Change within purchasing and supply management organisations – Assessing the claims from maturity models

It is a wide-held assumption that professional development and change within purchasing and supply management (PSM) organisations can be explained and guided by a maturity model. In this paper the guidance which the maturity model concept offers to understand a PSM organisation's performance is assessed. The methodology is based on the outcomes of a literature review of PSM maturity models, development of an organisational change framework and the learning from three qualitative case studies. An alternative understanding of the development of the PSM organisation is offered through an organisational change framework, composing 1) movement transitions, 2) scalability of change, 3) acceptability of change, and 4) the substantive element of change. The research found that extant PSM maturity models are too rigid for PSM managers to apply, and although maturity models are commonly accepted in PSM literature, in practice, they may produce the opposite effect of what is promised. The PSM maturity models suggest that their application will lead to increased status and influence of PSM within the organisation; expectations that may not be met. PSM organisations’ change processes are subjected to a range of situational and contextual power relations which must be considered in order to advance the specific PSM organisation roles and responsibilities.     

Profits for nonprofits: find a corporate partner

Here's a familiar story. A nonprofit organization joins forces with a corporation in a caused-related marketing campaign. It seems like a win-win deal, but the nonprofit--and the media--find out several weeks into the campaign that the corporation's business practices are antithetical to the nonprofit's mission. The nonprofit's credibility is severely damaged. Is the moral of the story that nonprofits should steer clear of alliances with for-profit organizations? Not at all, Alan Andreasen says. Nonprofit managers can help their organizations avoid many of the risks and reap the rewards of cause-related marketing alliances by thinking of themselves not as charities but as partners in the marketing effort. More than ever, nonprofits need what many companies can offer: crucial new sources of revenue. But nonprofits offer corporate partners a great deal in return: the opportunity to enhance their image--and increase the bottom line--by supporting a worthy cause. Consider the fruitful partnership between American Express and Share Our Strength, a hunger-relief organization. Through the Charge Against Hunger program, now in its fourth year, American Express has helped contribute more than +16 million to SOS. In return, American Express has seen an increase in transactions with the card and in the number of merchants carrying the card. How can nonprofit managers build a successful partnership? They can assess their organization to see how it can add value to a corporate partner. They can identify those companies that stand to gain the most from a cause-related marketing alliance. And they can take an active role in shaping the partnership and monitoring its progress.     

Consumerism in the ghetto

Summary The preceding sections have traced the major barriers faced by innercity consumers in achieving their “consumer rights.” Many such barriers such as lower levels of formal education necessary to evaluate complex product offerings-are only quantitatively different from those faced by middle class white consumers. The major thesis, however, has been that a great many barriers are in fact qualitatively different from those of the middle class. In effect, the data permit the conclusion that inner-city consumers live in what might be called a “culture of consumer poverty” which requires different understanding and different solutions than apply to middle class cultures.     

Jump-Diffusion Processes: Volatility Smile Fitting and Numerical Methods for Option Pricing

This paper discusses extensions of the implied diffusion approach of Dupire (1994) to asset processes with Poisson jumps. We show that this extension yields important model improvements, particularly in the dynamics of the implied volatility surface. The paper derives a forward PIDE (PartialIntegro-Differential Equation) and demonstrates how this equationcan be used to fit the model to European option prices. For numerical pricing of general contingent claims, we develop an ADI finite difference method that is shown to be unconditionally stable and, if combined with Fast Fourier Transform methods, computationally efficient. The paper contains several detailed examples fromthe S&P500 market. This revised version was published online in November 2006 with corrections to the Cover Date.     

Cost-minimization analysis of sublingual immunotherapy versus subcutaneous immunotherapy for house dust mite respiratory allergic disease in Denmark

Objectives Currently, patients with persistent moderate-to-severe house dust mite (HDM) allergic rhinitis despite use of symptom-relieving medication can be offered subcutaneously administered allergy immunotherapy (SQ SCIT; Alutard SQ) as standard care of treatment in Denmark. Recently, a HDM sublingually administered allergy immunotherapy tablet (SQ SLIT-tablet; ACARIZAX) has been developed for at-home treatment. The purpose of this analysis is to compare the costs related to treatment and administration of SQ SLIT-tablet and SQ SCIT.

