Price and brand name as indicators of quality dimensions for consumer durables

Delivering quality products requires an understanding of the critical dimensions and cues that consumers use to judge quality. To that end, this article addresses two fundamental research issues. Using a qualitative study, the authors first develop a generalizable typology of quality dimensions for durable goods that includes ease of use, versatility, durability, serviceability, performance, and prestige. Second, the authors conduct a process-tracing laboratory experiment to examine how key marketing variables—price, brand name, and product attributes—affect consumers’ judgment processes and inferences about how products perform on the six quality dimensions. Results of the experiment indicate that consumers use price and brand name differently to judge the quality dimensions, searching for price and brand name much more frequently when evaluating prestige than when evaluating any other quality dimension. Results suggest that managers must determine the relevant quality dimensions for a product category and the cues that are salient for judging those dimensions. Merrie Brucks is a professor of marketing at the University of Arizona, where she also holds a joint appointment in the Department of Psychology. She received her Ph. D. in marketing from Carnegie Mellon University. Her research first received scholarly recognition in 1984, when she won the Robert Ferber Award for the best doctoral dissertation in the field of consumer behavior. Since that time, she has published extensively in consumer psychology, focusing on memory, information search, judgment, and decision-making processes. In other research she has examined a variety of public policy issues related to advertising. Valarie A. Zeithaml is a professor and area chair at the Kenan-Flagler Business School of the University of North Carolina, Chapel Hill. She is also a Sarah Graham Kenan Distinguished Scholar at that institution. She obtained an MBA and doctorate from the University of Maryland and has devoted the past 20 years to researching and teaching the topics of service quality and services management. She is the author ofDelivery Quality Service: Balancing Customer Perceptions and Expectations and ofServices Marketing, a textbook now in its second edition. She has won numerous teaching and research awards, including the Ferber Award from theJournal of Consumer Research, the Maynard Award from theJournal of Marketing, the Jagdish Sheth Award from theJournal of the Academy of Marketing Science, and the O’Dell Award from theJournal of Marketing Research. Gillian Naylor is an assistant professor of marketing at the University of Nevada Las Vegas. She obtained a doctorate from the University of Arizona in 1996. Her research interests are within the consumer judgment and decision-making domain, with specific interest in postpurchase processes and services marketing.     

Cost-effectiveness of percutaneous patent foramen ovale closure as secondary stroke prevention

Objective: Compared to medical therapy alone, percutaneous closure of patent foramen ovale (PFO) further reduces risk of recurrent ischemic strokes in carefully selected young to middle-aged patients with a recent cryptogenic ischemic stroke. The objective of this study was to evaluate the cost-effectiveness of this therapy in the context of the United Kingdom (UK) healthcare system.

Methods: A Markov cohort model consisting of four health states (Stable after index stroke, Post-Minor Recurrent Stroke, Post-Moderate Recurrent Stroke, and Death) was developed to simulate the economic outcomes of device-based PFO closure compared to medical therapy. Recurrent stroke event rates were extracted from a randomized clinical trial (RESPECT) with a median of 5.9-year follow-up. Health utilities and costs were obtained from published sources. One-way and probabilistic sensitivity analyses (PSA) were performed to assess robustness. The model was discounted at 3.5% and reported in 2016 Pounds Sterling.

Results: Compared with medical therapy alone and using a willingness-to-pay (WTP) threshold of £20,000, PFO closure reached cost-effectiveness at 4.2 years. Cost-effectiveness ratios (ICERs) at 4, 10, and 20 years were ?20,951, ?6,887, and ?2,158, respectively. PFO closure was cost-effective for 89% of PSA iterations at year 10. Sensitivity analyses showed that the model was robust.

Conclusions: Considering the UK healthcare system perspective, percutaneous PFO closure in cryptogenic ischemic stroke patients is a cost-effective stroke prevention strategy compared to medical therapy alone. Its cost-effectiveness was driven by substantial reduction in recurrent strokes and patients’ improved health-related quality-of-life.     

Reviews

Regenerating town centres. Evans, R. 1997: REGENERATING TOWN CENTRES. Manchester: Manchester University Press, £30.00 cased.

