in the fact that analysis was performed on a large data set of 1493 companies, from 25 countries collected in the GMRG 4 survey. Most analyses of purchasing function are done by case study analysis of innovative firms. Therefore this study contributes with empirical evaluations that can be generalized.

Keywords: Purchasing function organization, innovation, technological risk, GMRG 4 survey.

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484 Determining the Online Purchasing Loyalty for Thai Herbal Products

Authors: Chummanond Natchaya, Rotchanakitumnuai Siriluck

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The objective of this study is to identify the factors that influence the online purchasing loyalty for Thai herbal products. Survey research is used to gather data from Thai herb online merchants to assess factors that have impacts on enhancing loyalty. Data were collected from 300 online customers who had experience in online purchasing of Thai Herbal products. Prior experience consists of data from previous usage of online herbs, herb purchase and internet usage. E-Quality data consists of information quality, system quality, service quality and the product quality of Thai herbal products sold online. The results suggest that prior experience, Equality, attitude toward purchase and trust in online merchant have major impacts on loyalty. The good attitude and E-Quality of purchasing Thai herbal product online are the most significant determinants affecting loyalty.

Keywords: e-Commerce, Thai herb, E-Quality, satisfaction, loyalty.

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483 Nonlinear and Asymmetric Adjustment to Purchasing Power Parity in East-Asian Countries

Authors: Wen-Chi Liu

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This study applies a simple and powerful nonlinear unit root test to test the validity of long-run purchasing power parity (PPP)  in a sample of 10 East-Asian countries (i.e., China, Hong Kong,  Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan  and Thailand) over the period of March 1985 to September 2008. The empirical results indicate that PPP holds true for half of these 10  East-Asian countries under study, and the adjustment toward PPP is found to be nonlinear and in an asymmetric way. 

 

Keywords: Purchasing Power Parity, East-Asian Countries, Nonlinear Unit Root Test, Asymmetry.

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482 A Social Decision Support Mechanism for Group Purchasing

Authors: Lien-Fa Lin, Yung-Ming Li, Fu-Shun Hsieh

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With the advancement of information technology and development of group commerce, people have obviously changed in their lifestyle. However, group commerce faces some challenging problems. The products or services provided by vendors do not satisfactorily reflect customers’ opinions, so that the sale and revenue of group commerce gradually become lower. On the other hand, the process for a formed customer group to reach group-purchasing consensus is time-consuming and the final decision is not the best choice for each group members. In this paper, we design a social decision support mechanism, by using group discussion message to recommend suitable options for group members and we consider social influence and personal preference to generate option ranking list. The proposed mechanism can enhance the group purchasing decision making efficiently and effectively and venders can provide group products or services according to the group option ranking list.

Keywords: Social network, group decision, text mining, group commerce.

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481 Alphanumeric Hand-Prints Classification: Similarity Analysis between Local Decisions

Authors: G. Dimauro, S. Impedovo, M.G. Lucchese, R. Modugno, G. Pirlo

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This paper presents the analysis of similarity between local decisions, in the process of alphanumeric hand-prints classification. From the analysis of local characteristics of handprinted numerals and characters, extracted by a zoning method, the set of classification decisions is obtained and the similarity among them is investigated. For this purpose the Similarity Index is used, which is an estimator of similarity between classifiers, based on the analysis of agreements between their decisions. The experimental tests, carried out using numerals and characters from the CEDAR and ETL database, respectively, show to what extent different parts of the patterns provide similar classification decisions.

Keywords: Handwriting Recognition, Optical Character Recognition, Similarity Index, Zoning.

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480 The Effect of Brand Mascots on Consumers' Purchasing Behaviors

Authors: Isari Pairoa, Proud Arunrangsiwed

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Brand mascots are the cartoon characters, which are mainly designed for advertising or other related marketing purposes. Many brand mascots are extremely popular, since they were presented in commercial advertisements and Line Stickers. Brand Line Stickers could lead the users to identify with the brand and brand mascots, where might influence users to become loyal customers, and share the identity with the brand. The objective of the current study is to examine the effect of brand mascots on consumers’ decision and consumers’ intention to purchase the product. This study involved 400 participants, using cluster sampling from 50 districts in Bangkok metropolitan area. The descriptive analysis shows that using brand mascot causes consumers' positive attitude toward the products, and also heightens the possibility to purchasing the products. The current study suggests the new type of marketing strategy, which is brand fandom. This study has also contributed the knowledge to the area of integrated marketing communication and identification theory.

