Factors influencing the evolution of e-commerce : an empirical analysis in a developed market economy

Peer-reviewed

The use of non-animal alternatives in the safety evaluations of cosmetics ingredients by the Scientific Committee on Consumer Safety (SCCS)

In Europe, the safety evaluation of cosmetics is based on the safety evaluation of each individual ingredient. Article 3 of the Cosmetics Regulation specifies that a cosmetic product made available on the market is to be safe for human health when used normally or under reasonably foreseeable conditions. For substances that cause some concern with respect to human health (e.g. colorants, preservatives, UV-filters), safety is evaluated at the Commission level by a scientific committee, presently called the Scientific Committee on Consumer Safety (SCCS). According to the Cosmetics Regulations, in the EU, the marketing of cosmetics products and their ingredients that have been tested on animals for most of their human health effects, including acute toxicity, is prohibited. Nevertheless, any study dating from before this prohibition took effect is accepted for the safety assessment of cosmetics ingredients. The in vitro methods reported in the dossiers summited to the SCCS are here evaluated from the published reports issued by the scientific committee of the Directorate General of Health and Consumers (DG SANCO); responsible for the safety of cosmetics ingredients. The number of studies submitted to the SCCS that do not involve animals is still low and in general the safety of cosmetics ingredients is based on in vivo studies performed before the prohibition.

Learning in Consumer Behaviour

Tämän kandidaatintyön tavoitteena on esittää kuvaus kulutusoppimisen teorioista ja tämän lisäksi kuvata käytännön sovelluksia liittyen kulutuskäyttäytymiseen ja mainontaan. On olemassa kaksi keskeistä ajattelutapaa liittyen oppimisen teorioihin. Ensimmäisen suuntauksen kannattajat näkevät oppimisen puhtaasti behavioristisena, eli että se on seurausta toistoista, ja siten ne näkevät yksilön "mustana laatikkona", jossa syötteenä on ärsyke ja suoritteena on tietty käytös. Toisen suuntauksen kannattajien mielestä oppiminen on kognitiivinen prosessi; kaikista yksinkertaisimmista tapauksista lähtien yksilö prosessoi informaatiota ratkaistakseen omia ongelmiaan. Käytännössä kumpaakin teoriaa tarvitaan selittämään oppimista ilmiönä, koska oppiminen on yhdistelmä toistoja ja kognitiivisia prosesseja. Työmme näyttää kuinka markkinoijat hyödyntävät näitä kahta teoriaa käytännössä mainonnassaan, tarkoituksenaan tuotemerkkinsä ja tuotteidensa asemointi markkinoilla suhteessa kilpailijoihinsa.

Predicting Market Crashes: An Examination of the Performance of Macroeconomic Indicators and Technical Analysis

The purpose of this study is to examine macroeconomic indicators‟ and technical analysis‟ ability to signal market crashes. Indicators examined were Yield Spread, The Purchasing Managers Index and the Consumer Confidence Index. Technical Analysis indicators were moving average, Moving Average Convergence-Divergence and Relative Strength Index. We studied if commonly used macroeconomic indicators can be used as a warning system for a stock market crashes as well. The hypothesis is that the signals of recession can be used as signals of stock market crash and that way a basis for a hedging strategy. The data is collected from the U.S. markets from the years 1983-2010. Empirical studies show that macroeconomic indicators have been able to explain the future GDP development in the U.S. in research period and they were statistically significant. A hedging strategy that combined the signals of yield spread and Consumer Confidence Index gave most useful results as a basis of a hedging strategy in selected time period. It was able to outperform buy-and-hold strategy as well as all of the technical indicator based hedging strategies.

Consumer Attitudes on Aroma Printing

Olfactory packaging is an emerging technology which uses the aromatic capsules to release various scents. Normally, manufacturers add these aromatic capsules in the printing ink, the label or packaging material itself. When the aromatic capsules meet suitable release triggers, the scents will be released. The common release triggers are external forces, temperature changes, humidity changes and so on. The aim for this Masters of Science Thesis is to understand the aroma printing technology from literature and make market research for this kind of technology. The main target is to collect the current technology principle of aroma packaging and figure out how they are implemented on products with those. In addition, an investigation is made about consumers' attitudes from Chinese and Finnish market through the questionnaire, and the market potential is analyzed as well. The key points researched in this work are: the general attitudes on aroma printing technology, market potential and economic possibilities. This thesis specifies the main technologies used in aroma printing, the solutions of products with aroma packaging and the original results of the questionnaires. It also includes analysis of the acceptance of Chinese and Finnish consumers, what are their opinions of the aroma printing technology and the products packed by aroma printing technology. In addition, various factors which impact the market is discussed in the thesis. At last, some comparisons are made from the point of views of similarities and differences between Chinese and Finnish market.

