CONVERGENCE IN MISSISSIPPI a SPATIAL APP

ADAMS ALKHAFAJI EDITORS BUSINESS RESEARCH YEARBOOK Volume XIII 2006 BUSINESS RESEARCH YEARBOOK Global Business Perspectives VOLUME XIII 2006 International Academy of Business Disciplines Cover Design by Tammy Senath ISBN 1-889754-10-2 MARJORIE G ADAMS ABBASS ALKHAFAJI EDITORS Publication of the International Academy of Business Disciplines BUSINESS RESEARCH YEARBOOK GLOBAL BUSINESS PERSPECTIVES VOLUME XIII, 2006 Editors Marjorie G Adams Morgan State University Abbass F Alkhafaji Slippery Rock University A Publication Of The International Academy Of Business Disciplines IABD Copyright 2006 by the International Academy of Business Disciplines International Graphics 10710 Tucker Street Beltsville, MD 20705 (301) 595-5999 office All rights reserved Printed in the United State of America Co-published by arrangement with The International Academy of Business Disciplines ISBN 1-889754-10-2 PREFACE This volume contains an extensive summary of most of the papers presented during the Thirteenth Annual Conference of the International Academy of Business Disciplines held in San Diego, California April – 9, 2006 This volume is part of the continuing efforts of IABD to make available current research findings and other contributions to practitioners and academics The International Academy of Business Disciplines (IABD) was established eighteen years ago as a world wide, non-profit organization, to foster and promote education in all of the functional and support disciplines of business The objectives of IABD are to stimulate learning and increase awareness of business problems and opportunities in the international market place and to bridge the gap between theory and practice The IABD hopes to create an environment in which learning, teaching, research, and the practice of management, marketing and other functional areas of business will be advanced The main focus is on unifying and extending knowledge in these areas to ultimately create integrating theory that spans cultural boundaries Membership in the IABD is open to scholars, practitioners, public policy makers, and concerned citizens who are interested in advancing knowledge in the various business disciplines and related fields The IABD has evolved into a strong global organization during the past eighteen years, thanks to immense support provided by many dedicated individuals and institutions The objectives and far-reaching visions of the IABD have created interest and excitement among people from all over the world The Academy is indebted to all those responsible for this year’s program, particularly Ahmad Tootoonchi, Frostburg State University, who served as Program Chair, and to those who served as active track chairs Those individuals did an excellent job of coordinating the review process and organizing the sessions A special thanks also goes to the IABD officers and Board of Directors for their continuing dedication to this conference Our appreciation also extends to the authors of papers presented in the conference The high quality of papers submitted for presentation attests to the Academy’s growing reputation, and provides the means for publishing this current volume The editors would like to extend their personal thanks to Dr Otis Thomas, Dean of the School of Business and Management, Morgan State University, for his support i TABLE OF CONTENTS Preface Table of Contents CHAPTER 1: INTRODUCTION CHAPTER 2: ACCOUNTING THEORY The 28% Capital Gains Tax - An Antique? Annette Hebble, University of St Thomas Nancy Webster, University of St Thomas Does the Implementation of SFAS No 131 Convey Useful Information? Yousef Jahmani, Kentucky State University Industry and Market’s Effects on The Usefulness of Book Value Wei Xu, William Paterson University Lianzan Xu, William Paterson University 13 Examining Perceptions of Student Solution Strategies in an Introductory Accounting Course Ira Bates, Florida A&M University Joycelyn Finley-Hervey, Florida A&M University Aretha Hill, Florida A&M University 18 The Impact of Merit Pay on Research Outcomes for Accounting Professors Annhenrie Campbell, California State University, Stanislaus David H Lindsay, California State University, Stanislaus Kim B Tan, California State University, Stanislaus 22 An Analysis of Investment Performance And Malmquist Productivity Index For Life Insurers In Taiwan Shu-Hua Hsiao, Leader University Yi-Feng Yang, Leader University Grant G.L Yang, Leader University 27 Connecting ABI Acceptance Measures to Task Complexity, Ease of Use, User Involvement and Training Aretha Y Hill, Florida A&M University Ira W Bates, Florida A&M University 32 The IRS Cracks Down On Deductions For Mba Education Costs Pamela A Spikes, University Of Central Arkansas Patricia H Mounce, University Of Central Arkansas Marcelo Eduardo, Mississippi College 38 CHAPTER 3: ADVERTISING AND MARKETING COMMUNICATIONS 44 The Effects of Ambient Scent on Perceived Time: Implications for Retail and Gaming John E Gault, West Chester University of Pennsylvania 45 iii The Relationship Between Age, Education, Gender, Marital Status and Ethics Ziad Swaidan, University of Houston-Victoria Peggy A Cloninger, University of Houston-Victoria Mihai Nica, Jackson State University 52 A Content Analysis of an Attempt by Victoria’s Secret to Generate Brand Mentions through Provocative Displays John Mark King, East Tennessee State University Monica Nastase, East Tennessee State University Kelly Price, East Tennessee State University 58 Effectiveness of Emotional Advertising: A Review Paper on the State of the Art Branko Cavarkapa, Eastern Connecticut State University John T Flynn, University Of Connecticut 64 Pick a Flick: Moviegoers’ Use and Trust of Advertising and Uncontrolled Sources Thomas Kim Hixson, University of Wisconsin-Whitewater 70 When Web Pages Influence Web Usability Alex Wang, University of Connecticut 76 University Brand Identity: A Content Analysis of Four-Year U.S Higher Education Web Site Home Pages Andy Lynch, American University Of Sharjah 82 Brand Knowledge, Brand Attitude, Purchases & Amount Willing To Pay For Self & Others: Third-Person Perception & The Brand Thomas J Prinsen, The University Of South Dakota 88 Congruency in Strategic Corporate Social Responsibility: Consumer Attitude Toward the Company & Purchase Intention Youjeong Kim, Pennsylvania State University Charles A Lubbers, University Of South Dakota 94 Internet Advertising and Its Reflection of American Cultural