Competitive analysis

Despite the strategic importance of understanding competitive structure and the dynamics of competitive behavior, there has been almost no empirical study of how managers perform these analyses. We provide a conceptualization of how competitive analyses can be framed by decision makers and for researching how human biases in decision making and corporate culture impact on the nature and use of competitive analysis information.We are grateful for the comments of George Day, Peter Dickson, Pete Fader, Don Lehmann, Rajan Varadarajan, and David Wheaton on an earlier version of this paper.     

Retailers' major ethical decision making constructs

The major constructs of the Ferrell and Gresham [Ferrell OC, Gresham L. A Contingency Framework for Understanding Ethical Decision-Making in Marketing. J Mark 1985; (Summer): 87-96.], Hunt and Vitell [Hunt SD, Vitell S. A General Theory of Marketing Ethics. J Macromark 1986; 6 (Spring): 5-16.], and Ferrell et al. [Ferrell OC, Gresham L, Fraedrich JP. A Synthesis of Ethical Decision Models for Marketing. J Macromark 1989; 9(2) (Fall): 55-64.] models were tested using LISREL. Our findings suggest that Friends, Superiors, Business Associates, and Formalization of the Organization are more significant than Moral Philosophy. A new construct Ethicalness, comprised of individual, organizational, and societal value structures yielded a tight multi-dimensional fit that supports Kerlinger's domain theory and is dissimilar to Reidenbach and Robin's (1991) multi-dimensional scale. This research is one of the first to test as many ethical decision making constructs while explaining the multi-dimensional conundrum of ethical/unethical and legal/illegal practices within retailing.     

Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128-137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095-1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value-loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.     

India: the Land of Unfulfilled Promise

THE CHANGING WORLD OF THE EXECUTIVE, by Peter Drucker THE INTERNATIONAL MONETARY ECONOMY AND THE THIRD WORLD, by George Macesich RESTRICTIVE BUSINESS PRACTICES, TRANSNATIONAL CORPORATIONS AND DEVELOPMENT: A SURVEY, by Frank Long THE POLITICAL ECONOMICS OF INTERNATIONAL BANK LENDING, by David Gisselquist DEVELOPING COUNTRIES IN A TURBULENT WORLD: PATTERNS OF ADJUSTMENT SINCE THE OIL CRISIS, by Ching-yuan Lin IMPORT COMPETITION AND RESPONSE, edited by Jagdish N. Bhagwati THE PROMISE OF PEACE: ECONOMIC COOPERATION BETWEEN EGYPT AND ISRAEL, by Henry J. Bruton, Staff Paper NEW DEVELOPMENTS IN PRODUCTIVITY MEASUREMENT AND ANALYSIS, edited by John W. Kendrick and Beatrice N. Vaccara     

BOOK REVIEWS

ECONOMIC FORECASTING AND POLICY: THE INTERNATIONAL DIMENSION, by John Llewellyn, Stephen Potter and Lee Samuelson Alan Budd NEW OPPORTUNITIES FOR ENTREPRENEURSHIP, edited by Herbert Giersch (Tübingen: J. C. B. Mohr John Burton SUBSIDIES IN INTERNATIONAL TRADE, by Gary Clyde Hufbauer and Joanna Shelton Erb STRATEGIC MATERIALS: A WORLD SURVEY, by Rae Weston INNOVATION AND ENTREPRENEURSHIP: PRACTICE AND PRINCIPLES, by Peter F. Drucker     

Figuring companion-species consumption: A multi-site ethnography of the post-canine Afghan hound

In her recent publication, Haraway (Haraway, D., (2003). The companion species manifesto: dogs, people, and significant otherness. Chicago, Prickly Paradigm Press.) extends her concept of the cyborg to explore how the figure of “companion species” can rethink the models of reality that traditionally underpin cultural research. This paper investigates the kind of consumption worlds and consumption relations the ontology of companion species suggests and what it offers in terms of understanding consumption in a post-human (and post-canine) consumer-behavior landscape. Following this, it proposes the concept of “companion-species consumption” (CSC) as a new ontology to extend interpretive research on consumers and their pets (Hirschman, E. C., (1994). Consumers and their animal companions. J Consum Res, 20 (3), 616-632.; Holbrook, M.B., Stephens, D.L., Day, E., Holbrook, S.M. and Strazar, G., (2001). A collective stereographic photo essay on key aspects of animal companionship: the truth about dogs and cats. Academy of Marketing Science Review 1; AMS.; Belk, Russell W., (1996). Metaphoric relationships with pets Society & Animals: Social Scientific Studies of the Human Experience of Other Animals, vol. 4 (2), 121-145.) and to reflect current theory of the consumer-object relation. This research explores the potential of CSC through multi-site ethnography (Marcus, George E., (1995). Ethnography in/of the world system: the emergence of multi-sited ethnography, Annu Rev Anthropol 95-117.) of a trans-national, highly-networked community of Afghan hounds and their exhibitors. The paper examines how companion species emerge across a range of cultural sites and documents the consumption practices stemming from the dichotomies between them. The conclusions inform dog-related marketing activity, advance consumer-research insights into the practices of dog-related avocational consumer groups, and extend existing theory of the consumer-object relation.     

