What is the Right Supply Chain for Your Shopper? Exploring the Shopper Service Ecosystem

The emergence of shopper marketing represents a major strategic force in consumer goods branding and retailing, and poses significant challenges to pre existing supply chain thought that most scholars have yet to address. In order to address the marketing and supply chain challenges presented by shopper marketing initiatives, scholars from both disciplines can find common ground by focusing on the shopper instead of consumers or products. The issue is no longer one of matching a supply chain to a product. Instead, marketers and supply chain managers need to ask, “What's the right supply chain for our shopper?” The shopper service ecosystem framework developed in this paper brings together the service dominant logic of marketing with the service ecosystem perspective in supply chain management. Future research frontiers suggest research directions that bridge the marketing and supply chain disciplines to create a multidisciplinary foundation for future research in the shopper marketing realm.     

A mixed index approach to identifying hedonic price models

Recent literature suggests identifying house price hedonic regressions by using instrumental variables, spatial statistics, the borders approach, panel data, and other techniques. We present an empirical application of a mixed index model, first proposed by Bowden [Bowden, R.J., 1992. Competitive selection and market data: the mixed-index problem. The Review of Economic Studies 59(3):625–633.] to identify hedonic price regressions. We compare the performance of the mixed index model to a traditional hedonic model and to a hedonic model that includes characteristics of the buyer of each house. We find the mixed index model outperforms the other models based on bootstrap distributions of predicted housing values, prediction variance, and predicted policy effects. The mixed index model distributions are less skewed and kurtotic than the other models, suggesting it more closely satisfies the classical linear regression assumption of normally distributed errors. Compared to the mixed index model, the traditional hedonic overstates the importance of lot size and school quality to house price and understates the importance of environmental quality.     

Designing a Predictive Performance Measurement and Control System to Maximize Customer Relationship Management Success

Customer Relationship Management (CRM) performance measurement is reviewed with two main intentions: (a) to encourage theoretical and empirical research and (b) to provide a useful predictive measurement system that is easy to implement. Special emphasis is placed on Balanced Scorecard methodologies as measurement systems to both evaluate and predict CRM performance. The use of a Balanced Scorecard (BSC) methodology to design CRM predictive performance measurement and control systems (PMCS) may provide several benefits to firms since (a) it reduces the risk and the uncertainty associated with the decision-making processes related to a CRM strategy and (b) it provides a strategic resource to the development of competitive advantages. The article concludes by proposing an holistic measuring system in the CRM field, including accountable, leading, repeatable, and linked metrics over the following areas and dimensions: strategy (business orientation, business atmosphere, and competitive strategy); resources (financial, human, and technological), business processes (integration and innovation); products and services (superiority and product/company synergy), customers (prospective and current); and external factors (competition and market).     

Transition Therapeutics inc.*

Transition Therapeutics Inc. (Transition) and Waratah Pharmaceuticals Inc. (Waratah) are two publicly traded biopharmaceutical Canadian companies. In October 2001, Transition and Waratah announced that they had agreed to combine their respective businesses, assets, and operations. The business combination will be effected through an exchange of equity interests. The case unfolds before special shareholders' meetings for approval of the arrangement. Management is preparing the joint management information circular, which should include pro forma consolidated financial statements. However, many issues should be addressed to account for the business combination, and decisions on these issues might affect the accounting treatment as well as pro forma financial information. Note: Teaching Notes for instructional cases are not published in the journal but are made available to full CAAA member subscribers in a password‐protected area of the CAAA website. Go to https://www.caaa.ca/en/journals-and-research/accounting-perspectives-ap/teaching-notes/ to log in and access the notes.     

A Behavioral Life-Cycle Approach to Understanding the Wealth Effect

The somewhat surprising strength in consumer spending in recent years has focused renewed attention on the much-debated wealth effect, the notion that when individuals feel wealthier, they consume more. This study utilizes survey data to examine the wealth effect within the context of the behavioral life-cycle model of savings. The results indicate that the likelihood of households spending more when their assets increase in value decreases with the portion of assets held in home equity. This unexpected finding is due to homeowners responding to the perceived wealth gain from increased home values by cashing out their equity. The likelihood increases with the portion of assets held in stock outside of retirement accounts, but is not significantly related to the portion of assets held in stock overall. Moreover, households that have a full-time income earner, are homeowners, have more education, have a younger household head, or expect economic growth, are more likely to report a wealth effect. Households that utilize savings “rules of thumb” are less likely to report a wealth effect. These results can be used to improve the wealth effect specification in consumer demand models and assist firms to target consumer markets.     

Structural Breaks,the Export Enhancement Program and the Relationship between Canadian and US Hard Wheat Prices

This paper examines the long‐term relationship between the export prices of Canadian and US hard wheat and the effects of the US Export Enhancement Program (EEP). Using monthly prices for 1974–2001, we adopt the cointegration procedure of Johansen et al. (2000) which permits structural breaks. Results show that a long‐term relationship exists, and there are two breaks that coincide with the EEP. The first break is in late 1985 when the long‐term US/Canadian price ratio fell by 5.5%, while the second is in early 1995 when it increased by 9.2%. Weak exogeneity tests imply that Canada is the price leader, and impulse responses show that long‐term equilibrium is restored within five months following a shock to either price.