The purpose of consumer co-operation: implications for the management and governance of co-operatives

Extant research on consumer co-operation has acknowledged that the corporate purpose of consumer co-operatives deviates significantly from the purpose of investor-owned firms (IOFs – the dominant form in market economies and in theory development in the field of business economics) and also suggested that the management of consumer co-operatives differs from the management of IOFs. Despite this, there is a scarcity of research focusing on the management of consumer co-operatives in general and the ways this different purpose manifests in their management in particular. In other words, research on consumer cooperatives has only started to discover the importance of identifying the premises of these organizations and generating management and organization theories that take them into account. The overall objective of this study is to map out some of the implications that the purpose of consumer co-operation has for the management and governance of consumer co-operatives. To put it more precisely, by combining interview data gathered from Finnish consumer cooperatives (S Group, OP Bank Group and POP Bank) and extant literature, this study aims to generate or elaborate on definitions and outlines of the features that co-operative purpose poses for the strategic management, governance and managerial competence needed for consumer co-operatives. The study consists of two parts. The first part introduces the research topic, methods and publications, as well as discusses the overall outcomes. The second part consists of four publications that address the research questions from different viewpoints. The analyses of this study indicate that due to the purpose of consumer co-operation, the roles of locality and regionality become emphasized in their management. While locality and regionality are potential sources of competitive advantage for consumer co-operatives, geographic boundness sets significant boundary conditions for the strategic management of these organizations. Further, the purpose of consumer co-operation may pose several challenges to governance and set specific competence demands for the managers of these organizations. Associating the observations from various streams of research on management and governance with the purpose of consumer co-operation and examining these issues further, the thesis contributes to elaboration of theory in the field. While the thesis is by no means comprehensive (but instead reflects a co-operative research project in its early stages), it does shed light on some key ideas of management and governance and offers leads to theory and, thereby, will prove useful to elaborators, disseminators and appliers of knowledge on co-operation.

Launching the product innovation to a market: case study from a dairy industry

In the environment of ever-changing needs of customers, technologies and competitors, the survival of the company depends on how well it researches, develops and implements new products to the market. The need for development of new products relates to many factors: globalization, international competition which is now underway on a global scale, scientific advances and development of production, changes in consumer preferences and consumer behavior. In this study the focus is on the company form a dairy products industry. This study is aimed to defining the role of product innovation launch strategy in an overall enterprise strategy, and to select the optimal combination of its marketing tools. The main purpose of this study is to determine place and the role of innovative marketing based in the innovation process, and to determine launch and positioning strategies in the general concept of an innovative product. The object of the study is the Russian enterprise, which is aimed to achieve a competitive advantage through the continuous production of new products, upgrade existing ones and improve innovation management practices. Research showed that the differentiation strategy is suitable for launching the dairy industry product innovation to a market.

Target audience and message alignment for integrated marketing communication of luxury products: entering the Chinese market

The purpose of this study is to identify opportunities to match marketing communication message strategies with the target audience characteristics in the Chinese luxury market entry context. Therefore, consumer behaviour and psychographic marketing segmentation fields are being reviewed in a holistic view in order to identify the similarities and connection points. Through the analysis of the messages in advertisements placed in a certain luxury and fine living magazine, message creation strategies are being anticipated.

Entry Modes of Finnish Food Enterprises in Chinese Market

China’s phenomenal economic growth and social development have brought along interesting opportunities for Finnish companies. One intriguing sector offering significant growth potential is the food industry. Due to the local food safety issues, rising disposable income level and changing consumer habits, the demand for foreign food is increasing. Finnish food companies have much to offer in terms of high quality, food safety in production, technological development and innovation. The purpose of this study is to examine how the Finnish food enterprises choose their entry modes in the Chinese market. This study increases understanding of entry modes the Finnish companies can use to successfully enter the unpredictable market of China in the food industry context. The study examines the industry specific challenges and the possible solutions to them. Qualitative research is selected as research methodology for this study because the intention is to understand the reasons behind the Finnish food enterprises’ entry mode choices in the Chinese market. The study is conducted as a qualitative case analysis. Six Finnish case companies operating in the food industry were interviewed. The results of the research indicate that most of the food industry companies use exporting as their entry mode to China; only one case company used an investment mode. This study illustrates the significance of the factors related to company’s background, mode concerns and Chinese market influences in the entry mode choice.

