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Heath et al. (1999) propose a prospect theory model for goal behavior which offers insights on how goals affect individual and group performance. Their analytical model is based on the assumption that goals inherit the main properties of the prospect theory value function, i.e., reference point dependence, loss aversion, and diminishing sensitivity. Evidence from laboratory experiments as well as first evidence from the field support this modeling choice. In this paper, we complement this work by investigating whether the main properties of the prospect theory value function transfer to goal behavior in the field. In particular, we analyze how individual performance is affected by the presence of goals. For our research, we take user activity data from a popular German Question & Answer community and analyze how users adjust their contribution behavior in the days surrounding goal achievement, where goals are represented by badges. We find that users gradually increase their performance in the days prior to earning a badge, with performance peaking on the day of the promotion. In subsequent days, user performance gradually diminishes again, with the decline being strongest on the day immediately following the badge achievement. Overall, user performance is higher2in the days preceding badge achievement, compared to subsequent days. These findings reflect the characteristic S-shape of the prospect theory value function which is convex below the reference point and concave above it. Our results thus support the transferability of the main properties of the prospect theory value function to goal behavior in the field and suggest a distinct shape of the value function around goals. Tobias Mutter, University of Paderborn, Paderborn, Germany ; Dennis Kundisch, University of Paderborn, Paderborn, Germany

Purpose – The purpose of this paper is to present a model that retailers engaged in e‐commerce (e‐tailers) can use for determining the optimal mix of customer segments within a customer portfolio from an integrated risk and return perspective.Design/methodology/approach – Portfolio Selection Theory of Markowitz is applied to find the optimal composition of customer portfolios. The model is developed and discussed for two customer segments (relationship‐ and transaction‐oriented customers) and exemplarily applied to a data set of an e‐tailer.Findings – Portfolio Selection Theory of Markowitz is well‐suited and promising for determining an optimal customer portfolio from a risk‐return perspective. However, since customers vary from financial assets in several aspects, the results of the model have to be interpreted conscientiously and the resulting action options have to be interpreted within the context of customer relationship management (CRM).Research limitations/implications – The model proposes to carr...

Zusammenfassung/Summary Optimale Darlehensbundel in der privaten Immobilienfinanzierung Der Beitrag greift das in der Literatur wenig beleuchtete Problem der vorteilhaften Strukturierung einer Immobilienfinanzierung fur Privatinvestoren ausgehend von am Markt beobachtbaren unterschiedlichen angebotenen Nominalzinssatzen auf. Es werden bislang unbehandelte Optimierungspotenziale aufgezeigt und somit das Fundament fur die Vermeidung einer systematischen Fehlberatung gelegt. Zudem ergeben sich interessante Ansatzpunkte zur Weiterentwicklung bestehender Geschaftsmodelle insbesondere von Online-Finanzintermediaren am Markt. (JEL G21, D14) Optimal Bundles of Mortgage Loans for Private Clients This contribution focuses on the so far sparsely addressed issue of structuring mortgage lending for private clients based on differing nominal interest rates, which can be observed in the market. Hitherto ignored optimization potentials are identified and thus, systematically wrong financial advice can be avoided. Moreove...

Private Anleger favorisieren zunehmend passive Anlagestrategien, also Investmentmethoden, bei denen versucht wird, einen Index moglichst genau nachzubilden. Wir vergleichen Indexzertifikate und Exchange Traded Funds, zwei Produkte, die dem Anleger eine Wertentwicklung versprechen, die dem zugrunde liegenden Index moglichst exakt entspricht. Bei unserer Untersuchung berucksichtigen wir erstmals sowohl Rendite-, Steuer- als auch Risikoaspekte und zeigen, dass bis 2007 fur die meisten Privatanleger ein Indexzertifikat einem Exchange Traded Fund vorzuziehen gewesen ware. Mit der Einfuhrung der Abgeltungsteuer auf Zertifikate hat sich die Situation jedoch geandert: Anleger, die auf Grund des Wegfalls der Steuerfreiheit von Kursgewinnen vor der Umsetzung der Reform zum 1. Januar 2009 ihr Depot langfristig strukturieren mochten, sollten sich fur Exchange Traded Funds entscheiden.