Privatised utilities. Marvin, S., Graham, S. and Guy, S. 1996: PRIVATISED UTILITIES AND REGIONAL MANAGEMENT. Harlow: SEEDS (South East Economic Development Strategy), £25.00 plus £3.50 postage and packing.

Women returners. Chisholm, L. (ed) 1997: GETTING IN, CLIMBING UP AND BREAKING THROUGH. London: The Policy Press, £15.25 paper.

Regionalism. John, P. and Whitehead, A. (eds) 1997: POLICY AND POLITICS VOL 25 NO. 1 SPECIAL ISSUE. REGIONALISM IN ENGLAND: CURRENT TRENDS AND FUTURE PROSPECTS. Policy Press.

Socially regulated labour markets. Peck, J. 1996: WORK-PLACE. THE SOCIAL REGULATION OF LABOUR MARKETS. New York and London: The Guilford Press, £16.99 paper £35.00 cased.

Private delivery — public goods. Arnold-Forster, J., Lee, M. and McLeod, J. 1997: HAND IN GLOVE: PRIVATE SECTOR DELIVERING PUBLIC GOODS. London: Fabian Society, supported by Generale des Eaux, £15.00 paper.

Bio-tech. Milhell, D., Kingham, D. and Stott, M. 1997: THE DEVELOPMENT OF THE BIOTECHNOLOGY SECTOR IN OXFORDSHIRE: IMPLICATIONS FOR PUBLIC POLICY. Oxford: Oxford Innovation Limited, £5.00 paper.     

European holiday-taking surveys—problems of method,measurement and interpretation

“So reisten die Europäer 1982”, ITB Berlin 83. Report on the conference, held in Berlin in March 1983, by Gillian Gardner-Smith of the British Tourist Authority.     

Screening the impacts of municipal service policy changes

The planning of municipal service delivery systems requires accurate forecasts of demand, and particularly of the effects the quality of service delivery has on demand. A metholology for this problem should meet three criteria, if it is to be useful for municipal planning: it must be low-cost and use generally available data; it must be based on user behavior, so that the effects of policy changes can be correctly attributed; and it must allow testing of the transferability of the results, since this is required for general forecasting use. This paper develops such a methodology, based on econometric analysis of data from a number of service areas within a number of regions, forming a double cross-section. Empirical tests of the methodology were performed for two local government services where the effect of service quality on demand is important: sewer and highway construction, which have been hypothesized to affect the patterns of development within regions; and solid waste collection, where the level of service provided affects how much waste enters the collection system and how much is littered, burned or recycled. The two case studies and other analyses suggest that the methodology is a useful tool for testing whether policy changes have an effect on the demand for service, but not for accurate demand forecasting. Thus, these simple models are relevant for the role of screening the effect of policy changes, but more detailed and localized approaches are necessary for system design.     

Linking customer resources to firm success: The role of marketing program implementation

Drawing from both resource-based view and dynamic capabilities theory, this research investigates how customer resources (i.e., knowledge and network size) influence firm performance through marketing program implementation. The current research shows that customer resources are critical to the development and execution of marketing programs, which can then lead to firm success. Through surveying 269 retailers, this study finds that while customer knowledge directly affects marketing program implementation, it does not directly influence firm performance. In contrast, customer network size not only directly contributes to marketing program implementation and firm performance, but also serves as a significant moderator.     

What Ethical Leadership Means to Me: Asian,American, and European Perspectives

Despite the increasingly multinational nature of the workplace, there have been few studies of the convergence and divergence in beliefs about ethics-based leadership across cultures. This study examines the meaning of ethical and unethical leadership held by managers in six societies with the goal of identifying areas of convergence and divergence across cultures. More specifically, qualitative research methods were used to identify the attributes and behaviors that managers from the People’s Republic of China (the PRC), Hong Kong, the Republic of China (Taiwan), the United States (the U.S.), Ireland, and Germany attribute to ethical and unethical leaders. Across societies, six ethical leadership themes and six unethical leadership themes emerged from a thematic analysis of the open-ended responses. Dominant themes for ethical and unethical leadership for each society are identified and examined within the context of the core cultural values and practices of that society. Implications for theory, research, and management practice are discussed.