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This volume includes the full proceedings from the 1985 Academy of Marketing Science (AMS) Annual Conference held in Miami Beach, Florida. It provides a variety of quality research in the fields of marketing theory and practice in areas such as consumer behaviour, marketing management, marketing education and international marketing, among others.

Founded in 1971, the Academy of Marketing Science is an international organization dedicated to promoting timely explorations of phenomena related to the science of marketing in theory, research, and practice. Among its services to members and the community at large, the Academy offers conferences, congresses and symposia that attract delegates from around the world. Presentations from these events are published in this Proceedings series, which offers a comprehensive archive of volumes reflecting the evolution of the field. Volumes deliver cutting-edge research and insights, complimenting the Academy’s flagship journals, the Journal of the Academy of Marketing Science (JAMS) and AMS Review. Volumes are edited by leading scholars and practitioners across a wide range of subject areas in marketing science.



Consumer Behavior


Self-Concept and Retailing Strategy

The concepts of self-congruity and ideal congruity are reviewed and discussed in the context of store patronage and store loyalty. A model is then presented that integrates these concepts and defines four market segments: positive self-congruity, positive self-incongruity, negative self-congruity, and negative self-incongruity. It is argued that the positive self-congruity market should be the retailer target market. Two retailing strategies are proposed to help the retailer position his/her store to the positive self-congruity market: the passive approach and the active approach.

M. Joseph Sirgy, A. Coskun Samli, Kenneth Bahn, Theofanis G. Varvoglis

Affective Social Congruity and Store Patronage

A self-concept model involving a new construct referred to as “affective social congruity” is introduced and empirically tested using a sample of 372 shoppers of two stores, a discount department store and a clothing department store. The results provided moderate support for the model.

M. Joseph Sirgy, A. Coskun Samli, Kenneth D. Bahn, Theofanis G. Varvoglis

Retail Image Dimensions and Consumer Preferences

This research attempted to determine the dimensionality of the retail image construct and how consumer preferences were related to retail image. The procedure was to collect similarities and preference data on shopping center image. Also, respondents were asked to rate each shopping center on fifteen image attributes. Multidimensional scaling (MDS) and matrix fitting techniques were used for evaluation.

Art Palmer

Self-Ascribed Occupational Status and Beauty Salon Patronage: A Focus on Employed Women

The present research extends the work of others who have studied the relationship between women’s occupational self-perception and consumption patterns and behavior. Its purpose was to focus on employed women and study differences, if any, among three occupational self-perception groups (homemakers, working women, and career women) in terms of beauty salon patronage variables. Areas of potential differences which were investigated included: (1) decision factors influencing beauty salon selection, (2) information source importance in beauty salon selection, and (3) behavioral variables. Implications of the findings are discussed and ideas for future research are suggested.

Hazel F. Ezell, William H. Motes, Sandra McCurley

Consumer Logistics: The Location Subsystem

This paper serves to elaborate the concept of location as the point in time and place where consumer logistics activities are performed. The paper provides an initial conceptual delineation of the location subsystem of the consumer logistics system, an introduction to the elements of this subsystem, and an elaboration of the activities that are performed by consumers in the process of consumer logistics. These elements of the system are then organized into a paradigm that serves as a framework for organizing research in this area of study.

Janeen E. Olsen, Kent L. Granzin

Consumer Logistics: The Transportation Subsystem

This study provides an introductory view of the structure and process of the transportation subsystem of the consumer logistics system. It draws upon research findings in a number of disciplines to formulate a model that comprises five segments: Environment; Household Characteristics; Traffic Management; Transport Operations Decision; and Transport Operations Implementation. The model forms a conceptual scheme for integrating otherwise isolated research findings related to this area of consumer behavior.

Donald M. Jensen, Kent L. Granzin

Relationship of Perceived Economic Fluctuations to Consumer Adaptive Shopping Behavior: An Exploratory Study

In the past few years the changes in the economic environment have had a drastic impact on consumers’ shopping behavior. Shopping consumers have developed various adaptive behavior mechanisms that allow them to cope with the influence of changes in economic conditions on their shopping behavior. In order to understand consumers’ shopping activities in a changing economic environment, this study focuses on consumers’ perceptions (subjective measurements) of that environment and how those perceptions influence their outlook and determine their shopping activities. Research findings demonstrated that changes in the economic environment have had an impact on consumers’ shopping behavior. Furthermore, consumers’ perceptions and expectations can be used to explain the relationship between those economic changes and consumers’ adaptive shopping behavior.

A. Ben Oumlil, Joseph L. Balloun

Decision-Making in the Household: The Case of Cohabiting Couples

Methodologies developed for investigating the nature of decision-making in the family are extended with modifications to study the nature of decision-making among cohabiting heterosexual couples. The four basic styles of decision-making (husband dominant, syncratic (joint) decisions, wife dominant, and autonomic decisions) were traced across the three decision stages of problem recognition, information search, and the final decision stage. Syncratic decisions were the most prevalent at the problem recognition and the final decision stages, but more autonomic decisions were reported at the search stage.

Corbett Gaulden, Nabil Razzouk, John Schlacter

Husband-Wife Involvement in Buying Decision Making: A Comparative Study of Family Buying Behaviour in Two Traditional Muslim Countries

This study examines the extent of husband-wife involvement in family buying decision making process in two very traditional and conservative Muslim countries namely, the Sudan and Bangladesh. Four products-- two durable products and two convenience products-- are considered in this study. A questionnaire survey was used to determine the husband-wife involvement in the buying decision making process. The findings of the study are then compared with the findings of similar studies in the US and Singapore.

Mohammed Abdur Razzaque

Standards of Comparison Used by Consumers in Assessing Satisfaction/Dissatisfaction with Attribute-Specific Brand Performance: A Conceptual Evaluation

Both the strengths and weaknesses of three standards of comparison are discussed. The standards evaluated are ideal points, focal brand expectations, and product class experience. A number of new hypotheses are generated by this evaluation. Taken together, these hypotheses suggest a relationship between satisfaction/dissatisfaction and standards of comparison which is more complex than suggested previously.

Richard A. Werbel

Occupational Status Within the Household: An Approach to Segmentation

Women’s employment has been researched as a crucial consumer behavior construct, particularly if distinctions between nonworking, just-a-job, and career orientations are maintained. Cultural role changes as well as increased unemployment in some sectors have caused females to adopt coprovider and primary provider status within the household. This suggests that male participation in the labor force as well as degree of commitment to it might also prove of importance to the marketer. A model of household role structure formation and resulting marketplace tactics will be offered, together with possible areas of investigation within this broadened typology of employment by both spouses.

Carol J. Kaufman

Industrial Marketing


Conceptualizing the International Industrial Market Segmentation Problem

Several purported normative models of industrial market segmentation have been developed. International market segmentation has been approached in terms of clustering eligible countries, but has not specifically addressed the problems of industrial marketers. This paper not only suggests a conceptualization incorporating the problem of international scale marketing, but conceptualizes the process from a different perspective, that of a user needs/strategic planning interface.

