It ain't over 'til it's over: Evaluating reacquisition opportunities in business-to-business markets

Using a qualitative critical incident research technique, this paper examines how sales firms evaluate defected customers in order to determine their worthiness for reacquisition. Findings from interviews with fifty professional salespeople suggest that, when sales firms assess reacquisition opportunities, these opportunities are evaluated based on the likelihood of reacquisition and the value of the customer (i.e., ease of reacquisition and value of the customer). Salespeople report that the barriers to reacquisition, leveraging remaining customer relationship and investigating their own value-adding capabilities are critical in determining the ease of reacquisition. In addition, salespeople report that account size, profitability, market influence and cross-selling potential are fundamental in determining the value of a customer. Furthermore, the importance of ease and value in reacquisition assessments varies with (1) the reason for the customer defection, (2) the formalization of a firm's reacquisition process, and (3) market opportunities. Managerial implications and future research directions are discussed.     

L'EXPERIENCE FRANÇAISE DE COMPTABILITE PATRIMONIALE

This article presents the results of the first French efforts to assemble information on the assets and liabilities of the different economic agents. The estimates cover the five-year period 1972–76, with complete balance sheets for the end of 1971, 1972, and 1976. The experimental efforts showed that estimation was feasible. It was possible to bring together the varied, often dispersed, and rarely consistent existing information into an integrated body of aggregates adapted to macroeconomic analysis. The report stresses the importance of articulating the wealth accounts logically with the flow accounts, into a complete, closed, and consistent whole in which the theoretical objectives are well specified. It also points out the limitations of the approach, stemming primarily from the state of the basic statistics relating to wealth.     

Facts & figures: Health care: Private and public spending,resources, need and provision; Privatisation: A further progress report

Labour Market Policy and Unemployment Insurance Anders Björklund, Robert Haveman, Robinson Hollister and Bertil Holmlund. Clarendon Press, Oxford. 205 pp. £25. 00. ISBN 0 19 828323 7.

Survey of Computer Fraud &; Abuse 1990 Audit Commission, Nicholson House, Lime Kiln Close, Stoke Gifford, Bristol BS12 6SU, UK. £7.50. (A supplement at £9.50 details all the individual cases used in compiling the report.)

Public Sector Financial Management H. M. Coombs and D. E. Jenkins. Chapman &; Hall, London (1991). x + 294 pp. £14.95. ISBN 0 412 38550 3.     

Cost-effectiveness analysis of ocrelizumab versus subcutaneous interferon beta-1a for the treatment of relapsing multiple sclerosis

Aim: To conduct a cost-effectiveness analysis to compare ocrelizumab vs subcutaneous (SC) interferon beta-1a for the treatment of relapsing multiple sclerosis (RMS).

Methods: A Markov cohort model with a 20-year horizon was developed to compare ocrelizumab with SC interferon beta-1a from a US payer perspective. A cohort of patients with relapsing-remitting MS (RRMS) and Expanded Disability Status Scale (EDSS) scores of 0–6, who initiated treatment with ocrelizumab or SC interferon beta-1a, were entered into the model. The model considered 21 health states: EDSS 0–9 in RRMS, EDSS 0–9 in secondary-progressive multiple sclerosis (SPMS), and death. Patients with RRMS could transition across EDSS scores, progress to SPMS, experience relapses, or die. Transition probabilities within RRMS while patients received ocrelizumab or SC interferon beta-1a were based on data from the two SC interferon beta-1a-controlled Phase III OPERA I and OPERA II trials of ocrelizumab in RMS. Transitions within RRMS when off-treatment, RRMS-to-SPMS transitions, transitions within SPMS, and transitions to death were based on the literature. Utilities of health states, disutilities of relapses, costs of therapies, and medical costs associated with health states, relapse, and adverse events were from the literature and publicly available data sources. The model estimated per-patient total costs, incremental cost per life year (LY) gained, and incremental cost per quality-adjusted LY (QALY) gained. Deterministic sensitivity analyses (DSA) and probabilistic sensitivity analysis (PSA) were conducted to evaluate the robustness of the model results.

Results: Ocrelizumab was associated with a cost savings of $63,822 and longer LYs (Δ?=?0.046) and QALYs (Δ?=?0.556) over a 20-year time horizon. The results of the model were robust in the DSA and PSA.

Limitations: The model did not consider subsequent treatments and their impact on disease progression.

Conclusions: The results suggest that ocrelizumab is more cost-effective than SC interferon beta-1a for the treatment of RMS.     

The option to work at home: another privilege for the favoured few?

This paper compares and contrasts the demographic and employment characteristics of those who have the option to work at home with those who actually carry out paid work where they live. The results suggest that having the opportunity to choose where to work represents another perk for those already occupying an advantaged position in the labour market. However, some of the most disadvantaged in society are found among those who actually do most of their work at home.     

Communications programme in Montreal

The Graduate Studies Faculty of the University of Montreal offers a programme of study in communications, leading to an MSc degree. The Master's programme addresses two main objectives: first, the scientific analysis of the forms and contents of the new media and of the transformations they have brought about in interpersonal relations, within organizations, and within society as a whole; and second, the development of a general theory of communications.     

HUEI: Pricing a Chinese saving-borrowing pool

This paper tries to provide proper pricing methods for Traditional Huei Pool (THP), a very popular investment/borrowing vehicle in Taiwanese society. We find that THP equals the sum of a series of amortised loans by the dead members plus a newly formed THP by living members. If forming and terminating a THP is without any cost, it can be proven that the value of THP equals the discounted value of future payments by dead members. In addition, credit risk will increase the Huei discount and therefore will increase the funding cost for the Huei bidder.     

The Information Environment of China's A and B Shares: Can We Make Sense of the Numbers?

In 1990, three stock exchanges were opened in Shanghai, Shenzhen and Beijing. Partial privatization of China's enterprises began with offering two types of shares: A shares are sold only domestically to locals and are denominated in local currency; B shares are denominated in dollars and are sold only to foreign investors. All listed firms offer A shares, but to qualify for offering B shares, the firm must prepare financial statements in accordance with International Accounting Standards and also meet other requirements. Firms issuing A shares only adopt domestic accounting regulations.As a way of generating capital funds, market segmentation has been a success. Both types of shares, however, have two different information environments. The environment of A shares appears to be dominated by local regulations and customs at the time of offering or trading. The information environment of A shares appears to be relatively unstructured and is affected by informal communication between various groups. Other than the roles played by state officials and appointed managers, external monitoring of A shares appears to be limited. Independence and social acceptance of auditing appear to be making slow progress, especially when the majority of domestic CPA firms are government owned. In contrast, the information environment for the B shares is more structured because (1) financial reporting adheres to International Accounting Standards, (2) financial statements are audited by CPA firms with international practice; and (3) foreign investors — mainly large financial institutions — also act as external monitors.We elaborate on the differences between these two information environments and suggest that accounting earnings and A share prices are not correlated, but earnings and share prices are correlated for B shares. In an event-study approach, we find results inconsistent with both hypotheses — for 1994 and 1995 we find that earnings and unexpected returns are correlated for A shares but not for B shares. The high price volatility, the significant and continuing dominance of government officials, and the thinness of trade in B shares are offered as possible explanation for these results.