Values Lin Zhuang, Louisiana State University Xigen Li, Southern Illinois University Carbondale 100 CHAPTER 4: APPLIED MANAGEMENT SCIENCE AND DECISION SUPPORT SYSTEMS 106 Student Online Purchase Decision Making: An Analysis by Product Category Carl J Case, St Bonaventure University Darwin L King, St Bonaventure University 107 Analyzing Role of Operations Research Models in Banking Dharam S Rana, Jackson State University SherRhonda R Gibbs, Jackson State University .112 iv Decision Support Systems: An Investigation of Characteristics Roger L Hayen, Central Michigan University Monica C Holmes, Central Michigan University .117 Tourism Market Potential of Small Resource-Based Economies: The Case of Fiji Islands Erdener Kaynak, The Pennsylvania State University at Harrisburg Raghuvar D Pathak, The University Of The South Pacific .123 Who Says Decision-Making Is Rational: Implications for Responding To an Impending Foreseeable Disaster M Shakil Rahman, Frostburg State University Michael Monahan, Frostburg State University Ahmad Tootoonchi, Frostburg State University 129 CHAPTER 5: COMPUTER INFORMATION SYSTEMS 135 An Alternative Approach for Developing and Managing Information Security Program Muhammed A Badamas, Morgan State University 136 Utilization of Information Resources for Strategic Management in a Global Enterprise Muhammed A Badamas, Morgan State University Samuel A Ejiaku, Morgan State University .142 Managing the Enterprise Network: Performance of Routing Versus Switching on a State of the Art Switch Mark B Schmidt, St Cloud State University Mark D Nordby, St Cloud State University Dennis C Guster, St Cloud State University 147 An Empirical Investigation of Rootkit Awareness Mark B Schmidt, St Cloud State University Allen C Johnston, University of Louisiana Monroe Kirk P Arnett, Mississippi State University 153 CHAPTER 6: E-BUSINESS 159 I’m With the Broadband: The Economic Impact of Broadband Internet Access on the Music Industry Matthew A Gilbert, Clear Pixel Communications 160 U.S Attempts to Slow Global Expansion of Internet Retailing Meets Legal Resistance Theodore R Bolema, Central Michigan University 166 Segmenting Cell Phone Users by Gender, Perceptions, and Attitude toward Internet and Wireless Promotions Alex Wang, University of Connecticut Adams Acar, University of Connecticut 172 v E-Business Based SME Growth: Virtual Partnerships and Knowledge Equivalency Zoe Dann, Liverpool John Moores University Paul Otterson, Liverpool John Moores University Keith Porter, Liverpool John Moores University 178 CHAPTER 7: ECONOMICS 185 Important Changes in the U.S Financial System Vincent G Massaro, Long Island University 186 Accounting for Success in Sports Franchising Ilan Alon, Rollins College Keith L Whittingham, Rollins College .189 Do Chinese Investors Appreciate Market Power or Competitive Capacity Aiwu Zhao, Kent State University Jun Ma, Kent State University 195 Consumer Ethnocentrism and Evaluation of International Airlines Edward R Bruning, University of Manitoba Annie Peng Cui, Kent State University Andrew W Hao, Kent State University 201 The Valuation Abilities of the Price-Earnings-To-Growth Ratio and Its Association with Executive Compensation Essam Elshafie, University Of Texas At Brownsville Pervaiz Alam, Kent State University 207 A Simple Nash Equilibrium from “A Beautiful Mind” G Glenn Baigent, Long Island University – C W Post 213 Economics of/and Love: An Analysis Into Dowry Pricing in East Africa Waithaka N Iraki, Kentucky State University 217 International Trade Growth and Changes in U.S Manufacturing Concentration David B Yerger, Indiana University of Pennsylvania 222 Threshold Effects Between German Inflation and Productivity Growth David B Yerger, Indiana University of Pennsylvania Donald G Freeman, Sam Houston State University 228 Trade and Growth Since the Nineties: The International Experience Paramjit Nanda, Guru Nanak Dev University P.S.Raikhy, Guru Nanak Dev University 234 Investor Relations Challenges Within the Life Sciences Category Kerry Slaughter, Emerson College James Rowean, Emerson College 241 vi Genetic Engineering, Biotechnology, and Indian Agriculture, IPR Issues in Focus Prabir Bagchi, Sims, Ghaziabad 246 Response of Building Costs to Unexpected Changes in Real Economic Activity and Risk Bradley T Ewing, Texas Tech University Daan Liang, Texas Tech University Mark A Thompson, University Of Arkansas-Little Rock 251 CHAPTER 8: ENTREPRENEURSHIP/SMALL BUSINESS .256 An Analysis of Funding Sources for Entrepreneurship in the Biotechnology Industry Sumaria Mohan-Neill, Roosevelt University, Chicago, IL Michael Scholle, Biosciences Division, Argonne National Laboratory 257 The Impact of Team Design on Team Effectiveness Lawrence E Zeff, University Of Detroit Mercy Mary A Higby, University Of Detroit Mercy 263 Strategies in Starting Your Own Business Omid Nodoushani, Southern Connecticut State University Julie Brander, Gateway Community College Patricia Nodoushani, University of Hartford .269 The Perils of Strategic Alliances: The Case of Performance Dimensions International, LLC Robert A Page, Jr., Southern Connecticut State University Edward W Tamson, Performance Dimensions International LLC Edward H Hernandez, California State University, Stanislaus Alfred R Petrosky, California State University, Stanislaus 273 CHAPTER 9: ETHICAL AND SOCIAL ISSUES 279 Intelligent Agents-Belief, Desire, and Intent Framework Using Lora: A Program Independent Approach Fred Mills, Bowie State University Jagannathan V Iyengar, North Carolina Central University 280 The Propensity for Military Service of the American Youth: An Application of Generalized Exchange Theory Ulysses J Brown, III, Savannah State University Dharam S Rana, Jackson State University 286 The Maryland Wal-Mart Bill: A New Look at Corporate Social Responsibility Frank S Turner, Morgan State University Marjorie G Adams, Morgan State University 292 Discrimination, Political Power, and the Real World Reza Fadaei, National University 298 vii Through an analysis of the three leaders who were interviewed, it’s evident that they vary and differ to various degrees Yet, they are successful leaders in that they embrace challenge with meaning and passion, while seizing the initiative with enthusiasm (Kouzes & Posner, 2002) The next section will discuss the primary lessons that were gained through this project VII LEADERSHIP LESSONS Several lessons of leadership were gained throughout the course of this project This