C.S. Agnes Cheng and Charles J.P. Chen
Previous research and logic indicate that capital markets generally value spending for advertising and promotion; however, empirical results from these studies are far from…
Abstract
Previous research and logic indicate that capital markets generally value spending for advertising and promotion; however, empirical results from these studies are far from consistent. While most studies find a positive relationship between a firm's advertising spending and its market value (Hirschey, 1985; Jose, Nichols and Stevens, 1986; Lustgarten and Thomadakis, 1987;Morck, Shleifer and Vishny, 1988; and Morck and Yeung, 1991), others find a negative relationship when control variables are added to the empirical model (Erickson and Jacobson, 1992). Differences in model specification may explain these conflicting results. Previous studies have included a variety of control variables such as return on investment, market share, research and development (R&D) spending, and book value (Erickson and Jacobson, 1992; Chauvin and Hirschey, 1993; Hirschey, 1982) when testing the relationship between promotional expenses and market value. Different firm characteristics (e.g. sales, total assets, book value of equity and price) have been selected as scalers for empirical measures of both the dependent and independent variables. Although these studies investigated an essentially identical theoretical relationship, variation in model specifications renders interpretations different.
Johny K Johansson and Gary Erickson
This paper presents some rather complicated empirical work employing econometric modelling to demonstrate the validity of a quite simple proposition: the use of a product's price…
Abstract
This paper presents some rather complicated empirical work employing econometric modelling to demonstrate the validity of a quite simple proposition: the use of a product's price as an indicator of quality is only justified when the market is free of trade barriers and other imperfections. It demonstrates that individuals are well aware of this fact, making use of price as a quality indicator only where trade barriers have not distorted prices. Thus, it is not possible to make very strong generalisations about the existence of a universal price‐quality relationship. The managerial implications of the findings are briefly discussed.
Through a synthesis of research results on Japanese consumer behaviour, this paper offers conclusions about the Japanese marketplace. Insights provided on Japanese consumers may…
Abstract
Through a synthesis of research results on Japanese consumer behaviour, this paper offers conclusions about the Japanese marketplace. Insights provided on Japanese consumers may prove useful to marketers contemplating entry into Japan.
The intent of this paper is to discover whether practical examples of new forms of business enterprise are to be found in the real world and what the peculiarities of any such…
Abstract
Purpose
The intent of this paper is to discover whether practical examples of new forms of business enterprise are to be found in the real world and what the peculiarities of any such experiments are.
Design/methodology/approach
The research conducted is of an eminently explorative nature. The research operations are fundamentally based on direct observation and use is also made of secondary sources – especially publications and the contributions of independent web‐based agencies.
Findings
The number of companies that the research conducted made it possible to identify is not actually very high. Indeed, at present the list counts nine such firms. What should be underlined is that these are not enterprises that have decided to adopt a corporate social responsibility or corporate citizenship approach while still leaving their basic nature substantively unchanged. They are, rather, firms that can be termed “anomalous”, given that, in one way or another, they operate outside the conventional rules on the way business is conceived and practised.
Research limitations/implications
Research limitations are primarily in the short number of case studies considered, second in the lack of any contact with the firms examined and, by consequence, in the use of sole company web site information or secondary sources. Starting from the collection of firms which in turn show one or more peculiar features in their structure or behaviour, research implications stem from the opportunity to reason around a new firm's model credibly enough, as such a reasoning relies on some empirical evidence.
Originality/value
The paper's value lies in its effort of documenting the existence of firms going, one way or another, out of the box in their way of doing business and in focusing on some peculiar features far from “conventional managerial wisdom” but which do not compromise these firms' competitiveness.
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Hugh M. Cannon and Fred W. Morgan
Discusses pricing decision making, one of the oldest marketingtopics, including several pricing methods. Presents a strategic pricingframework, developed from pricing literature…
Abstract
Discusses pricing decision making, one of the oldest marketing topics, including several pricing methods. Presents a strategic pricing framework, developed from pricing literature. Presents rules for evaluating strategic pricing alternatives. Offers a model for marketers to explain and improve pricing decision‐making.
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Gary A. Knight and Roger J. Calantone
There is much research suggesting that the image consumers hold about a product’s country of origin can influence their purchase decision, but little empirical work has focused on…
Abstract
There is much research suggesting that the image consumers hold about a product’s country of origin can influence their purchase decision, but little empirical work has focused on the underlying cognitive processing. A flexible model is devised and tested to represent country image processing, using data from large samples of US and Japanese consumers. In addition to strongly supporting the validity of the model, results suggest that country image cognitive processing is significantly more complex than previously thought, and that culture appears to play an important role in purchase decisions. The flexible model represents a substantive improvement in the depiction of cognitive processing regarding country‐of‐origin image.