Search results

This case describes the coal-procurement process of a small electric utility. The manager of the production fuel department must decide how much coal to purchase from each vendor and how to allocate the purchased coal among the utility's three coal-burning plants. The situation can be modeled and solved as a linear program. Sensitivity analysis can be used to help formulate a strategy for negotiating with the vendors and to address other special issues.

At the core of this case is a distribution, or sourcing, problem that can be modeled and solved using linear programming (LP). There are also issues of whether to build (a) new plant(s)––and if so, what the capacity should be––and whether to expand or close one or more of the existing plants. These latter issues can be analyzed using a 0/1 LP facility-location model. Alternatively, because the number of options is limited, they can be analyzed using the straight LP model of the distribution problem as a tool to facilitate analysis.

George Lasiter sells special-events T-shirts and must decide how many to order for an upcoming concert. He has high, medium, and low estimates of both concert attendance and the percentage of attendees who will want a shirt. In addition, he has assessed the relative likelihoods of each estimate. The case can be used to introduce or reinforce the fundamental issues surrounding decision making under uncertainty.

Benecol Spread, a cholesterol-lowering margarine, was a product with unusual media-planning challenges. With a narrow target group and unproven market potential, Johnson & Johnson needed to get the most “bang for the buck” from its Benecol advertising. Would a media-planning model (optimizer) requiring executives to quantify their judgment on several key inputs be helpful in this process? A spreadsheet accompanying the case allows students to weight the target groups and to choose among different advertising vehicles to form the best possible media plan.

The formulated proposals for this legal principle in the trade battern of the European Community have again appeared in the EEC draft Directive. It has been many years in coming, indicating the extreme difficulties encountered in bringing some sort of harmony in the different laws of Member‐states including those of the United Kingdom, relating to the subject. Over the years there were periods of what appeared to be complete inactivity, when no progress was being made, when consultations were at a stand‐still, but the situation was closely monitored by manufacturers of goods, including food and drink, in the UK and the BFJ published fairly detailed reviews of proposals being considered — in 1979 and 1981; and even as recently as the last few months — in “Consumerism in the Community”, the subject was briefly discussed.

Things seem to be going desperately wrong with the concept of the “brave new world” predicted by the starry‐eyed optimists after the Second World War finally came to an end. To those who listen only to what they want to hear, see everything, not as it is, but as they would like it to be, a new society could be initiated and the lusty infant would emerge as a paragon for all the world to follow. The new society in truth never really got off the ground the biggest mistake of all was to cushion millions of people against the results of their own folly; to shelter them from the blasts of the ensuing economic climate. The sheltered ones were not necessarily the ordinary mass of people; many in fact were the victims and suffered the consequences. And now that the state has reached a massive crescendo, many are suffering profoundly. The big nationalised industries and vast services, such as the national health service, education, where losses in the case of the first are met by Government millions, requests to trim the extravagant spending is akin to sacrilege in the latter, have removed such terms as thrift, careful spending, value for money from the vocabulary.

The President of the Board of Agriculture has introduced in the House of Commons his long‐promised Bill for preventing the sale of butter containing large amounts of water, and the proposed measure appears to have been received with general approval on both sides of the House.

The purpose of this article is to explore linkages between committed customers and their willingness to serve as advocates and investigate the moderating influence of B2B loyalty programs toward supporting customer advocacy behaviors.

A model was developed to assess linkages between customer commitment and an assortment of customer advocacy behaviors, including sharing information, marketing research support, word‐of‐mouth referrals, and increasing repatronage. The model was tested on 248 agricultural business clients of a chemical manufacturer using confirmatory factor analysis. Multi‐group analysis was conducted to assess hypothesized B2B loyalty program membership effects.

The findings suggest that customers with stronger levels of commitment are indeed more willing to contribute as customer advocates. Surprisingly, B2B loyalty program membership shows no significant moderating effects on the tested model.

The tested model provides an expanded view of customer advocacy. Researchers are advised to regard this work as a starting‐point for expanded hypotheses development of future customer advocacy models.

The study considers the potential for how business customers can be further engaged to serve as advocates and thereby help improve the firm's marketing performance. However, when loyalty program membership is firm‐determined, marketers should not expect that the program will enhance customer advocacy behaviors toward the sponsoring firm.

Since much of the previous work on customer advocacy has been based on anecdotal evidence, the study advances the relationship marketing literature by providing empirical evidence for the multi‐dimensional view of customer advocacy behaviors and further argues that customer lifetime value (CLV) encapsulates customer advocacy.

Elsewhere in this issue we review the First (Interim) Report of the Joint Survey of Pesticide Residues in Foodstuffs, published by the Association of Public Analysts (Editor: Mr. D. G. Forbes, B.Sc., F.R.I.C.). The Scheme, planned with meticulous care and executed with the best spirit of co‐operation, sets a pattern for this type of investigation; there are other problems which could be studied in the same manner. Such a response from the bodies representing the major local authorities of the country and their food and drugs administrations—inspectors, food sampling officers, public analysts—is evidence of the concern felt over this particular form of contamination of food. It constitutes a public health problem of world‐wide dimensions. The annual reports of public analysts show that many are examining foods outside the Survey lists now that gas/liquid chromatography, spectroscopy and other highly refined methods of analysis are available to them.