Purpose -Trust is essential for business relationships within a supply chain, and information sharing provides a key means to improve the efficiency of a supply chain. The purpose of this paper is to test empirically the relationship between trust and manufacturer-supplier information sharing to determine its (positive) effect on mass customization. Design/methodology/approach -The data come from 208 firms in North America and China. Structural equation modeling supports the data analysis. Findings -The results suggest that high mutual trust can lead to free information sharing between suppliers and manufacturers, which in turn leads to improved mass customization capabilities. In addition, cultural differences have significant moderating effects on the relationship between trust and information sharing. Originality/value -The study described in this paper measures mutual trust between manufacturers and suppliers and regards information sharing as the free flow of information, both to and from the manufacturer and supplier.
This study examines the association between when an airline sells its passenger seats and the pricing method (marginal cost or full cost) it employs. Prior literature suggests that when firms are able to change prices during the selling period, the optimality of full cost pricing or marginal cost pricing depends on when demand information is revealed during the period between capacity commitment decisions and time of sale. Full cost-based pricing is appropriate in determining capacity commitment and prices simultaneously, while marginal cost provides more relevant information for pricing when capacity has been committed. Using the price and cost data from a sample of four U.S. domestic airlines, we find that full cost explains price variations of first-day sales robustly. The adjusted R 2 of the marginal cost pricing model is larger in the sample of sales two days prior to departure than in the sample of first-day sales. In the analysis of the sample of sales two days prior to departure, we find that, based on the adjusted R 2 of the full cost pricing and marginal cost pricing models, the explanatory power of marginal cost pricing is relatively weaker than full cost pricing. Our results document the use of different cost information along the dynamic change of price and provide implications in understanding the role of cost information in setting prices.
MOMENT DE LA VENTE, ÉTABLISSEMENT DES PRIX ET INFORMATION RELATIVE AUX COÛTS: LE CAS DE L'INDUSTRIE AÉRIENNE RÉSUMÉLes auteurs e´tudient le lien entre le moment ou`une ligne ae´rienne vend ses sie`ges passagers et la me´thode d'e´tablissement des prix qu'elle emploie (fonde´e sur les couˆts marginaux ou sur le couˆt complet). Les e´tudes pre´ce´dentes semblent indiquer que, lorsque les socie´te´s sont en mesure de modifier les prix au cours de la pe´riode de vente, l'efficacite´optimale de la me´thode du couˆt complet ou de la me´thode des couˆts marginaux dans l'e´tablissement des prix de´pend du moment ou`l'information relative a`la demande est re´ve´le´e, au cours de la pe´riode qui se´pare les de´cisions relatives a`la mobilisation de la capacite´et le moment de la vente. La me´thode du couˆt complet est approprie´e a`la de´termination simultane´e de la capacite´a`mobiliser et des prix, alors que la me´thode des couˆts marginaux fournit de l'information plus pertinente aux fins de l'e´tablissement des prix une fois la capacite´mobilise´e. En e´tudiant les donne´es * We would like to thank CMA
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