Measuring customer attractiveness

Various beneficial consequences can accrue when a customer is perceived to be an attractive customer, particularly in a business-to-business context. Opinions differ as to what makes for customer attractiveness and a number of different features have been suggested as contributing to it. Currently there exists no comprehensive view of what factors constitute customer attractiveness and how this may be valued, measured and evaluated. Drawing on various facets of customer attractiveness suggested in the literature, this paper seeks to delineate the customer attractiveness construct and develop an instrument to measure it. The paper concludes by discussing how the scale developed can be used as a tool to address some critical issues in assessing customer attractiveness.     

Initial relationship development in new business ventures

This paper seeks to investigate some of the issues faced by an existing company when developing the initial customer relationships for a new venture. All companies face the challenge of new-relationship development in order to achieve growth and to replace relationships which have been lost or are in decline. But the challenge of developing the first customer relationships of a new venture is likely to be particularly acute because the new venture's marketing function and its offering to customers are likely to be undefined and undeveloped. This paper is based on a case study of initial customer relationship development in a new venture of an established business. The paper analyses the issues that the company faced in developing these initial relationships and the approaches to relationship development that it took. The case analysis leads to the conclusion that the development of initial relationships can be facilitated by an ‘open marketing function’ involving a number of functional areas both in the supplier and in the initial customers. The paper draws managerial implications from the case analysis for the task of marketing in this situation.     

The Timing and Subsequent Performance of Initial Public Offerings (IPOs) on the Johannesburg Stock Exchange

Companies that have listed on the Johannesburg Stock Exchange by means of a public offering between 1980 and 1991 have subsequently performed poorly. This long run post issue performance is remarkably consistent with the South African evidence for seasoned rights issuing companies and the international evidence for both initial public offerings (IPOs) and seasoned equity offerings (SEOs). Over the four years post issue, the newly listed companies earned an average return of 18.0% as opposed to 81.5% for a size-matched sample of seasoned companies. This study adds to the increasing body of international evidence suggesting the IPO under performance 'puzzle' referred to by Ibbotson (1975), Loughran and Ritter (1995) and Spiess and Affleck-Graves (1995) is not simply sample or country specific.     

Are long-run output growth rates falling?

This paper studies the evolution of long-run output and technical progress growth rates in the G-7 countries during the post-war period by considering the concept of the natural rate of growth. We use time-varying parameter models that incorporate both stochastic volatility and a Heckman-type two-step estimation procedure that deals with the possible endogeneity problem in the econometric models. Our results show a significant decline in long-run growth rates that is not associated with the detrimental effects of the Great Recession, and that the rate of growth of technical progress appears to be behind the slowdown in long-run GDP growth.     

Reviews

Comparing job centre schemes

White, M., Lissenburgh, S. and Bryson, A. 1997: THE IMPACT OF PUBLIC JOB PLACING PROGRAMMES London: Policy Studies Institute, £14.95 paper

Co-operatives

Birchall, J. 1997: THE INTERNATIONAL CO-OPERATIVE MOVEMENT Manchester: Manchester University Press, £35.00 hardback, £14.99 paper

Urban competitiveness

McIntosh, A. 1997: TOWNS & CITIES — COMPETING FOR SURVIVAL London: E. and F. N Spon, £27.50 paper

British regionalism

Bradbury, J. and Mawson, J. (eds) 1997: BRITISH REGIONALISM AND DEVOLUTION London: Jessica Kingsley Publishers and Regional Studies Association, £18.95 paper

Networks in Europe

Heinelt, H. and Smith, R. (eds) 1996: POLICY NETWORKS AND EUROPEAN STRUCTURAL FUNDS Aldershot: Avebury, £40.00 cased     

Immigrant Place Entrepreneurs in Los Angeles, 1970–99

Proclamations of the death of Los Angeles’ growth machine are premature. These proclamations overlook the growing role of immigrant Korean and Chinese entrepreneurs in regional property development. Since 1970, Korean and Chinese entrepreneurs have seriously restructured Los Angeles’ morphology, creating hierarchically arranged residential and business clusters for co–ethnic immigrants. Koreatown and Monterey Park are the brand names most familiar to outsiders, but these prominent localities really coexist with a multiplicity of less well–known ethnic communities that owe their origins to immigrant property developers. The immigrant property developers use the classic methods of the growth machine: buy land cheaply, promote it in Chinese or Korean emigration basins, then sell it to co–ethnic immigrants at a profit. In the process, the immigrant property developers reduce the difficulty of immigration to Los Angeles at the same time that they enhance its perceived desirability. The success of the Chinese and Korean developers highlights the hazard of assuming, as is conventionally done, that ethnic residential clustering arises from leaderless social processes. In both these highlighted cases, entrepreneurial elites created residential clusters of co–ethnics from conscious, long–term plans that required political as well as economic savoir–faire. In so doing, the immigrant property developers joined the Los Angeles growth machine whose fortunes, admittedly, have been waning among the native born population of the region. La mort annoncée de la dynamique de croissance de Los Angeles est prématurée. Ce serait oublier le rôle grandissant des chefs d’entreprise immigrés coréens et chinois dans l’aménagement immobilier régional. Depuis 1970, ces entrepreneurs ont considérablement restructuré la morphologie de Los Angeles, créant des ‘agglomérats’ commerciaux et résidentiels hiérarchisés pour migrants de m? me ethnie. Si Koreatown et Monterey Park sont des noms bien connus des étrangers, ces lieux dominants coexistent en réalité avec une multiplicité de communautés ethniques moins renommées qui doivent leurs origines à des promoteurs immigrés. Ces derniers appliquent les mécanismes classiques de la prospérité: acheter le terrain bon marché, le promouvoir dans des bassins d’émigration chinois ou coréens, puis le vendre à profità des immigrants co–ethniques. Ainsi, les promoteurs immigrés facilitent l’immigration vers Los Angeles tout en en accentuant l’aspect attractif. La réussite des aménageurs chinois et coréens souligne le risque qu’il y a à supposer, comme bien souvent, que tout regroupement résidentiel ethnique naît de processus sociaux non dirigés. Dans les deux cas exposés, les élites commerciales ont créé des regroupements résidentiels de m? me ethnie selon des plans délibérés à long terme, impliquant un savoir–faire à la fois politique et économique. Ce faisant, les promoteurs immigrés ont rejoint la dynamique de croissance de Los Angeles qui, il est vrai, a vu décliner les succès au sein de sa population de souche.     

Optimal capital structure: A multi-period programming model for use in financial planning

This paper describes a multi-period, chance constrained mathematical programming model to compute for each period, the firm's optimal debt to equity ratio and the optimal maturity distribution of its debt. The model assumes that the firm's objective is to maximize total value of the firm, and that the firm operates in a world of uncertainty, with corporate income taxes and bankruptcy costs. Finally, the actual coupon rate paid by the firm which is commensurate to the risk of default is endogenously determined by the model.