Der Kunde steht seit Jahren im Zentrum der Customer-Relationship-Management-(CRM-)Aktivitaten von Unternehmen. Zur unternehmensweit strukturierten und systematischen Verwaltung von Kundenbeziehungen und Kommunikationskanalen wird dabei mittlerweile fast flachendeckend CRM-Software eingesetzt. Basierend auf einer aktuellen Umfrage fur den deutschen Wirtschaftsraum zeigt der vorliegende Beitrag den Status quo des betrieblichen Einsatzes von CRM-Software. Bisher sehen die meisten Unternehmen ihre CRM-Aktivitaten als klaren Erfolg und beabsichtigen diese weiter voranzutreiben. Die Umfrage zeigt aber auch, dass das Potenzial der verfugbaren Informationen langst nicht vollstandig ausgeschopft wird. Insbesondere die Gestaltung von Kundenbeziehungen im Sinne einer wertorientierten, d.h. integrierten Risk-Return-Steuerung befindet sich noch in den Kinderschuhen. Zwar wird die dafur erforderliche quantitative Kundenbewertung bereits von einem Viertel der Unternehmen vorgenommen, die Berucksichtigung von Risiken bei Kundenbeziehungen im Portfoliokontext findet jedoch kaum Beachtung.

Nach einer harten Konsolidierungsphase im deutschen Markt fur Online-Brokerage steht derzeit auf Grund von fehlenden externen Wachstumsphantasien die Ausschopfung der Bestandskunden im Vordergrund. Hierfur werden die Kunden in der Praxis gangigerweise in Abhangigkeit ihrer Anzahl an Transaktionen pro Zeiteinheit in Segmente eingeteilt. Aktivere Kunden bekommen dabei uber spezifisch eingerichtete Communities i. d. R. Service- und Preisvorteile offeriert. In der vorliegenden Arbeit wird untersucht, ob sich diese am Markt haufig verwendete Einteilung uber Unterschiede in den Einstellungen der Kunden in Abhangigkeit der Transaktionshaufigkeit rechtfertigen lasst. Basis fur die Analyse ist eine Online-Umfrage aus dem Sommer 2003. Die Ergebnisse enthalten starke Indizien, dass es bei den Kunden sowohl Einstellungen gibt, die signifikant unterschiedlich sind als auch welche, die unabhangig von der Transaktionshaufigkeit sind. Die Ergebnisse werden im Hinblick auf eine Marktbearbeitungsstrategie und Angebotsgestaltung diskutiert.