section will focus on some of the primary lessons that arose throughout the course of the interviews First, all three leaders seem to have mastered what Cashman (1999) refers to as purpose mastery “Focusing on how to make a difference” (page 65) refers to building upon one’s strengths The three are completely in line with their strengths, realize their weaknesses, and work to improve upon their strengths Thus, an important lesson relates to the validity that was established by Buckingham and Clifton (2001) In Now Discover Your Strengths, the two refer to building a, “strength-based organization” (page 40) It’s noted that seeing the capitalization of their strengths in action provides insight The primary lesson is that victory over the focus of one’s fears and weaknesses is a key aspect of effective leadership The second lesson is the amazing results that each mayor is able to obtain by utilizing his or her passion, vigor, and drive For all, their passion is helping others, serving their communities, and making their cities better places to live The passion is demonstrated differently for each Kelley strives to serve the community as a volunteer with the PTA, Girls Scout’s, church, and various other community activities Her approach has driven her to excel as the leader of her city Ross has had a distinguished career of serving her country, teaching at Boston University, serving on state commissions, and leading the incorporation of her city Today, she stands as an emergent leader of one of America’s most unique cities Bressette indulges in his passion for instigating innovation and thinking outside of the box—in his military service, business life, and political career He strives to take on new endeavors and lead others to achieve the best results Through this passion, they have been able to live a life in which they can achieve the intersection of personal greatness, leadership greatness, and organizational greatness (Covey, 2004) Finally, the third lesson from this project is that many of Covey’s notions in The Seven Habits of Highly Effective People are valid Each leader reinforces the seven characteristics model, referring to beliefs in the necessity for work to be meaningful, the focus on beliefs and behaviors that provide peace and spirituality, and the focus on discipline Perhaps most important, each leader realizes the importance of relationships that provide energy (Covey, 1989) Each is compelled to lead from the heart and accomplish dynamic objectives VIII CONCLUSION After conducting interviews with Brenda Ross, Randall Bressette, and Trish Kelley, it can be concluded that each leader demonstrates great care for his or her city After gaining insight into their styles and philosophies, it’s encouraging to see that there are genuine leaders that exist who truly place the best interest of their followers ahead of their own 712 personal interests Hopefully, such a trend will extend to other organizations throughout the years ahead REFERENCES Buckingham, Marcus, & Donald O Clifton Now, Discover Your Strengths New York, NY: Free Press, 2001 Cashman, Kevin Leadership From the Inside Out: Becoming a Leader for Life Minneapolis, MN: Executive Excellence Publishing, 1999 Covey, Stephen R The Seven Habits of Highly Effective People New York, NY: Free Press, 1989 Covey, Stephen R The 8th Habit New York, NY: Free Press, 2004 Kouzes, James M., & Barry Z Posner The Leadership Challenge, 3rd ed San Francisco, CA: Jossey-Bass, 2002 Northouse, Peter G Leadership Theory and Practice Thousand Oaks, CA: Sage Publications, 2004 Reardon, Kathleen K It’s All Politics: Winning in a World Where Hard Work and Talent Aren’t Enough New York, NY: Currency, 2005 Robbins, Stephen P Essentials of Organizational Behavior, 8th ed Upper Saddle, NJ: Pearson Education, 2005 Seligman, Martin E.P Authentic Happiness New York, NY: Free Press, 2002 Senge, Peter M “The Leader’s New Work: Building Learning Organizations.” Sloan Management Review, 32, (1), 1990, 7-23 713 CULTURAL ADAPTATION OF AUSTRIAN AND U.S.-AMERICAN WEBSITES: A COMPARISON USING HOFESTEDE’S CULTURAL PATTERNS Wesley McMahon, California State University, Chico jpwookie@yahoo.com Dominik Maurer, California State University, Chico dominik_maurer@gmx.de ABSTRACT The purpose of this paper is to explore how cultural values are depicted on Austrian and US websites, using a cross-cultural approach Using Hofstede’s cultural dimensions and a predefined conceptual framework, Austrian and US websites were qualitatively analyzed in order to measure the propensity of defined cultural attributes This study implies that as the global market continues to expand, cultural customization of international websites is becoming less of a choice and more of a necessity I INTRODUCTION With almost one sixth of the world population online, the Internet has become the most important marketing medium to date (http://www.c-i-a.com/pr0904.htm) Consumers can easily shop from the comfort of their homes, without having to depend on business operating hours Current customer awareness of global offerings is higher than ever before But the website is still a virtual representation of a shop or an office The visitors are still people with individual values, norms and beliefs These values define how one will react to symbols and sensory inputs, and are ultimately the basis for one’s culture In the same way as shops differ from one culture to another, websites have to be culturally adapted to their audience Websites should be locally tailored for each specific country in order to make sure the site communicates meaning properly and serves the needs of the visitor II LITERATURE REVIEW It is not surprising that many scholars have written about this topic and have tried to provide a framework for cultural understanding The starting point for this research is Hofstede’s early work about culture, in which he (Hofstede, 1991, 5) identifies culture as "the collective programming of the mind which distinguishes the members of one group or category of people from another." Hofstede (2001) specifies five cultural dimensions that allow for the classification of cultures: Power Distance, Uncertainty Avoidance, Individualism, Masculinity and Long-/Short-Term orientation He also gives very helpful index ratings that show how countries and regions score within these dimensions Cultural consumer behavior is shaped by the marketing practices in culturally specific marketplaces (Darling & Taylor, 1996) Darling and