Affirmative action: An ethical evaluation

This paper examines four major arguments advanced by opponents of race and gender conscious affirmative action and rebuts them on the basis of moral considerations. It is clear that the problem of past racial/gender discrimination has not disappeared; its effects linger, resulting in a wide disparity in opportunities and attainments between minorities/women and whites/males. Affirmative action, although not the perfect solution, is by far the most viable method of redressing the effects of past discrimination. Thus it cannot be dismissed lightly by way of arguing for mere colorblindness. Bill Shaw is Professor of Business Law at the University of Texas at Austin. He is on the editorial board of the American Business Law Journal and the Midwest Law Review. Among his most recent publications are The Legal Environment of Business (with Art Wolfe), Environmental Law: Text and Cases, The Global Environment: A Proposal to Eliminate Marine Oil Pollution (With Frank Cross and Brenda Winslett, The Natural Resources Journal), and Comparable Worth and Its Prospects (The Labor Law Journal). Professor Shaw would like to acknowledge the research assistance of Ms. Sohni Z. Yousuff.     

Subliminal auditory messages: An evaluation

Audio cassettes claimed by distributors to contain subliminal messages embedded within background sounds are currently-widely marketed and advertized. Although subliminal perception has generated considerable controversy for many years, recent research suggests that subliminal perception does occur when subjects can detect the presence of a stimulus but have no confidence that a stimulus was even presented. Given that the minimal stimulus condition for subliminal perception is stimulus detection, the subliminal audio cassettes marketed by several distributors were evaluated to determine if this condition was satisfied. Spectrographic analyses indicated that no identifiable speech is contained within the background sounds. In addition, using cassettes supplied by a major distributor, listeners could not distinguish between “signal” and “placebo” cassettes in a forced choice detection task. On the basis of these results, the only reasonable conclusion is that these audio cassettes do not contain any embedded subliminal messages that could conceivably influence behavior.     

Advertising-versus-marketing mix carryover effects: An empirical evaluation

This article examines whether market-share-carryover effects can be primarily attributed to advertising or whether other marketing-mix variables play an important role in describing such lagged effects.Eight different lag specifications including implicit, explicit, and mixed-effect models were tested using data representing 15 brands in three New Zealand consumer-goods markets.The results show that for the majority of brands examined, lagged advertising is more significant that the sustained influence of price and distribution. This result is explained in terms of the relative maturity of the product classes studied.     

An ethical evaluation of product placement: a deceptive practice?

Product placement, the practice of placing brands into non-advertising media, is a growing marketing phenomenon, which has received relatively little attention from business ethicists. Such attention is timely because the UK regulatory framework for television product placement is under review at the time of writing. In this paper, we seek to locate product placement in relation to traditional frameworks of marketing ethics. We suggest that this location is problematic because product placement is a form of marketing communication in which the message, the sender and the precise intention behind a brand seen in a television (TV) show, movie or computer game are often implicit. We suggest that the possibilities for an ethically principled regulation of product placement rest on two key issues: (1) the extent to which programme makers, media owners and brand owners make their product placement strategies explicit to audiences, and (2) the degree of commercial sophistication, which regulators attribute to non-expert entertainment audiences.     

An evaluation of strategic responses to consumer boycotts

This article documents the relative effectiveness of the various marketing strategies, in particular the public relations strategies, that firms use to combat the likelihood of boycotts as a politically motivated form of anti-consumption. This study focuses on boycotts that relate to corporate practices and aims to provide a rationale for appropriate publicity-based responses to the threat of corporate practice related boycotts. The purpose is to determine whether the techniques that firms use to mitigate the detrimental effects of negative publicity will be similarly effective for a boycott situation. The authors use two experiments to investigate the influence of publicity-based strategic responses to boycott requests on consumers' perceptions and behavior.     

An innovative service quality evaluation and improvement model

Importance-performance analysis (IPA) is a popular approach used by firms to focus resources on crucial attributes, reduce expenditure on non-critical ones and develop improvement and innovation strategies accordingly. However, IPA develops quality improvement plans based on inaccurate assumptions about the independence between importance and performance and lacks clear measurement standards, which may lead to inappropriate recommendations. IPA also does not account for desired versus adequate service. Therefore, this study proposes an innovative framework that integrates the advantages of IPA, the zone of tolerance concept, and Kano’s model. A case study conducted in a wealth management department in the banking industry demonstrates the effectiveness of the proposed methodology. The results indicate that the proposed approach recommends optimal service strategies to managers and outperforms traditional IPA.     

An investigation of consumer evaluation of brand extensions

This paper deals with the effects of perceived quality, perceived fit and perceived difficulty, and interaction between perceived quality and fit on consumer evaluations of brand extension. We used multi‐item scales to measure these constructs. Data were analysed via structural equation models. Results show that both perceived quality and perceived fit have direct positive effects on consumer evaluation of extensions. We find support for the chance of transferring the positive values of a brand to an extension is greater when consumers see the extension as a good fit with the original brand and the original brand is considered as of high quality.     

Linear processing in a semantic network: An alternative view of consumer product evaluation

While the linear model has been very successful in explaining the product evaluation process of consumers, it is quite uncertain what the model actually means in terms of underlying cognitive processes. An alternative model is developed, based on semantic network models developed in the psychology of memory, and used to explain the product evaluation process. It is shown that in certain cases this model leads to an information integration process structurally similar to the lineat model.     

