Marketing on the Internet
Think a strong corporate Web site is the only effective
way to build business over the Internet? Think again.
According to two researchers at the School of
Business-Camden, Internet forums are an effective mechanism
for generating consumer interest in a product or service.
Barbara Bickart and Robert Schindler, both associate
professors of marketing, studied how consumers acquire
product information on the Web. The researchers found that
Internet communities do a better job stimulating consumer
interest in a product than the official corporate sites.
Greater credibility, greater relevance and a greater
ability to evoke empathy are all reasons why online
discussion forums are more effective than marketer-generated
Web sites, said Bickart, who noted that the findings suggest
that word-of-mouth -- the oldest sales tool -- remains vital
and relevant in the online world of the 21st century.
In compiling their data, Schindler and Bickart turned to
the experts on Internet business: their students. As part of
a weekly class assignment, students were asked to look at
either corporate Web pages or consumer forums on assigned
product categories, such as nutritional supplements or
biking. At the end of the semester, the students completed a
questionnaire in which they were asked their interest in a
number of product categories, including the assigned product
categories. Interest was higher for those assigned to look
at forums compared to those who looked at corporate Web
pages.
"The lesson here for marketers is that there may be real
benefits to encouraging consumers to exchange online
information and experiences about the company's products,"
said Schindler.
-- Michael Sepanic
Doctor and patient
The growth of managed care during the past decade has not
reduced the amount of time doctors spend with their
patients, according to a new Rutgers study, "Are
Patient-Physician Visits Getting Shorter?" published in the
Jan. 18 issue of the New England Journal of Medicine.
Lead study author David Mechanic, director of the
Institute for Health, Health Care Policy and Aging Research,
found that between 1989 and 1998, the average duration of
visits -- the actual time spent in face-to-face contact
between doctor and patient -- increased between one and two
minutes.
The study debunks a popular misconception that managed
care has pressured doctors to sacrifice time with patients
in order to increase productivity and maintain
profitability.
"What makes this finding so dramatic is that it is
contrary to what everyone expects, and it is echoed in two
independent sources of data gathered in different ways,"
said Mechanic. "It is clear that the time doctors spend with
patients has been going up over the decade, not down, and
these findings are true for visits to primary-care doctors
and specialists, for treatment of common and serious
illness, for new and old patients, and for both prepaid
(managed care) and nonprepaid visits."
Results are based on two national annual surveys, the
National Ambulatory Medical Care Surveys of the National
Center for Health Statistics and the American Medical
Association's Socioeconomic Monitoring Systems, which
interview or survey 1,200 to 4,000 doctors across the United
States.
According to the study, the amount of time doctors spent
with patients increased from 15.4 to 17.9 minutes for prepaid visits, and from 16.4 to 18.5 minutes for
nonprepaid visits, from 1989 to 1998.
Another major finding of the study was an increase of 120
million visits to physicians' offices during the same
period, with the number of prepaid visits more than doubling
from 102 million in 1989 to 261 million in 1998. The
proportion of prepaid versus nonprepaid visits grew from
15.4 percent of all visits in 1989 to 33.1 percent in 1998.
The study also revealed a 21 percent growth in the number
of office-based physicians during the past decade, with an
18 percent increase in primary care and a 22 percent
increase in specialists. There also has been an increase in
the number of female physicians from 12.9 percent in 1989 to
20.5 percent in 1998. Interestingly, the study found that
female doctors spend about 1.2 minutes longer with patients
than their male counterparts.
-- Stacey B. Hersh
Modeling the brain
In a new book, two researchers on the Newark campus
demonstrate how selected state-of-the-art computer models
are helping scientists better understand brain functions and
disorders, including the emerging role of the hippocampus in
human learning and memory.
The book, "Gateway to Memory: An Introduction to Neural
Network Modeling of the Hippocampus and Learning" (MIT
Press), is co-authored by Mark Gluck, associate professor of
neuroscience, and Catherine Myers, assistant professor of
psychology. The book integrates computer models and the
latest neurobiological approaches to learning- and
memory-based problems.
The hippocampus is a brain structure critical to memory
creation and retention. Damage to it is believed to be the
basis of learning and memory problems found in early
Alzheimer's disease, as well as epilepsy and other forms of
brain injury that impair memory.
