Richard A. Heiens

The Contribution of Product Quality to Competitive Advantage: Impacts on Systematic Variance and Unexplained Variance in Returns

In our study, we argue that product quality may enhance competitive advantage, leading to increased returns but a reduction in variance in returns. More specifically, based on our analyses of strategy-related theories, we propose a model in which a positive relationship is predicted between relative product quality and relative market share and between relative product quality and returns. An inverse association is predicted between quality and both systematic variance and unexplained variance in returns. Finally, relative product quality is expected to indirectly lower the variance in returns but enhance returns through the link between product quality, market share, and direct costs. Our findings are generally supportive of the model’s stipulations. Copyright

The contribution of intangible assets and expenditures to shareholder value

The present study investigates the role of intangible assets and expenditures in the search for shareholder value. Recognizing the limitation of traditional financial measures of performance, this study assesses the impact of intangible assets and expenditures on a direct measure of corporate shareholder accountability, market‐adjusted holding period returns. Utilizing a sample of 1,657 actively traded manufacturing firms, the results indicate that advertising, goodwill, and research and development do not have significant positive impact on shareholder value, as measured by holding period returns. Instead, only intangible assets other than goodwill, which include the value of patents, copyrights, licenses, and trademarks, have a positive impact on shareholder value.

Two-Way Interactive Television: An Emerging Technology for University Level Business School Instruction

Abstract In this study, we examine data from a public, upper division university to help answer several questions related to the use of two-way interactive television for university level business instruction. The study explores differences between distance learners and their oncampus counterparts in terms of age, gender, overall academic performance, and performance in a specific interactive course. The findings suggest that remote classes are more likely to comprise slightly older students, with a greater proportion of females than oncampus classes. The differences in overall academic performance and in classroom performance were not statistically significant, suggesting that there is no perceptible drop-off in academic performance that can be systematically related to problems with the technology.

Customer satisfaction and loyalty in the Kuwaiti retail services market: why are satisfied buyers not always loyal buyers?

The authors investigate the relationship between customer satisfaction and customer loyalty in the domain of food retailing, focusing on the western-style coffee shop sector of the coffee category in the State of Kuwait. On the basis of more than 600 responding users of the 39 coffee shop retailer brands, the authors provide evidence that satisfaction and loyalty are positively related: as satisfaction levels increase, levels of loyalty also increase. Additionally, the study investigates three hypotheses proposed to explain why satisfied consumers are not always loyal consumers. Evidence is provided supporting all three explanations: (1) satisfied buyers may not be loyal because they are loyal to other brands, (2) satisfied buyers may not be loyal because they are inherent switchers with more experience regarding the category, and (3) satisfied buyers may not be loyal because they are more satisfied with their overall experiences in the category. In general, the findings suggest that satisfaction is highly relevant in developing long-run customer loyalty, but that satisfaction is indeed a necessary but insufficient factor in generating loyalty.

Beware the Internet panacea: how tried and true strategy got sidelined

When managed poorly, e‐business initiatives may actually transform once promising opportunities into dangerous threats. In this article, the authors outline the environmental threats posed by the Internet and e‐business practices and present a series of propositions on the relationship between managerial perceptions of e‐business’s impact on industry structure and the prevalence of a formal e‐business strategy.

The impact of strategic consistency on market share and ROA

Purpose – The purpose of this paper is to take a contingency theory approach to examine how performance is affected by the relationships between the Miles & Snow strategic groupings and a variety of marketing strategy concepts, including a firms service focus, service growth, market coverage, marketing initiative, market growth, Porter strategy, and market orientation. Design/methodology/approach – Data for the study were gathered from a statewide survey among 125 chief executives of credit unions belonging to the Florida Credit Union League (FCUL). ROA figures were derived from government-mandated accounting reports in the state of Florida. ANOVA and correlation analysis were employed to analyze data. Findings – This study shows that firms that match an aggressive Miles and Snow profile with a more aggressive approach to seven other strategy dimensions often enjoy higher market share relative to credit unions characterized by a different alignment of the various aspects of marketing strategy. The result...

Customer-Focus or Competitor-Focus? A Financial Services Example

ABSTRACT The present article examines the relationship between an organizations market-orientation, in terms of either customer focus or competitor focus, and the organizations market share performance in a financial services environment. The study includes samples of chief executive officers in the financial services sector, specifically credit unions. The paper begins with the development of a market orientation typology matrix, and is followed by a presentation of the hypotheses. The authors find that increases in a firms market share are associated with high levels of competitor-focus and not with customer-focus or interactions between the two.

The impact of advertising, goodwill, and other intangibles in the retail foodservice industry: Do intangible investments bite into investor returns?

ABSTRACT Utilizing a sample of U.S. publicly traded foodservice retailers, this study examines the impact of advertising, goodwill, and intangible assets on investor holding period returns. The results show that neither advertising nor intangible assets have a positive and significant impact on holding period returns. Goodwill, however, does have a positive and significant impact on holding period returns. Foodservice retailers may therefore want to question the effectiveness of growth strategies based on a firm’s own investments in either advertising or intangible assets. Instead, building a foodservice retailing business through mergers and acquisitions may prove a better use of company resources.

Using Direct Observation to Examine the Relationship between Religiosity, Demographics, and Consumption in a Middle Eastern Retail Services Setting

ABSTRACT The authors investigate religiosity among customers in Kuwait coffee shops, collecting data through more than 1,700 direct observations. About 60% of customers were classified as low in perceived religiosity and 40% as high in perceived religiosity. Consumers high in perceived religiosity were more likely to be Kuwaiti and more likely to be older in age. They also visited coffee shops with fewer friends and were less likely to actually purchase coffee, yet they exhibited a greater amount of dwell time. The study validates the use of religiosity as a viable segmentation variable in Islamic retail markets and of direct observation as a classificatory method.

Overcoming the Trend Toward Healthier Foods: The Impact of Advertising and Intangibles on Investor Returns in the Packaged Food Industry

ABSTRACT The study analyzes the impact of advertising, goodwill, and other intangibles on investor returns in the consumer packaged food and beverage industry during 2008–2012, a timeframe during which smaller brands wrestled