Taylor reach the conclusion that people from different cultures have different perceptions of the same product and/or marketing practice Therefore, the ideal, country-specific marketing tactic should be used (Darling & Taylor, 1996) Cultural differences will prevail over standardization and international retailers must adapt in order to succeed 714 The crucial importance of intercultural competence and knowledge, for businesses, is shown in an example by Mayo (1991) He examined exporters who entered foreign markets and failed The underlying reason for their failure was due to a lack of knowledge concerning country-specific business practices Business practices in the private sector are determined by values, norms and beliefs The cultural taxonomy that was developed by Hofstede is often used as a starting point for further investigation Rawwas (2001) connects this taxonomy to ethic beliefs of consumers from the USA, Ireland, Austria, Egypt, Lebanon, Hong Kong, Indonesia, and Australia He concludes that marketing strategies need to be developed bottom-up The purpose is to communicate those values which are important to the consumer and to that consumer’s native society Since customers are different from one country to the next, sellers must receive intercultural communication training (Bush & Ingram, 1996) and specific approaches should be taken in order to attract foreign customers (McDonald, 1994) Bush (2001) makes the statement that the importance of cultural adaptation is understood, but not satisfyingly executed The ideal marketer should have “empathy, world mindedness, low ethnocentrism, and attributional complexity” to excel in the global market Hofstede’s Individualism/Collectivism dimension was used by Litvin and Kar (2003) to explore the relationship between one’s self-perception and the perceived image of a product It was concluded that “cultural differences have once again been shown to play a significant role in consumers' […] attitudes.” It is obvious that a great deal of work has been completed showing the unalterable significance of intercultural competence for businesses To go more in detail, some researchers have studied how this knowledge is being integrated in electronic marketing The two most important variables which must be tailored country specific, when considering an ecommerce website, are: language and infrastructure for payment and delivery (Bin, Chen & Sun, 2003) Junglas and Watson (2004) found that infrastructure and market surroundings play an important role in website design Junglas and Watson also explain their findings using Hofstede’s cultural dimensions Further studies revealed that most corporations in fact adapt their websites according to the particular country (Singh, Kumar & Baack 2005) As shown in many studies, cultural adaptation of websites is not only very important, but also necessary It is understood that a successful launch of an e-commerce website in a foreign country demands more than simply translating the content Most studies in this field have focused on comparison between websites from the US and European countries, including the United Kingdom, Germany, France, Ireland, Spain, and Greece (Darling et al, 1996; Rawwas, 2001; Singh et al 2005) III HYPOTHESIS The intention of this study is to compare websites from both Austria and the United States in order to find out if Hofstede’s cultural dimensions were used in site construction Further analysis is done in order to ascertain the extent to which the dimensions were used and if they were incorporated in conformity to Hofstede’s findings Austria According to Hofstede: According to Hofstede (2003), the highest ranking dimension for Austria is Masculinity at an index of 79 Austria also has a relatively high Uncertainty Avoidance index 715 of 70 (2003) Austria has an Individual/Collective index score of 55 (2003), which is considered relatively neutral United States According to Hofstede: The United States’ most defining cultural dimension is its level of individualism With a score of 91 the United States ranks as the most individualistic culture Hofstede (2003) reviewed The US is comparatively low on Uncertainty Avoidance (UAI), with a ranking of 46 (Hofstede, 2003).It is the blend of these two cultural dimensions, along with a low Power Distance index and a medium Masculinity index, which accounts for the unique cultural positioning of the United States IV ANALYSIS Based on Hofstede's dimensions, two countries were selected that are as culturally different as possible The countries selected were the United States and Austria The limit for the selection was the authors’ language proficiency The panel that was chosen consists of 60 websites, 30 websites from each country The industries chosen were banking, insurance, business-to-business, ski resorts and football Methodology Each website was tested on the manifestations of Hofstede’s cultural dimensions To achieve this, a questionnaire with seven categories that was developed and used by Singh, Xhao and Hu (2003) in an earlier study was utilized The categories used were Collectivism, Individualism, Uncertainty Avoidance, Power Distance, Masculinity, Low-Context and HighContext Each category was broken down into features, which by definition, account for the respective cultural category The website analysis consisted of the identification of particular features on a website and measuring the degree to which these features were implemented The degree of the incorporation of those features was measured in a five step scale with the scores 0, 1, 2, and The lowest score was given for the total absence of the feature; the highest score was awarded for a prominent depiction on the website’s front page or for consistent appearance Scores 1, and were awarded in a relative manor based upon the degree to which the website incorporated a particular feature in a website After scoring of the websites had been completed, the scores were than measured using statistical analysis ANOVA tests were applied to the entire data set This test allowed for the measurement of each variable in order to find out if deviations in each dimension were of significant value Results While the results of the ANOVA test not show a significant difference in the cultural dimensions of the US and Austrian websites, there are several subsets in these categories that appear to be significantly different The differences in these subsets lie in parallel with Hofstede’s cultural analysis