Keywords: Brand mascot, consumers’ behavior, marketing communication, purchasing.

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479 Customers’ Intention to Use Electronic Payment System for Purchasing

Authors: Wanida Suwunniponth

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The purpose of this research was to study the factors of characteristic of business, website quality and trust affected intention to use electronic payment systems for online purchasing. This survey research used questionnaire as a tool to collect the data of 300 customers who purchased online products and used an electronic payment system. The descriptive statistics and multiple regression analysis were used to analyze data. The results revealed that customers had a good opinion towards the characteristic of the business and website quality. However, they have a moderate opinion towards trust and intention to repurchase. In addition, the characteristics of the business affected the purchase intention the most, followed by website quality and the trust with statistical significance at 0.05 level. For particular, the terms of reputation, communication, information quality, perceived risk and word of mouth affected the intention to use the electronic payment system. In contrast, the terms of size, system quality and service quality did not affect intention to use an electronic payment system.

Keywords: Electronic payment, intention, online purchasing, trust.

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478 Development of a Robust Supply Chain for Dynamic Operating Environment

Authors: Shilan Li, Ivan Arokiam, Peter Jarvis, Wendy Garner, Gazelleh Moradi, Stuart Wakefield

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Development of a Robust Supply Chain for Dynamic Operating Environment as we move further into the twenty first century, organisations are under increasing pressure to deliver a high product variation at a reasonable cost without compromise in quality. In a number of cases this will take the form of a customised or high variety low volume manufacturing system that requires prudent management of resources, among a number of functions, to achieve competitive advantage. Purchasing and Supply Chain management is one of such function and due to the substantial interaction with external elements needs to be strategically managed. This requires a number of primary and supporting tools that will enable the appropriate decisions to be made rapidly. This capability is especially vital in a dynamic environment as it provides a pivotal role in increasing the profit margin of the product. The management of this function can be challenging by itself and even more for Small and Medium Enterprises (SMEs) due to the limited resources and expertise available at their disposal. This paper discusses the development of tools and concepts towards effectively managing the purchasing and supply chain function. The developed tools and concepts will provide a cost effective way of managing this function within SMEs. The paper further shows the use of these tools within Contechs, a manufacturer of luxury boat interiors, and the associated benefits achieved as a result of this implementation. Finally a generic framework towards use in such environments is presented.

Keywords: Lean, Supply Chain, High variety Low volume, Small and Medium Enterprises.

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477 Cellular Phone Users- Willingness to Shop Online

Authors: Norazah Mohd Suki, Norbayah Mohd Suki

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This study aims to identify cellular phone users- shopping motivating factors towards online shopping. 100 university students located in Klang Valley, Malaysia were involved as the respondents. They were required to complete a set of questionnaire and had to own a cellular phone in order to be selected as sample in this study. Three from five proposed hypotheses were supported: purchasing information, shopping utilities and service quality. As a result, marketers and retailers should concentrate more on the less important factors in order to encourage and create willingness of the consumers to purchase online. Recommendation for future research is also presented.

Keywords: Motivation, Online Shopping, Purchasing.

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476 Integrating Security Indifference Curve to Formal Decision Evaluation

Authors: Anon Yantarasri, Yachai Limpiyakorn

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Decisions are regularly made during a project or daily life. Some decisions are critical and have a direct impact on project or human success. Formal evaluation is thus required, especially for crucial decisions, to arrive at the optimal solution among alternatives to address issues. According to microeconomic theory, all people-s decisions can be modeled as indifference curves. The proposed approach supports formal analysis and decision by constructing indifference curve model from the previous experts- decision criteria. These knowledge embedded in the system can be reused or help naïve users select alternative solution of the similar problem. Moreover, the method is flexible to cope with unlimited number of factors influencing the decision-making. The preliminary experimental results of the alternative selection are accurately matched with the expert-s decisions.

