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The IUP Journal of Management Research

January '09
Focus

This issue deals with topics such as building a model for purchase decision of laptops, halo effect in trust, assessing the performance of the stakeholders of microfinance programs

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Building a Model for Purchase Decision of Laptops and Price-Performance Analysis of Major Players
Halo Effect in Trust
Assessing the Performance of the Stakeholders of Microfinance Programs
Motives Behind the Use of Social Networking Sites: An Empirical Study
Competency Mapping and Managing Talent
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Building a Model for Purchase Decision of Laptops and Price-Performance Analysis of Major Players

-- Subhasis Ray

The laptop industry is booming in India and this has attracted major players (domestic as well as MNCs). The advent of new technologies available at a cheaper rate also augurs well for the consumers. This paper aims to understand the present usage pattern (mainly in the city of Kolkata), extracting factors that influence the consumers' buying decisions and their relative importance. Also top-of-the-mind recall analysis has been conducted to see present standings of various laptop brands. A comparative analysis has been done to know the price-performance of various brands with respect to chosen configuration. Finally, the model for customer purchase decision as a function of the customers' perception about the company, i.e., brand, quality, service, etc. (p1), the price of the offer (p2), product features (p3), promotional offers (p4) and market maturity (p5) have been validated and strategies have been worked out.

Halo Effect in Trust

-- R C Natarajan

Trust-literature considers goodwill trust and competence trust as two distinct types of trust. Many well-known scholars have mentioned the two bases of trust as being different. However, the veracity of this distinction does not seem to have been addressed by researchers. This paper suggests an experiment to test whether the two types of trust are indeed distinct, and the results throw up a surprising finding that they are very highly and positively related, and hence, not distinct. Principal's perception of agent's trustworthiness does not seem distinctly clear-cut as competence-based or goodwill-based, despite scholars' mentioning them as different. The paper offers a plausible explanation through the concept of `halo effect'. The contribution of this paper to management practice lies in bringing out the presence of halo effect in trust that may well indicate the possible wastage of resources in superfluous controls and/or the failure to implement appropriate controls required.

Assessing the Performance of the Stakeholders of Microfinance Programs

-- V R Nedunchezian and N Sivasankaran

This paper discusses the need for identification of the stakeholders of the microfinance programs, besides suggesting a list of parameters to be considered in assessing the performance of these stakeholders. The stakeholders of the microfinance industry include the below poverty line families, the microfinancial institutions, the affinity groups, the mainstream financial institutions, the regulatory authorities and the companies which avail the benefits by linking their businesses to the microcredit channels. The paper also reveals the research areas for the microfinance participants and the academia, who are pursuing research in the microfinance domain.

Motives Behind the Use of Social Networking Sites: An Empirical Study

-- Kartikeya P Bolar

Social networking sites are web-based services which allow individuals to create profiles, articulate and communicate with others. This paper identifies seven motives behind the use of social networking sites and discusses factors such as frequency of use and influence of social networking sites on the lives of users.

Competency Mapping and Managing Talent

-- Farah Naqvi

The performance of companies depends mostly on the quality of their human resource. For obvious economic and business reasons, organizations have always been concerned about the competence of its people. This paper seeks to delve deeper into the concept of competency, tracing its history and its role in the present context. It explains how the concept has constantly evolved over the years, its applications in human resource management, and development in the present scenario. It also aims to study its future prospects in the light of other emerging areas like talent management. The paper proceeds with the examples of companies, which have successfully integrated competency-based systems in their HR initiatives.

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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