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MARKETING AND BUSINESS ASSISTANCE NEEDS PERCEIVED BY TENNESSEE FOREST PRODUCTS FIRMS.

ABSTRACT

This study examines the needs for marketing and related business assistance perceived by the forest products industry in Tennessee. The study also examines how perceived marketing and related business assistance needs vary across industry sub-sector, business experience, firm size, and marketing situation/plans. Data for the study are from 101 surveys completed by lumber and wood products, furniture and fixtures, and paper and allied products firms located in Tennessee. Results from the study suggest locating and identifying potential buyers for products, help with promoting products/advertising, and market research are perceived to be the most needed forms of assistance. However, the results indicate that needs for marketing assistance are not uniform across firms of differing size or marketing situations. Small firms tend to have greater needs for marketing assistance than large firms. Furniture and fixtures manufacturers express a greater need for help locating and identifying buyers and assistance with tr ade shows compared to lumber and wood products firms or paper and allied products firms. The results also suggest that growth into international markets presents a need for multiple types of marketing assistance. An implication of this study is that agencies targeting marketing assistance services to forest products firms may need to consider the firms' characteristics, marketing situations, and growth plans.

Profitable marketing decisions by forest products firms rely in part on the firm's ability to acquire and assimilate information about markets and to use this information in implementing marketing strategies. As noted by Hoff et al., public sector encouragement of adding value to wood products increases the relative importance of marketing and product development functions by the firm [6]. Industry trends have been toward increased emphasis on marketing-related activities, value-added, and new product development [1,12,17]. However, all firms may not have the "in-house" resources to acquire needed market information and participate in increased levels of marketing activities. These firms may turn to publicly provided sources of marketing and business assistance. A 1993 report by the National Research Council suggested that small- and medium-sized manufacturers often lack "in-house" resources to improve their business performance [9]. A cross-sector study of small business problems showed that marketing problems were key, followed by accounting and management problems [18].

The public sector offers a variety of marketing, logistic, and other related business assistance services to firms through local, state, and federal agencies, including the Cooperative Extension Service, the USDA, and the Department of Commerce's Small Business Administration to help firms improve business performance. Small-business assistance is often a primary focus, for example, through programs such as those offered by the Small Business Development Centers or the Cooperative Extension Service.

Recent trends in administration of public-sector business assistance programs are toward a more customer-oriented approach [4]. However, targeting of assistance relies on obtaining information regarding assistance needs from the "customer" firms. Some studies have suggested that business assistance may not match the needs of the business owners and managers [11,15]. A study by Smith, Alderman, and Hammett [13] suggested that forest-based industries may not be a targeted area of economic development personnel even in forestry intensive states. Furthermore, findings from previous studies have indicated that the marketing problems and assistance needs of firms are not uniform across industries, firm characteristics, or business situations [8,10,14]. A study of the public-sector assistance to dimension and millwork firms for technological innovations indicated that large and small firms received varying levels of technological assistance, but did not have significantly different perceptions about needs for techno logical assistance [2].

The goal of this study is to ascertain the needs for marketing and related business assistance perceived by the forest products industry in Tennessee. The study also estimates how perceived marketing assistance needs may be influenced by industry sub-sector, business experience, firm size, and marketing situation/plans. Based on these estimates, profiles of firms needing particular types of assistance are developed. Two sample profile firms are used to illustrate differences in the likelihood that firms may need marketing assistance.

These results provide information helpful in understanding the special needs of Tennessee forest products firms, provide insights into how perceived assistance needs may differ across firms of differing characteristics, and how needs may change depending on firms growth expectations, whether that be in local, regional, national, or international markets.

DATA AND METHODOLOGY

A survey instrument was developed in conjunction with the Tennessee Department of Agriculture, Market Development and Promotions Group, and University of Tennessee Extension Service personnel. The survey contained questions regarding perceived marketing and business assistance needs, marketing situation and plans, and firm characteristics such as value of sales, years in business, and types of products sold. The listing of potential marketing assistance needs was based on results from previous studies and on services currently provided or that could potentially be provided through local and state agencies, the Extension service, and university researchers. The survey was conducted via mail following procedures outlined by Dillman [3], including a pretest by representative firms.

Forest products firms were asked to respond to questions about the level of need for assistance. If an assistance type was rated as low to negligible in need, it was assigned a value of '0', and if it was rated as a moderate to extreme need, it was assigned a value of '1'. The assistance types include:

Marketing

* locating and identifying potential buyers;

* promoting products/advertising;

* research about potential markets (i.e., pricing, competition, trends);

* marketing across the Internet;

* trade show/fair representation;

* formulating a marketing plan;

* help in preparing to call on marketing outlets;

General business

* help with development and design of sales displays.