of both Austria and the US The results of the ANOVA are tabulated below Individualism-Collectivism Privacy: When analyzing to what degree a website provided a statement of privacy, US websites were significantly higher in their propensity to provide a statement of privacy than were Austrian websites (mean: US 3.16 and Austria 1.90; F = 18.080, Sig = 000) 716 Table I: ANOVA TEST RESULTS, * denote significance Categories FValue Mean Categories Mean FValue Power Distance Collectivism US Austria Community Relations 2.26 2.24 Clubs 0.77 News Letter 2.03 1.9 Symbols Loyalty Program Links Family Theme Hierarchy Information 1.74 1.69 0.873 0.96 Pictures of VIP 1.58 1.55 0.936 1.1 0.35 Awards 1.71 1.97 0.406 2.24 0.579 Vision 1.57 1.72 0.555 1.9 0.984 Pride of Ownership 2.03 2.52 0.048* 1.42 1.66 0.435 Titles 1.84 1.69 0.597 1.61 1.24 0.198 1.45 1.93 0.162 Adventure Theme 1.52 2.07 0.194 Realism Theme 2.68 2.9 0.283 Masculinity Individualism Privacy 3.16 1.9 0* Effectiveness 2.87 2.9 0.891 Independence 1.84 1.76 0.676 Gender Roles 0.77 1.31 0.06* Originality 2.23 2.52 0.232 Personalization 1.06 1.28 0.504 Rank of Position 2.16 2.31 0.554 Hard Sell 1.84 1.9 0.822 Low Context Uncertainty Avoidance Customer Service 3.06 3.07 0.981 Comparatives 1.13 0.86 0.31 Navigation 3.19 3.34 0.528 Superlatives 1.97 1.86 0.695 Local Stores 2.55 2.72 0.542 Terms 2.58 2.14 0.062 Local Terminology 1.45 1.48 0.892 0.029* Free Trial 0.77 1.52 0.028* Testimonial 0.48 0.72 0.309 Toll Free# 2.45 1.07 Tradition 1.58 2.28 0.015* High Context Politeness 0.68 1.1 Soft Sell 1.52 1.24 0.312 Images 2.39 2.69 0.228 Uncertainty Avoidance Free Trial: On the sub-dimension Free Trial, Austrian websites were significantly higher in their tendency to provide free trials (mean: US 77 and Austria 1.52; F = 5.069, Sig = 028) Toll Free #: When analyzing the degree to which websites provided a toll free phone number, US websites were significantly higher in their trend to provide toll free phone numbers (mean: US 2.45 and Austria 1.07; F = 28.644, Sig = 000) Tradition: The degree to which the sub-dimension tradition was shown on websites was significantly higher for Austria than for the US (mean: US 1.58 and Austria 2.14; F = 6.237, Sig = 015) Power Distance Pride of Ownership: When analyzing the sub-dimension Pride of Ownership Austrian websites were significantly higher in tendency to show pride of ownership on websites (mean: US 2.03 and Austria 2.52; F = 4.083, Sig = 048) Masculinity Gender Roles: When analyzing the extent to which gender roles where portrayed on websites, it was found that Austrian websites displayed gender roles at a significantly higher rate than did US websites (mean: US 77 and Austria 1.31; F = 3.694, Sig = 060) High and Low Context Politeness: Austrian websites used polite language more frequently than did US websites (mean: US 68 and Austria 1.10; F = 5.013, Sig = 029) 717 V CONCLUSION The United States is a very individualistic society When considering the cultural dimension of Individualism, the US ranks higher than any other country that Hofstede (2003) analyzed Personal freedom and achievement are underlying themes in most US cultural expressions A major component of personal freedom is privacy It is no wonder than, that US websites provide privacy statements much more often and more clearly than did Austrian websites Comparatively speaking, Austria is much higher on Uncertainty Avoidance than is the United States This means that Austrians are more apt to get involved in situations which have been clearly defined It makes sense that Austrian websites scored higher on both the sub-dimension of Free Trials and the sub-dimension of Tradition Theme A free trial allows uncertain users the chance to experience an offering before its purchase, therefore reducing uncertainty Incorporating tradition into web design reduces uncertainty by offering products and services in familiar and traditional settings When studying the cultural dimension of Masculinity, Austria (79) scores much higher than the United States (62), according to Hofstede (2003) This suggests that Austria is a culture that can be described a masculine, while the United States is only somewhat masculine Austrian websites tend to exhibit discrete gender roles; this is most likely because a major component of displaying masculinity on a website is through the use of gender roles Implications In observing websites from both of these countries it is obvious that there is clear distinction between U.S and Austrian websites However, although there is a clear distinction between website designs in the two countries, there seems to be a lack of conformity regarding website design in either country While, it is not necessarily beneficial to create uniformity in site structure, it may prove beneficial for companies to display their offerings in a way in which local consumers find comfortable There is evidence in this study that websites are becoming more sensitive and adapting to the needs of their local customers This can be seen when observing the differences between the United States and Austria, in their cultural dimensional subsets The sub-dimensions, free trial, tradition, pride of ownership, gender roles and politeness all were in conformity with Hofstede’s ranking of Austria and the United States This study implicates that as website construction evolves, there will be a continuance in this trend of cultural adaptation When assessing the methodology in this study, two possible sources of error emerge The first source of possible error involves the sample population used Five industries were selected for this study, based upon their availability on the World Wide Web In retrospect it seems that each of these industries displayed certain values which where intrinsic to their specific industry These industry specific values were incorporated into the evaluation process and could have possibly skewed the statistical results The second source of error involved the use of two evaluators, one native to the United States and one native to Germany It is possible, that while evaluation techniques were the same, that there were discrete measurement differences, to cultural bias In conclusion, this study finds that while there appears to be a trend toward cultural adaptation, in both Austria and the United States, there remains a deficit in offerings that intimately reflect the culture in which they are offered Further research, in industry specific areas, should be helpful