Richard E. Plank

Use of Written Purchase Guidelines and Formalized Vendor Rating Systems

The objectives of the research were to determine current use of written purchase guidelines and formalized vendor rating systems among manufacturers, service for profit and governmental organizations. Also, if usage differences were present among these organizations, attempts were made to explain them. It was found that type of organization, purchase volume and size all impacted on use of these two classes of industrial evaluation methods.

Jay D. Lindquist, Lowell E. Crow

An Exploratory Investigation of New Product Adoption Decision Criteria Reported by Non-Food Retail Chain Buyers

How can the small, unknown supplier break through the central buying unit of a major retail chain organization? Despite what would appear to be an insurmountable barrier, this exploratory investigation offers hope. Small suppliers, using the right marketing strategy, can win over the biggest chains as customers.

Peter M. Banting, David L. Blenkhorn, Rustan Kosenko

International Marketing


The Development of General Trading Companies For Export Promotion in Developing Countries: The Cases of Korea and Taiwan

This paper examines and compares the development and performance of general trading companies (GTCs) in Korea and Taiwan, and considers implications for other developing countries. General trading companies are the major force in Korean export drive while GTCs are not a significant element in promoting exports from Taiwan.

Developing countries may follow the case example in the development of their own trading companies which best meet their needs.

Richard H. F. Kao, Moonsong David Oh

International Trading Companies for Developing Countries-Latin America

The paper discusses the suitability of applying Brazilian and East Asian models of international trading companies (ITCs) to the Latin American environment. The adjustment process in developing countries is presently moving from the import-compression to the export-expansion phase requires a fresh look at the LDCs’ international business activities. As for Latin America, one of the current solutions to improve the balance of payment may therefore constitute improved productivity in its foreign trade account, through genuine export promotion and import substitution. Searching the alternatives of improved export/import performanc, we present a case for ITCs in Latin America through analysis and comparison of ITCs in Brazil and East Asia.

Gerrit Th. B. de Vos, Leon Zurawicki

Toward a New Export Intermediary: Export Trading Companies in the United States

In this paper we identify emerging trends in U.S. export trading company activities and develop scenarios for future ETC growth. Insights are presented from the experience of the Japanese general trading companies. Shortcomings of the U.S. ETC legislation are assessed along with their implications for the future. A 10-step planning framework for ETCs is presented and the issue of what makes for a viable U.S. ETC is discussed.

Lyn S. Amine, S. Tamer Cavusgil, A. Coskun Samli, John R. Nevin

The Role of States in Promoting U.S. Exports

Improvement in export performance, particularly among small and medium sized firms, has become a national priority. Public and private sector organizations at the national, state, and local levels are engaged in this work. Examination of each participant’s program should provide insight with respect to the nature, scope, and effectiveness of export assistance operations and produce suggestions for improvement. The purpose of this paper is to explore the assistance program of one cluster of participants, that of the 50 states. An investigation of their operations was undertaken by means of a mail and phone survey. Findings are reported and summarized, conclusions are drawn, and suggestions for improvement are made.

Tom Griffin

Consumer Perceptions of Developing Countries

This study investigates whether the willingness to buy apparel from developing foreign countries is influenced by their economic development, culture realm, and political system as suggested by previous research. The results indicate that this is not the case and a substantive evaluation of willingness to buy is undertaken for the country clusters identified.

James R. Lumpkin, John C. Crawford

A Comparison of Preferences Concerning the Purchase of Domestic Products Vs. Imports: United States and Jamaica

This paper examines the preferences of American and Jamaican consumers toward certain locally produced products vs. imports. Emphasis is placed on factors influencing purchase decisions, most preferred domestic and import categories, and methods for creating more interest in locally produced products. Implications for marketing practitioners are provided along with suggestions for future research.

Keith T. Stephens, Harold W. Fox, Myron J. Leonard

Consumers’ Attitudes Towards Marketing and Consumerism in New Zealand

The attitudes and perceptions of New Zealanders towards current consumerism issues are outlined in this descriptive study. Many of the opinions expressed are critical of the existing practices of business and appear to be genuine and lasting impressions. The findings of the study could be combined with previous research to advance understanding of consumerism in the international and macro marketing fields.

A. Tansu Barker

Attitudinal and Behavioural Characteristics of American and French Canadian Credit Card Holders

This study provides insights into the characteristics and attitudinal orientations of American and French Canadian credit card holders. The data were collected in Quebec, Canada and in Vermont, U.S.A. and analyzed using the stepwise discriminant analysis technique. Questionnaires were distributed to convenient samples of 200 households in Montpelier, Vermont and an equal number in Sherbrooke, Quebec. Ninety-seven questionnaires were returned from the American sample and 10 7 questionnaires from French Canada. Findings indicate that French Canadian and American card holders have distinct attitudinal characteristics in holding and using credit cards. The results indicate that, in both countries, credit cards are in the growth state and further growth is expected.

Ugur Yucelt, Robert M. MacGregor

A Framework for the Structural Design of the Marketing Unit: A Contingency Theory Approach

The implementation of marketing strategies in industrial organizations is influenced by the extent to which their administrative structures are appropriately designed to deal with the environments in which they are operating. Although some key aspects of the marketing function important to successful performance have been, identified in previous research and some partial models proposed, there is a need to integrate such findings from a comprehensive organizational perspective. The authors present an integrative conceptual model which elaborates upon hypothesized relationsnips between the structure of an organization’s marketing unit, the conditions of its external markets and environments, and the performance of the marketing unit.

David A. Boag, Ali Dastmalcnian

Pricing Strategy in International Marketing

Although interest in international marketing has been growing rapidly, little or no attention is given to a pricing strategy involving price discrimination under governmental import restrictions such as import quotas. The authors show using a theoretical model that developing nations enjoying quota protection may be able to export part of their output abroad and achieve maximum profit.

Paul Y. Kim, Chin W. Yang

Export Behavior: What Do We Know Now?

A review of the published literature on the behav ior of exporting firms is presented, beginning with a literature review by Bilkey in 1978. His literature classification scheme is accepted and broadened so that it is able to include more recent research. Finally, implications for managerial and governmental action are discussed.

David P. Campbell

Marketing Education


The Knowledge-Related Confidence Effects of a Marketing Simulation Game

Computerized simulation games are becoming increasingly popular in marketing programs and in business school curricula in general. Unfortunately, empirical evidence concerning the impact of this method of instruction is contradictory. Furthermore, few studies have investigated the impact of complex business games played over a long time period. This paper reports the preliminary results of an empirical investigation of the impact of a complex business simulation which focuses on product management decisions over eight simulated years. Preliminary analysis suggests that participants' confidence in applying learned marketing concepts and tools to real-world situations increases significantly due to participation in the simulation.

Nancy A. Haskell, James R. Taylor

Beyond Decision Making: A Model for Contingency Planning in Marketing Problem Solving and Case Analysis

Contingency planning and the putting into effect of those plans when former decisions become inappropriate is a regular and significant aspect of the job of the marketing manager. However, the writers of our case texts in marketing management focus heavily on decision making with scant attention given to implementation and contingency planning as a subset of it. This work calls attention to this deficiency and, most importantly, presents a model to aid instructor and manager alike in the process of coping with the uncertainties associated with the invetiable contingencies that arise after the decision is made.

