This thesis consists of three theoretical essays on the consumption and saving behavior of agents with unorthodox preference specifications in an uncertain environment. The first paper puts forward a model in which agents have heterogeneous priors with regard to their assessment of the underlying systemic risk. It considers the particular case of domestic agents being more pessimistic than financial markets. The second paper studies the effects of dynamic inconsistency in the consumption and saving decisions under systemic risk, assuming naive hyperbolic agents. The third paper investigates the joint consumption-savings and portfolio-selection problem under capital risk, assuming sophisticated hyperbolic discounting agents. Chapter 1 introduces an economy exposed to external stochastic shocks capable of triggering a crisis. We show that under the assumption of heterogeneity of beliefs, and in particular of pessimistic domestic consumers, it is possible to explain demand booms that arise on the back of policy responses even when the latter were not wealth improving. Quite the opposite, such an expenditure boom could be sparked in conjunction with a cycle of persistent current account deficits and debt accumulating dynamics that would result in higher future risk of collapse. Chapter 2 considers a setting in which time inconsistent agents discount utility flows with a hyperbolic function instead of a classic, exponential one. This feature effectively characterizes a consumer that is "present biased" or short-term impatient. The agent is assumed to be naive, in the sense that she does not internalize her time inconsistency problem. As opposed to the orthodox, exponential discounting model, our model is able to generate a negative relationship between the saving rate (or the current account) and the underlying risk premium. Chapter 3 solves the classic Merton (1969, 1971) problem of optimal consumption- saving and portfolio-selection in continuous time, assuming sophisticated but time-inconsistent agents with hyperbolic preferences as specified in Harris and Laibson (2008). We find closed-form solutions for the optimal consumption and portfolio allocation rules. The portfolio rule remains identical to the time-consistent solution with power utility with no borrowing constraints. However, the marginal propensity to consume out of wealth is unambiguously greater than the time-consistent, exponential case.

The plethora of diverse conceptualisations and operationalizations of confidence apparent in the literature suggests a gap in empirical endeavour in developing an established research methodology to create valid and reliable measures of confidence. This research seeks to create a 'consumer confidence in buying-decisions' scale regarding high-involvement products and/or services where consumer confidence is re-defined as anticipated certainty of past patterns recurring in future events, episodes and/or behaviours. This research also incorporates this new definition of confidence into the item generation methodology via a triangulation of qualitative and quantitative methods. This research is comprised of two distinct components. The first is a theoretical component, which examines the nature of consumer confidence in buying-decisions. Specifically, using established procedures from the measure development literature, a total of five instruments were derived employing extensive qualitative and quantitative research capturing consumers' confidence levels in their buying-decisions. The psychometric properties of dimensionality, reliability, and validity were confirmed through rigorous statistical analyses. The qualitative analyses were conducted on the data obtained from two focus groups, an experimental procedure followed by individual semi-structured interviews, and two review procedures. The second component is the quantitative approach that was used with self-administered surveys distributed to 421 Swansea university students (development sample), 33 Swansea university students (test-retest analysis) as part of the development stage of the consumer confidence in buying-decisions scale. The quantitative approach also involved the collection of self-administered surveys from a stratified sample of 311 non-student adults in Swansea area and from 36 couples (convergent validation). Exploratory and confirmatory analyses were conducted during both the development and the validation stages of the research to ensure the scale's reliability, convergent, discriminant and relative predictive validity and nomological validity. Those analyses were conducted to extend the current bank of knowledge in the confidence field while also ensuring the reliability and the validity of the consumer confidence in buying-decisions that was developed in this dissertation. The dissertation concludes with a discussion of the theoretical and managerial implications underpinning consumer confidence and related issues, as well as suggestions for further research.

In the field of complaining behaviour, self-confidence has long been recognized as an influential factor. However, in previous studies of complaining behaviour the construct of 'self-confidence' has not been distinguished according to general and specific conceptualizations, thus the present research efforts recognizes the refinement of self-confidence as important in order to comprehensively evaluate its effect on complaining behaviour. Thus, until now it has not been established whether: (i) this influence is attributed to general or specific self-confidence; (ii) the dis/agreement (in/congruence) involving general and specific modes of self-confidence has an effect on complaining behaviour; (iii) there is an interaction between general and specific self-confidence; and (iv) both types of self-confidence are of equal managerial relevance. This study represents the first attempt to address these gaps in the literature by delineating self-confidence as general and specific conceptualizations and examining their (individual and combined) effects on behavioural intention(s) to complain. Furthermore, an evolutionary/novel perspective has been adapted to provide an alternative explanation of the nature of general and specific self-confidence as well as their relationship.