in generalizing cultural differences in websites, without the confliction that arises when assessing multiple industries 718 REFERENCES Bin, Qiu; Shu-Jen Chen & Shao Qin Sun “Cultural differences in e-commerce: A comparison between the U.S and China” Journal of Global Information Management 2003.Vol.11, Iss 2, pg 48, pgs Bush, Victoria D & Thomas Ingram “Adapting to diverse customers: A training matrix for international marketers” International Marketing Management 1996 Vol.25, Iss 5, pg 373, 11 pgs Bush, Victoria D et al “Managing culturally diverse buyer-seller relationships: The role of intercultural disposition and adaptive selling in developing intercultural communication competence” Academy of Marketing Science 2001 Vol.29, Iss 4, pg 391, 14 pgs Darling, John R & Taylor, Raymond E “Changing attitudes of consumers towards the products and associated marketing practices of selected European countries versus the USA, 1975-95” European Business Review Bradford: 1996 Vol 96, Iss 3, pg 13 Hofstede, Geert (1991) Cultures and Organizations: Software of the Mind London: McGraw-Hill Hofstede, Geert (2001) Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations across Nations 2nd ed Thousand Oaks, CA: Sage Hofstede, G (2003) Geert Hofsteds’s Cultural Dimensions Retrieved October 10, 2005 Web site: http://www.geert-hofstede.com Junglas, Iris A & Richard T Watson “National Culture and Electronic Commerce” E-Service Journal 2004 Vol 3, Iss 2, pg 3, 32 pgs Litvin, Stephen W & Goh Hwai Kar “Individualism/collectivism as a moderating factor to the self-image congruity concept” Journal of Vacation Marketing London: Dec 2003 Vol.10, Iss 1, pg 23, 10 pgs Mayo, Michel A “Ethical Problems Encountered By U.S Small Businesses In International Marketing” Journal of Small Business Management 1991 pg 51 Mc Donald, William J “Developing international direct marketing strategies with a consumer decision-making content analysis” Journal of Direct Marketing 1994 Vol.8, Iss 4, pg 18, 10 pgs 719 VALERO ENERGY CORPORATION AND RISING GAS PRICES Amber Stanush, University of Texas at San Antonio amberstanush@satx.rr.com Courtney Syfert, University of Texas at San Antonio shaysyfert@yahoo.com ABSTRACT This public relations case study looks closer at Valero Energy Corporation and the rising gas prices Valero Energy Corporation, based in San Antonio, Texas, is the largest refiner in the North America and is quoted as refining about 3.3 million barrels a day with its refineries that are placed all over the western hemisphere The case study will conduct an examination of the above history concerning Valero Many residents of San Antonio believe that it is Valero that is increasing the gas prices The purpose of this case study is to inform the target publics of the truth behind Valero and the rising gas prices I INTRODUCTION Valero is concerned about its reputation due to an up rise in negative publicity and has a desire to inform its public about the company’s values Valero would like to improve and maintain the local community morale and its positive reputation The company would also like to inform the public about the price of gas and circulate the truth concerning the corporation’s profitability during this time Valero Energy Corporation was founded in 1980 as the corporate successor to LoVaca Gathering Company, a natural gas gathering subsidiary of the Coastal States Gas Corporation Valero is a Fortune 500 company based in San Antonio with approximately 22,000 employees and assets valued at $33 billion (Valero Energy Corporation, 2005) The corporation is a premiere refining and marketing business that leads in shareholder value growth through innovative, efficient upgrading of low-cost feedstocks into high-value, high-quality products Valero also holds an in-house public relations office Mary Rose Brown, Senior Vice-President of Corporate Communication works directly with Joanna Weidman, Director of Corporate Communication along with other individuals who work hard to maintain Valero’s relationship with the public and media At present, the public views Valero negatively, along with diminishing assurance in the company by the consumer’s apparent lack of confidence in the company Valero has concern for the potential loss of revenue and reputation The main reason for conducting the campaign is to reassure the community of Valero’s intention to demonstrate the company’s commitment to creating, supporting and maintaining high standards of excellence Valero’s Target Publics Valero employees, local community of San Antonio, Valero consumers, non-Valero consumers, and the neighboring communities are the main target publics Another important target public is local media These involved radio, TV stations and newspapers 720 II BACKGROUND Valero is the largest privately owned refining corporation in North America It has an extensive refining system with a throughput capacity of approximately 3.3 million barrels per day, in comparison to the 900,000 barrels per day in 2001 As described on Valero’s website, the company's geographically diverse refining network stretches from Canada to the U.S Gulf Coast and West Coast to the Caribbean In combination with its interest in Valero L.P., Valero has 9,150 miles of pipeline, 94 terminal facilities and four crude oil storage facilities (Valero Energy Corporation, 2005) Many of these terminal and oil storage facilities complement Valero's refining and marketing assets in the U.S Southwest and Mid-continent regions According to Valero’s website, as a marketing leader, Valero has approximately 4,700 retail sites branded as Valero, Diamond Shamrock, Ultramar, Beacon and Total The company markets on a retail and wholesale basis through a bulk and rack marketing network in 42 U.S states, Canada, Latin America and the Caribbean Valero has long been recognized throughout the industry as a leader in the production of premium, environmentally clean products, such as reformulated gasoline (Valero Energy Corporation, 2005) Since its beginning, Valero's commitment to its employees, environment and communities not only has made it a better corporate citizen, but also a superior refiner Valero’s corporate record goes beyond its leadership in producing clean-burning fuels It reflects a vision from management and commitment by employees to set standards in every area of business “As a result, the company has been recognized as a top-performing public company, honored as an industry leader, ranked as a top