Co-creating brands: Diagnosing and designing the relationship experience

The traditional goods-dominant logic of marketing is under challenge and leading researchers are now emphasizing the new service-dominant logic [Vargo, S.L., Lusch, R.F., Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17.]. One of the key foundational propositions of this logic is the customer as “always being a co-creator of value” where “the brand becomes the experience” [Prahalad, C.K., The co-creation of value. J Mark 2004; 68 (1): 23.]. In this paper, the authors examine the concept of brand relationship experience in the context of co-creation and service-dominant logic and outline a conceptual model for designing and managing the customer experience. Case study research illustrates how this model helps in the design and management of the brand relationship experience for an innovative new product.     

Does attitudinal loyalty influence behavioral loyalty? A theoretical and empirical study

Despite a plethora of studies on brand loyalty spanning over last three decades, the research paradigm is unique in its inability to produce generalizable results. The research suffers from a lack of agreement over the operationalization of the construct of the brand loyalty. Many researchers [e.g., Kahn, B.E., Kalwani, M.U., Morrison, D.G., 1986. Measuring variety seeking and reinforcement behaviors using panel data. Journal of Marketing Research 23, 89–100; Ehrenberg, A.S.C., Goodhardt, G.J., Barwise, P.B., 1990. Double jeopardy revisited. Journal of Marketing 54, 82–91] have defined brand loyalty only from a behavioral perspective. They assumed that repeat purchasing can capture the loyalty of a consumer towards the brand of interest. Other researchers [e.g., Day, G.S., 1969. A two-dimensional concept of brand loyalty. Journal of Advertising Research 9, 29–35; Dick, A.S., Basu, K., 1994. Consumer loyalty: towards an integrated conceptual approach. Journal of the Academy of Marketing Science 22 (2), 99–113; Baldinger, A.L., Rubinson, J., 1996. Brand loyalty: the link between attitude and behavior. Journal of Advertising Research 36 (6), 22–34; Rundle-Thiele, S.R., Bennett, R., 2001. A brand for all seasons: A discussion of loyalty approaches and their applicability for different markets. Journal of Product and Brand Management 10 (1), 25–37; Rundle-Thiele, S.R., 2005. Elaborating customer loyalty: exploring loyalty to wine retailers. Journal of Retailing and Consumer Services 12 (5), 333–344], however, have suggested that attitude should be included along with behavior to define loyalty. In particular, Dick and Basu (1994) were precise in suggesting that a favorable attitude and repeat purchase were required to define loyalty. By viewing loyalty as an attitude–behavior relationship in their framework, Dick and Basu (1994) were able to investigate the concept from a causal perspective thereby permitting the identification of the factors that influence loyalty.Our research extends the idea proposed by Dick and Basu (1994) in two ways. First, we provide a conceptually clear, and an operationally meaningful way of segmenting the market on the basis of attitudes that govern this behavior. To be specific, we offer a unique way to measure attitudinal loyalty. And we use a unique survey data with a large sample of 1800 respondents that includes both behavioral (purchase) patterns and attitudes of the respondents for all major brands of toothpaste, to demonstrate that behavioral loyalty is influenced by attitudinal loyalty across many brands of the toothpaste category. Finally, we propose that a third behavioral pattern—non-user—should be also included along with two known behavioral patterns viz. single user and multiple user. This is because a non-user has the potential to become a consumer in future.     

Generation Y employees' retail work experience: The mediating effect of job characteristics

This research examines Generation Y employees' retail work experience. Based upon Brown and Peterson's [Brown SP, Peterson RA, Antecedents and consequences of salesperson job satisfaction: meta-analysis and assessment of causal effects. J Mark Res 1993; 30: 63-77; Brown SP, Peterson RA, The effect of effort on sales performance and job satisfaction. J Mark 1994; 58: 70-80.] job satisfaction model, Gen Y employees work experience framework encompasses the work environment variables of role conflict, role ambiguity, supervisory support, and work involvement to predict job performance, job satisfaction, and, ultimately, retail career intention. Drawing from the job crafting perspective in management theory [Wrzesniewski and Dutton, 2001], this research tests the mediating effect of job characteristics between work environment and job outcomes using structural equation modeling. Study participants were members of a national sample of students (n = 803) from 14 universities in the United States. The findings indicate that job characteristics have a critical mediating role on the relationships for Gen Y employees, suggesting a paradigm shift from passive to active employees who craft their jobs, roles, and selves within a retail organizational context.     