Obwohl das Geschäftsmodellkonzept ein noch relativ junges Forschungsgebiet ist, hat es im letzten Jahrzehnt zunehmend an Beachtung gewonnen. Trotz einer Vielzahl grundlegender Definitionen des Geschäftsmodellkonzepts hat es bislang dennoch nur sehr wenig bedeutende Forschung angezogen. Im Kontext der weit verbreiteten und kontinuierlichen Digitalisierung von Unternehmen sowie der Gesellschaft als Ganzes wurde die in einem Geschäftsmodell (GM) enthaltene Logik kritisch für den Geschäftserfolg und somit ein Fokus für akademische Forschung. In unserem Beitrag betrachten wir das Geschäftsmodellkonzept als ein fehlendes Bindeglied zwischen der Strategie und den Geschäftsprozessen. Wir argumentieren, dass die Wirtschaftsinformatik-Gemeinschaft spezifische und einzigartige Kompetenzen bietet (z. B. Übertragung von Geschäftsstrategien in IT-Systeme, Management von Unternehmen und IT-Prozessen, etc.), die für bedeutende Forschungsbeiträge auf diesem Gebiet genutzt werden können. Innerhalb dieser Forschungslücke grenzen wir drei wesentliche Forschungsschwerpunkte ab: Geschäftsmodelle in der IT-Industrie; durch IT ermöglichte oder digitale Geschäftsmodelle; sowie IT-Support für die Entwicklung und das Management von Geschäftsmodellen. Für diese Forschungsfragen skizzieren wir den State of the Art sowie kritische Forschungsfragen und schlagen passende Forschungsmethoden für deren Beantwortung vor., The business model concept, although a relatively new topic for research, has garnered growing attention over the past decade. Whilst it has been robustly defined, the concept has so far attracted very little substantive research. In the context of the wide-spread digitization of businesses and society at large, the logic inherent in a business model has become critical for business success and, hence, a focus for academic inquiry. The business model concept is identified as the missing link between business strategy, processes, and Information Technology (IT). The authors argue that the BISE community offers distinct and unique competencies (e.g., translating business strategies into IT systems, managing business and IT processes, etc.) that can be harnessed for significant research contributions to this field. Within this research gap three distinct streams are delineated, namely, business models in IT industries, IT enabled or digital business models, and IT support for developing and managing business models. For these streams, the current state of the art, suggest critical research questions, and suitable research methodologies are outlined.

The business model concept, although a relatively new topic for research, has garnered growing attention over the past decade. Whilst it has been robustly defined, the concept has so far attracted very little substantive research. In the context of the wide-spread digitization of businesses and society at large, the logic inherent in a business model has become critical for business success and, hence, a focus for academic inquiry. The business model concept is identified as the missing link between business strategy, processes, and Information Technology (IT). The authors argue that the BISE community offers distinct and unique competencies (e.g., translating business strategies into IT systems, managing business and IT processes, etc.) that can be harnessed for significant research contributions to this field. Within this research gap three distinct streams are delineated, namely, business models in IT industries, IT enabled or digital business models, and IT support for developing and managing business models. For these streams, the current state of the art, suggest critical research questions, and suitable research methodologies are outlined.

We investigate the impact of delegating decision making to information technology (IT) on an important human decision bias—the sunk cost effect. To address our research question, we use a unique data set containing actual market transaction data for approximately 7,000 pay-per-bid auctions. In contrast with the laboratory experiments of previous related studies, our research presents the unique advantage of investigating the effects of IT-enabled automated bidding agents on the occurrence of a decision bias in real market transactions. We identify normatively irrational decision scenarios and analyze consumer behavior in these situations. Our findings show that participants with a higher behavioral investment are more likely to violate the assumption of normative economic rationality because of the sunk cost effect. More importantly, we observe that the delegation of auction participation, i.e., actual bidding, to IT significantly reduces the occurrence of the sunk cost effect in subsequent decisions made by the same individual. We can attribute this reduction to the comparably lower behavioral investments incurred by auction participants who delegate their bidding to IT. In particular, by mitigating different contributors of behavioral investments, delegating to IT reduces the likelihood of the occurrence of the sunk cost effect by more than 50%. This paper was accepted by Sandra Slaughter, information systems.

German regional stock exchanges rival in the horizontal inter-exchange competition for order flow of investors. Particularly, they are trying to be an attractive option for private retail investors and differentiate against the competition. Differentiation often comes in terms of ‘price quality’ and the attempt to reduce implicit transaction costs for the investors. Therefore, many exchanges have begun to extend their established trading rules. With different labels and – in detail slightly differing – service attributes, e. g. best-execution guarantees have been introduced to most markets. These offerings have in common, that investor gets a guarantee that the price for a transaction will be at least as good as it would be at a predefined – often more liquid – reference market. For retail investors, it is not only the implicit transaction costs but also the explicit ones that are relevant for his orderrouting decision. These are the sum of provisions and fees that are charged by the service providers that participate in routing and matching an order as well as clearing a deal.