John S. Berens

Repositioning the Marketing Curriculum

An important phenomenon appears to be underway in higher education for marketing. This phenomenon is worth knowing about, worth evaluating, and worth considering as a potential strategy for repositioning existing undergraduate marketing curricula in U. S. colleges and universities. The phenomenon is called "tracking". This paper hypothesizes three distinct positioning strategies for higher education in marketing. Each strategy is presented and placed in its proper chronological setting. The use of tracking to overcome the weakness of previous strategies is discussed. A detailed analysis of tracking including definition of terms, components of a tracked curriculum, along with examples and opportunities is presented. Finally, specific procedures for the organization of tracking, the development of resources to support a tracking program, and implementation are recommended.

Edward W. Wheatley

A Suggestion for Formal Language Development in Marketing Education

The author takes a lighthearted look at one aspect of marketing theory that has been confused by the transfer of language habits from conversational usage to theoretical exposition. A suggested clarification is offered which the author feels might help ameliorate the negative societal image of marketing efforts, or, at least, reduce the incidence of the charge that "marketers make people want things they don’t need."

J. Paul Merenski

Integrating Communication Skills into a Marketing Curriculum

Written communication skills are essential for Marketing practioners. Yet, little emphasis in the Marketing curriculum is placed on developing these skills. This paper demonstrates techniques for constructing assignments, giving feedback, and integrating more writing into the Marketing curriculum. Emphasis is placed on techniques which do not place a burden on the instructor’s time.

Cheryl M. O’Hara

An Alternative Textbook Selection Method

Evaluating and selecting a basic marketing text-book is a judgemental process. This study suggests the use of a quantitative technique not as a substitute for decision-making, but as a tool to guide those making the decision. The results of using multidiirensional scaling (MDS) techniques as an objective method to guide the textbook selection process are reported.

Donald P. Robin, S. Roland Jones, Nancy D. Marlow

An Empirical Investigation into Demographic and Psychographic Determinants of Class Dropping by Marketing Students

There appears to be a growing trend in higher education toward allowing students to withdraw from a course relatively late in the term. In most cases the student can withdraw from a class without grade penalty (prior to a specific date, after which the student receives a grade penalty).

Steven G. Greene, John Tanner, Robert Bush

Faculty Perceptions of Student Evaluations

This study focuses on faculty perceptions of student evaluations. Findings indicate that a large percent of faculty feel that student evaluations serve a useful purpose but there is disagreement as to the main purpose of student evaluations. Faculty members do not feel students are capable of judging a teacher’s performance nor that student evaluations are a valid means of measurement. Respondents also felt that variables over which they had little or no control affected student evaluations of a faculty member; namely, grade in the course, faculty member’s personality, course level, class size, degree of rigor required, and elective versus required course.

Mary Ann Stutts

The Effects of College Education on Consumer Sophistication: An Exploratory Study

The authors report the results of an exploratory survey among students with varying degrees of formal education. The study investigated their knowledge concerning the product warranty on their recent purchase (within the year) of a consumer durable. The results provided some support for the notion that there is neither a linear nor a mono-tonic relationship between education and informa-.tion seeking in the purchase of consumer durables.

Fred Ede, Elnora Stuart, J. Paul Merenski

A Factor Analysis of Student Motivations for Taking International Business Courses: Implications and Suggestions

One of the currently dynamic aspects of American higher education is the internationalization of the curriculum. Business schools have joined that process by offering international business courses. International students are also increasing in their presence on college campuses thus creating new demands that the international courses be relevant to their needs. The American Academy of Collegiate Schools of Business (AACSB) encouraged the trend a number of years ago by stating that business schools should educate business students in the various aspects of international as well as domestic business perspectives.

Sang T. Choe, John H. Summey

A Test of the Level of Difficulty and Discriminating Ability of a Multiple Choice Question Classification Scheme

The degree of difficulty and the ability to discriminate should be two fundamental considerations in the selection of examination questions. This study assesses these characteristics of the multiple choice questions accompanying one of the most widely used introductory marketing texts and evaluates the text’s a priori classification of these questions.

A. J. Faria, John R. Dickinson, Marc Schumacher

Marketing Management


Factors Affecting Industrial Marketing Performance

This paper develops a conceptual definition of industrial marketing performance. Controllable and uncontrollable variables are related to marketing performance via regression analysis using the PIMS data base.

Del I. Hawkins, Roger J. Best, Charles M. Lillis

The Marketing-Finance Interface: The Impact of Marketing Objectives and Financial Conditions on Retail Profitability

It has been suggested that an effective marketing strategy is one in which environmental opportunities are matched with organizational resources. Despite the importance of marketing strategies to a firm's success, only a few researchers have investigated empirically strategic objectives. Furthermore, previous research has not incorporated multiple indicators of the outcomes of marketing strategic objectives. The purpose of this study is to analyze the role of traditional marketing objectives in the strategic planning process. Implications for retail managers and researchers are provided.

J. Joseph Cronin, Steven J. Skinner

Target Return Applications for Individual Product Lines in Merchandising Firms

This article describes a financial modeling procedure for examining a set of interrelated merchandising decisions, using return on investment as the criterion. The procedure, called target return analysis (TRA), captures the interrelationships of: the purchase price of the product (or product line), unit selling expenses, promotional selling expenses, fixed costs, inventory turnover, and credit terms extended to the merchandising firm. The decisionmaker is then able to evaluate alternative actions, using a "what-if?” approach.

George E. Manners, Louis H. Stone

Price Wars

Overcapacity, new entrants encouraged by deregulation, and industries with splintered market shares all create market conditions conducive to price wars being experienced, for example, by airlines, banking and telecommunications. Managements, however, trigger price wars when they lack expertise in reducing prices and when they behave as price takers rather than price makers. Once engaged in a price war, companies have tried a variety of both short term and longer run remedies for ending the price cutting.

Fred W. Kniffin

Complexity of Shopping Area Image: Its Factor Analytic Structure in Relation to the Effects of Familiarity and Size of the Area

Churchill’s (1979) paradigm for developing better measures of marketing constructs was used to the extent possible, to develop an image scale for a shopping area. The study then focusses on examining the complexity of the image construct in relation to the effects of familiarity and size of the shopping area. Both were found to affect the factor analytic solutions of the image scale.

Chow Hou Wee

The Hierarchy of Priorities for Smaller-City CBD’s

A normative model of priority establishments in the small-city downtown is derived from an empirical study of consumer shopping and preference patterns. Drawing power potentials of various shopping and nonshopping activities based on consumer data are analyzed and used to identify the strengths and weaknesses of the small-city CBD

vis a vis

competitive store clusters.

Peter S. Carusone

Estimation of a Multiplicative Model for Locating Large Retail Stores

A Multiplicative Competitive Interaction Model may be used for predicting the sales volumes for new locations of large scale stores or shopping centers. The paper reviews the least squares technique for evaluating the parameters of the model. Teekens ’ approach is applied to obtain the maximum likelihood estimators for the multiplicative competitive interaction model. The minimum variance unbiased estimators and limitations of the various techniques are discussed.