Consumer preferences of genetically modified foods of vegetal and animal origin in Chile

Given the debate generated by Genetically Modified (GM) foods in developed and developing countries, the aim was to evaluate the importance of determining factors in the preference of consumers in Temuco and Talca in central-southern Chile for GM foods using conjoint analysis and to determine the existence of different market segments using a survey of 800 people. Using conjoint analysis, it was established that, in general, genetic modification was a more important factor than either brand or price in the consumer's decision to purchase either food. Cluster analysis identified three segments: the largest (51.4%) assigned greatest importance to brand and preferred genetically modified milk and tomato sauce; the second group (41.0%) gave greatest importance to the existence of genetic manipulation and preferred non-genetically modified foods; the smallest segment (7.6%) mainly valued price and preferred milk and tomato sauce with no genetic manipulation. The three segments rejected the store brand and preferred to pay less for both foods. The results are discussed based on studies conducted in developed and developing countries.

Sugarcane spirit market share simulation: an application of conjoint analysis

This study evaluated the influence of packaging and labeling attributes of sugarcane spirit on consumers' behavior by applying the results of conjoint analysis in sugarcane spirit market share simulation. Firstly, a conjoint analysis was performed aiming to estimate the part-worths of each consumer for some sugarcane spirit packaging and labeling attributes. These part-worths were used in the market share simulation using the maximum utility model. It was observed that some packaging and labeling attributes affected consumer's purchase intention and that most consumers showed a similar preference pattern regarding these attributes. These consumers showed preference for the Seleta brand, which was bottled in 700 mL clear glass bottles with a metal screw cap that bore a label illustration unrelated to sugarcane spirit production process and had the information "aged 36 months in oak barrels". This study also showed that conjoint analysis and the use of its results in the market share simulation proved important tools to better understand consumer behavior towards intention to purchase sugarcane spirit.

Digital Exhaustion in relation to Video Games – The Consumer Perspective

This thesis regards exhaustion of copyright’s distribution right in intangible transfers of video games. It analyses whether, under the current law of the European Union, the phenomenon of digital exhaustion, especially in relation to games exists. The thesis analyses the consumers’ position in the market for copyright protected goods. It uses video games market as an example of the wider phenomenon of the effect of latest technological developments on consumers. The research conducted for the thesis is mostly legal dogmatic, although also comparative analysis, law and economics and law and technology methods are utilised. The thesis evaluates the effects of the most recent case law of the European Court of Justice to analyse the current state of digital exhaustion. In the analysis of effects that the existence of digital exhaustion has, the thesis uses the consumers’ point of view. The thesis introduces the current state of technology in the field of video games from a legal perspective. Furthermore the thesis analyses the effects on consumers of a scenario that no digital exhaustion exists in the future. Such scenario under the recent European case law at the moment seems realistic. The conclusion of my research is most importantly that the consumer position in the market for digital goods has deteriorated and that the probable exclusion of the exhaustion for digital goods is another piece of evidence of this development. Most importantly however, the state of affairs where no certainty prevails on whether digital exhaustion exists, creates injustice from the consumers’ point of view. Accordingly, acts by EU legislators of the Court of Justice of the European Union are required to clarify the issue.

TAKING ADVANTAGE OF THE LOCAL ADVANTAGE? - Investment value of the analyst local advantage in the Finnish stock market in 2006–2014