In the paper a formal content model for the financial services industry as an example of one of the most important eServices industries is presented. Generally, a financial services firm can provide its customers with a great variety and quantity of self-produced and externally bought content. However the challenge is to offer information about the proper subject, at the appropriate sophistication level, the right length, at the right time for the customer's specific situation. Meta information about the customer as well as about available content may be used to match content with customer problems in order to get proper solutions that satisfy or exceed customer needs. The focus of the paper lies on both the theoretical identification of relevant attributes to formally describe finance related content and on an implementation concept. Some implementation issues are also discussed in the context of an ongoing project with Deutsche Bank.

Die schwierige Marktlage der letzten Jahre zeigte fur viele deutsche Finanzdienstleister ein gemeinsames Problem: Im grosen Markt fur private Immobilienfinanzierungenl wird — genauso wie bei Firmenkundenkrediten — in der Regel kaum Geld verdient.2 Der scharfe Wettbewerb — ausgelost durch eine einheitlichere Regulierung, die Globalisierung und insbesondere innereuropaische Konsolidierung der Markte, eine Welle von Neueintretern am Markt mit Rosinenpicker-Strategien und neuen Intermediationsmodellen sowie der grose Fortschritt im Bereich der Informations- und Kommunikationstechnologie3 — hat den Markt wesentlich transparenter4 gemacht und die Margen in den letzten Jahren drastisch sinken lassen.5 Zudem treffen die Finanzdienstleister vermehrt auf wesentlich anspruchsvollere, besser informierte und damit wesentlich wechselbereitere Kunden auf der einen Seite und gleichzeitig auf ebensolche Eigenkapitalgeber auf der anderen Seite.6 Diese Entwicklung bedeutet insbesondere fur die klassischen Geschaftsbanken: Wenn sie marktfahig bleiben wollen, gilt es, sich durch Produkte und Services bzw. Beratungsleistungen von den Mitbewerbern zu differenzieren, um nicht zuletzt auch bessere beziehungsweise gunstigere Losungen anzubieten und dadurch (Mehr-) Wert fur die Kunden und Shareholder zu generieren.7

As outlined above, the traditional financial services market is characterized by a poor quality of consultation and service — not only for retail customers, but also for high end customers in private banking237— and an increasing customer willingness to switch banking affiliations resulting in a strong pressure on margins. At the same time financial services firms are facing increasing risk from continuously increasing volatile global markets.238

Even after the dramatic fallback of the worldwide stock markets — particularly in the high-tech sector — the fast evolving IT-development remains the most important driver of structural change in the financial services industry. Fig. 5 provides a quick overview of the development of important German and international stock markets in the last two years. Particularly shares of high-tech companies — listed at the Neuer Markt in Germany (NEMAX Index) or at the Nasdaq in the U.S. — have suffered severely as the dotted circles illustrate.

Having laid out a vision and a sustainable strategy for a financial services provider in the (Post) Information Age in the preceding chapter, two important concepts will now be presented and discussed that may facilitate and contribute to the implementation of the strategy described above. The first one, acontent modelfor the financial services market, aims at keeping a customer better informed about financial services by facilitating the individualization of finance-related content distribution, thus contributing to solving afinancial problem in the broader sensewith respect to information needs. The second one, aproduct model, facilitates the process of generating an individualized solution to a customer’sfinancial problem in the narrower sense,i.e. the need for an intertemporal liquidity distribution.

In Chap. 5 the vision and strategy of life-cycle solution provision were laid out. In Chap. 6 two conceptual CRM models to implement a life-cycle solution provision strategy were presented that may help to increase satisfaction and loyalty of the customer to the financial services provider by generating superior solutions for customer’s (latent) financial problems and providing a customer with information based on his preferences and (latent) needs. However, a misbalanced CRM strategy — not focusing on trust issues, but just on customer lock-in — will ultimately drive a financial services provider out of the market. In this chapter it is the objective to challenge the CRM business model in the financial services sector and derive important recommendations for firms operating in the market. Specifically, it will be shown that the strategy of acquiring a customer with a significant investment and locking this customer in with specially tailored services may not be sustainable, if this lock-in is based on the notion of assumed high switching costs.