Keywords: Decision Analysis and Resolution, Indifference Curve, Multi-criteria Decision Making.

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475 A Long Tail Study of eWOM Communities

Authors: M. Olmedilla, M. R. Martinez-Torres, S. L. Toral

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Electronic Word-Of-Mouth (eWOM) communities represent today an important source of information in which more and more customers base their purchasing decisions. They include thousands of reviews concerning very different products and services posted by many individuals geographically distributed all over the world. Due to their massive audience, eWOM communities can help users to find the product they are looking for even if they are less popular or rare. This is known as the long tail effect, which leads to a larger number of lower-selling niche products. This paper analyzes the long tail effect in a well-known eWOM community and defines a tool for finding niche products unavailable through conventional channels.

Keywords: eWOM, Online user reviews, Long tail theory, Product categorization, Social Network Analysis.

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474 e Collaborative Decisions – a DSS for Academic Environment

Authors: C. Oprean, C. V. Kifor, S. C. Negulescu, C. Candea, L. Oprean, C. Oprean, S. Kifor

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This paper presents an innovative approach within the area of Group Decision Support System (GDSS) by using tools based on intelligent agents. It introduces iGDSS, a software platform for decision support and collaboration and an application of this platform - eCollaborative Decisions - for academic environment, all these developed within a framework of a research project.

Keywords: Group Decision Support System, Managerial Academic Decisions, Computer Interaction.

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473 Enforcement of Decisions of Ombudsmen and the South African Public Protector: Muzzling the Watchdogs

Authors: Roxan Venter

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Ombudsmen often face the challenge of a lack of authority to have their decisions and recommendations enforced. This lack of authority may be seen as one of the major obstacles in the way of the effectiveness of the institutions of Ombudsman and also the South African Public Protector. The paper will address the current legal position in South Africa with regard to the status of the decisions and recommendations of the South African Public Protector and the enforcement thereof. In addition, the paper will compare the South African position with the experiences of other jurisdictions, including Scandinavian countries like Sweden, Denmark and Norway, but also New Zealand and Northern Ireland, with regard to the enforcement of the decisions of Ombudsmen. Finally, the paper will make recommendations with regard to the enhancement of the power and authority of Ombudsmen in order to effectively enforce their decisions. It is submitted that the creation of the office of Ombudsman, and the Public Protector in the South African system, is an essential tool to ensure the protection of society against governmental abuse of power and it is therefore imperative to ensure that these watchdogs of democracy are not muzzled by a lack of powers of enforcement.

Keywords: Enforcement of decisions of Ombudsmen, Governmental control, Ombudsman, South African Public Protector.

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472 The Direct Drivers of Ethnocentric Consumer, Intention and Actual Purchasing Behavior in Malaysia

Authors: Nik Kamariah Nik-Mat, Noor Hasmini Abd-Ghani, Jamal Mohammed Esmail Al-Ekam

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The Malaysian government had consistently revived its campaign for “Buy Malaysian Goods” from time to time. The purpose of the campaign is to remind consumers to be ethnocentric and patriotic when purchasing product and services. This is necessary to ensure high demand for local products and services compared to foreign products. However, the decline of domestic investment in 2012 has triggered concern for the Malaysian economy. Hence, this study attempts to determine the drivers of actual purchasing behavior, intention to purchase domestic products and ethnocentrism. The study employs the cross-sectional primary data, self-administered on household, selected using stratified random sampling in four Malaysian regions. A nine factor driver of actual domestic purchasing behavior (culture openness, conservatism, collectivism, patriotism, control belief, interest in foreign travel, attitude, ethnocentrism and intention) were measured utilizing 60 items, using 7-point Likertscale. From 1000 questionnaires distributed, a sample of 486 were returned representing 48.6 percent response rate. From the fit generated structural model (SEM analysis), it was found that the drivers of actual purchase behavior are collectivism, cultural openness and patriotism; the drivers of intention to purchase domestic product are attitude, control belief, collectivism and conservatism; and drivers of ethnocentrism are cultural openness, control belief, foreign travel and patriotism. It also shows that Malaysian consumers scored high in ethnocentrism and patriotism. The findings are discussed in the perspective of its implication to Malaysian National Agenda.