Zahid Y. Khairullah, Vinay Pandit

A Cybernetic/Control Framework for Marketing Channels

Channels of distribution have been approached in the literature as a system. At the same time, the concepts and approaches of systems theory have not been integrated and applied to any significant degree. This paper attempts to address this issue. The channel of distribution is conceptualized as a cybernetic or control system. The critical systems role played by marketing is highlighted.

Michael H. Morris, M. Joseph Sirgy

A Predictive Model of Behavioral Responses in Distribution Systems

Studies on integrative frameworks of interorgani‐ zational systems and their members’ behavioral responses, in general, and of distribution systems, in particular, are few. No empirical research is reported thereon. This paper develops propositions to better understand such a framework in distribution channels and discusses their impacts on the study of interorganizational relations, thus providing new stimulation to refine the theoretical base and to develop and test hypotheses regarding behavioral responses in interorganizational systems.

A. Fuat Firat, Erdogan Kumcu

The Convenience Store - A Retail Institution in Transition: Their Image Contrasted with the User Public’s Needs

This paper presents the results of an empirical study which investigates consumers’ images of eight convenience store chains. The results of the study are compared with the consumers’ perceived needs and contrasted with trends in the convenience store industry. The functionality of the methodology and the implications of the study are analyzed.

Robert C. Greene

An Empirical Investigation of the Hierarchy of Effects in New Product Concept Testing

Present methodology of the new product concept testing relies on the hypothesis of simultaneous development of all of the components of attitude, as a result of the exposure to the concept statement. This paper reports on an empirical investigation of this hypothesis, as well as the impact of several "variables-in-audience” on the dynamics of attitude development.

Abram Poczter

Optimizing Product Development and Shortenting the Lead Time for Product Introduction

This article describes the application of a new research tool, systematized development and testing of prototypes, The approach facilitate the task of identifying the most promising product to be launched while shortening the lead time for introduction.

Samuel Rabino, Howard Moskowitz

Preference for One-Price Versus Bargaining-Allowed Policies as a Segmentation Variable for Retailers of Big-Ticket Items

In a telephone survey, nearly half of the respondents indicated a preference for one-price policies (as opposed to bargaining-allowed policies) by retailers of automobiles and other big-ticket items. These respondents were older, less affluent, and had less favorable attitudes towards bargaining than respondents who preferred that bargaining be allowed. The most common reason for favoring one-price policies was fairness (everyone pays the same price for the same product). This exploratory research suggests that customers who prefer one-price versus bargaining-allowed policies may be be targeted with different promotional strategies.

Peter J. DePaulo, Amy Friedman, Wendy Berger

Retailers’ Evaluations of Electronic Article Surveillance (EAS) System: An Exploratory Study

Prevention and deterrence of shoplifting is a major issue faced by retail management. The purpose of this study is to explore the attitudinal and the store security related behavioral differences in the users vs. nonusers of the EAS system. The atudy is based on the responses of store managers selected via national probability sample. It also reports the users’ satisfaction with the features of the EAS system. Owing to lack of published research on this topic, the study is designed to be exploratory in nature.

Donald Cooper, Donald Clare, Pradeep Korgaonkar

Predicting Salesperson Success Using Personal and Personality Characteristics: A Theoretical Framework

Research in the area of salesperson performance has failed to establish critical theoretical foundations for testing and predicting salesperson success. Many researchers have attempted to generalize results over all categories of salespeople without consideration of those tasks and traits crucial to success in specific categories of sales employment. A theoretical framework is proposed to guide future research toward an elimination of these shortcomings. Development of a job analysis, application of socio-analytic theory and behavioral consistency theory are presented as areas that need developing to enhance this research stream.

Ramon Avila

A Conceptual Framework for Organized Research Into the Personal Selling Process

This paper provides a paradigm for conceptual and empirical research into the personal selling process. It reviews and summarizes previous scholarly work. It evaluates findings and uses them to develop a conceptual scheme useful for future research. Finally, it outlines a program for scientific investigation into the nature of the personal selling process.

Kent L. Granzin, Gary M. Grikscheit

A Model of Industrial Buyer-Seller Negotiations

The dyadic interactions of industrial buyers and sales representatives is a topic of considerable interest in marketing but has received relatively little attention from academic researchers. In other disciplines; particularly organizational behavior, psychology and economics; there has been a large volume of research on negotiating and bargaining. This paper offers a conceptualization of negotiation in the industrial marketing context which should be helpful to researchers with interests in the interactions between buyers and sellers. This conceptualization focuses on the negotiation strategies of buyers and how these relate to situational factors and the strategies and tactics of the parties.

Barbara C. Perdue

A Normative Model of Sales Force Feedback as an Element of a Marketing Information System

This paper sets forth a normative model of sales force feedback. In doing so, three primary dimensions and several subdimensions are identified and discussed. Also presented are frameworks for evaluating an existing system and establishing an initial system.

Troy A. Festervand, James R. Lumpkin, Stephen J. Grove

Toward a Taxonomy of Marketing Strategies: Issues and Evidence

This paper highlights differences between business strategy and marketing strategy. Six taxonomies of business and marketing strategies are reviewed. The taxonomies contributions to the field of marketing are weighed in terms of their ability to focus on factors within the purview of marketing. The comparison indicates a need for further work toward the development of generic marketing strategies.

Charley T. Crespy, Van V. Miller

Probe: The Fifth “P” of Marketing

There is a growing concern among marketing scholars that marketing research is not receiving the attention it deserves as a marketing decision variable. The purpose of this paper is to propose that marketing research be included as a fifth “P” within the marketing mix, and encourage empirical research to test the hypothesis that there is a direct relationship between marketing research activities and demand.

Kenneth Traynor

Fear Appeal Freguency and Fear Message Variation Across Product Categories

Findings from the social psychological literature on the persuasive effects of fear messages are difficult to apply to fear appeals used in advertising, since they differ in terms of fear intensity, fear type and product/topic category. A content analysis of TV ads revealed that product type is significantly related to fear appeal use. Personal care/apparel and household product advertisers tended to use fear appeals more frequently than food, institutional and hobby/toy/transportation advertisers. Findings concerning fear intensity and fear type among product categories also are discussed.

James M. Stearns, Lynette S. Unger

An Empirical Evaluation of the Host Selling Commercial and the Announcer Commercial When Used on Children

This research paper evaluates the host selling commercial and the announcer commercial in light of the recent court decision eliminating the NAB Code. This paper questions the use of host selling commercials since no significant differences were found between the host selling commercial and the announcer commercial on either recall or product selections.

