AN INDEX FOR THE MEASUREMENT OF CONSUMER LOYALTY*

The concept of consumer “loyalty” (i.e., preference for a particular store or brand) is intriguing to marketing scholars and practitioners. Research in this area would be enhanced by the acceptance of an operational measure of consumer loyalty. Loyalty appears to be a tri-dimensional concept; per cent of budget, allocated to the store or brand, amount of switching, and number of alternatives explored have been used to measure loyalty. Consequently, the authors propose a “loyalty index” which combines these three measures. An empirical test of the proposed index showed that the index did discriminate among degrees of consumer loyalty, and was related to consumer psychological characteristics in a manner similar to that of the generally used single measures of consumer loyalty.     

Estimation of the parameters of symmetric stable ARMA and ARMA–GARCH models

In this article, we first propose the modified Hannan–Rissanen Method for estimating the parameters of autoregressive moving average (ARMA) process with symmetric stable noise and symmetric stable generalized autoregressive conditional heteroskedastic (GARCH) noise. Next, we propose the modified empirical characteristic function method for the estimation of GARCH parameters with symmetric stable noise. Further, we show the efficiency, accuracy and simplicity of our methods with Monte-Carlo simulation. Finally, we apply our proposed methods to model the financial data.     

MULTICRITERIA OPTIMIZATION: A GENERAL CHARACTERIZATION OF EFFICIENT SOLUTIONS*

In the context of deterministic multicriteria maximization, a Pareto optimal, nondominated, or efficient solution is a feasible solution for which an increase in value of any one criterion can only be achieved at the expense of a decrease in value of at least one other criterion. Without restrictions of convexity or continuity, it is shown that a solution is efficient if and only if it solves an optimization problem that bounds the various criteria values from below and maximizes a strictly increasing function of these several criteria values. Also included are discussions of previous work concerned with generating or characterizing the set of efficient solutions, and of the interactive approach for resolving multicriteria optimization problems. The final section argues that the paper's main result should not actually be used to generate the set of efficient solutions, relates this result to Simon's theory of satisficing, and then indicates why and how it can be used as the basis for interactive procedures with desirable characteristics.     

EFFECTS OF LEARNING ON RESOURCE ALLOCATION DECISIONS

Learning curves have important implications for managerial planning and control. This paper considers the effect of learning on managerial planning models for productmix problems that can be handled by a linear-programming formulation. An approach to incorporate learning effects in the planning model is proposed in this paper. The feasibility and superiority of the proposed approach over the traditional approach are discussed through the use of a linear-programming problem.     

OPTIMAL SELECTION OF MATCHED PAIRS FROM LARGE DATA BASES

This paper considers the problem of selecting matched pairs of observations for the reduction of bias in statistical hypothesis testing. A Euclidean distance function is suggested for measuring the similarity between paired observations. The matching process is then formulated initially as an assignment problem. Alternative formulations of the problem that would reduce computational difficulty are considered.     

USING DUMMY VARIABLES TO CHECK FOR ROUNDING ERROR IN COMPUTERIZED REGRESSION PROGRAMS*

After a brief review of the role of dummy variables in regression analysis and the current state-of-the art in rounding/truncation error detection in computerized least squares programs, this paper presents a theorem that can be used to detect this type of error whenever an analyst is running a regression program that has one (or more) dummy variables as independent variables.     

Transforming sub-Saharan Africa

This article provides an analysis of my personal experience and research on the need for sub-Saharan African economic transformation. It contains relevant references to econometric modeling which are consistent with this analysis. After presenting the causes of African failures, ranging from the alleged role of slavery and colonization, to trade composition and relative decline, to present day problems of governance, low level of foreign investment in Africa, and mass unemployment, the article concludes with an agenda for the transformation of sub-Saharan Africa.     

Peer Group Affiliation of Children: The Role of Perceived Popularity,Likeability, and Behavioral Similarity in Bullying

To understand children's peer group affiliation, this study examined to what extent children in naturally occurring groups resemble each other on bullying, likeability, and perceived popularity. Participants were fourth‐ to sixth‐grade pupils (N = 461). Peer groups were identified using the social cognitive map procedure. Resemblance on bullying, likeability, and perceived popularity was evaluated by means of variance components models. Resemblance in peer groups was strongest for perceived popularity, followed by bullying and likeability. Moreover, resemblance on bullying could for a large part be attributed to the high‐perceived popularity of the group, and to a lesser extent, to the low likeability of the group. It is concluded that children showing bullying seem to affiliate with each other most of all to attain or maintain their position in a perceived popular peer group. Results stress the importance of considering the functionality of bullying from a group perspective.