Keywords: Actual purchase, ethnocentrism, culture openness, conservatism, collectivism, patriotism.

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471 QR Technology to Automate Health Condition Detection Payment System: A Case Study in Schools of the Kingdom of Saudi Arabia

Authors: Amjad Alsulami, Farah Albishri, Kholod Alzubidi, Lama Almehemadi, Salma Elhag

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Food allergy is a common and rising problem among children. Many students have their first allergic reaction at school, one of these is anaphylaxis, which can be fatal. This study discovered that several schools' processes lacked safety regulations and information on how to handle allergy issues and chronic diseases like diabetes where students were not supervised or monitored during the cafeteria purchasing process. Academic institutions have no obvious prevention or effort when purchasing food containing allergens or negatively impacting the health status of students who suffer from chronic diseases. The stability of students' health must be maintained because it greatly affects their performance and educational achievement. To address this issue, this paper uses a business reengineering process to propose the automation of the whole food-purchasing process, which will aid in detecting and avoiding allergic occurrences and preventing any side effects from eating foods that are conflicting with students' health. This may be achieved by designing a smart card with an embedded QR code that reveals which foods cause an allergic reaction in a student. A survey was distributed to determine and examine how the cafeteria will handle allergic children and whether any management or policy is applied in the school. Also, the survey findings indicate that the integration of QR technology into the food purchasing process would improve health condition detection. The family supported that the suggested solution would be advantageous because it ensured their children avoided eating not allowed food. Moreover, by analyzing and simulating the as-is process and the suggested process, the results demonstrate that there is an improvement in quality and time.

Keywords: QR code, smart card, food allergies, Business Process reengineering, health condition detection.

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470 Automatic Voice Classification System Based on Traditional Korean Medicine

Authors: Jaehwan Kang, Haejung Lee

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This paper introduces an automatic voice classification system for the diagnosis of individual constitution based on Sasang Constitutional Medicine (SCM) in Traditional Korean Medicine (TKM). For the developing of this algorithm, we used the voices of 309 female speakers and extracted a total of 134 speech features from the voice data consisting of 5 sustained vowels and one sentence. The classification system, based on a rule-based algorithm that is derived from a non parametric statistical method, presents 3 types of decisions: reserved, positive and negative decisions. In conclusion, 71.5% of the voice data were diagnosed by this system, of which 47.7% were correct positive decisions and 69.7% were correct negative decisions.

Keywords: Voice Classifier, Sasang Constitution Medicine, Traditional Korean Medicine, SCM, TKM.

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469 Antecedents and Consequences of Social Media Adoption in Travel and Tourism: Evidence from Customers and Industry

Authors: Mohamed A. Abou-Shouk, Mahamoud M. Hewedi

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This study extends technology acceptance model (TAM) to investigate the antecedents and consequences of social media adoption by tourists and travel agents. It compares their perceptions on social media adoption and its consequences. Online survey was addressed to tourists and travel agents for data collection purposes. Structural equation modelling was employed for analysis purposes. The findings revealed that the majority of tourists and travel agents involved in the study believe in the usefulness of social media adoption for travel planning and marketing purposes. They agree that adopting social media could change the attitude of tourists towards specific destination or attraction and influence their purchasing decisions. This study contributes to knowledge by extending TAM and provides some managerial implication to marketers.

Keywords: TAM, social media, travel, tourism, travel agents.

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468 Learning to Recommend with Negative Ratings Based on Factorization Machine

Authors: Caihong Sun, Xizi Zhang

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Rating prediction is an important problem for recommender systems. The task is to predict the rating for an item that a user would give. Most of the existing algorithms for the task ignore the effect of negative ratings rated by users on items, but the negative ratings have a significant impact on users’ purchasing decisions in practice. In this paper, we present a rating prediction algorithm based on factorization machines that consider the effect of negative ratings inspired by Loss Aversion theory. The aim of this paper is to develop a concave and a convex negative disgust function to evaluate the negative ratings respectively. Experiments are conducted on MovieLens dataset. The experimental results demonstrate the effectiveness of the proposed methods by comparing with other four the state-of-the-art approaches. The negative ratings showed much importance in the accuracy of ratings predictions.

