Exploring the brand value-shareholder value nexus for consumer goods companies

It is generally claimed that brand names are a corporate asset with an economic value that creates wealth for a firm’s shareholders. However, the scholarly literature has neither provided a comprehensive theoretical basis for this claim nor documented an empirical relationship between brand value and shareholder value. This exploratory study describes a rationale for, and documents, the statistical strength and functional form of a brand value-shareholder value relationship for publicly held consumer goods companies in the United States. A theoretical argument supportive of a positive relationship between a firm’s accumulated brand value and market-to-book (M/B) ratio was empirically validated. However, even though firms with higher accumulated brand values have higher M/B ratios, the functional form of the relationship was found to be concave with decreasing returns to scale. Theoretical and managerial implications of these findings are outlined, as well as study limitations and directions for future research. Roger A. Kerin (Ph.D., University of Minnesota) is the Harold C. Simmons distinguished professor of marketing at the Edwin L. Cox School of Business, Southern Methodist University. His research focuses on marketing strategy and product management issues. He has published more than 50 articles appearing in such journals as theJournal of Marketing, theJournal of Marketing Research, Strategic Management Journal, andManagement Science, in addition to authoring four books. He presently serves on numerous editorial review boards and is a former editor of theJournal of Marketing. Raj Sethuraman obtained his Ph.D. from Northwestern University and is an assistant professor at the Edwin L. Cox School of Business, Southern Methodist University. His research focuses on competitive marketing strategies, especially price and advertising strategies. He has published in several journals including theJournal of Marketing Research, Management Science, Marketing Letters, theJournal of Business Research, and theJournal of Consumer Psychology.     

The determinants of medical malpractice incidents: Theory of contingency fees and empirical evidence

Summary A common criticism of the contingent fee arrangement is that it increases the total number of claims [Dietzet al., 1973, pp. 87–167]. This is true. But without contingent fees, risk averse plaintiffs would not offer the fair value of an incident and, as a consequence, would bear more of the cost of medical malpractice. This conclusion was reached in Section II by examining an expected utility model of plaintiff's decision-making.Section III presented empirical evidence on the determinants of malpractice incidentsper capita. High income, exposure to surgical operations, and a favorable legal system encourage incidents. The supply price of lawyers' time is negative and significant.This project was supported by Grant Number HS 01971 to the Health Services Research Center of the University of North Carolina at Chapel Hill from the National Center for Health Services Research, HRA.     

An Equity-based Redefinition of Underemployment and Unemployment and Some Measurements

An attempt is made in this article to redefine underemployment and unemployment without making reference to an excess supply of labor or any causal mechanism of unemployment. Instead, underemployment and unemployment are defined in terms of equity which draws upon the individual's preferences. A specific proposal is that underemployment be defined by the presence of contribution inequity relative to at least half the persons employed in a field that the underemployed person might prefer to move into. Empirically, most recent survey data on preferences for contingent and other nontraditional employment are used to illustrate the application of the concept. The major finding is that nearly 10 million Americans in the nontraditional workforce are underemployed.     

WHO REALLY WANTS TO BE A MILLIONAIRE? ESTIMATES OF RISK AVERSION FROM GAMESHOW DATA

This paper estimates the degree of risk aversion from one of the most popular TV gameshows ever. The format of the show is straightforward; it involves no strategic decision making; we have a large number of observations; and the prizes are cash, which is paid immediately and covers a large range: from £100 up to £1 million. We provide non‐parametric estimates of the utility function and then we test some parametric restrictions. We find that, although the restriction to CRRA utility is statistically rejected, a log function approximates the utility function quite well over a large range of potential winnings. Copyright © 2013 John Wiley & Sons, Ltd.     

Why Dick and Jane don’t ask: Getting past initiation barriers in negotiations

Negotiation is an essential skill for personal well-being and professional success, a skill that begins with identifying and acting on one's wants and needs. Many individuals, however, lack the confidence, motivation, or training to simply ask for what they want in certain situations; for example, when negotiating with an important client. Still others are reluctant to initiate requests in general. This article discusses the personal characteristics and situational factors that influence an individual's likelihood of engaging another party in a negotiation, making a request, and optimizing that request. Herein, specific suggestions are offered for managing this critical phase of the negotiation process via three steps: mental preparation prior to the engagement; positioning prior to, and at the point of, the engagement; and verbal craftsmanship during the delivery of one's request.     

International dimensions of management: The trans-national efficacy of a venture development model

Entrepreneurship is commonly held to be a vital force in the US and other economies. Yet, little is known regarding the efficacy of entrepreneurial efforts developed in one country but attempted elsewhere. In response to calls for testable theoretical models, scholars have begun to investigate empirically the attendant phenomena associated with the venture development process. This article describes efforts to test in another nation a nine-stage entrepreneurial process model of venture development derived and validated in the USA. While some development stages appear to exist similarly across borders, others may not be present. Further, the sequence of stages in the US-derived model may differ when compared internationally.     

Measuring the quality of managerial learning on the job

This article describes the development of an instrument to measure the quality of managerial learning on the job. The instrument can be used to analyse the quality of the individual learning process on the job. The literature shows that two factors determine the quality of the learning process: the learning potential of the job context and the way in which the manager approaches their work. So the instrument has two components. The first component measures the four types of work experience that offer potential opportunities for individual learning. These are transitions, task-related characteristics, obstacles and support. The second component, the so-called learning behaviour, analyses the way the individual approaches the potential learning opportunities present in the job. This can also be divided into four categories: emergent learning, planned learning, instruction-oriented learning and meaning-oriented learning. Based on these two components, an instrument has been developed to measure the quality of learning on the job. This has been shown to be valid and reliable in a sample of European managers.     

Food market liberalization: History and prospects

Abstract

Government intervention has been a feature of food markets in both industrialized and agrarian economies. However, the last 10 years have seen reforms aimed at reducing intervention; these have been a characteristic of ‘structural adjustment’. The process of reform has involved the replacement of administered by market‐determined prices and the abolition of trading parastatals or the removal of their monopoly. Despite an almost complete consensus that reforms are necessary and the absence of coherent local opposition, the pace and extent of reforms have varied. Moreover, views about liberalization tend to be polarized. Proponents argue that continued intervention is inefficient, unaffordable and distorting; antagonists suggest that unmodified markets lead to unacceptable inequalities, and expose producers and consumers to unacceptable risks. Moreover, weak fragmented markets do not constitute a sufficient base for sustained growth. This paper reviews the experience. It concludes that simple solutions of substituting public with private trading are not necessarily possible nor desirable, and argues that the nature of the debate may be misleading. The way forward may not lie in a choice between private market supremacy and conventional government intervention.