The thesis aims at developing a structural equation model of the determinants of repeat online grocery shopping behaviour. In particular, it examines online grocery shopping behaviour, sample and characteristics of shoppers, identifies key constructs that are the determinants of online grocery repurchase behaviour, and formulates a structural equation model in terms of the key determinants. Previous key literatures related to online grocery shopping are first reviewed and a conceptual framework comprising the various hypotheses is proposed, and then empirically examined. Quantitative research method based on an online survey is employed and a total of 333 respondents form the sample for this research. Confirmatory factor analysis is used to assess the fit of the measurement model and to refine the constructs. Structural model is also employed to investigate any causal relationships among the constructs based on the proposed model and the hypotheses paths. With respect to the results of demographic profiles, online grocery shoppers are identified as women, age group of 18-34 years old, full-time workers, having a moderate income and higher educational level, and living with another adult without children. In addition, the results indicate that six constructs, perceived usefulness, perceived ease of use, shopping enjoyment in a store, social influence, post-purchase attributive satisfaction and attitudes towards online grocery shopping, are involved in the consumer’s repeat online grocery shopping behaviour. Moreover, the proposed theoretical framework has all consistent and valid scales for each of the constructs, and the measurement model for each construct shows good measures of fit explaining data reasonably well. Associated with the structural model, it is found that the construct of post-purchase attributive satisfaction has the strongest direct effect on consumers’ attitudes towards online grocery shopping, and the strongest both direct and indirect effects on consumers’ repeat online grocery purchasing intentions. Indirect route is developed through consumer’s attitude although this route is much weaker than that from direct relationship.

This thesis has explored a behavioural perspective on social marketing involving volunteering. Research on volunteering is important because it addresses people from whom charitable organisations obtain help (the time donors). The focus of this study was to investigate the extent to which young volunteers perform voluntary service in the project to which they have committed themselves and for the full project period of the activities. The Theory of Planned Behaviour (TPB) was used as the core theoretical framework of this study. Four additional variables which have been used in TPB-based investigations (and which are related to behaviours relevant to social marketing) were brought to the conceptual framework, they are: personal norm, ascription of responsibility, affect, and self-identity. The constructs 'empathy' and 'altruism' were used to compare groups of volunteers. The 'Interpersonal Reactivity Index' was employed to assess empathic concern and perspective taking, whereas the 'Prosocial Tendencies Measure' was employed to assess the altruistic prosocial behaviour. An on-line questionnaire was sent to the volunteers of a charitable organisation which organises projects to young people and 237 usable replies were obtained (time 1). Information on the behaviour of 161 survey participants was provided by the coordinators of the projects after their conclusion (time 2). Follow-up interviews helped to unearth the main reasons for drop-outs and lack of volunteering commitment. Results indicate that subjective norm predicts volunteering behaviour for the full project period over and above the contributions from behavioural intention. An integrated model is proposed to explain the relationships amongst volunteering behaviour and the other variables. Levels of empathy and altruism have not significantly distinguished between high and low committed volunteers. The study concludes that the continued volunteering of young donors is mainly driven by the social group and that they perform voluntary service for both egoistic and altruistic motives.

