Integer goal programming model for the implementation of multiple corporate objectives

The problem of long-range planning and investment project evaluation is complicated by the presence of multiple conflicting goals measured in incommensurable units, indivisibility of alternative projects, and the desire of management to consider mutually exclusive marketing-pricing strategies. The model proposed in this study attempts to allow for these complexities through the use of integer goal programming. It is the hope of the authors that this model will provide management with an additional decision-making tool for implementation of multiple corporate objectives.     

Contextual influences on subjective price perceptions

This article explores the effect of contextual or situational influences on buyer's price judgements. After reviewing relevant literature on contextual influences, the article reports on two experiments investigating the effects of use or purpose of a purchase and previous exposure to a set of prices on subsequent price judgements.In the first experiment, the hypothesis that the number of judgmental categories will vary with the length of price series was not confirmed. Subjects did not differ in their judgement of the lowest acceptable prices, but a higher latitude of acceptance occurred for the long price series—an assimilation effect. The second experiment confirmed the hypothesis that the intended use or purpose of the purchase affects how individuals evaluate prices for the product. The context of intended use offers an additional reason why higher prices can be attractive to some buyers.The two experiments were conducted on 104 male and 32 female undergraduate business majors. In the first experiment subjects sorted, arranged, and categorized a set of 50 prices for pants. Immediately following this task, the second experiment asked the subjects to rate the relative expensiveness of five experimenter-determined prices. In the first experiment prices either ranged from $1.00 to $25.50 or $1.00 to $50.00. In the second experiment, each split-half was given either five low prices or five high prices. Finally, each sample quarter was divided and asked to assume a different reason for buying the pants.     

Determining the cost of common equity capital: The direct method

One of the most critical aspects of the corporate capital budgeting process is the determination of a proper “hurdle rate” or “cut-off” rate to employ in the screening of proposed uses of funds. This hurdle rate is now commonly referred to in both industry and the literature of financial management as the cost of capital. General agreement on how to measure the equity component of the cost of capital (i.e., the cost of common equity) has not yet been achieved by either practitioners or theorists. A unique approach that shows considerable promise differs from the abstract mathematical techniques typically used. It involves quizzing directly a sample of the corporation's existing common stockholders as to their dividend and capital gain expectations. Proper interpretation of the responses can provide top corporate management with an estimate of the cost of equity capital, as represented by the returns (expected) by shareholders. Thus, top level management has more complete information from the firm's owners on the returns that are expected from the investment of retained earnings.     

Perceived industrial innovation advantage and export commitment

There are increasingly sales opportunities for capital equipment in developing countries. Concomitantly, concern is that capital intensive technologies are too widely employed. Yet there has been little reported empirical research on why LDC manufacturers choose specific equipment. Textile manufacturers accounting for a significant part of Peru's spinning and weaving capacities participated in this study by providing perceptions of two capital versus labor intensive technologies capable of producing identical output. Exporters and nonexporters scores, using a five-point scale, were compared by t tests on 19 equipment attributes selected from innovation diffusion studies. Factor analysis determined innovations underlying dimensions. Factor scores were regressed on export commitment proxies. Higher export dependence related to more concern with ease of altering output specifications and less concern with cost, thus supporting that dependence on foreign versus domestic markets will affect equipment decisions. The method of comparing product attribute perceptions provides a simple possibility for segmenting LDC capital equipment markets.     

Product familiarity and information processing strategies: An exploratory investigation

A theoretical and empirical examination of the relationship between product class familiarity and usage of information processing strategies is presented. Four major dimensions of information processing strategies are identified and used to conceptualize the linkage between product class familiarity and usage of particular strategies. Research hypotheses are tested in an exploratory study using a laboratory choice situation. Implications of the study with respect to usage of specific strategies and for future research are discussed.     

Similarities between conflict and cooperation in the marketing channel

This article examines the relationship between two causes of conflict: domain dissensus and perceptual incongruity, and the levels of conflict and cooperation within a marketing channel dyad. Utilizing a national sample of food broker-food wholesaler dyads, four hypotheses were tested—two relating domain dissensus and two relating perceptual incongruity to conflict/cooperation. Results indicated no significant relationship between either perceptual incongruities or domain dissensus and the level of conflict found in the dyad, while a significant negative relationship was found between both perceptual incongruities and domain dissensus and the level of cooperation in the dyad.     

Speeding solar energy commercialization: A Delphi research of marketplace factors

A two-stage Delphi research study was undertaken to determine and measure the attitudes of the public regarding factors that may either inhibit or stimulate solar energy commercialization today and over the next 10 years. Some factors judged important were product cost, lack of product knowledge, lack of governmental support, and public concern over the energy crisis. The factors were determined by a group of energy conscious respondents who completed the Delphi research. They also indicated the likely and desirable actions to be taken by government and business. These included more funding of research and development, tax incentives, increased public education, and reduced prices. The Delphi research proved to be an effective method for investigating solar energy commercialization, as the attitudes expressed in the second survey converged with those identified during the first stage. Furthermore, governmental and business actions suggested in the study could help to initiate greater solar energy use and developmental efforts.     

Bargaining in distribution channels

This study empirically assesses the impact two fundamental dimensions of distribution channels have on channel member bargaining behavior, namely, (1) the expected duration of the channel bargaining relationship and (2) the channel member dependence on the bargaining. The following findings were observed from a laboratory study using 160 business students: low dependence produced fewer bargaining sessions ending in agreement compared to high dependence among buyer-seller dyads. Low dependence bargainers made more extreme initial offers, conceded less, and used the pronoun we less than did high dependence bargainers. The sellers emerged better off than the buyers from the negotiations. Sellers achieved this advantage by making more extreme initial offers than buyers, conceding more than buyers, but emerging with the better deal.     

Market similarity and market selection: Implications for international marketing strategy

International market selection patterns for a sample of 954 new products suggest that firms exhibit a significant preference for markets similar to the home market. Preferences for similar markets decline as firms gain experience in a variety of markets, however. This pattern suggests the importance of uncertainty and information in global market selection and marketing mix management. Alternative means of gathering information about foreign markets permit and support very different approaches to global marketing activity. More fundamentally, a global perspective on the relationship between market conditions, marketing policies and programs, and consumer response can be developed systematically to improve global marketing performance.     

Self-monitoring,norms, and attitudes as influences on consumer complaining

Reactions of consumers to marketplace problems vary widely despite the frequent similarity of sources of dissatisfaction. The results of two studies designed to investigate the determinants of consumer inclinations to complain are presented. Two alternative social-psychological explanations of behavior employing self-monitoring, moral and social norms,and attitudes as predictor variables are examined.