Keywords: Factorization machines, feature engineering, negative ratings, recommendation systems.

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467 The Emotions in Consumers’ Decision Making: Review of Empirical Studies

Authors: Mikel Alonso López

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This paper explores, in depth, the idea that emotions are present in all consumer decision making processes, meaning that purchase decisions have never been purely cognitive or as they traditionally have been defined, rational. Human beings, in all kinds of decisions, has "always" used neural systems related to emotions along with neural systems related to cognition, regardless of the type of purchase or the product or service in question. Therefore, all purchase decisions are, at the same time, cognitive and emotional. This paper presents an analysis of the main contributions of researchers in this regard.

Keywords: Emotions, decision making, consumer behavior.

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466 Operating Room Capacity Planning Decisions

Authors: Abdulrahim Shamayleh, John Fowler, Muhong Zhang

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Operating rooms are important assets for hospitals as they generate the largest revenue and, at the same time, produce the largest cost for hospitals. The model presented in this paper helps make capacity planning decisions on the combination of open operating rooms (ORs) and estimated overtime to satisfy the allocated OR time to each specialty. The model combines both decisions on determining the amount of OR time to open and to allocate to different surgical specialties. The decisions made are based on OR costs, overutilization and underutilization costs, and contribution margins from allocating OR time. The results show the importance of having a good estimate of specialty usage of OR time to determine the amount of needed capacity and highlighted the tradeoff that the OR manager faces between opening more ORs versus extending the working time of the ORs already in use.

Keywords: capacity planning, contribution margins, operating room, overutilization

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465 The Impact of Online Advertising on Generation Y’s Purchase Decision in Malaysia

Authors: Mui Joo Tang, Eang Teng Chan

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Advertising is commonly used to foster sales and reputation of an institution. It is at first the growth of print advertising that has increased the population and number of periodicals of newspaper and its circulation. The rise of Internet and online media has somehow blurred the role of media and advertising though the intention is still to reach out to audience and to increase sales. The relationship between advertising and audience on a product purchase through persuasion has been developing from print media to online media. From the changing media environment and audience, it is the concern of this research to study the impact of online advertising to such a relationship cycle. The content of online advertisements is much of text, multimedia, photo, audio and video. The messages of such content format may indeed bring impacts to its audience and its credibility. This study is therefore reflecting the effectiveness of online advertisement and its influences on generation Y in their purchasing behavior. This study uses Media Dependency Theory to analyze the relationship between the impact of online advertisement and media usage pattern of generation Y. Hierarchy of Effectiveness Model is used as a marketing communication model to study the effectiveness of advertising and further to determine the impact of online advertisement on generation Y in their purchasing decision making. This research uses online survey to reach out the sample of generation Y. The results have shown that online advertisements do not affect much on purchase decision making even though generation Y relies much on the media content including online advertisement for its information and believing in its credibility. There are few other external factors that may interrupt the effectiveness of online advertising. The very obvious influence of purchasing behavior is actually derived from the peers.

Keywords: Generation Y, online advertising, online media, persuasion, print media, purchase decision.

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464 Strategic Decision Making Practice in Croatia – Which Decision Making Style is More Effective?

Authors: Ivana Bulog

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Decision making is a vital part of the business world and any other field of human endeavor. Which way a business organization will take, and where that way will lead it, depends on broad range of decisions made by managers in the managerial structure. Strategic decisions are of the greatest importance for organizational success. Although much empirical research has been done trying to describe and explain its nature and effectiveness, knowledge about strategic decision making is still incomplete. This paper explores the nature of strategic decision making in particular setting - in Croatian companies. The main focus of this research is on the style that decision makers on strategic management level are following when making decisions of life importance for their companies. Two main decision making style that explain the way decision maker collects and processes available information and performs all the activities in strategic decision making process were empirical tested: rational and intuitive one. Besides analyzing their existence on strategic management level in Croatian companies, their effectiveness is analyzed as well. Results showed that decision makers at strategic management level are following both styles somewhat equally in order to function effectively, and that intuitive style is more effective when considering decisions outcomes.

