Integer goal programming model for the implementation of multiple corporate objectives

The problem of long-range planning and investment project evaluation is complicated by the presence of multiple conflicting goals measured in incommensurable units, indivisibility of alternative projects, and the desire of management to consider mutually exclusive marketing-pricing strategies. The model proposed in this study attempts to allow for these complexities through the use of integer goal programming. It is the hope of the authors that this model will provide management with an additional decision-making tool for implementation of multiple corporate objectives.     

An industrial analysis market information system

The United States maritime industry share of world cargo movement has declined steadily for the last decade. The authors maintain that this situation is partially due to the industry's lack of a marketing orientation. Successful marketing hinges upon an effective market information system. This paper presents such a system for the U.S. maritime industry and discusses various information sources as a foundation for this system.     

Goal programming approach to marketing/ production planning

This article focuses on the need for greater coordination and integration between production and marketing. The potential conflicts between the production and marketing areas are highlighted, and a goal-programming algorithm is developed for dealing with the complex trade-off decisions involved in marketing/production planning. The algorithm is applied to a case example to illustrate its use in managerial decision making.     

Support service is key for technology transfer to China

China, under the direction of its new political leadership, is extremely interested in purchasing the most up-to-date technology. However, still being a less-developed nation, there is some doubt about her ability to absorb this high-level technology. If the U.S. industrial marketers hesitate to sell this technology, China will buy it from other industrialized countries. The authors maintain that the U.S. industrial marketers must sell the high-level technology to China. However, they also must make sure that this technology will be transferred successfully. In order to assure the success, the authors suggest that special attention be paid to the development of marketing support service systems as highly technical industrial products are sold to China. These systems will at least temporarily overcome existing barriers to technology transfer and hence will facilitate smooth and enduring technology transfers in the long run.     

Changes in industrial buying: Implications for industrial marketers

Some of the most dramatic changes in organizational buyer behavior have occurred and continue to occur in the industrial purchasing function. Purchasing is becoming less and less a lower-level staff function and more and more a top-level management position. This article examines some of the major changes in the purchasing function and the reasons for those changes. The article concludes by considering some of the major implications of these changes for the industrial marketer.     

Marketing to the industrial lease buyer

This article reports on a survey of financial executives concerning their attitudes towards the leasing of industrial equipment. Specifically, the study seeks to explore the reasons why lessees lease. The research findings are viewed in terms of their implications for the marketing of industrial equipment.     

Using self-congruity and ideal congruity to predict purchase motivation

This study tested the hypothesis that the effects of self-congruity and ideal congruity on purchase motivation are additive. Self-esteem and self-consistency theories were used to explain this relationship. The results of this study demonstrate support for this relationship. Research implications based on the theoretical model proposed in this study are also discussed.     

Recent SEC prosecution and insider trading on forthcoming merger announcements

While trading on nonpublic information is illegal, the enforcement of this law has been elusive, particularly in the area of trading in advance of merger announcements. We examine the impact of insider trading on daily stock price changes for firms identified by the SEC in the Antoniu-Newman insider trading case. Using residual analysis, the abnormal returns occuring prior to the announcement are calculated and compared with a sample of 188 typical merger candidates not identified in the Antoniu-Newman case to determine whether or not there was an unusually large market reaction prior to the forthcoming merger announcement on the subset of merger candidates involved in the court procedure.     

Unidimensional measurement and structural equation models with latent variables

This article considers various methods for constructing sets of multiple indicators that measures one and only one trait, i.e., unidimensional measurement. The article compares two procedures for constructing unidimensional measures: the modification index and tests designed specifically for assessing unidimensionality. The specific tests were shown to work better than the modification indices.     

Determining the cost of common equity capital: The direct method

One of the most critical aspects of the corporate capital budgeting process is the determination of a proper “hurdle rate” or “cut-off” rate to employ in the screening of proposed uses of funds. This hurdle rate is now commonly referred to in both industry and the literature of financial management as the cost of capital. General agreement on how to measure the equity component of the cost of capital (i.e., the cost of common equity) has not yet been achieved by either practitioners or theorists. A unique approach that shows considerable promise differs from the abstract mathematical techniques typically used. It involves quizzing directly a sample of the corporation's existing common stockholders as to their dividend and capital gain expectations. Proper interpretation of the responses can provide top corporate management with an estimate of the cost of equity capital, as represented by the returns (expected) by shareholders. Thus, top level management has more complete information from the firm's owners on the returns that are expected from the investment of retained earnings.