Joseph H. Miller

The Effects of Fear Arousal through Threat/Coercion vs. Promise of Reward/Gain Types of Appeals in Advertising

Marketing and advertising practitioners are constantly looking for more effective ways to persuade consumers to buy their product or service. Besides humor, fear is one of the more commonly used bases for persuasion. Considerable social psychology and communications research show that intelligent use of fear messages can have favor-able effects on attitude change and action. Advertisers use positive (promise of reward) and negative (threat fear arousal) types of appeals, but little research exists that compares the effectiveness of these appeals. This study will first review the theory and research on the effect of Fear Arousal vs. Promise of Gain/Reward type of Appeals in advertising. Next it will suggest a guideline to the advertising/marketing practitioners for better utilization of the above two opposite type appeals.

J. S. Johar

Promotional Media Usage Patterns Among Women: Occupational and Marital Status Differences

This paper analyzes the differences in promotional media values as they pertain to unemployed-married women, and employed-single women. Data was collected through a random telephone survey in two major midwestern metropolitan areas. Results indicate that employed-married women place a greater value on instore promotional media than either unemployed-married women or employed-single women. Implications for retail managers are presented.

J. Joseph Cronin, Scott W. Kelley

Integrated Advertising: Changing Times, Changing Perspectives

The findings from this research suggest that marketers rethink their conceptions of how blacks and whites perceive and interpret integrated advertising. The use of an ethonomethodological approach to questionnaire construction provides support for the hypothesis that black and white consumers employ significantly different dimensions in evaluating integrated advertisements.

David M. Klein, William Lesch, Allen E. Smith

Media Usage in Hospitals: An Exploratory Study

The primary objective of this study was to explore the strength of association between the degree of media usage and performance measures such as hospital occupancy rate, perceived intensity of competition, hospital size, and other characteristics. A media usage index score ranging from 0 to 24 was developed and differentiated into low, average, and high levels of media usage scores. Cross-tabulations were then run on the categories of media usage and the performance measures and other characteristics.

John A. Vassar, Daryl McKee

Supermarket Promotional Strategies: What’s Hot and What’s Not

Food retailing is a highly competitive industry characterized by extensive use of a variety of promotional activities designed to realize profit, volume or patronage-related objectives. This research examines consumer perceptions of the relative importance of various promotions which super-marketers have historically employed. The study shows that consumers do discriminate among different promotional techniques, and further that chain executives’ forecasts of the use of promotions may be at variance with the relative importance attached by consumers. The study also indicated the existence of relationships between importance ratings and various consumer descriptors. Results emphasize the importance of considering consumer perceptions in the establishment of promotional objectives, the planning of promotional strategies, and the use of individual promotional vehicles.

Richard J. George, John B. Lord

Attitudes of the Elderly Toward their Portrayal in Advertisements

This paper reports the results of a study of elderly consumers attitudes toward advertising in general, their portrayal in such, and their response to this portrayal. The results generally indicate that the elderly as a whole hold "neutral” attitudes toward advertising in general, but dislike their portrayal by advertisers to the extent that some elderly may engage in "limited boycotting.” This is particularly true of elderly women and the elderly Black consumer.

Troy A. Festervand, James R. Lumpkin, Gerald U. Skelly

Advertising Specialties: A Note on Recall

The effectiveness of a sponsor’s communication program is often used to determine the amount and scheduling of advertising. However, very little research evidence exists on recall in the area of specialty advertising. The purpose of this study is to explore the recall of advertising specialties. Awareness rates were measured at different points in time for 3 specialties in order to secure knowledge about the decay of information.

Raj Arora, Charles R. Stoner, Richard A. Schreiber

The Promotion of the “State-of-the-Art” Life Insurance Products

This paper discusses the most effective way of promoting the "state-of-the-art” life insurance products through the multiple line agent. If the product is to be successfully promoted, market demand must first be determined and then, secondly, a market penetration strategy must be developed.

Harvey W. Rubin

Marketing of Services


Consumers’ Attitudes Toward Accountants with Regard to Advertising Professional Services

The results of this study indicated that consumers had a favorable attitude toward advertising by accountants, though some specific differences were found between users and nonusers of accounting services. The importance of consumer demographic characteristics and the appropriateness of advertising media were also examined. The major implication is the traditional void in advertising activity by accountants should now be reexamined.

Robert E. Hite

Financial Services Marketing in a Changing Deregulated Environment

Prior to deregulation, banks and thrift institutions have directed their efforts towards traditional market segments. The deregulation has heightened the level of competition between various financial institutions which include nonbank financial institutions, such as insurance companies and security brokerage firms. This paper examines the evolution of marketing of financial services in a changing legal environment and attempts to tie the marketing needs of commercial banks and thrifts (S & Ls) to the newly defined deregulated market place.

Jay Nathan, Vinay Kothari

Legal Services Marketing: An Empirical Investigation of the Forecastability and Possible Interrelationship between Marriage Dissolutions, Personal Bankruptcies, and Unemployment

The following paper examines the longitudinal demand for two legal services, divorces and personal bankruptcies. For each service this paper presents the appropriate univariate model for forecasting. A causal relationship was suggested by a number of local attorneys in which bankruptcies were the result of untenable divorce settlements. Based upon this theory, the relationship between divorces, personal bankruptcies and an economic variable unemployment is examined.

Guy H. Gessner, Wagner Kamakura

Broker Assessment of Real Estate Franchising: Asset or Expense?

Results of a three-part study of real estate franchising are reported. Multiple Listing data and broker survey responses are analyzed to determine relative performance, and differences in agency structure and operations, between franchise affiliates and independent firms. Broker attitudes toward franchising costs and benefits are related to structural, competitive, and environmental factors.

Barbara Frew, James R. Frew

Opinions and Preferences Towards a Community Mental Health Center

The last decade marks the application of marketing theory in the areas of non-profit organizations, for example schools, hospitals, mental health centers, etc. This article assesses the perceived needs of the community by asking respondents to indicate their awareness of individuals who are in need of such services. The study also focuses on the variables of mental health center that are important in the choice of the organization. Marketing implications of the findings are discussed.

Raj Arora

Strategic Market Planning in Hospitals: Results of a Nationwide Survey

U.S. hospitals are still in the developmental stages of adopting modern strategic market planning concepts and tools. However, results show a growing awareness of planning models, and a high sensitivity to market- and patient-oriented criteria in evaluating hospital or program performance. A general finding is the lack of formalized planning that systematically involves middle managers in the hospital: There is a strong tendency to centralize planning functions at the administrator’s level. The relationship between hospital bed size and planning practices are also reported in this paper.

W. Benoy Joseph, Ronald Zallocco, Paul Markovic

The Traditional Hospital: Identifying Strategies for Survival in a Changing Environment

This paper opens by stating the obvious: traditional hospitals must learn to deal with sudden, often erratic surprises and changes in the outside world that can threaten their survival. Forecasting future change has never been an easy task; in the present turbulent environment, it has become a “nightmare.” Marketing perspectives, principles as well as strategic marketing concepts provide hospital administration with an effective approach from which to cope with the forces in their environment. Hospital management must be alert to new ideas, both in terms of process and content, so that they can recharge the capabilities of their institutions to deal successfully with change. Indeed, the future promises to be exciting and challenging to those who are willing to meet it on its own terms.