Venture planning and analysis: An integrated approach to investment evaluation and product pricing

The venture planning and analysis (VPA) system is a quantitative analysis useful for developing pricing policy, projecting financial results, and comparing various investment opportunities. It is an integrated approach to product (investment) evaluation utilizing both marketing and cost information to determine an optimum pricing strategy.A venture plan is developed which covers several years of the anticipated life of the product (venture). The pricing strategy is determined by identifying the relationship between price, volume, and variable cost which yields the greatest positive cash flow. Revenue, variable expense, fixed expense, and engineering expense are input by fiscal year.The VPA system computes interest expense/income and cash flows. Ratios of the venture's quality-marginal investment quality factor and investment quality factor-are displayed, as are matrices which indicate the sensitivity of the venture to changes in the input data. Computer generated plots also help illustrate the cash flow and optimum level of production for each fiscal year of the analysis.     

An evaluation of consumer participation in hospital breast services

Community expectations and research demonstrate that consumers play an important role in shaping services for women with breast cancer. Consumer contribution has been mandated recently in Victoria, Australia, to ensure the inclusion of consumer involvement in the planning and decision‐making processes within health organizations. As part of the redevelopment of breast services in Victoria, Southern Health has been funded to plan local improvements to care co‐ordination for women diagnosed with breast cancer in the southern metropolitan area of Melbourne. The establishment of effective consumer participation in breast services is an integral aspect of this project and a range of initiatives has been undertaken to achieve meaningful consumer involvement including the appointment of a consumer advisor; appointment of staff with extensive knowledge in women's health and community development to the project; establishment of a consumer reference group; and plans made to improve the receptivity of health service systems to consumer input. A preliminary evaluation of this ongoing project has indicated that a productive role for consumers in service practice review and policy and planning activities has been established and some change and engagement of staff has occurred. There is still work to be done to promote the involvement of a wider range of health professionals and to increase the level of trust between consumers and staff.     

An evaluation of The Ethics Program at General Dynamics

The Ethics Program at General Dynamics was evaluated relative to its stated objectives and its implied objectives. The program was found to have met its specific objectives which require employees to follow rules and standards of conduct. The program did not apparently meet its implied objectives which would have created a more humanistic work environment for employees. This result apparently stemmed from program planners' intentions to use the hope for better working conditions as a motivation for employees to follow company standards. A substantial conflict was found between the philosophical bases for ethics programs and work environment improvement programs.Dr. Barker recently joined the faculty of Marist College to teach courses in organizational behavior, human resources management, and business policy. He was previously an internal change agent, at middle management levels, for General Dynamics for thirteen years. During that period, he also taught courses part time for the University of Redlands in business ethics, management theory, organizational behavior, human resources management, strategic planning, and research design.     

An evaluation of corporate governance evaluation, governance index (CGI NK ) and performance: Evidence from Chinese listed companies in 2003

In the present paper, based on samples of 2003, empirical analyses of Corporate Governance Index (CGI ^NK ) and its six dimensions of listed companies in China, the index of controlling shareholders’ behaviors, board governance index, top management governance index, information disclosure index, stakeholders’ governance index, and supervisors committee governance index, are carried out and the results show that CGI ^NK is positively associated with the return on assets (ROA), net assets per share (NAPS), earnings per share (EPS), operating cash flow per share (OCFPS), total assets turnover (TAV), rate of total assets growth (ITA) and Z-score. These indicate that good corporate governance mechanisms improve profitability, stock expansion ability, operating efficiency, growth and development potential, as well as financial flexibility and safety of listed companies. Corporate governance mechanisms of controlling shareholders, board of directors, top management, information disclosure, stakeholders and supervisors committee are largely responsible for decision-making and decision-execution mechanisms, and furthermore, they have direct and profound effects on the performance and value of listed companies. Translated from Zhongguo Gongye Jingji 中国工业经济 (China Industrial Economy), 2006, (4): 98–107     

An empirical evaluation of conflict in MNC matrix structure firms

According to existing theory, MNCs with matrix structures are supposed to have more intra-organizational conflict than non-matrix firms. The present study uses a sample of 82 German MNCs to evaluate and reject this general hypothesis. Only MNCs with a product division by geographical region matrix structure support the hypothesis. Other types of matrix structure which contain a functional division dimension tend to have levels of intra-organizational conflict similar to elementary structures. The paper develops and proposes new logic and two propositions that explain which types of matrix structure lead to greater conflict and which do not. As more MNCs consider using matrix structures to implement increasingly complex strategies, a better understanding of conflict in matrix MNCs is important.     

An evaluation of MLPM allocation rules on emerging markets portfolios

The mean-lower partial moment (MLPM) analysis is an alternative allocation tool to the popular mean-variance (MV) approach. MLPM accommodates investors’ aversion to losses by defining risk as the partial moment below a specified target rate. Although there is little difference in the period-to-period performance of MV and MLPM portfolios, this paper highlights the environment where the MLPM is a superior allocation tool. The out-of-sample performance of Asia and Latin American MLPM portfolios dominates the ones selected by the MV criteria during bearish markets. In addition, the disappointment aversion utility from MLPM tends to be higher (lower) than that from MV when the general market is performing poorly (well). The empirical results suggest that MLPM is superior to MV in preserving investment value and reducing investor's regret when emerging markets are declining. This conclusion holds for changing target rates and rebalancing frequencies.     

Prices of deep discount bonds and the Revenue Act of 1978: An evaluation of market response

This article explores the market response of deep discount corporate bonds to the reduction in the capital gains tax rate incorporated into the Revenue Act of 1978. Such tax change should have increased the desirability of assets acquired for capital gains potential, such as deep discount bonds. Examining a time series of prices and returns for a sample of deep discount corporate bonds and a control group of comparable duration and credit risk corporate bonds selling at or near par did indeed provide evidence of a market price reaction. Moreover, the price changes for the deep discount bonds occurred well in advance of the implementation of the tax change.