USING CONJOINT ANALYSIS TO PREDICT TRIAL AND REPEAT-PURCHASE PATTERNS OF NEW FREQUENTLY PURCHASED PRODUCTS*

A new approach is proposed to evaluate new-product opportunities. This approach uses the distribution of brand-purchase probability of the new product over a population of potential customers and the outputs from conjoint analysis. The heterogeneous distribution of brand-purchase probability is expressed by a beta binomial brand-choice model compounded with a negative binomial product-class purchase-incidence model. The resulting model provides a way to predict trial and repeat-purchase patterns of new-product concepts. The paper discusses the development of the model. It also discusses issues of measurement, estimation, testing, and implementation of the proposed approach based on actual empirical data.     

DECISION RULES IN PRODUCTION PLANNING UNDER CHANGE-CONSTRAINED SALES*

Alternative decision rules for aggregate production scheduling are specified here under chance-constrained sales and compared with the HMMS model. These rules are evaluated for their performance on the basis of simulated data on sales and it is found that the linear decision rules of the HMMS model can be considerably improved.     

DETERMINING THE APPROPRIATE DISCOUNT RATES IN PURE CAPITAL RATIONING

This paper proposes an interpretation of the pure capital rationing problem as it is faced by many managers in decentralized firms in which budgets serve as the principal means of control. It is argued that the appropriate objective for situations such as these is the maximization of either undiscounted earnings over the planning horizon or total value of the investments at the horizon. When either objective function is used in conjunction with the frequently encountered linear programming models for the capital rationing problem, shadow prices result which give rise to discount rates that will reproduce the optimal solution using discounted cash flow as a criterion. These results are then used as a means for clarifying several confusing and misleading statements that have appeared in the literature.     

THE EFFECT OF MASCULINE AND FEMININE BRAND NAMES ON THE PERCEIVED TASTE OF A CIGARETTE *

The purpose of the current study was to determine whether brand name can affect the public's evaluation of a product. All subjects smoked identical cigarettes. One group of subjects, however, knew the cigarettes by the name of “Frontiersman,” a masculine name, while the other group knew the cigarettes as “April,” a feminine name. Male and female subjects were asked to rate the cigarette on seven measures. Results show that women gave a more positive evaluation to the cigarette purportedly named “April,” while men gave a more positive evaluation to the identical cigarette when they thought it was named “Frontiersman.” In addition, women reacted more strongly than did men to brand name influence.     

TEACHING EFFECTIVENESS IN THE DECISION SCIENCES: THE USE OF STUDENT EVALUATIONS

This article presents the results of an AIDS-sponsored investigation of teaching effectiveness in the decision sciences. Two national samples were employed in the study: a sample of 247 business school deans and a sample of 3,292 students from 32 different business schools. Included among the findings are that 87 percent of the deans responding indicate they require some sort of faculty teaching effectiveness evaluation, and that great care must be exercised when interpreting student ratings of an individual instructor's teaching effectiveness.     

A COMPARATIVE ANALYSIS OF THE PREDICTIVE ABILITY OF ADAPTIVE FORECASTING,RE-ESTIMATION,AND RE-IDENTIFICATION USING BOX-JENKINS TIME-SERIES ANALYSIS ON QUARTERLY EARNINGS DATA

This paper assesses the predictive ability of the Box-Jenkins methodology when utilized in an on-going setting. Three procedures are utilized to update the original forecasts generated from the Box-Jenkins models: adaptive forecasting, re-estimation, and re-identification. The results indicate that constant monitoring of the structure and parameters of the time-series models are necessary through time. It appears that adaptive forecasting techniques are insufficient to update BJ time-series models when used in conjunction with quarterly earnings data. Re-estimation is recommended as each new observation becomes available. Re-identification procedures are recommended on a less frequent basis.     

On the functional form of corporate cooptation: Empirical findings linking the intensity of market constraint with the frequency of directorate ties

Using data on market transactions involving manufacturing industries in the 1967 American economy and data on directors of large firms involved in manufacturing at the time, the frequency of interorganizational ties through corporate directorates operating in economic sectors J and M is shown to increase with the extent to which average profits in industry J are constrained by its market transactions (sales and/or purchases) with sector M. Market constraint has its strongest and most direct effect on the spread of a corporation through ownership ties into multiple sectors rather than on the corporation's use of interlocking. However, the central point demonstrated concerns directorate tie frequency. Not only is the absence of directorate ties predicted by the absence of market constraint, the actual frequency of ties between economic sectors is predicted by the intensity of market constraint they constitute for one another's profits.     

Red unions and bourgeois democracy: A quantitative-historical analysis of worker militancy and socialist electoral power

This paper investigates how workers’ “economic struggle” determines the “democratic class struggle,” and extends socialist electoral constituency. This paper argues that political outcomes, namely, electoral behavior, may not be understood independently of the labor process, especially its most militant manifestation, strikes. Rather than follow the customary conceptual dichotomy between the sphere of production and the political sphere, it is suggested that both strike activity and electoral participation are compatible political strategies that, under specific historical circumstances, may jointly determine the fate of the Socialist party. The leading question is how did the wave of strikes in post World War I Italy affect the electoral power of the Italian Socialist party, in comparison with another mass party, the Popular Catholic Party. Hierarchical Linear Modeling (HLM) is employed to analyze census, strike, and electoral data. It is found that strike activity and electoral democracy increased the electoral power of the Socialist party, whereas they had little effect on the power of the Catholic party. It is suggested that this was due to the Catholic non-revolutionary program which was ambivalent about the political role of strikes. It is concluded that the socialists’ political success was determined by their dual political strategy in both spheres, electoral participation, and organizing strikes.     

A Demographic Model of Measles Epidemics

Liverpool, U.K., 1863--1900, has been used as a model to explore the interaction between measles epidemics and the population dynamics in an overcrowded community with inadequate nutrition using a non-linear model which allows the estimation of certain underlying demographic parameters. The results are consistent with a system that is driven by an oscillation in the transmission parameter that is compounded of an oscillation in autumn temperatures (at the resonant frequency of the system, 2.4 years) and, secondarily, by an oscillation in wheat prices (wavelength = 5.3 years, twice that of the epidemics).