The book focuses on how the hippocampus cooperates with
other brain structures, how computer models relate to
current brain and psychological theories, and how the models
predict possible ramifications for specific memory functions
and disorders.
"This book tells the story of how models are built on
prior experimental data and theoretical insights and then
evolve toward a more comprehensive and coherent
interpretation of a wide body of neurobiological and
behavioral data," Gluck said, noting that the book is
designed to help neuroscientists and psychologists
understand the vocabulary of brain modeling without getting
bogged down in details.
"Many questions about hippocampal functioning in learning
still remain unanswered," he added. "Our hope is that this
book may excite a few of its readers to go on to become
modelers themselves, or to incorporate computational
modeling into their own research programs through
collaboration with modelers."
Gluck and Myers are co-directors of the Memory Disorders
Project, a program that conducts research and outreach on
memory loss. The project publishes a free newsletter, Memory
Loss & the Brain, also available on the Web at
www.memory.rutgers.edu/newsletter.
-- Michael Olohan
The value of nonprofits
The number of nonprofit, charitable organizations has
increased in this country to a size 50 times as great as it
was in 1940, but is society that much better off thanks to
the efforts of such groups? The answer is "no," says Jon Van
Til, a Camden professor of urban studies and community
planning, in his latest book, "Growing Civil Society: From
Nonprofit Sector to Third Space" (Indiana University Press).
A fair number of these organizations, Van Til argues, are
doing little to serve the public good and could be more
accurately described as tax-exempt businesses. For example,
he said, most hospitals and nursing homes are acting as
businesses, as are many private colleges and universities,
and it's unfair that they continue to receive the privileges
given to other nonprofit groups.
Van Til's book is the result of 12 years of observing the
role of nonprofits and voluntary organizations in society.
In that time, he's also penned a regular column, titled "On
the Boundary," for the Non-Profit Times, a major monthly
trade magazine for the nonprofit sector. In his various
roles, he has been involved in shaping an interdisciplinary
academic field. Now a recognized public intellectual in the
area of voluntary action research and third-sector studies,
Van Til predicts that the existing nonprofit sector will be
replaced by a more positive "third space," where individuals
and organizations come together to reflect and act to create
the community and society they need.
-- Caroline Yount
Oceans, bacteria and climate change
In a study that adds to our basic understanding of what is
happening at the lowest biological levels in the ocean,
Zbigniew S. Kolber, research professor at the Institute of
Marine and Coastal Sciences (IMCS), has authored an article
on bacterial photosynthesis in surface waters of the open
ocean. The article appeared in Nature last fall.
Kolber's co-authors are C.L. Van Dover of the College of
William and Mary; Robert A. Niederman, professor of
biochemistry at Rutgers; and Paul G. Falkowski, a professor
at IMCS.
The team identified, for the first time, biophysical
evidence that clearly demonstrates that aerobic bacterial
photosynthesis is widespread in the tropical surface waters
of the eastern Pacific Ocean and in temperate coastal waters
of the northwestern Atlantic Ocean. Aerobic photosynthetic
bacteria differ from their evolutionary predecessors, purple
photosynthetic bacteria, in that they perform oxygen-based
respiration and require oxygen for pigment
(bacteriochlorophyll a) synthesis.
Prior to this work, aerobic photosynthetic bacteria were
found exclusively in nutrient-rich but geographically
limited ecological niches, such as beach sands,
cyanobacterial mats and hydrothermal vents. The distribution
of these organisms in the world's open oceans, however, was
not known. Kolber and his co-authors postulate that these
organisms account for some 2 percent to 5 percent of the
photosynthetic electron transport in the upper ocean.
This research contributes to our knowledge of bacterial
photosynthetic energy fluxes, with important implications
for global carbon cycling that may ultimately improve our
understanding of environmental climate change.
-- Margaret Sullivan
Global warming
Humans have significantly altered the global carbon cycle,
according to Paul G. Falkowski, lead author of an article on
global warming published in Science last October.
Falkowski, a professor at the Institute of Marine and
Coastal Sciences (IMCS) with a joint appointment to the
geology department, and his co-authors wrote the article
under the auspices of the International Geosphere-Biosphere
Programme (IGBP), which Falkowski co-chaired with fellow
author R.J. Scholes of the Council of Scientific and
Industrial Research in South Africa.