An investor can either conduct independent analysis or rely on the analyses of others. Stock analysts provide markets with expectations regarding particular securities. However, analysts have different capabilities and resources, of which investors are seldom cognizant. The local advantage refers to the advantage stemming from cultural or geographical proximity to securities analyzed. The research has confirmed that local agents are generally more accurate or produce excess returns. This thesis tests the investment value of the local advantage regarding Finnish stocks via target price data. The empirical section investigates the local advantage from several aspects. It is discovered that local analysts were more focused on certain sectors generally located close to consumer markets. Market reactions to target price revisions were generally insignificant with the exception to local positive target prices. Both local and foreign target prices were overly optimistic and exhibited signs of herding. Neither group could be identified as a leader or follower of new information. Additionally, foreign price change expectations were more in line with the quantitative models and ideas such as beta or return mean reversion. The locals were more accurate than foreign analysts in 5 out of 9 sectors and vice versa in one. These sectors were somewhat in line with coverage decisions and buttressed the idea of local advantage stemming from proximity to markets, not to headquarters. The accuracy advantage was dependent on sample years and on the measure used. Local analysts ranked magnitudes of price changes more accurately in optimistic and foreign analysts in pessimistic target prices. Directional accuracy of both groups was under 50% and target prices held no linear predictive power. Investment value of target prices were tested by forming mean-variance efficient portfolios. Parallel to differing accuracies in the levels of expectations foreign portfolio performed better when short sales were allowed and local better when disallowed. Both local and non-local portfolios performed worse than a passive index fund, albeit not statistically significantly. This was in line with previously reported low overall accuracy and different accuracy profiles. Refraining from estimating individual stock returns altogether produced statistically significantly higher Sharpe ratios compared to local or foreign portfolios. The proposed method of testing the investment value of target prices of different groups suffered from some inconsistencies. Nevertheless, these results are of interest to investors seeking the advice of security analysts.

TAKING ADVANTAGE OF THE LOCAL ADVANTAGE? - Investment value of the analyst local advantage in the Finnish stock market in 2006–2014

An investor can either conduct independent analysis or rely on the analyses of others. Stock analysts provide markets with expectations regarding particular securities. However, analysts have different capabilities and resources, of which investors are seldom cognizant. The local advantage refers to the advantage stemming from cultural or geographical proximity to securities analyzed. The research has confirmed that local agents are generally more accurate or produce excess returns. This thesis tests the investment value of the local advantage regarding Finnish stocks via target price data. The empirical section investigates the local advantage from several aspects. It is discovered that local analysts were more focused on certain sectors generally located close to consumer markets. Market reactions to target price revisions were generally insignificant with the exception to local positive target prices. Both local and foreign target prices were overly optimistic and exhibited signs of herding. Neither group could be identified as a leader or follower of new information. Additionally, foreign price change expectations were more in line with the quantitative models and ideas such as beta or return mean reversion. The locals were more accurate than foreign analysts in 5 out of 9 sectors and vice versa in one. These sectors were somewhat in line with coverage decisions and buttressed the idea of local advantage stemming from proximity to markets, not to headquarters. The accuracy advantage was dependent on sample years and on the measure used. Local analysts ranked magnitudes of price changes more accurately in optimistic and foreign analysts in pessimistic target prices. Directional accuracy of both groups was under 50% and target prices held no linear predictive power. Investment value of target prices were tested by forming mean-variance efficient portfolios. Parallel to differing accuracies in the levels of expectations foreign portfolio performed better when short sales were allowed and local better when disallowed. Both local and non-local portfolios performed worse than a passive index fund, albeit not statistically significantly. This was in line with previously reported low overall accuracy and different accuracy profiles. Refraining from estimating individual stock returns altogether produced statistically significantly higher Sharpe ratios compared to local or foreign portfolios. The proposed method of testing the investment value of target prices of different groups suffered from some inconsistencies. Nevertheless, these results are of interest to investors seeking the advice of security analysts.

Precursors and prices : structuring the Quebec synthetic drug market

Information recueillie sur les marchés des drogues de synthèse est beaucoup moins avancée que les études sur d'autres marchés de drogues illicites. La classification relativement récente des drogues de synthèse comme substances illicites, couplée avec ses caractéristiques distinctes qui empêchent son observation, a entravé le développement d’évaluations complètes et fiables des caractéristiques structurelles des marchés. Le but de cet article est de fournir un aperçu fiable sur la dynamique interne du marché des drogues synthétiques, en particulier sur ses caractéristiques structurelles et organisationnelles. En utilisant l'information obtenue à partir de 365 drogues de synthèse saisies par les policiers pendant un an, cette étude sera la fusion de deux techniques, soit la composition des drogues illicites et des analyses économiques, afin de tirer des évaluations fiables des caractéristiques structurelles du marché du Québec de drogues synthétiques. Les résultats concernant l'analyse de la composition des drogues indiquent que le marché des drogues synthétiques au Québec est probablement composé d'un nombre élevé de petites structures, ce qui indique un marché compétitif. L'analyse économique a également fourni des informations complémentaires sur le marché des drogues. Selon la région géographique les couts de la production et les relations entre trafiquant et consommateur influencent le prix des drogues. Les résultats de cette recherche mettent l'accent sur la nécessité de concevoir des politiques qui tient compte des différences régionales dans la production de drogue et reflète la nature compétitive de ce marché.