Market pioneers, late movers, and the resource-based view (RBV): A conceptual model

Lieberman and Montgomery note that “…we see benefits from linking empirical findings on first-mover advantages with the complementary stream of research on the resource-based view of the firm” (1998, p. 1111); they suggest that such a link will help explain differences in firm performance. Therefore, this study develops a conceptual framework linking FMAs with the resource-based view of the firm (RBV); in doing so, this framework explains the links between entry timing, resource management, and firm performance. Specifically, this study examines FMAs in light of a four-step resource management process [Morgan RM. Relationship marketing and marketing strategy: the evolution of relationship strategy within the organization. In: Sheth JN, Parvatiyar A, editors. Handbook of Relationship Marketing. Thousand Oaks, California: SAGE Publications, 2000. p. 481–504.; Morgan RM, Hunt S. Relationship-based competitive advantage: the role of relationship marketing in marketing strategy. J Bus Res 1999; 46 (November): 281–90.] consisting of: 1) efficient acquisition (EA), 2) bundling/combining (BC), 3) positioning (POS), and 4) maintenance/protection (MP). The link between FMAs and the resource management process helps explain why so few first movers retain their advantages.     

Book Reviews

Books reviewed in this article Aaker, David A. and George S. Day, editors, Consumerism: The Search for the Consumer Interest. Gaedeke, Ralph M. and Warren W. Etcheson, editors, Consumerism—Viewpoints from Business, Government, and the Public Interest. Fogiel, Max., How to Pay Lots Less for Life Insurance. Josephson, Halsey D., Life Insurance and the Public Interest. Klein, David and MaryMae, Supershopper. Stanley, David T. and Marjorie Girth, Bankruptcy: Problem, Process, and Reform. Stillman, Richard J., Guide to Personal Finance, A Lifetime Program of Money Management. West, David A., and Wood, Glenn L., Personal Financial Management.     

Multifactor implied volatility functions for HJM models

This study evaluates two one‐factor, two two‐factor, and two three‐factor implied volatility functions in the HJM class, with the use of eurodollar futures options across both strike prices and maturities. The primary contributions of this article are (a) to propose and test three implied volatility multifactor functions not considered by K. I. Amin and A. J. Morton (1994), (b) to evaluate models using the AIC criteria as well as other standard criteria neglected by S. Y. M. Zeto (2002), and (c) to .nd that multifactor models incorporating the exponential decaying implied volatility functions generally outperform other models in .tting and prediction, in sharp contrast to K. I. Amin and A. J. Morton, who find the constantvolatility model superior. Correctly specified and calibrated simple constant and square‐root factor models may be superior to inappropriate multifactor models in option trading and hedging strategies. © 2006 Wiley Periodicals, Inc. Jrl Fut Mark 26:809–833, 2006     

Book review

Moorthy, R.S., De George, Richard T., Donaldson, Thomas, Ellos, William J., Solomon, Robert C. and Textor, Robert B., Uncompromising Integrity: Motorola's Global Challenge     

The role of the seven dimensions of job satisfaction in salesperson's attitudes and behaviors

To date, the majority of studies on job satisfaction use either a global measure or the JDI measure. To extend current research, this study uses the seven dimensions of job satisfaction as described by Churchill et al. [Churchill, G.A., Ford, N.M., Walker, O.C. Measuring the job satisfaction of industrial salesmen. J Mark Res 1974; 11 (3): 254-260.] to explore the relationship between job satisfaction, emotional exhaustion, organizational commitment and propensity to leave. Findings suggest that: 1) emotional exhaustion only relates to certain dimensions of job satisfaction and 2) job satisfaction dimensions related to organizational commitment and propensity to leave are not necessarily the same. Overall, this research provides an argument for the use of the seven dimension job satisfaction scale, as opposed to global measures or the JDI measure.     

Book reviews

MARKETING BUDGETING by Nigel Piercy (Croom Helm, 1986) 522 pages, £27.50 hb. ISBN 0–7099–2092‐X.

STATISTICS FOR MARKETING by Leslie W. Rodger (McGraw‐Hill, London, 1984), 280 pages, £10.95. ISBN 0–07–084728–2.

ANALYSIS FOR STRATEGIC MARKET DECISIONS by George S. Day (West Publishing Co., St. Paul, Minnesota, 1986), ISBN 0–314–85227–1.

MARKETING FOR THE CONSTRUCTION INDUSTRY by Norman Fisher (Longman, Harlow, Essex, 1986), 270 pages, £19.95 HB. ISBN 0–582–503302.

SOURCES OF UNOFFICIAL UK STATISTICS by David A. Mort and Leona Siddall (Gower Publishing Co., 1985), 457 pages, £45.00. ISBN 0–566–02620–1.