* locating local suppliers and contacts;

* obtaining financing;

* new product development;

* locating reliable transportation/distribution;

* compliance with product and/or shipping regulations;

* obtaining adequate supplies of local inputs;

* locating or forming local industry associations;

* access to new pilot plants.

In late March and April 1999, the survey was mailed to forest products firms across Tennessee. The sample included 798 firms identified by American Business Information as Tennessee forest products manufacturers. Firms were selected on the basis of standard industry classification (SIC) codes. The sample included lumber and wood products (SIC 24), furniture and fixtures (SIC 25), and paper and allied products (SIC 26). Of the 798 firms, 101 provided usable responses to all questions contained in this analysis, giving a response rate of 12.6 percent.

The overall importance of the marketing and general business assistance types to the firms are compared through frequency of responses. The influence of firm characteristics, marketing situation, and plans on how firms perceive their needs for marketing assistance are also examined. The general model of preferences regarding marketing assistance needs is hypothesized as:

ASST = f(YBUS, EMP, WHLS, PADV, REGG, NATG, INTG)

where:

ASST = need for marketing assistance

YBUS = years in business

EMP = number of employees

WHLS = sell solely through wholesale channels

PADV = percent of sales spent on advertising and promotion

REGG = greatest growth during next 5 years expected to be in regional markets

NATG = greatest growth during next 5 years expected to be in national markets

INTG = greatest growth during next 5 years expected to be in international markets

Variable definitions and summary measures for each of the firm characteristics, marketing situation, and plans variables are provided in Table 1.

Because respondents provided qualitative answers regarding assistance needs, the responses are quantified using dummy variables for perceived need for each type of assistance. The variables representing the needs for assistance (ASST) take on values of '0' if the need is rated as low to negligible (ASST = 0), or '1' if the need is rated as moderate to extreme (ASST = 1). Because of the categorical nature of the responses regarding assistance needs, logistic regressions, rather than simple linear regressions, are used to estimate the influence of firm characteristics, marketing situation, and plans on the probability of respondents expressing a given level of need for each type of marketing assistance. Letting X represent the vector of firm characteristics and marketing situation/plans variables for the jth firm, the probability of observing a perceived moderate to extreme need for assistance type i by the jth firm is:

[P.sub.ij] + [P.sub.r]([ASST.sub.ij] + 1\[X.sub.ij]) = [phi]([alpha] + [beta][X.sub.ij])

Where:

[phi] = [e.sup.[beta]'[x.sub.ij]]/1+[e.sup.[beta]'[x.sub.ij]] is the cumulative logistic distribution (5)

Once the estimated values for the [alpha] and [beta]'s are obtained from the logistic regressions for the marketing assistance needs, values for each of the variables representing the firm characteristics and marketing situation, and plans are used to project the probability of a firm perceiving a moderate to extreme need for each of the types of marketing assistance. These values are obtained by multiplying the values for the firm characteristics, marketing situation, and plans variables by their respective [beta] coefficients and adding in the intercept terms, [alpha], to obtain a predicted value for [alpha] + [beta]X. This value is then used in [phi], to calculate the probability of observing a moderate to extreme need for assistance, [P.sub.i]. Using various combinations of possible firm characteristics, marketing situations, and plans to project probabilities of perceiving needs for a particular type of assistance is useful for assessing the profiles of high-need versus low-need firms.

In addition, the changes in probabilities of a firm expressing moderate or extreme needs for the assistance, given changes in firm characteristics or marketing situation/plans, can also be calculated using the estimated coefficients from the models. The marginal effects, or change in probability of indicating a moderate to extreme need for assistance, i, given a change in each of the variables representing the firm characteristics, marketing situation, and plans are calculated as:

[partial][P.sub.i]/[partial]x = [beta] * [[P.sub.i] * (1 - [P.sub.i])]

where [P.sub.i], the probability of observing a moderate to extreme need for assistance, is calculated at the sample means of each of the variables representing the firm characteristics and marketing situation and plans. The calculation of marginal effects enables examination of how changes in a firm's characteristics may influence the probability of need for a particular type of assistance. Examples would include calculating how the probability of needing assistance will change as a firm's business experience increases, or the how probability of needs may change when comparing a furniture manufacturer with a lumber and wood products firm.