Susan M. Halfhill, David S. Halfhill

The Assertiveness Factor in Consumer Choices for Ambulatory Health Care Services

With the rapidly developing alternatives in financing and delivery of health care services in the U.S., the need for effective marketing strategies has become quite evident. Among other things, successful marketing strategies require an understanding psychology of consumers. This paper reports on an empirical study designed to assess the influence of consumer assertiveness in choosing between a hospital emergency room and a neighborhood clinic for minor medical treatment during off hours. Results indicate that the level of consumer assertiveness does, indeed, play a significant role in such a choice process, particularly as a connative variable in a structural model for such choice behavior.

David A. Karns, Inder Khera

Correlates of Citizen Reaction to Demarketing Strategies

A two-stage judgemental quota sample of 582 residents in the Ottawa-Hull metropolitan area of Canada indicated that cynicism is the greatest hindrance to the acceptance of coercive demarketing strategies. Attitude towards conservation was positively related to energy price increases. The value equality and respondents’ willingness to make personal efforts was positively related to rationing of energy. Therefore, it seems, efforts aimed at the persuasion of citizen-consumers to accept demarketing strategies must recognize the segment differences. It should take into account the cognitively complex structure associated with the support for energy pricing and rationing strategies.

Sadrudin A. Ahmed

The Political Candidate as a Marketable Product

The marketing of political candidates is already an accepted phenomenon. This paper focuses on the manner and extent to which the principles of product marketing have been applied to the concept of candidate marketing. To demonstrate these concepts, many examples are cited from past presidential elections. Some are included from the 1984 elections, but because the paper was “put to press” just following this event, the availability of scholarly material upon which to comment was severely limited at this time.

Ralph Gallay, Robert A. Giangrasso

Community Action and Marketing: Is a Little Knowledge A Dangerous Thing?

Community Action Programs are independent agencies whose energies are directed toward local issues. They have their historical and ideological roots in the settlement house movement of the 1890s. Though the marketing concept was almost a century away, the settlement houses exemplified a customer orientation and an emphasis on research. An existing Community Action Program in southern Wisconsin can be contrasted to this earlier ideal in marketing terms. The question is whether the current program with its greater marketing expertise adheres to marketing theory with greater regularity than did the settlement houses.

Lois J. Smith

Consumers’ Cognitive and Behavioral Responses to Energy Conservation Appeal: Evidence From a Scandinavian Country

A survey of Finnish consumers was undertaken to determine their level of knowledge concerning energy conservation measures, their conservation ethics, and their use of energy saving products. This information is used to evaluate the effectiveness of the Finnish government, industry, and media in fostering conservation knowledge and behavior.

Ugur Yavas, Glen Riecken, Antti Haahti

Segmentation in the Market for Television News

This study investigates the viability of using marketing research techniques to segment the market for television newscasts. Six sets of variables were examined for their relationship to segments based on preferred time and channel for news broadcasting. Measures representing several aspects of viewership provided the best explanation for selection of a particular newscast.

Kent L. Granzin, Donald M. Jensen

Research Methodology


A Comparison of Prenotification Techniques in a Mail Survey of the Elderly

What type of prenotification technique is most effective in encouraging elderly consumers to respond to a mail survey? This article examines the relative effectiveness of a simple prenotification communication and one involving a “foot-in-the-door” manipulation. The response rates did not differ by a statistically significant margin for these two types of prenotification. Consequently, cost and ethical considerations suggest that the simple prenotification technique may be the preferred approach in researching the elderly.

George B. Glisan, Jon M. Hawes

Increasing Mail Survey Response Rates

One of the most frequently used techniques for collecting primary data from individuals is the mail survey. A major obstacle to success, however, is obtaining an acceptable rate of response to the mail survey. This paper examines some tactical considerations in the development of a research strategy designed to generate adequate response rates for mail surveys.

Jon M. Hawes, Dale L. Varble, Michael F. d’Amico

Response Rates, Item Omissions and Response Speed Resulting from a Mail Questionnaire with a Personal Salutation on the Cover Letter

Based on a national sample of 4,486 respondents, salutations on cover letters to mail questionnaires had mixed influences. Personal salutations were found to increase response, rates for selected groups of people. Item omission rates may actually be: hurt if personal salutations are used. Response speed was found to be helped by the use of personal salutations.

Ronald D. Taylor, Vicki Blakney

Effects of Pooling on R2

This paper considers the behavior of the coefficient of determination (r


) when two data sets are combined or pooled into one set. In particular it is of interest to see, for fixed subset values of r


, the extent to which the pooled r


value can vary simply as a function of the subsets’ location. Several findings which appear general are discussed, and possible future research directions are suggested.

Arthur Adams

Stepwise Regression Choosing the Proper Level of Significance

We present a model to demonstrate that the routine use of significance levels, such as 0.05, in stepwise regression analysis, give rise to Type I (alpha) error rates which are in excess of the desired rate. The model also leads to an appropriate nominal level of significance which should be used in order to attain the desired significance level.

Vinay Pandit, Zahid Y. Khairullah

A Micromarketing Model

Most of the pioneers in marketing thought were either trained as economists or trained by economists, so it is somewhat of a surprise to find that very little has been done to apply econometric techniques and microeconomics to the development of marketing theory.

In this paper some ideas are presented on how various marketing theories, principles, and laws might be combined into a comprehensive model of the market.

Ernest F. Cooke

An Application of the Analytical Hierarchy Model in Consumer Behavior

The purpose of this paper is to present a set of factors that contribute to consumer patronage of a type of supermarket based on the Analytical Hierarchy Process. This model employs pairwise comparisons using the subjective scale developed by Saaty for analyzing hierarchies in general. The AHP is one of several methods which can be used by decision makers to make decisions in a dynamic complex environment. This approach is illustrated in an application to the prediction of consumer behavior in terms of their selection of the type of grocery store in which to shop. (A food store, a multifaceted supermarket, and a convenience mart.)

Nick Bahmani, Allen Khorami, Herbert Sherman

Special Session Papers


The Pacific Basin and Marketing Education: An Academic Challenge

International education has been secondary in American business schools for most of the 100 or so years of their existence. It has been only recently, circa 1975, that “some” emphasis in the international aspects of marketing have been seen in marketing curricula. However, the thrust of these efforts has been on the decaying European market. It is the contention of this paper that the “Pacific Basin” is the most important future market segment in the world. Consequently, business schools and marketing curricula should integrate this segment of international education into marketing coursework.

Alfred J. Hagen, John C. Rogers

Current Trends in the Finnish Marketing Research

The Finnish academic marketing research and the marketing research made in practice can be clearly distinguished. However, there are many efforts to narrow the gap and marketing information systems are emerging which constitute a positive factor in the use of analytical marketing models and methodology in business decisions. The use of marketing concept in extending to the areas of of industrial marketing, marketing of services and nonprofit and government marketing. There is also a growing interest in strategic marketing planning.

