In‐Store Experiments to Determine the Impact of Price on Sales

This paper describes an experimentation methodology to measure how demand varies with price and the results of its application at a toy retailer. The same product is assigned different price‐points in different store panels and the resulting sales are used to estimate a demand curve. We use a variant of the k‐median problem to form store panels that control for differences between stores and produce results that are representative of the entire chain. We use the estimated demand curve to find a price that maximizes profit. Our experiment yielded the unexpected result that demand increases with price in some cases. We present likely reasons for this finding from our discussions with retail managers. Our methodology can be used to analyze the effect of several marketing and promotional levers employed in a retail store besides pricing.     

Good Jobs, Good Deeds: The Gender-Specific Influences of Job Characteristics on Volunteering

While research has shown that having a “good” job significantly promotes formal volunteering, we have limited knowledge of how this paid work-to-volunteer work relationship may differ between men and women. Based on the gender-identification spillover theory, we hypothesize that because of the societal expectations that women should be caring, giving and communal, positive job traits such as authority and autonomy promote women’s volunteering more than men’s. Our analysis of data from the National Survey of Midlife in the United States shows that women who exercise supervisory authority on the job volunteer significantly more hours than women who do not, whereas job authority makes no difference in the number of hours volunteered for men. Meanwhile, job autonomy promotes men’s volunteering, but not women’s. Implications of these and related findings for future research on gender and volunteering are discussed.     

Acceptability of an Aboriginal Wellbeing Intervention for Supporters of People Using Methamphetamines

Families and workers often suffer significant stress while supporting people who are experiencing problems related to methamphetamine use yet there is little evidence on how best to help. Small pilot studies can provide valuable information about potential ways to intervene. This paper presents a pilot study of an Aboriginal family wellbeing intervention with workers in an Aboriginal health service. The pilot indicated that participation in the intervention improved the psychosocial empowerment and wellbeing of workers, that these workers perceived the program as relevant to families, and that this was an intervention they felt they could deliver to clients themselves.

IMPLICATIONS

• An Aboriginal family wellbeing intervention was piloted and found to improve the empowerment and wellbeing of workers. Participants regarded it as highly relevant for families supporting people using methamphetamines and other drugs.

• This research has added to our knowledge about how to assist those supporting Aboriginal people using methamphetamines and other drugs.

     

Is Working with Your Spouse Good for Business? The Effect of Working with Your Spouse on Profit for Rural Businesses

The goal of this article is to uncover more precise and unbiased estimates of the relationships between relationship satisfaction, a copreneurial business structure, and profit. Because of the suspected simultaneity between profit levels, the choice to be copreneurial and relationship satisfaction, a multivariate recursive probit is used to test for endogeneity between these variables. The results of the empirical analysis suggest that spouses self-select into a copreneurial business structure depending on the level of satisfaction they feel in their interpersonal relationships. Additionally, copreneurial businesses with high relationship satisfaction are more likely to have higher profit than if they were non-copreneurial.     

Restrictive abortion laws, antiabortion attitudes and women’s contraceptive use

This study empirically examines the public and social policy question: Do state restrictive abortion laws affect the likelihood that women use more highly effective contraceptive methods? Using contraceptive use data from the Behavioral Risk Factor Surveillance System 2002 survey, the empirical results show that Medicaid Funding Restrictions, Informed Consent Laws, and Two-Visit Laws have no significant impact on adult women’s (ages 18-44, 18-24, 25-34, 35-44) use of highly effective contraceptive methods. A state’s antiabortion attitudes, which likely contribute to the enactment of restrictive abortion laws in a state, are a major factor in inducing greater use of highly effective contraceptive methods by adult women at-risk of an unintended pregnancy. The empirical findings remain robust for various population subgroups of adult women (i.e., married, single, employed, unemployed, with children, no children and college educated).     

THE CAPITAL MARKET VALUE OF A MULTIPERIOD INVESTMENT WITH THE OPTION OF PREMATURE ABANDONMENT

Conventional approaches to determining optimal abandonment of a project under uncertainty either assume risk-neutrality or impose a mean-variance criterion. Risk-neutrality is unrealistic while the mean-variance criterion precludes determination of the optimal strategy without consideration of covariances of returns among projects. Further, the use of variance of present value as a risk measure may result in the “optimality” of a time 0 strategy that involves maintaining a position at time t that will be “suboptimal” and would not be maintained. The use of the multiperiod capital asset pricing model (CAPM) as a decision criterion is consistent with contemporary theory of market behavior and remedies the deficiencies of the mean-variance approach noted above. Computationally, the optimal strategy for abandonment, when the commitment must be made at time 0 (a lease, say), can be determined with little difficulty beyond that of mean-variance models. When time of abandonment can remain unspecified, the value of the prospect that abandonment will occur at the optimal time can be determined, though the technique necessary is considerably more complicated. In both cases, the marginal costs of commitments that limit discretion over abandonment can be determined and attributed to those commitments.     

ADVERTISING AND VALUE MAXIMIZATION: AN INTEGRATIVE APPROACH *

The model developed in this paper is interdisciplinary in that we incorporate the advertising decision into the capital asset pricing model (CAPM) for valuation of risky income streams. The advertising decision involves the purchase of media services whose effects on sales (profit) are hypothesized to vary with general economic activity. As in any asset expansion, the firm purchases an income distribution with a given expected value and covariance with the economy. By consulting the CAPM, we are able to obtain a value for the income distribution associated with the advertising expenditure. By failing to account for both risk and return, those previous studies which have examined the effect of advertising on profit or valuation are, at best, incomplete. We are able to demonstrate the inappropriateness of ranking alternative advertising strategies solely on the basis of expected income.     

Family Business Responses to Household and Business Cash-Flow Problems

Family businesses can experience cash-flow problems in the business and also in the household. This article used bivariate analysis to examine the effect of cash-flow problems on normative resource transfers between the business and the household and found that the family business responded to business cash-flow problems by reducing the business’s contribution to household income, but household cash-flow problems did not affect the business’s contribution to household income.