For the last few decades the importance of customer orientation for the success of service organisations has been emphasised in the academic and applied literatures. While the importance of the concept remains largely beyond dispute, scholars have suggested various definitions and applications of the concept to enhance service delivery. The purpose of this thesis is to examine an explicit behavioural perspective (COBEH) where the focus is not on an untangle service orientations of employees, but on the extent to which employees engage in direct behaviours specifically designed to benefit customers. This study was designed to examine empirically, for the first time, the nature, impact and development of the COBEH construct. First, the nature of COBEH was examined by a series of employee surveys from various service industries. The construct was examined in relation to the already established organisational citizenship behaviour (OCB) construct to determine if and to what extent the constructs are related and predictive of employee service-related behaviours. In this part of the study there were 2693 participants from seven Icelandic service organisations. Secondly, the impact of COBEH was examined by using employee and customer survey data from one of the seven participating service organisations (N=103). Employees' self-reported customer-oriented behaviour was compared with customer perceptions of the corresponding employee performance. Data on employee service performance was provided by two customer surveys including 900 customer responses in each survey. The employee and customer surveys provided a unique opportunity to match employee self-reports and customer perceptions. Thirdly, the development of COBEH was empirically tested by using both the employee and customer surveys where the antecedents of COBEH were examined (N=1190) and the impact of a customer service training programme on COBEH and the suggested antecedents were tested (N=71). Hence, this study addressed a gap in the literature between human resource practices and individual performance and establishes the COBEH construct as a valid and reliable predictor of customer perception of service outcomes. The results presented in this thesis show that the COBEH phenomenon is related to organisational citizenship behaviour (OCB) and that contrary to the OCB construct, it is predictive of customers' perceptions. COBEH is constructed of two related but separate sub-dimensions: helping behaviours directed at customers and continuous improvement efforts to enhance service delivery. The results suggest that the type of service may affect the construct's factor structure. The results confirm previous findings regarding the suggested antecedents of COBEH, but provide additional information regarding the differences in the underlying conditions for the two sub-dimensions. Both dimensions are impacted by motivational and capacity factors, but the two sub-dimensions are not a function of the exact same antecedents. A significant interaction was detected between employee willingness and capacity in regards to employee customer-oriented behaviours: as job capacity increases, the impact of employee willingness to engage in efforts on behalf of customers decreases. Organisations wanting to develop customer-oriented behaviours to enhance service delivery must take into consideration differences in the impact of the antecedents on the subdimensions and strategically use selection, socialisation, service training programmes and supportive managerial practices to create the conditions necessary for such behaviours to be cultivated and maintained. Furthermore, the results confirm the positive impact of customer-oriented behaviours on customer service perceptions, establishing the construct as a valid predictor of perceived service quality. It is believed that service delivery through full utilisation of human resources will become the major tool for competitive advances in the coming years. Thus, the importance of the COBEH construct will be enhanced in the new millennium as future examination and application of the construct will aid service organisations in their continuous search for a competitive advantage.

This thesis investigates a few examples of customer-supplier and worker-employer relationships which are thought to be important to macroeconomic analysis. Among the literature on sticky price, we suggest that the theory of mark-up pricing and the theory of customer-supplier relationships advocated by Okun (1981), deserve more attention. We also suggest that there are at least three hypotheses implicit in the mark-up equation: (1) a sticky pricing response to demand shocks; (2) a relatively fast pricing response to cost shocks; and (3) 1 % change in average cost will cause an equiproportionate rise in price. In Chapter 2, a reputation cost of changing price is used to summarize Okun's discussion on suppliers' tendency to pledge the constancy of price for some reasonably long period (a type of customer-supplier relationship). A microfoundation model is then built to investigate the three hypothesis in details. With regard to the first hypothesis, it is shown that (a) the reputation cost of changing price; (b) uncertainties about the persistence and generality of an observed demand shock; and (c) their interactions can jointly account for an extensive degree of price stickiness. We also explain that such a modelling of price stickiness could be more convincing than that by the Menu Cost Hypothesis. With regard to the second and third hypotheses, our conclusion is positive in the sense that it is a good approximation, but negative in the sense that it is at most an approximation. We then specify the conditions under which the mark-up equation can be used in macroeconomic analysis. In our discussion of hypothesis 2, we also touched upon the evolution of the practice of cost-oriented, as opposed to demand-oriented, pricing. In Chapter 3, we start with the justification of an implicit, non-binding guarantee of employment for those within the firms (a type of worker-employer relationship). A dynamic programming model is then built to investigate the employment response of the representative employer to demand shocks. It is found that: (a) In the case of mild negative demand shock, the producer will hoard the excessive amount of labour, and production effort will be the variable of adjustment; (b) In the case of adverse negative demand shock, the producer will break the implicit guarantee of employment and make considerable amount of layoffs. From the point of view of maintaining employment, it is always better to stimulate the economy before, rather than after, the layoffs. Mild stimulation policies after the layoffs will have no effect on employment. Chapter 4 attempts to provide an estimate of the cost of changing price. It was found that the cost is much larger than can be explained by the Menu Cost Hypothesis. The estimation also provides some evidence against the Normal Cost Hypothesis. Finally, Chapter 5 is a simulation exercise to check whether Caplin and Spulber's neutrality result, arising from the disappearance of price stickiness on aggregation, can be applied to some more general specifications.