This paper presents to a large extent recent efforts in the field of academic marketing research in Finland. The natural starting point is the distribution research, which has strong traditions in all Nordic countries. In Finland the competitive, open market has been gradually replaced by four vertical marketing systems or blocks, which account for about 90 per cent of the grocery trade at the retail level. There is also a tendency towards integration in the specialty goods and industrial goods trade. The result has been increased competition between systems. There is the problem how to manage a whole interorganizational system, which consists of numerous enterprises of varying sizes. These problems have been recognized by distribution channel managers, government agencies and academicians. It is suggested that the behavioral and economic aspects are both important in the research of interorganizational coordination. The performance of the entire vertical marketing system is dependent on each of its subunits. The productive capacities of subunits constitute the most challenging areas in the strategic planning of marketing systems.

Among the decision areas of marketing mix pricing is perhaps the least analysed with behavioral concepts and methodology. Cost-based pricing strategies are still dominant in Finnish business life. Different ways to measure consumer price perception and price sensitivity are discussed in a brand choice situation. The problems in applying simulation models in the decision making of marketing management is next considered by a representative of managers. Finally, the possibilities of descriptive modeling 1n organ1zat1onal buying analysis are illustrated and the results of a Finnish intensive study on the buying process of industrial components are reported.

Mai Anttila, Saara Hyvönen, Martti Laaksonen, K. E. Kristian Möller, Tapani Rytkönen

Marketing Research in Norway

A perspective focusing on production and use of marketing research as influenced by market environments and other basic conditions is introduced as basis for characterizing the Norwegian research enterprise. Production and use of marketing research is described, its value estimated, and specific characteristics of the marketing research system highlighted.

Kiell Grønhaug, Geir Gripsrud

A Lisrel Model for Country Risk Assessment

As German industry is very much export-oriented, country risk assessment is a major problem in international marketing for German suppliers. The data from several country risk assessment indicator concepts were collected and put into a LISREL model to test which hypothesized relationships between the measured variables and hypothetical constructs can be empirically proved. A structural equation model will be developed to be able to test the causal relationships between the hypothetical constructs over time (multi-wave, multi-variable model).

Klaus Backhaus, Margit Meyer, Rolf Weiber

Marketing Research in Yugoslavia: Random Walk Through Theory and Practice of Research

Analysis of several available sources was used to make assessment of historical development, state of the art and probable future directions of marketing research in Yugoslavia. Chronology of changes in market research and knowledge development is presented comparatively with USA, together with the changes in economic environment and the evolution of marketing concept. As a base for the evolution of marketing research the analysis of the following four different institututions was used: (1) marketing research in higher education (2) market research industry (3) scientific and professional publications (4) selected case studies. Arguments suggesting that marketing research in Yugoslavia is today approaching the “management awareness phase” and therefore has about 30 years lag behind USA. Data also show that good chances for a much faster growth in the comming years are possible.

Miro M. Kline

The Effect of Question Types and a Nonmonetary Incentive on the Rate and Quality of Response of a Mail Survey in Kuwait

This experimental research investigated the effect of question types and a relatively low cost incentive (i.e. a promise of an advice list) on the rate and quality of response to a mail survey. The subjects were garment retailers in Kuwait.

EL-Sayed A. Nagy

“Extensive” Computerization in Organizations: Marketing Implications

This paper studies the effect of extensive computerization in undergraduate education. The problems that result from computerization are more serious when




individuals in an organization are required to work with a computer. This problem, therefore, is one that is of great relevance to manufacturers of computers who sell to organizational markets.

Beheruz N. Sethna

Issues in Marketing High Technology Services and Products

Marketing is going to make the difference between the winners and the losers among high technology companies. Special issues associated with marketing high technology services and products are discussed with particular emphasis on the growth of high technology services.

Kenneth Traynor

Strategic Pricing for High Technology Goods and Services

To say that pricing of products is an important marketing decision variable is obviously a cliche. The specification of a price for a particular product has both revenue generation and promotion ramifications. And nowhere is this more true than in the marketing of high technology products and services. The extreme volatility of pricing structures, and cost configurations, typical of high tech marketing, introduces the high risk levels so familiar to those who deal with the introduction of new products of all types.

The purpose of this paper is to recall in a descriptive way the various considerations pertinent in the strategic pricing decision taking into account critical environmental factors peculiar to the marketing of high technology goods and services. While some might argue that the environments faced by the high tech marketer are really not much different from those of the marketer of any new type of product, this is absolutely untrue. Similarly, the hyper-sensitivity of the market to strategic decisions regarding high technology goods and services makes the arena of high tech decision making unique.

Joseph P. Grunenwald

Research In Progres


Forecasting the Index of Consumer Sentiment

This paper attempts to build and to estimate statistically a forecasting model for the Index of Consumer Sentiment (ICS). Variables in the complex consumer environment are examined to determine which may act upon consumers collectivelyto influence ICS. A model is initially constructed and then tested against quarterly ICS data collected over a twenty-one year period. Coefficients of the variables in the fitted model are examined to indicate the strength of impact on the consumer of each variable. Results indicate that it is possible to forecast ICS with considerable accuracy by using appropriate economic and social data.

Rajindar K. Koshal, Manjulika Koshel, J. Daniel Lindley

The Relationship Between Changes in Importance of Store Attributes and Employment Status of Female Heads of Household: An Empirical Investigation

The purpose of this study is to assess the impact of changing economic conditions on female consumers’ store selection and patronage orientations. Specifically, primary emphasis is to consider employment status of the female head (or wife) of the household in explaining the relationship between the changes in the economic situation in the past few years and their effects on female shoppers’ store selection behavior.

A. Ben Oumlil, C. P. Rao

Buying Behavior of Children: Differences Related to Traditional, Dual Career and Single Parent Family Structures

The past decade has seer, a dramatic change in the lifestyles enjoyed by most families. Due to a variety of reasons more and more wives are joining the work force. Another major trend involves the increasing number of divorces which leads to more and more single parents. Additionally, the value structure around which most families have been based has changed giving children a stronger position in family decision making. The literature has normally based most of the research on the family buying process around the traditional family structure where the husband is the main provider. There are, however, some notable exceptions where studies have focused on differences in family buying based on family structure (see for example: Anderson, 1972; Hoffman, 1965; Niffenegger, Taylor and Taylor, 1980; and Quails, 1982). Again this literature has focused on determining differences in the influence of the husband and wife in the buying process with little consideration given to the influences of children. The purpose of this study is to examine whether or not differences exist in the influence that children from three different family structures (traditional, dual career and single parent) have in the purchasing prccess of their families.

Ronald D. Taylor, Karen Glynn, Jan C. Taylor

Brand Loyalty Across Durable Products

This study examines the purchasing of consumer durable goods to determine if there is brand loyalty across different types of durable products. The results indicate that the propensity to purchase durable products of the same brand does not exist. However, it is possible to predict the extent of brand duplication in the market from knowledge of brand penetration.

Kau Ah Keng, Mabel Chia

Marketing Computer Technology in Less Developed Countries

One area of research in transferring computer technology that is commanding increased attention due to its urgent nature is the marked potential in Less Developed Countries (LDC’s). Computer technology can be successfully transferred from industrialized nations to LDC’s. Successful implementation and adaptation will allow them to enter the information age and enhance their state of development.