Methods Assuming equal efficacy between ther SQ SLIT-tablet and SQ SCIT, the cost-minimization analysis was the most appropriate for the comparison. According to guidelines and Summary of Product Characteristics, the treatment duration of SQ SLIT-tablet is 3 years and 3–5 years for SQ SCIT. The courses of treatment vary among patients and, therefore, the costs of treatment have been calculated for an average patient with HDM respiratory allergic disease (RAD) receiving either SQ SLIT-tablet or SQ SCIT. All costs associated with allergy immunotherapy were collected, i.e., cost of medication, administration and treatment setting, and discounted according to Danish guidelines. Comprehensive univariate sensitivity analyses were carried out.

Results The treatment costs for an average patient with HDM RAD are €3094 for SQ SLIT-tablet and €3799 for SQ SCIT; however, when adding indirect costs to the calculations the total costs of the treatments are €3697 and €6717 for SQ SLIT-tablet and SQ SCIT, respectively. Therefore, if 2500 patients with HDM RAD were treated with SQ SLIT-tablet instead of SQ SCIT, it would elicit a saving to the healthcare system of ～€1.8 million. The conclusion was robust to any changes in the sensitivity analysis.

Conclusion With regards to the cost of treating Danish patients with HDM RAD, it is clearly cost-saving to treat patients with SQ SLIT-tablet compared to SQ SCIT.     

Information needs for consumer protection planning

The paper discusses alternative research programs designed to help consumer agencies to better meet their needs of factual information on which to base their evaluation of present programs and their setting of priorities for the future.In the main, it concludes that data on consumer problems and consumer complaining behavior in particular can help policymakers in individual countries to make short-run decisions about where and to what extent they should concentrate protection activities under present structures and procedures. Similar data in several countries can further help a policymaker to decide whether in the longer run his or her country should adopt the more effective structures and procedures of another country.Data from an EEC consumer survey and from a study of perceived problems and complaint behavior among U.S. consumers are used as illustrations of the paper's theses.

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Informationen, die für die Planung von verbraucherpolitischen Maßnabmen erforderlich sind

Zusammenfassung Der vorliegende Beitrag behandelt unterschiedliche methodische Ansätze zur Erarbeitung der Datengrundlage, die zur Evaluierung laufender Maßnahmen der Verbraucherpolitik und für die Schwerpunktsetzung bei der künftigen Entwicklung solcher Maßnahmen notwendig ist.Neben der Erforschung beispielsweise von Konzentrationsentwicklungen, der Wirkung von Werbemaßnahmen, des Informationsverhaltens von Konsumenten oder der Gebrauchstauglichkeit von Produkten, wird die Erforschung von Verbraucherproblemen, ihren Ursachen und ihres Ausmaßes, für besonders wichtig gehalten. Entsprechende Daten sich nicht nur für kurzfristige, sondern auch für längerfristige verbraucherpolitische Entscheidungen von Bedeutung. Dazu ist es zweckmäßig, wenn Forschungsergebnisse aus verschiedenen Ländern zusammengetragen und international vergleichende Studien durchgeführt werden.Gegenüber der Erhebung von Indikatoren für generelle Unzufriedenheiten mit globalen Güter- oder Dienstleistungskategorien wird der Erforschung von konkreten Anlässen von Verbraucherproblemen der Vorzug gegeben, vor allem weil Angaben über solche konkreten Anlässe weniger stark von schwer zu kontrollierenden externen Einflußfaktoren abhängig sind als Äußerungen über generelle Unzufriedenheiten. Dabei kommt der dirketen Befragung von größeren Verbraucherstichproben wegen ihrer höheren Repräsentativität mehr Bedeutung zu als der Analyse von gesammelten Unterlagen über Reklamationsfälle.Der Beitrag illustriert seine Thesen anhand zweier empirischer Untersuchungen. Die erste ist eine international vergleichende Studie von Verbraucherzufriedenheit und Verbraucherbeschwerden in den Mitgliedsländern der europäischen Gemeinschaft. Tabelle 1 zeigt die entsprechenden Prozentzahlen aufgeschlüsselt nach diesen Ländern. Die zweite Studie wurde in den USA durchgeführt. Untersuchungsgegenstand waren Verbraucherprobleme und Verbraucherbeschwerden bei 34 Güter- und Dienstleistungsgruppen. Tabelle 2 zeigt für einige davon den Anteil von Käufen, die zu Problemen führten, an der Gesamtzahl der Käufe, ferner davon wiederum den Anteil derer, die zu Reklamationen führten, und schließlich davon wiederum den Anteil derer, die zu einem befriedigenden Ergebnis führten.

