Measuring the Extent of Structural Remedy in Section 7 Settlements: Was the US DOJ Successful in the 1990s?

This paper suggests an innovative measure of structural relief obtained in a typical Section 7 settlement. The fraction of competitive overlap subject to divestiture as a condition of the settlement is modeled as a function of merger-specific efficiencies, the proportion of the deal held “hostage” to antitrust review, the merger’s anticompetitive potential, and other factors. The model is applied to data on 86 recent Justice Department cases covering the period 1990–2003 and to the subsample of 1990s cases. All data are collected from publicly available documents only. The government is found to secure larger divestitures when the cost to the acquirer of delaying the settlement is high. The resulting estimates are used to predict several out-of-sample observations. I would like to thank the General Editor and two anonymous referees for many helpful suggestions on earlier drafts of this paper. The remaining errors are mine.     

The product-elimination decision and strategies

This study identified the elimination strategies used by companies to implement the elimination decision, which includes the following options: (1) phase out immediately; (2) phase out slowly; (3) drop the product from the standard range and reintriduce it as a “special” sell out. The study also determined that the “phase out slowly” strategy is generally preferred and that “stock on hand” and “replacement product development” are two of the main factors influencing the formulation of phase out plans. A systematized model for the implementation of the product elimination decision based on the findings of the study is described.     

Matching new manufacturing technologies to industrial markets and strategies

Major developments are occuring in the manufacturing technologies used in many industries—especially the metal manufacturing and fabricating industries and the electronic manufacturing industries. These developments provide a basis for developing a firm's distinctive competence but this can only be exploited to the full if Marketing personnel are aware of and take account of the new capabilities offered by these technological developments.     

Marketing research by a small industrial firm: A case study

There is a growing need today for industrial marketers to conduct marketing research and use the results in making profitable business decisions. This paper describes a marketing research study conducted by a small industrial firm and discusses the nature and extent of its impact on the firm's operations. Several implications and practical guidelines are derived for industrial marketers in general, based on the firm's marketing research experience.     

Rating industrial advertisements

Industrial advertisers can create more effective advertisements if they have some notion about the immediate effect their advertising has on the target audience. Here, a multiple item scale is developed for categorizing an audience's reactions to print ads. The proposed scale is discussed as a copytesting instrument and could be used to evaluate alternative executions in order to indicate which ads may be most effective.     

Estimating Market Growth for New Products: An Analogical Diffusion Model Approach

There has been a lot of interest in diffusion models as a basis for prelaunch estimates of the sales of new products, and indeed there have been several models developed that have achieved fairly good acceptance by new product managers. One of the limitations of such models, however, has been the requirement that a sales history for the new product, even a short one from a test market, for example, be available to derive the parameters of the model. For some types of products—consumer durables, services, industrial products, for example—a sales history isn't available. In this article, Professor Robert Thomas suggests some steps toward the development of models that incorporate the attractive features of diffusion models. His approach is to use, in a systematic way, the sales histories of products that can be considered to have analogous features from a buyer's point of view. He illustrates the approach by forecasting the sales of a new service.     

Risk in product development stages

Risk perceptions have an important bearing on the product-development process. The product-development literature reports risk-level and cost increases as a project advances in the R&D pipeline, but no quantification of these concepts is available. Data are provided on how people involved in the product-development process view the relationship between cost and risk escalation. The results are discussed in terms of how companies manage risk and uncertainty in product development.     

Sales management control and job performance

A national firm's salespeoples' perceptions of their management control system were related to their performance and satisfaction. Salespeople who perceived job goal clarity, control over their work, and job rewards as being based upon performance were found to be relatively higher performers and better satisfied with their job.     

Protocol: New Tool for Product Innovation

The new product process is often plagued by delays, cost overruns, products which don't sell well, and a state of near battle between marketers and R&D groups. These problems are being attacked by a wide variety of new management practices today. For example, we have recently seen better statements of strategy, smaller less bureaucratic organization forms, mathematical models for economic evaluation, and post-launch tracking and control systems. One area of concern has been slow to respond—the communication of direction to R&D. This paper speaks to the communication problem by proposing a concept called "protocol." The concept is explained, and its usefulness and difficulties are discussed. This article tells why something like a protocol is needed, and points out the problems in its development and use.     