employer, and lauded for its commitment to community service.” (Valero Energy Corporation, 2005) Gasoline prices are affected by a wide variety of factors, ranging from the supply and demand balance of refined products and the price of crude oil to government regulations and taxes – the vast majority of which are out of Valero’s control Valero has added 380,000 barrels per day (BPD) of refining capacity since 1997; this is the equivalent of building at least three world-scale refineries It has also announced the addition of another 400,000 BPD of refining capacity over the next five years at a cost of $5 billion Also, Valero has purchased many unreliable plants and invested in them so they now run reliably at expanded rates because the company has been running all of its plants at maximum rates, there is little more that Valero can to positively impact gasoline prices The current tight supply and demand picture is due to strong demand from a booming global economy and the reduced volumes of refined products that can be produced from each barrel of crude oil due to the cleaner gasoline specifications in the U.S today This should come as no surprise to anyone In fact, Valero pointed out these challenges to the U.S House of Representatives Health & Environment Subcommittee in sworn testimony four-and-a-half years ago Before Hurricanes Katrina and Rita, U.S refineries were operating at very high capacity operation rates to keep up with market demand However, despite these high operation rates, inventories were already low due to strong demand from a booming global economy and the reduced volumes of crude oil Then, the hurricanes dealt with a devastating blow to the Gulf Coast’s refining infrastructure, intensify an already tight market by knocking out almost 30% of U.S refining capacity following Hurricane Rita As a result, gasoline prices – which are based on a freely negotiated spot market – dramatically increased During the aftermath of these back-to-back hurricanes, Valero chose not to pass along the full amount of these increases to consumers and its branded jobbers In 721 fact, following Hurricane Rita, the company’s retail prices in some areas of the country were $1 per gallon below its cost to replace the gallons Valero was selling in those markets As a result, Valero lost $27 million in branded wholesale business and only made $5 million from its network of more than 1,000 U.S retail stores during the third quarter (Weidman, 2005) Valero helped contribute to the decline in gasoline prices by investing significant resources to restart its impacted refineries in record time, which helped to ease the supply shortages It was a monumental effort to provide housing, food, supplies and additional workers from other Valero refineries immediately after the storms Despite personal losses, the employees returned to work immediately and worked around the clock to restore power and repair and restart the refineries As a result of these considerable efforts, Valero’s refineries and retail stores were back online more quickly than neighboring facilities providing much-needed fuel to consumers during this difficult time (Weidman, 2005) III RESEARCH Research will be established through client records such as a Valero profile Published materials such as news articles would be evaluated Consumer feedback will be gained via telephone surveys, which would create two-way communication Mail surveys and gas credit card stub questionnaires will be implemented as well An organized group such as Valero’s Board of Directors will be contacted A website, created with a link to Valero’s website enabling two-way communication through a question and answer forum, will be established In addition, focus group sessions from each target public will be conducted Phone surveys will assist in gathering quantitative data In addition, a content analysis of media will be examined IV OBJECTIVES The following are the impact and output objectives of the campaign for the next year Impact Objectives Valero will set the following impact objectives for its employees: To inform 100% of employees of Valero’s current position on the negative publicity and its vulnerable reputation in three months To spread the word about improvements taking place at Valero by 80% within one year To increase favorable opinions with employees by 60% within one year For Valero’s consumers, the objectives will be: To inform 45% of local consumers of Valero’s current position on the negative publicity and its vulnerable reputation in three months To spread the word about improvements taking place at Valero by 50% within one year To increase favorable opinions with the local community of consumers by 45% within one year Valero’s local community – non-consumers’ objectives will be: To inform 40% of local non-consumers of Valero’s current position on the negative publicity and its vulnerable reputation in three months To spread the word about improvements taking place at Valero by 50% within one year To increase favorable opinions with the local community of non-consumers by 30% within one year 722 Valero’s neighboring communities’ objectives will be: To inform 35% of neighboring communities of Valero’s current position on the negative publicity and its vulnerable reputation in three months To spread the word about improvements currently taking place at Valero by 50% within one year To increase favorable opinions among neighboring communities by 35% within one year Finally, Valero’s media’s objectives will be: To inform 75% of the media of Valero’s current position on this issue in three months To spread the word about improvements currently taking place at Valero by 50% within one year To increase favorable opinions with the media by 40% within one year Output Objectives Valero will also set the following output objectives: To send press releases to major local and neighboring community media outlets To establish a cohesive relationship with 50% of local media within one year To send out postcards to everyone in San Antonio with fast facts about Valero and the increase in gas prices To gain media coverage with all local media sources within six months To gain favorable attitude among 35% of local media within one year Employees are an important part of the campaign If they are not properly informed, this may contribute to apathetic feelings about the organization Thus, memos will be sent to keep them updated and get them more involved V PLANNING AND EXECUTION