The last decade has seen the emergence of customer relationship management (CRM) as a technique to underpin organisational performance improvement in improving customer retention, customer satisfaction and customer value. However, evidence suggests that many CRM initiatives fail to achieve desired results. So far, however, empirical research is scarce. The study is therefore an exploratory investigation into the CRM implementation based on a holistic view. This includes: a comprehensive scrutiny of the relevant literature; a comprehensive analysis of case studies of CRM implementations in 81 organisations . presented in the literature, in order to arrive at the most critical factors of CRM implementation and their degree of criticality; exploratory global survey of 85 organisations in 18 countries that have already implemented or are in the process of implementing CRM; finally in-depth studies of five leading organisations to understand how CRM implementation processes and the critical factors identified are being addressed in the real world. The study identifies 15 critical factors that must be carefully considered in the CRM implementation to achieve a successful project. Six dominant factors: developing a customer-centric strategy, executive sponsorship, organisational change, communication, project planning and management and business justification stood out as the most effective. Based on the major empirical findings, the study proposes a generic holistic model for effective CRM implementation which contains essential elements that contribute to project success.

Business to Business Electronic Commerce (B2B EC) has over 20 years experienced unprecedented growth in practice. Practice has generated many theories, models, and frameworks. The extensive literature review curried out during this research a) has investigated the origins, the terms and the concepts of business models; b) has studied the architecture of existing models used for B2B EC, and c) has evaluated the frameworks in current use for the change and development of business models. The findings show that there is a huge variety of concepts, terminology, and definitions of the architectural components used to present business models. It has showed that overlaps and gaps exist between these concepts as each, researcher and practitioner tends to focus only on a specific aspect of the business model. The result is a mix of concepts with the same meanings but different names and vice versa. Also, traditional solutions have failed to successfully support the development of a business model for e-commerce as they do not provide full and complete support (at not enough level of detail), but only provide general guidelines or steps described in quite brief terms. This research focuses on the development of a framework for the architecting of e-business models, especially those used for B2B EC. A mixed research methodology was adopted using both qualitative and quantitative methods. In order to address the limitations identified, this research, classifies, rationalises and standardises business model architectural concepts into four thematic architecture domains namely: business, data/information, application, and technology. This new conceptualisation approach is the main axis of the proposed framework that enables the achievement of two goals a) to define the business model architecture for e-business and b) to support the process for construction/reconstruction of an e-business model. In particular, this research proposes a conceptual notation necessary for the description of business model architecture (BMA) and a business model architecture framework (BMAF) for developing e-business models. This research contributes to a broader understanding and enrichment of the B2B EC body of knowledge, and also expects to assist the different stakeholders (managers, business/IT consultants, IS designers) in representing an e-business strategy, designing the business model architecture and building e-business applications, appropriate (fit for purpose) for their business area. Finally, the developed framework (BMAF) was validated by a) using a web-based survey to evaluate the desing of the framework by experts and practitioners, b) applying the framework to two real world case studies to test and evaluate its validity and the applicability and c) carrying out interviews with the case studies’ stakeholders in order to establish how well the BMAF performs its objectives. The findings helped to revise, refine and finalise the framework.

The intent of this thesis is to understand Data Mining technique effectiveness in both shallow (RFM variable only) and expanded data environments. The thesis addresses two specific gaps in research: (1) the relationship between customer selection techniques and performance and (2) the effects of using different depths of data on performance. In shallow-data contexts stepwise logit and neural networks provided the greatest cumulative lift and outperformed both RFM and CHAID across all top deciles. However, RFM shows the second highest fit measure, illustrating its relative stability in predicting outcomes. In addition, the RFM technique performance was tested using both one-month and 12-month time series. The 12-month series performed better and showed a greater level of fit. The subsequent study comparing technique effectiveness under expanded variable sets demonstrated an even more significant and visible lift increase versus the RFM technique. Looking at logistic regression, CHAID and neural networks, the lifts and gains obtained at the first two deciles provide enough response lift to allow these techniques’ cumulative performance to surpass RFM well past decile five into decile six. From a cumulative perspective, the strong performance of logit and ANN allow these techniques to outperform CHAID in deciles one and two, but as of decile three, cumulative performance of all three advanced techniques becomes virtually identical. Though CHAID remains the technique with the best fit performance, RFM fit value falls to last place once an expanded variable set is introduced. Furthermore, both logistic and ANN performance increases significantly, and though they remain very close from an overall Gini and PCC score perspective, the logistic regression outperforms ANN when using expanded data. In both studies, dimensionality reduction plays a role in optimising model response. In limited data sets, logit applications reduced data to achieve better response, whereas in extended data sets, all models applied reductions. These findings contribute to the growing literature on customer selection techniques and provide a specific contribution to data mining, RM, segmentation and marketing practice by demonstrating how these techniques can be used for better consumer selection for purposes of customer development in FMCG retail.