At the beginning of the new millennium, the financial services market is experiencing a fundamental shift. More transparent and global markets through new means of communication on the one hand and better informed and more demanding customers on the other hand have led to a dramatically intensified competition. One way to circumvent cost-leadership competition is to offer individualized financial planning consulting services. In this contribution, a model to formalize financial problems and solutions under risk as an essential requirement for an IT-based financial planning process is presented, that - once implemented - may help to increase the quality of the consultation and decision support on the one hand and lower costs due to process improvements on the other hand.

The German financial services market is in a fundamental phase of transition and many big German financial services providers are in crisis. Business information system sciences may help a great deal improving the situation by the development of theory-based recommendations. In this contribution the current state of the market as well as its perspectives for the future are presented. Moreover, up-to-date research projects in the domain are discussed.

Traditionelle Produkt- bzw. Anbietergetriebene Marktbearbeitungsstrategien im Finanzdienstleistungsbereich werden durch die steigende Transparenz, die Veranderung der (Lebens-)Arbeitssituation der interessanten Zielgruppe und die abnehmende und einheitlichere Regulierung nachhaltig nicht mehr profitabel sein. Sophistication Banking als eine Potenzial- und Bedurfnisorientierte Strategie fuhrt zu einer signifikanten Steigerung der Kundenbindung und -loyalitat und letztendlich zu einem steigendem Unternehmenswert. IT-basierte, innovative Multi-Channel/Customer Relationship Ansatze sind dabei fur eine ganzheitliche und kosteneffiziente Betreuung der Kunden unerlasslich.

It was a normal day in April, in the late morning hours. Traffic was fluid on the two-lane freeway A1 between Hamburg and Bremen. The sky was partly cloudy, and no rain had been predicted for the next two days, perfect conditions for the drivers in both directions. The traffic surveyors in the helicopter far above contentedly took a sip of their hot coffee and turned their attention to the big swamp areas at both sides of the road.

Globalization of financial markets resulting from both IT (particularly Internet standards) and increasing homogeneity of regulation has strongly affected the environment, financial services companies are operating in. Given these changes on the market, innovation is not a choice, but a necessity to survive. Observable today, however, are defensive strategies and poor service quality. In this paper based on investments in trust relationships with customers we propose Sophistication (fit) Banking enabled by IT and qualified staff and show first steps towards the implementation of a sophistication banking strategy. While traditional markets are characterized by shrinking margins and declining shareholder values, which can easily be explained considering the digital character of financial products, new intermediaries for customer-centered Sophistication (fit) Banking have the opportunity of becoming spiders in the web and increasing shareholder values constantly.

We investigate the drivers behind the use of alternative trading systems for a sample of self-directed online investors. The results show that the factors explicit transaction costs, trading times, awareness of alternative trading systems and degree of personal involvement in the transaction all exert a positive effect on an online investor's preferential use of alternative trading systems, whereas regulatory supervision exerts a negative effect. Additionally, we observe that the effect of trading times is significantly lower for investors with no experience of alternative trading systems and the effect of regulatory supervision is significantly lower for investors who trade leveraged products.

Although theoretically necessary, social capital is not considered within the process of asset allocation for private investors. Both the lack of appropriate practical valuation concepts and the effort of providing and processing the required information as input for a valuation were obstacles to include social capital in this process. However, first theoretical financial models for the evaluation of social capital recently have become available. Moreover, the fast growth of business community websites and the technological progress in Web 2.0 tools that allow and acquire the active involvement of users, facilitate the provision and processing of valuation relevant information. In this paper we focus on the second aspect and propose a social software-based concept that allows for an integration of social capital in the asset allocation process.