HOTEL & FOOD SERVICE MARKETING by Francis Buttle (Holt, Rinehart and Winston, London, 1986) 406 pages, £9.95. ISBN 0–03–910682–9.

POSITIONING: THE BATTLE FOR YOUR MIND by Al Ries and Jack Trout, first edition revised (McGraw‐Hill, New York, 1986), 213 pages, £17.95 hardcover. ISBN 0–07–065264–3.

BUSINESS WARGAMES by Barrie G. James (Abacus Press, Tunbridge Wells, 1984), 254 pp., £14.95. ISBN 0–85626–441–5.     

Information diffusion and new product consumption: A bass model application to tourism facility management

This article applies models to measure and to understand how information diffusion influences tourists' consumption patterns. The study uses administrative data on a new festival's attendance and advertising. Bass's [Bass FM. A new product growth for model consumer durables. Manage Sci 1969;15(5):215-227] model and a modified version [Horsky D, Simon LS. Advertising and the diffusion of new products. Mark Sci 1983;2(1):1-18] to allow for advertising's effect. Results imply effectiveness of front loaded advertising. This result is due to increasing purchases that result from word-of-mouth information diffusion. However, a model with an effect of advertising is accepted as well as a model with no consideration of advertising budget. Examination of consistency and conceptual issues with models raises the need for models that are more realistic for the tourism product. A specific concern is developing models appropriate to analysis of attendance at a limited-duration innovative event (e.g., new product) held at a host to impact longer-term attendance of the host.     

The Binomial Black–Scholes model and the Greeks

This article returns to the choice of method for calculating option hedge ratios discussed by Pelsser and Vorst (1994). Where they demonstrated that numerical differentiation of a binomial model compared poorly to their design of an extended tree, this study shows that the Binomial Black–Scholes method advocated by Broadie and Detemple (1996) does not suffer from the same problem; therefore, it is very effective in the calculation of the Greeks. © 2002 John Wiley & Sons, Inc. Jrl Fut Mark 22:143–153, 2002     

Book Reviews: Recensions de livres

Les entreprises de services Jean Nollet et John Haywood-Farmer Réussir la qualitéde service Marcel Alain. Laval Marketing de services, le défi relationnel Michel Langlois et Gérard Tocquer. Organizational Behaviour: A Canadian Perspective Hugh J. Arnold, Daniel C. Feldman, and Gerry Hunt Organizational Behaviour: Understanding Life at Work (3rd edition) Gary Johns. Managing Organizational Behaviour (1st Canadian edition) John R. Schermerhorn, Jr., Andrew J. Templer, R. Julian Cattaneo, James G. Hunt, and Richard N. Osborn.     

BOOK REVIEWS

Books reviewed in this article: Alexander, George J. Honesty and Competition; False Advertising Law and Policy Under F.T.C. Administration. Burk, Marguerite. Consumption Economics: A Multidisciplinary Approach.. Buzzel, Robert D. and Robert E. M. Nourse. Product Innovation in Food Processing, 1954–1964. Casey, William J. The Truth About Probate and Family Financial Planning. Darrah, L. B.Food Marketing. Mowbray, A. Q. The Thumb On The Scale or The Supermarket Shell Game. Young, James Harvey. The Medical Messiahs: A Social History of Health Quackery in Twentieth Century America.     

Missing the boat or sinking the boat: a study of new venture decision making

Taking two conceptualizations of risk, Dickson and Giglierano's [J. Mark. 50 (1986) 58] nautical analogy of entrepreneurial risk (sinking vs. missing the boat) to represent the likelihood of loss element of new venture risk, and March and Shapira's [Manage. Sci. 33 (1987) 1404] risk as hazard (boat size) to represent the magnitude of loss element of new venture risk, we investigated how two contextual factors, the suitability of entrepreneurs' skills and their sources of funds, and two individual differences factors, the entrepreneurs' risk propensities and their perceptions of risk, influence their new venture decision making. Metaphorically speaking, we found that most entrepreneurs would rather risk missing than sinking the boat, and that they preferred to pilot bigger craft than smaller ones. Perhaps surprisingly, our sample of highly successful entrepreneurs made relatively risk-averse choices, with 83% choosing either of the two ventures for which the chances for loss were lowest. We also found that the source of new venture funding—the entrepreneur's own money versus that of investors—influenced our subjects' choices between ventures whose chances for loss or gain differed. A similar effect was found for the entrepreneur's risk propensity. On the other hand, we found that the risk the entrepreneurs perceived in the choice set also influenced choices, but only where the magnitude of the new venture's potential gain or loss varied. When viewed in total, our study and results suggest a risk- and reward-based typology of new venture opportunities, one that may provide a conceptual foundation for future explorations of a variety of questions relevant for entrepreneurs and theorists alike.