Increasing Cognitive Response Sensitivity

Abstract

Traditional cognitive response elicitation procedures may not be sensitive enough to elicit the stylized and subtle thoughts that are generated during exposure to certain types of ads. When these types of thoughts are the focus of an advertising researcher's work, it is critical that he or she develop a procedure that has the sensitivity to draw them forth without being reactive. A laboratory study examines two different procedures to do this: pre-exposure exercises and directed post-exposure instructions. The results suggest that each procedure raises measurement sensitivity, but that there is no advantage in combining them. General guidelines are then presented for developing stylized cognitive response elicitation procedures.     

Innovation and the management of marketing in high technology small firms

This paper initially attempts conceptually to integrate marketing into the total innovation process within high technology small firms. It is argued that an understanding of marketing problems can only be achieved when viewed in terms of other preceding stages in the innovation cycle, of which marketing is a key final act. The subsequent presentation of evidence from two recent research studies indicates that marketing has been neglected in a surprising number of the high technology small firms studied, in which there was a considerable reliance on unsolicited orders as a reactive form of selling. It is argued that this lack of marketing vigour is partly caused by a shortage of human and financial resources which frequently stem from expensive earlier stages in the innovation cycle (e.g. R&D). It is concluded that vigorous marketing would increase output and growth in several of the currently reactive instances. Thus, the paper concludes with suggestions for a more pro‐active policy on the part of government agencies towards the promotion of sales growth in these currently inactive high technology small enterprises.     

Erratum to: Competitive price-matching guarantees under imperfect store availability

This paper analyzes the role of verification of product availability in the context of competitive price-matching guarantees (PMGs). PMGs involve a retailer matching any lower price offered by competition for an identical item. Until now, researchers focused on the scenario where customers can receive the lower price with a simple proof (e.g., weekly flyers). However, in reality, retailers reserve the right to verify the availability at the competitor location; if the product is not available there, then the price-match request might be declined. We develop a price competition model to investigate the effects of verification of availability on price decisions and profit levels of competing retailers. In our model, demand is driven by the availability levels of retailers as well as the price-search cost and store-switching cost incurred by customers. Price-search cost leads to two customer segments: uninformed ones who have no knowledge about prices, and informed ones who are knowledgeable about prices. On the other hand, store-switching cost determines how many customers search for the product at an alternative location because of high price or unavailability at their preferred retailers. Our analysis reveals, among others, that the outcome of availability verification is linked to three factors: price-search cost, store-switching cost, and the reservation prices of customer segments. Verification of availability allows retailers to price discriminate customers who could not be discriminated otherwise, specifically those belonging to the informed customer segment. Furthermore, it is a significant profit-enhancing mechanism only if there are switching customers in the market. Interestingly, even though customers view the verification of availability as a hassle, it can actually result in them paying lower retail prices by increasing the level of retail price competition.     

Risks of deflation versus risks of excessive inflation in Europe

Economists are currently divided over the question of what represents a more immediate threat to the global economy — deflation or excessive inflation. Using stochastic simulations, this article extrapolates the likely inflation rates in individual European countries and the euro area as a whole. The results indicate that as the financial crisis continues to subside, policymakers should be vigilant about expeditiously rolling back the unconventional monetary policy measures implemented during the crisis.     

On games with identical equilibrium payoffs

Summary. This paper compares the sets of Nash, coalition- proof Nash and strong Nash equilibrium payoffs of normal form games which are closely related. We propose sufficient conditions for equivalent or closely related games to have identical sets of equilibrium payoffs. Received: April 23, 1999; revised version: November 23, 1999     

Are supply-chain relationships more influenced by buyer-supplier relationships or the business environment of the country itself? Evidence from the ‘China-Australia’ trading relationship

In doing business with China, poor supply chain performance is reported as being caused by either poor relationships between firms in China or the business environment in which firms in China have to operate. This research paper explores the relative importance of these two factors for food supply chains from Australia to China. Results are based on surveys of 84 importers, wholesalers and retailers in China and 22 Australian exporters and wholesalers. They show that the country itself had a greater influence than firm to firm relationships. Firms exporting food to China should therefore keep supply chains as short as possible to minimize the uncertainties associated with the business environment.     

On the Technically Efficient Organization of an Industry: A Study of U.S. Airlines

In nonparametric analysis of production efficiency, the focus of attention is typically on the individual firm. In this article, we evaluate efficiency in resource utilization at the industry level. We propose an integer programming model to measure the extent of input saving possible if the observed output level of the industry is allocated to an optimal number of identical firms. This approach is applied to data for U.S. airlines covering the period 1970–84. Our results confirm that there were too few airlines prior to deregulation and suggest that there were too many firms during the early years of the post-deregulation era.