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Alan R. Andreasen is Professor of Business Administration and Research Professor, Survey Research Laboratory at the University of Illinois, 306 Commerce West, Urbana, Illinois, 61801, U.S.A. Jean Manning is a marketing consultant in Chicago, Illinois. An earlier version of this paper was prepared for the 8th Annual Meeting of the European Academy for Advanced Research in Marketing while Andreasen and Manning were working at the European Institute for Advanced Studies in Management, Brussels, Belgium.     

On the effects of rare disasters and uncertainty shocks for risk premia in non-linear DSGE models

This paper studies how rare disasters and uncertainty shocks affect risk premia in DSGE models approximated to second and third order. Based on an extension of the results in Schmitt-Grohé and Uribe (2004) to third order, we derive propositions for how rare disasters, stochastic volatility, and GARCH affect any type of risk premia in a wide class of DSGE models. To quantify the effects, we set up a standard New Keynesian DSGE model where total factor productivity includes rare disasters, stochastic volatility, and GARCH. We find that rare disasters increase the level of the 10-year nominal term premium, whereas a key effect of uncertainty shocks, i.e. stochastic volatility and GARCH, is an increase in the variability of this premium.     

Consumer dissatisfaction as a measure of market performance

This paper summarizes two earlier papers on (a) a taxonomy of consumer satisfaction/dissatisfaction measures and (b) results of a U.S. study of consumer problems across a broad range of product and service categories. The paper then assesses the extent to which unsolicited complaints data voiced to business are representative of all types of complaints an all consumers. The paper concludes that they are representative of neither but in the case of consumers, in contrast to previous studies no consistent relationships between socio-economic characteristics and complaint behavior appear when product category and problem type are included in the analysis.

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Zusammenfassung Der vorliegende Beitrag orientiert zunächst über zwei frühere Arbeiten über (a) eine Taxonomie der Indikatoren für Verbraucherzufriedenheit/-unzufriedenheit und (b) die Ergebnisse einer amerikanischen Studie von Verbraucherproblemen bei einer großen Zahl von Produkten und Dienstleistungen. Anschließend untersucht der Beitrag, in welchem Ausmaß solche spontanen Verbraucherklagen, die der anbietenden Wirtschaft bekannt werden, die gesamte Spannbreite aller Verbraucherklagen widerspiegeln und repräsentativ sind für alle Konsumenten. Der Beitrag kommt zu dem Ergebnis, daß beides nicht der Fall ist. Im Fall der Verbraucher zeigten sich jedoch — anders als in bisherigen Studien — keine durchgängigen Zusammenhänge zwischen sozioökonomischen Merkmalen und dem Beschwerdeverhalten, wenn die Produktgruppe und die Art des Problems bei der Analyse berücksichtigt wurden.

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Alan R. Andreasen is Professor of Business Administration at the University of Illinois, College of Commerce and Business Administration, 350 Commerce Building, Urbana, Ill. 61801, USA. The paper was first presented at Fourth International Research Seminar in Marketing, Senanque Abbey, Gordes, France, May 31 – June 3, 1977. The author would like to acknowledge the contributions of Professor Arthur Best of Western New England College who was the initiator and field director of this study and co-author of earlier papers on the study's results.