FEATURE
PAPER
Experimental
Entrepreneurship: A Research Prospectus & Worskshop
The
following paper was presented at the 2008 United States
Association for Small Business and Entrepreneurship (USASBE)
. It was written by Norris Krueger Jr., Entrepreneurship
Northwest and Isabell Melanie Welpe, Ludwig-Maximilians-University.
Abstract
Experimental research conjures a vision of abstract, ivory
tower research far removed from the “real world” that
entrepreneurship research has long and proudly embraced.
What happened when experimental research entered fields like
marketing? Experimental methods have barely penetrated entrepreneurship
research. However, where they have
done so, the results have been powerful. However, in this workshop
we will show that (I) experiments offer significant
methodological opportunity and value to the researcher and
(II) the range of applicable topics is broad and deep, making
it attractive to top scholars.
Introduction
Understanding entrepreneurial behavior requires that we focus
at the deepest, most fundamental levels. The early days of
entrepreneurship often emphasized personality research. That
led us to studying attitudes, rather than traits (Shaver & Scott,
1991). The next step in the field's evolution was to explore
individual differences through the lenses provided by cognitive
and developmental psychology. This step now allows us to address
deep, fundamental issues in entrepreneurial cognition through
rigorous
experimental research (that need not abandon relevance). It
also allows us to take the next logical step and take advantage
of the recent breakthroughs in neuroscience.
Experimental research conjures a vision of abstract, ivory
tower research far removed from the “real world” that
entrepreneurship research has long and proudly embraced.
What happened when experimental research entered fields like
marketing? Deep theory, yes. Profound practical applications,
yes. This interdisciplinary workshop will focus on the experimental
investigation of entrepreneurial behaviour from the perspectives
of economics, cognitive, social and
developmental psychology, neuroscience, philosophy, evolutionary
anthropology, etc. Experimental methods have barely penetrated
entrepreneurship research. However, where
they have done so, the results have been powerful. In this
workshop we will show that (I) experiments offer significant
methodological opportunity and value to the researcher and
(II) the range of applicable topics is broad and deep, making
it attractive to top scholars. We also have a huge body of
proven methods to call upon. USASBE 2008 Proceedings - Page
1070
Our main goal is to contribute to the understanding of the
factors which determine entrepreneurial processes in different
contexts (for-profit, not-for profit, academe, etc.). This
project concentrates not only on the psychological, social
(and eventually biological/neurological) bases of entrepreneurial
behaviour, but also on the social and economic consequences
of people displaying entrepreneurial behaviour. Economic
experiments are a good method for research questions relating
to cognitive processes in entrepreneurship yet are an approach
rarely used in the field of entrepreneurship to date (Schade
2005). Why not take advantage?
Read
the Entire Paper...
TIP
OF THE WEEK
Merchandising
Policies
Whether the company is a small, independent entrepreneurship,
or a major retail giant, its merchandising success depends
on the buyer’s understanding of its policies and the
proper carrying out of them.
Policies are formulated to make certain that the potential
customer has a clear understanding of what he or she can
expect in terms of price points, merchandise
quality, product exclusivity, variety, timing of the introduction of goods, assortment,
and price policy.
Once these policies have been established, the buyer must
adhere to them and acquire the most appropriate goods that
fit with
them.
Price Points
To attract a specific market segment to their company, retailers
often begin with a price point policy. A price point is the
focus of the selling prices that
the retailer has established. It may be, for example, a moderate range of prices
that will have middle-class appeal or higher-priced merchandise that will attract
the affluent shopper. The determination is based on the trading area in which
the merchant operates and the incomes and lifestyles of those within these defined
areas.
The price point is not a very narrow range, but one that includes
a number of different prices. In shoes, for example, a moderate
price point structure might
include footwear that ranges from $50 to $120 a pair. By using this approach,
merchants in brick-and-motar establishments are not inundated with shoppers who
are either unable to purchase merchandise at these prices or are not interested
in moderate-priced goods. They can be more assured that those entering their
stores are willing and able to purchase items priced at these levels.
When the buyer purchases goods within these price categories,
he or she is on
the road to maximizing profits for the company.
Merchandise Quality
Most styles, whether in clothing, wearable accessories, home
furnishings, or other products, are generally available in
a variety of qualities. Two sofas,
for example, similar in design could be priced hundreds of dollars apart because
they differ considerably in such areas as fabrication, construction, and finishing.
Similarly, two dresses might have almost identical appearances, but the materials
used in manufacturing them could differ significantly to result in different
prices.
The retail operation must concentrate on a particular quality
level that best
suits its customers’ needs.
Product Exclusivity
Some merchants pride themselves on the exclusive merchandise
deals they are able to secure from vendors. Companies like
Neiman Marcus and Saks, for example, have
merchandising philosophies that concentrate on this exclusivity to attract shoppers
who have needs for such items. By establishing such a philosophy, often these
merchants are able to obtain higher markups than most other retailers would achieve
for the same merchandise.
Another philosophy concerning exclusiveness of goods deals
with private label merchandise. The company must direct its
buyers about what the proportion of
those items should be in relation to the overall merchandise in the store. Private-label
merchandise affords the retailer the luxury of achieving higher markups because
it is free from price competition.
While some retailers concentrate on exclusivity, others opt
for other merchandise philosophies such as relying on a wealth
on nationally advertised brands for
the bulk of their inventories.
Whatever the philosophy regarding exclusivity of products, the buyer must stay
within the guidelines established by management.
Variety
Whether to restrict its offerings to a very narrow variety
or to offer a wider choice is another management decision.
Should the furniture department concentrate
on contemporary styles, or should the assortment feature all periods? As with
other areas of concern, the decision rest with the retailer. Once the variety
factor has been established, shoppers can quickly assess whether this retailer
will satisfy their needs.