Steven M. Finn, Gillian Kice, Terry C. Wilson

The Effect of Demographic Variables on Energy Usage in a Developing Country

This analysis reflects the results of a 1980 study performed in a developing Caribbean nation, which identified national household energy use characteristics. A strong relationship between income-related variables and energy consumption patterns was identified, which is not characteristic of energy consumption patterns in more developed countries.

Susan Stone Sipkoff, Lynn Harris

The Saudi Arabian Market: Import Performance between 1970–80

A few years ago tremendous congestion at Saudi Arabia’s ports and insufficient internal transportation/distribution system resulted in a seller’s market. Prices were high and quality low. Retailers were reluctant make price concessions. The implementation of the Second Five Year Development Plan (1975–1980) was so successful that most of those conditions disappeared. A primary objective of the Second Plan was to expand the country's infrastructure including the ports, both sea and air, 'and the transportation system. Today, congestion at Saudi ports is long gone. Local communication and transportation systems are adequate. Cost of living increases are nominal and healthy competition exists in all aspects of buying and selling in both consumer and industrial markets. This study will focus on Saudi Arabia’s import performance between 1970 and 1980, corresponding to the First Five Year Development Plan (1970–1975) and the Second Five Year Development Plan (1975–1980).

Secil Tuncalp, Ugur Yavas, Glen Riecken

Foreign Trade Zones: Customs Free Territories within a Country

For many, the Foreign Trade Zone (FTZ) might be a new word in their international vocabulary, but its origin is eight centuries old; although in the U.S. the term has only been used for fifty years or so. In 1934, the U.S. Congress passed the FTZ Act; by 1970 there were twelve FTZs in the U.S. Currently there are about one hundred in the U.S. and 300 in 80 countries around the world.

An FTZ is a custom-free area for business, just like a custom-free shop, The difference between these two is that an FTZ is for businesses with wholesale trade while custom-free shops are for consumers. The FTZ is a custom supervised area, Taxable goods from a foreign country can be brought into a zone without having custom duties paid on them.

Goods entering an FTZ may be assembled and manufactured by combining domestic items, or they may be stored, J.lhen goods are shipped into the country a custom duty is imposed only on the part which had foreign origin. Unfinished goods entering a country are usually taxed at a lower rate than finished goods. Thus, shipping the unfinished goods to the FTZ for assembling and subsequently into that country’s market will result in lower duties. If goods are re-exported from the zone to some other foreign location, no customs or excise tax is levied.

This paper presents some basic information about FTZs for those to whom this concept is new and Hho might benefit from utilizing FTZs at home or abroad to establish international operations.

Nadeem M. Firoz

The Use of Sexual Symbolism in Advertising

Art directors and copy chiefs were asked if they use cultural sexual symbols in the ads that they produce. Also, they were asked to identify symbols in an ad. The results indicated that a small percentage are using sexual symbols. The sample was unable to completely identify the four symbols that the creative director placed in the ad. The implication for marketing managers is to be aware of the potential danger of copy or illustrations being misinterpreted by the readers of such ads.

Timothy P. Hartman, Robert W. Cook

Alcohol and Advertising: The Unexamined Relationship

The ingestion of alcohol is among the moderating variables that may affect the effectiveness of television commercials. The effects of alcoholic beverages have been the focus of numerous investigations. The findings have important implications as they suggest that the ingestion of alcohol affects learning and retention. Consequently, further study is warranted. However, research has been hampered by the fact that the behaviors exhibited in the laboratory are different from those that occur in in vivo settings. These issues are addressed and a procedure for overcoming them is proposed.

E. Wayne Chandler, Ralph B. Weller, Yunus Kathawala

Reliability Test of Deal-Proneness Measures: Some Preliminary Findings

Reliability of five measures of deal-proneness was investigated using facial tissue purchase records of over 200 households from the Chicago Tribune Panel. Data were classified into three groups each representing one year’s purchase history. Examination of test-retest reliability of the five measures indicated that most of the measures have a low degree of reliability. The tests of convergent validity indicated that the five measures had a high degree of similarity.

Paul Prabhaker, Jagdish P. Agrawal

Message and Copy Decisions

The paper critically evaluates a model developed by Irwin Gross which approaches the problem of evaluating advertising effectiveness by setting a specified level of quality for the appeal and determining the optimal resource allocation. Some of the problems in using this model are identified.

Rama K. Asundi

The Use of Product Differentiation in Higher Education: A Comparative Study of Two Institutions

This paper compares the effectiveness of product differentiation between two institutions of higher education in the state of Colorado. Both schools offer similar claims to their publics. Using a quesionnaire-style instrument, students at the schools were queried as to why they chose to attend their specific college. The findings are reported and compared. A review of significant literature, and the findings of this research indicate that there may be a need for greater marketing knowledge or the application of marketing techniques at American colleges and universities.

James R. Ogden

Marketing Research for City Administration A Tool for Strategy Decisions

Local governments are subscribing to marketing concepts and the value of marketing research at an increasing rate. Survey research is one popular way of learning about specific groups under the jurisdiction of a local government and how to market to these groups. An example is a survey of scientists and engineers conducted in Dayton, Ohio. The results of this survey provide a foundation for decisions on marketing the city to high technology firms and those firms’ employees.

Rebecca M. J. Yates, Timothy J. Flanagan, John B. Cordrey

Tourism and Ethnic Groups: Behavioral Patterns and Marketing Implications

This study examines the tourism patterns of Greek Americans and their role in assimilation and the maintenance of ethnic group boundaries. The data of the study are based upon a questionnaire survey of the Hellenic communities of Cleveland, Akron, and Massillon, Ohio. The findings of the analysis indicate that the folk societies form the primary source of ethnic travel to the country of origin, and can provide the basis for reaching out to the entire Greek American population.

John Thanopoulos, Stavros T. Constantinou

Practice Building in Professional Services: A Sales Promotion Paradigm

This paper examines the promotional mix in professional services, with special emphasis on the sales promotion activities. A paradigm relating sales promotion, publicity and public relations activities to the hierarchy of needs and time effects is offered. Some of the topics that are discussed are the unique nature of professional services, the restrictions of promotion in these industries, and the sales promotion paradigm, as well as a discussion of future work in this area.

Michael V. Laric, Dennis A. Pitta

Special Session Papers — Addendum


The Relationship of Size to Marketing Problems in Microcomputer Software Firms

This study explored the relationship between the size of microcomputer software firms and the problems they reported in marketing their products. It was hypothesized that large firms, in terms of sales, would have a different set of problems than smaller ones.

Richard D. Teach

Combining Decision Calculus and Dynamic Programming Procedures in Travel Marketing Decision Making: A Model Outline

In travel and tourism, like elsewhere, application of standard optimization routines to marketing decision making is straightforward as soon as the relationship linking market response to input has been modeled adequately. A tailor-made decision calculus procedure eliciting managerial judgements on the pairwise relative importance of market share influence factors provides the weights otherwise inaccessible by objective parameter estimation. Though the procedure has been in practical use successfully for two years, focus in this paper must be on theoretical foundations due to space limitations.

Josef A. Mazanec


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