Keywords: Decision making style, decision making effectiveness, strategic decisions.

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463 Relationships between Information Transparency, Corporate Governance and D&O Insurance

Authors: Shu-Lin Lin, Ching-Chien Yang

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This study examines the influence of information transparency and corporate governance on purchase directors and officers liability (D&O) insurance decisions. The results show that companies with greater information transparency have significant demand for D&O insurance. Greater transparency in voluntary disclosures is significantly and positively associated with demand for insurance, indicating that increasing the degree of information disclosure reduces information asymmetry for insurers, which stimulates their willingness to provide greater protection. Analysis of insured and uninsured subsamples indicates that uninsured companies have superior corporate governance compared to insured companies. Although insured companies tend to have weaker corporate governance structures, they appoint Big 4 firms or industry experts to compensate for the weakness of their corporate governance. Empirical results indicate that purchasing D&O insurance can strengthen external corporate governance and increase companies’ willingness to voluntarily provide more transparent information.

Keywords: Directors and officers liability (D&O) insurance, information transparency, corporate governance, Big 4.

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462 Justification and Classification of Issues for the Selection and Implementation of Advanced Manufacturing Technologies

Authors: Zahra Banakar, Farzad Tahriri

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It has often been said that the strength of any country resides in the strength of its industrial sector, and Progress in industrial society has been accomplished by the creation of new technologies. Developments have been facilitated by the increasing availability of advanced manufacturing technology (AMT), in addition the implementation of advanced manufacturing technology (AMT) requires careful planning at all levels of the organization to ensure that the implementation will achieve the intended goals. Justification and implementation of advanced manufacturing technology (AMT) involves decisions that are crucial for the practitioners regarding the survival of business in the present days of uncertain manufacturing world. This paper assists the industrial managers to consider all the important criteria for success AMT implementation, when purchasing new technology. Concurrently, this paper classifies the tangible benefits of a technology that are evaluated by addressing both cost and time dimensions, and the intangible benefits are evaluated by addressing technological, strategic, social and human issues to identify and create awareness of the essential elements in the AMT implementation process and identify the necessary actions before implementing AMT.

Keywords: Advanced Manufacturing Technology (AMT), Justification and Classification.

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461 Development of Decision Support System for House Evaluation and Purchasing

Authors: Chia-Yu Hsu, Julaimin Goh, Pei-Chann Chang

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Home is important for Chinese people. Because the information regarding the house attributes and surrounding environments is incomplete in most real estate agency, most house buyers are difficult to consider the overall factors effectively and only can search candidates by sorting-based approach. This study aims to develop a decision support system for housing purchasing, in which surrounding facilities of each house are quantified. Then, all considered house factors and customer preferences are incorporated into Simple Multi-Attribute Ranking Technique (SMART) to support the housing evaluation. To evaluate the validity of proposed approach, an empirical study was conducted from a real estate agency. Based on the customer requirement and preferences, the proposed approach can identify better candidate house with consider the overall house attributes and surrounding facilities.

Keywords: decision support system, real estate, decision analysis, housing evaluation, SMART

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460 Effect of Consumer Demographic Factors on Purchasing Herbal Products Online in Malaysia

Authors: G. Rezai, Z. Mohamed, M. N. Shamsudin, M. Z. Zahran

Abstract:

The availability of broadband internet and increased access to computers has been instrumental in the rise of internet literacy in Malaysia. This development has led to the adoption of online shopping by many Malaysians. On another note, the Government has supported the development and production of local herbal products. This has resulted in an increase in the production and diversity of products by SMEs. The purpose of this study is to evaluate the influence of the Malaysian demographic factors and selected attitudinal characteristics in relation to the online purchasing of herbal products. In total, 1054 internet users were interviewed online and Chi-square analysis was used to determine the relationship between demographic variables and different aspects of online shopping for herbal products. The overall results show that the demographic variables such as age, gender, education level, income and ethnicity were significant when considering the online shopping antecedents of trust, quality of herbal products, perceived risks and perceived benefits.

Keywords: Demographic factors, herbal products, Malaysian consumers, online shopping, Chi-square analysis

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