Timing of Introduction of Goods
Some merchants take pride in being the first to feature merchandise
in their trading area. This is particularly true of those who
sell fashion merchandise.
They are the fashion leaders, and they motivate their clientele to purchase goods
that are “hot off the press” so that they can be the first to wear
them. Other retailers play it safe by waiting until the vendor has edited the
lime, keeping only the numbers that seem to be destined for wider appeal. In
this way, the latter group avoids the pitfall of early introduction of merchandise
but also forgoes the aura of being “fashion first merchants.”
Finally, the off-price retailer waits to buy when vendor prices
are sharply reduced and gives up an opportunity for early
introduction. Since price is the ultimate
factor in such merchandising, the introduction time is irrelevant.
Assortment
How wide an assortment should be made available is yet another
merchandising philosophy that needs to be defined. Should the
inventory be limited in terms
of colors and sizes, or should it be restricted to a narrower choice? Should
innovative styles be included in the model stock, or should the emphasis be on
the basics? These are but two of the questions that need policy direction so
that the buyer will know exactly what the merchandise emphasis should be. Whatever
the policy, it should be strictly adhered to by the buyer.
Price Policy
The pricing considerations available to the retailer may be
many. A company may choose to sell only at the traditional
price—that is, take a markup that
is standard in the industry. Another might subscribe to a discounting philosophy
that provides the shopper with lower prices. Still another price policy could
concentrate on off-price merchandise that carries a regular markup but is able
to sell for less than the usual retail because of its initial lower wholesale
cost.
Some companies stick to just one philosophy, whereas others
might opt for all of these pricing structures. For stores
that use all of them, there might be
a need to be competitive in one of the store’s departments to meet the
competition through discounting, to feature special purchases at certain times
that require off-price buys, and to rely on tradition pricing for most departments
at most times.
Whatever the decision, the buyers must follow the guidelines
and purchase accordingly.
Retail Buying 8th Edition
Copyright 2008,2005,2001,1997,1993,1989 by Pearson Education
Inc., Upper Saddle River, New Jersey, 07458
Jay Diamond & Gerald Pintel
Pgs 195-197
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ANNOUNCEMENTS
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Carland
College Announcement
On January 11, 2008, Carland College was approved by the State
of North Carolina for licensure to grant the Bachelor of Science
in Entrepreneurship and the Master of Entrepreneurship degrees.
Founded by the Drs. Carland, Jim and JoAnn, well known entrepreneurship
educators and researchers, Carland College is a completely
online university. It combines high tech with high touch to
produce a unique, team based, learning environment. Its programs
employ extensive video material to enhance the impact on the
lives of busy, working, adult learners.
Its mission is to serve prospective, nascent and experienced
entrepreneurs by disseminating, communicating and inculcating
the skills, abilities and perspectives required to launch,
grow and lead entrepreneurial ventures and to discover and
create new products, services and industries.
The BS Entrepreneurship requires 30 Semester Hours after
transfer of 90 hours in General Education and Business
Foundations. It is delivered in 10, eight week minimesters,
and it is designed for prospective and nascent entrepreneurs.
This program inculcates the skills necessary to successfully
launch an entrepreneurial venture and lead it through the early
growth stage.
The Master of Entrepreneurship requires 30 Semester Hours
and is delivered in 10, eight week minimesters. It is designed
for nascent and experienced entrepreneurs. This program inculcates
the skills necessary to lead an entrepreneurial venture through
the mezzanine stage and to successfully grow and harvest that
venture.
For information about Carland College, including entrance
requirements, tuition, and other matters, visit our website,
www.CarlandCollege.com
The
35th International Small Business Congress Organised by
ISBC
"An Entrepreneurial Odyssey" -
from local heroes to global champions
One of the most prestigious global events
in the small business calendar is the ISBC Congress. ISBC represents business owners (over 12 million of them)
and policymakers from across the world.
Now in its 35th year
the Annual Congress returns to Great Britain and Ireland
for the first time in over 20 years - with
HRH Prince Michael of Kent as
PATRON. Supported by the SME representative organisations (including
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International
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A traditional
Irish welcome awaits all delegates for an entrepreneurial
extravaganza.Visit Website: www.isbc2008.org
The
FSF-NUTEK Award 2008
The world's
most prestigious award in entrepreneurship research, The
FSF-NUTEK
Award, will be given to the Swedish Professor Bengt
Johannisson in 2008. This was announced
at a small business conference in Örebro, Sweden. The Award, instituted in 1996, is
awarded to a scholar who has made outstanding contributions
to an increased understanding of the conditions under which
the entrepreneur operates.
This is the first
time a Swedish scholar is given this award.
Professor
Bengt Johannisson is a true pioneer in the field of entrepreneurship
research in Europe. For more than three decades, his research
on the entrepreneur and the role of small businesses in regional
development has been inspiring and provocative", says
Professor Magnus Henrekson, chairman of the Award committee.
Henrekson emphasizes
the innovative manner in which Professor Johannisson´s
research has pointed to the importance of social networks
for regional development.
The FSF-NUTEK Award was instituted in 1996 by The Swedish
Foundation forSmall Business Research (FSF) and The Swedish
Agency for Economic andRegional Growth (NUTEK). The award has
received considerable attentionworldwide and its recipients
have done work spanning
fromentrepreneurship policy, and the importance of small firms
forinnovation and job creation.
SBI
Journal - Request for Papers
The Small Business
Institue is now requesting papers for the Small Business
Institute Journal. If you are interested in submitting a
paper, please let us know. The first issue is to be printed
April 2008. For more information please click
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