An experimental approach to segmenting buyers of marketing research

Successful industrial market segmentation may often depend on the marketer's ability to identify key characteristics influencing purchase preferences. Environmental, organizational, and personal factors are all potential determinants of buyer response patterns. Recent attention to microsegmentation processes has focused interest on personal level factors and how these are modified by organizational and situational variables. Utilizing a simulated buying experiment, this study explores a simplified approach to microsegmentation that emphasizes information readily available to industrial vendor representatives.     

Women in industrial advertisements

This is one of the first studies to analyze the way in which women are portrayed in industrial advertising. It concludes that the use of sex is not a major selling strategy and that, with one exception, women's role in industrial life is accurately reflected.     

Compensation plans that link management and salesman's objectives

In many companies, sales management pursues several objectives through the sales force compensation scheme, some of them qualitative and long-run. On the other hand, salesmen within the same sales force are likely to display heterogeneous preference patterns for compensation formulae. In this frequent occurrence, a jointly optimal compensation plan is not likely to be found (or even to exist), and a sales manager can only hope to find one of the best possible compromises between management's and salesmen's objectives. This paper proposes a seven-step procedure for finding such a compromise. An actual application is reported, and operational procedures are discussed.     

More effective sales force reporting

As the need for marketing intelligence by sales and marketing managers grows more essential, field sales personnel are increasingly being asked to gather and report information. Many executives realize the potential value of using salespersons to supply information useful to management decision making. The sales force is familiar with their territories, their customers' needs and sources of information inside customer organizations, their competitors' marketing activities, and trends in product acceptance. The incremental costs and effort required are low compared to other research methods, since information can be submitted within the context of a regular call report system [2, 6, 8].But salespersons have been found to be inadequate and uncooperative reporters in many instances. Numerous field salespersons believe that reporting infringes on their primary responsibility of selling, and furthermore that management apparently doesn't make use of the resulting information anyway. Thus, while salespersons have access to a wealth of marketing information of potentially great value to the firm, they are often inadequate, unreliable, and unmotivated reporters [4, 5].This article reports the results of a study designed to investigate what management practices contribute to, or detract from, effective reporting of marketing information by salespersons. Current practices in reporting are noted and some recommendations are made to help management improve sales force reporting.     

Pricing practices in two industries

Although a critical part of marketing decision making, very little has been written about industrial pricing policy and strategy. This article has three objectives: First, to report the pricing practices of the chemical and construction industries; Second, to compare their pricing policies; and third, to develop a simple pricing framework for industrial marketers. The results of this study are interesting and somewhat unexpected. The buyer and his behavior only play a small part in pricing policy. A pricing framework or model is presented in a logical and systematic way.     

Opportunities for Revitalizing Stagnant Markets: An Analysis of Household Appliances

For many durable consumer products, the conditions needed for sustained growth in sales seem to have disappeared. Some of these products have reached saturation levels of ownership; others seem to have plateaued at lower levels of ownership. The authors of this article, Professors Clark, Freeman, and Hanssens, have taken a multidisciplinary approach to the analysis of one portion of the consumer durables market—household appliances—to detect the underlying components of demand. They speculate on how these demand components will fare in the coming years and draw implications for the way these markets can be stimulated.     

Product type and the relative influence of buyers in commercial construction

Organizational purchasing is usually the product of collective decision making. While the seller's first contact with a prospective customer is with the purchasing agent, the purchasing agent is by no means the sole decision maker. The purpose of this study is to identify the relative influence of purchasing agents and other buyers in the commercial construction industry. Individual buyers and firms can also make use of the framework evolved to examine their own buying practices.     

Managing a capital equipment business's market share

Several factors are investigated as possible contributors to market share for capital equipment business: product quality, service quality, a business's image for quality, and marketing communications. Cross-lagged correlations with PIMS data imply that product quality and image for quality influence market share, marketing communication influences image, and service quality results from all of these sources of influence.     

Impact of organizational and buyer characteristics on the buying center

A mail survey of 200 organizational buyers was conducted to determine if the number of individuals in the buying center or the amount of perceived self-influence varied by organizational and buyer characteristics or by the type of purchase decision. The results of the study indicate that the type and size of the firm, as well as the buyer's educational level, affect both the number of individuals in the buying center and the amount of perceived self-influence of the organizational buyer. The results further indicate that the size of the buying center increases and the amount of perceived self-influence decreases as the purchase decision becomes more complex.