The IGBP Carbon Working Group, established by the United
Nations, met in Stockholm in November 1999 to study the
impact of human activities on the rate of change in
atmospheric carbon dioxide (CO2). The group examined changes
in biogeochemical and climatological processes along with
alterations in international carbon and nutrient cycles.
Comparing contemporary processes with the 420,000 years
prior to the Industrial Revolution, the scientists
determined that atmospheric CO2 levels have risen at a rate
of some 10 to possibly 100 times faster than at any prior
time in the Earth's history.
"As we drift further away from the domain that
characterized the pre-industrial Earth system, we severely
test the limits of our understanding of how the Earth system
will respond," write the article's authors.
"We appear to be fated to continue the increase in CO2 in
the biosphere unless governments come to terms with new
technologies. Human beings are ultimately responsible for
their own fate," said Falkowski.
Yair Rosenthal, assistant research professor at IMCS, was
also a member of the IGBP and a co-author of the article.
-- Margaret Sullivan
Fetal poisoning
Male fetuses exposed to large-scale poisoning when their
mothers ingested contaminated cooking oil more than 20 years
ago in Taiwan have lower sperm quality than normal in young
adulthood, according to a research letter published in the
medical journal The Lancet.
George Lambert, an associate professor with the
Environmental and Occupational Health Sciences Institute
(EOHSI) and the department of pediatrics at the University
of Medicine and Dentistry of New Jersey-Robert Wood Johnson
Medical School, is one of the investigators and the senior
author who reported the results. The researchers analyzed
semen from subjects and appropriate controls, which included
12 young men who were exposed prenatally to cooking oil
accidentally contaminated during production with
polychlorinated biphenyls (PCBs) and polychlorinated
dibenzofurans (PCDFs) in central Taiwan during 1979.
To determine whether in-utero exposure to these chemicals
alters reproductive function, the scientists from the
National Chung Kung University in Taiwan, EOHSI and the
Center for Child and Reproductive Environmental Health
obtained sperm samples in 1998.
The researchers found that semen volume and sperm
concentration were not different between exposed and control
men, but the percentage of sperm with normal morphology and
the percentage of motile sperm and rapidly motile sperm were
all reduced in exposed men.
EOHSI is a joint program of Rutgers and UMDNJ-Robert Wood
Johnson Medical School.
-- Steve Manas
Stock options
When stock options are added to the mix of compensation
for full-time workers in a company, the firm and its
investors benefit, according to a study believed to be the
first to look at the impact stock option plans have on
corporate performance.
Long granted to top executives but recently added to
compensation packages at lower ranks, stock options appear
to boost company productivity and shareholder returns,
according to the study by researchers at Rutgers' School of
Management and Labor Relations (SMLR) and the New York
Institute of Technology.
Stock options (the right to purchase a given stock at a
set price) are the newest weapon in the war for talent at
many organizations. Owning stock in a company, in theory,
gives workers a stake in the success or failure of an
organization. The plans are widely believed to improve
company performance by aligning workers' and investors'
interests more closely. But there has been little previous
research to support the theory.
"This is the fastest-growing form of variable pay in the
United States," said James Sesil, co-investigator of the
project and an assistant professor of human resource
management with SMLR. Other researchers include Joseph Blasi
and Doug Kruse, both professors of human resource management
at SMLR; and Maya Kroumova, assistant professor at the New
York Institute of Technology.
Using data from the National Center for Employee
Ownership, a private, nonprofit organization, researchers
looked at 490 well-established public companies with
broad-based stock option plans and compared them to similar
companies without the plans.
The study found:
Companies with broad-based stock option plans were found
to have 14.8 percent higher productivity than all public
companies and 16.8 percent higher productivity than similar
companies in their industry group.
Total shareholder returns for companies that offer the
plans were not significantly better or worse than their
counterparts in industry.
The ratio of the market value of assets to the
replacement cost of those assets, known as Tobin's q, was
higher for companies with broad-based stock options than for
other publicly traded companies.
The surveyed firms offered higher-than-average
compensation packages both prior to and after the
introduction of the broad-based stock option plans.
The authors caution that much remains to be studied in the
area, which to date has attracted little notice from either
investors or researchers. "This is a huge phenomenon. I
don't think we've scratched the surface yet," said Sesil.
-- Pam Orel