Valero will use the public information model The model emphasizes the use of truthful messages to all concerned publics Valero will implement a proactive program to avoid any potential problem by making necessary adjustments in the organization to overcome negative media attention The campaign slogan will be, “The drive to take you there & the energy to keep you here” and the theme will be, “The Energy to Inform” In addition, the main message will be, “This local energy company puts the interest of the locals first.” Special Events Valero plans to arrange unique special events At each special event, the media should not only be contacted and invited, but also treated in a VIP style As positive relationships develop with local media outlets, Valero can use this clout to promote itself in the future First, Valero believes that a speech by Bill Greehey, the CEO of Valero Energy Corporation, would be a great way to jump-start the campaign Following Mr Greehey’s speech, Valero would create an event that would be set up like a mock refinery with people stationed at numerous different locations to provide information and answers to questions At this event, Valero will give away free gas cards, finger foods and beverages To add some excitement, Valero thinks it would be appropriate to have go-kart races for children of all ages In this controlled event, the children who win each race would have their pick from anything in the “mock” Valero gas station This gas station would be set up like all Valero gas stations with candy, gum, drinks, etc Valero would also hold pumping gas relay races 723 for adults The gas pumping would not be like today’s gas pumps, but like the original manual pumps The winner of pumping gas relay races would also have their choice from anything in the “mock” Valero gas station However, the adults would also be able to win prizes such as Lotto tickets and additional gas cards Valero would also invite visitors on a tour of its buildings In this event, visitors will learn such useful information as how the company is run and the extent of the hard work put forth by all Valero employees Valero would also display the numerous awards the company has obtained in its years of operation Media Media coverage can enhance or demise an organization In this case, Valero should use uncontrolled media to its advantage as often as possible By sending news releases and media kits, local media will have the opportunity to shine a positive perception of Valero through articles and feature stories Valero plans to create an enduring and positive relationship with the local media throughout the year and keep them informed about its happenings It is imperative that a letter be sent to the editor of S.A Life of the Express News to create a positive relationship In addition, Valero would compose a feature story about the company’s history, community work, statistics and the refinery process Valero feels it is important to keep the community as up-to-date as possible Thus, the company will post its events in local print media within community calendars and repeat posting them one month before the event, one week until the event and then one day prior to the event It is important to keep people as informed as possible with factual information An emailed memo will be sent to all Valero employees and postings will be available on Valero websites to inform them of the upcoming events In addition, it is important to again emphasize informing the community with truthful information and in doing so, a seminar at the Valero offices would be held Sending out a mass mail of informational brochures to all the local and surrounding communities will aid in Valero’s endeavor as well Effective Communication Valero will stress the use of effective communication with all target publics Thus, the use of credible and updated information, verbal and nonverbal cues, opinion leaders, twoway communication and audience participation and feedback will be essential to the campaign implementation VI EVALUATION Due to the large number of Valero employees and their diverse locations, the most effective way to measure the awareness level of the employees is through an extensive survey distributed to all of them via Valero’s Intranet The survey will also include questions regarding the current improvements at Valero and the employees’ opinions of the company A self-addressed survey will be distributed to consumers along with their gas card statements This survey will assess the consumers’ opinions of Valero and their knowledge of the improvements To evaluate non-consumers and neighboring community individuals, a phone or mail survey would be conducted Questions would include: how informed is the individual of Valero’s current position on the negative publicity, how informed is the individual on the improvements currently taking place at Valero, and what is the individual’s opinion of 724 Valero Furthermore, an evaluation of the number of website hits before, during and after the campaign will be tabulated Media will be measured by calculating the number of stories run about Valero and its events in local print and broadcast medias The content and size of the stories `would also be evaluated VII CONCLUSION This campaign has both strengths and weaknesses A major strength is that Valero is dealing with an active audience who is seeking out information on the issues at hand For example, gas prices affect all individuals A major weakness is that San Antonio is a large city and it is difficult to successfully reach every targeted public It is also difficult to change pre-existing attitudes Based on the controversy, the directions taken by Valero could be changed during the implementation of the campaign Valero should maintain a proactive role of keeping their employees and the community informed REFERENCES Valero Energy Corporation, (2005) Retrieved Nov 15, 2005, from Valero Energy Corporation Web site: http://www.valero.com/ Valero Energy Corporation, (2005) Retrieved Nov 14, 2005, from Valero Energy Corporation Web site: http://www.valero.com/ About+Valero Weidman, Joanna Personal interview 16 Nov 2005 725 ADAMS ALKHAFAJI EDITORS BUSINESS RESEARCH YEARBOOK Volume XIII 2006 BUSINESS RESEARCH YEARBOOK Global Business Perspectives VOLUME XIII 2006 International Academy of Business Disciplines Cover Design by Tammy Senath ISBN 1-889754-10-2 MARJORIE G ADAMS ABBASS ALKHAFAJI EDITORS Publication of the International Academy of Business Disciplines