RESULTS

The sample of 798 firms surveyed is comprised of 63 percent lumber and wood products firms, 19 percent furniture and fixtures firms, and 18 percent paper and allied products firms. The summary measures of the firm characteristics, marketing situation, and plans of the 101 responding firms show that 77 percent of the responding firms are lumber and wood products firms (SIC 24), followed by furniture and fixtures manufacturing firms (SIC 25) with 15 percent, and 8 percent are paper and allied products firms (SIC 26). According to a report on 1996 County Business Patterns (16), among forest products firms, 51 percent are lumber and wood products, 31 percent are furniture and fixtures firms, and 18 percent are paper and allied products firms. This would suggest that the composition of subsectors of respondents differs somewhat from overall patterns in Tennessee, with over-representation of lumber and wood products firms. One potential reason for the differences is that County Business Patterns includes all establishments. An attempt was made to limit the sample to headquarters locations where marketing decisions are made by selecting the location with the most senior executives or the largest plant. Past research has sugge sted that among Appalachian hardwood products manufacturers, furniture and fixtures firms are less likely to have a single administrative unit than most other secondary or primary processors [7].

The responding firms have been in business an average of just over 27 years and average nearly 55 employees. According to the County Business Patterns, establishments in these industries have about 66 employees on average. Therefore the size of the responding firms is somewhat smaller than in Tennessee overall. The responding firms spend about 2.23 percent of their sales on advertising and promotion. About 46 percent sell their products solely through wholesale market channels, while almost 54 percent sell some or all of their products through retail, direct mail, or the Internet. Nearly 23 percent of the firms believe the greatest growth in the market for their products will occur in local markets during the next 5 years. Over 37 percent believe the greatest growth will occur in regional markets, and nearly 32 percent project the greatest growth in national markets. Just under 8 percent believe the greatest growth market for their products will be international.

The frequencies of responses regarding perceived assistance needs are presented in Table 2. The marketing assistance needs are presented first, followed by general business assistance needs. Locating and identifying potential buyers received the most moderate to extreme need responses. Over 57 percent of the firms express a moderate to extreme need for this type of assistance. Promoting products/advertising and market research are rated as moderate to extreme needs by over 40 percent of the firms. Over one-third of the firms believed they needed assistance with marketing across the Internet. Lesser needed forms of marketing assistance are formulating a marketing plan, trade show/fair representation, and help in preparing to call on marketing outlets. The least needed form of marketing assistance is help with development of sales displays, types, and designs. Even this form of marketing assistance need is, however, rated as moderate to extreme by over one-fifth of the firms.

Among the general business assistance types, locating local suppliers and contacts, new product development, and obtaining financing are rated as moderate to extreme needs by over 30 percent of the firms. Locating reliable transportation/distribution and compliance with product and/or shipping regulations/restrictions are needed by over 25 percent of the firms. Least needed forms of general business assistance include obtaining adequate supplies of local inputs, locating or forming local industry associations, and access to new pilot plants. Less than 13 percent of the firms believed access to new pilot plants is a needed form of assistance.

ESTIMATED MODELS

While the summary of responses just presented provides insights regarding which forms of assistance may be most important overall, this summary does not provide information regarding how perceived needs for assistance may differ across firms of varying characteristics. The estimated logit models of perceived needs for assistance presented in Table 3 can provide this information. Furthermore, the information from the models can be used to examine how firm characteristics, marketing situation, and plans can serve as predictors of perceived marketing assistance needs.

At the top of Table 3, each of the assistance needs are listed. Below each assistance need, the estimated coefficients and their standard errors are presented for the firm characteristics, marketing situation, and plans variables. The percent of observations correctly classified by each model (% correct) and likelihood ratio (LLR) tests, indicating the overall fit for each model, are presented at the bottom of each column. Coefficients significantly different from zero are indicated by a series of asterisks (*** = significant at [alpha] = .05, ** = significant at [alpha] = .10, and * = significant at a = .15).

As can be seen from the likelihood ratio tests presented in Table 3, the models are significant for each type of assistance, except help in preparing a marketing plan and help in preparing to call on marketing outlets. Therefore, each of these models indicates that firm characteristics, marketing situation, and plans are useful for predicting the likelihood of a firm perceiving each of these needs for marketing assistance. The models correctly classify the needs levels for between 62 and 84 percent of the observations. While the magnitudes of the coefficients from ordered logistic models cannot be interpreted directly, the significance and signs can be interpreted. If a coefficient is not statistically significant from zero, then the given firm characteristic or marketing situation or plan has little influence on the perceived need for a given type of assistance. A negative (positive) sign implies that a particular characteristic or marketing situation or plan has a negative (positive) influence on the proba bility that a firm has a perceived moderate to extreme need for a given type of assistance. In order to measure the magnitudes of the effects of each of the firm characteristics, marketing situation, and plans on the probability of needing a particular type of marketing assistance, the marginal effects must be calculated from the coefficients.

INDUSTRY SUB-SECTORS

As noted, some of the assistance needs are influenced by industry sub-sector. All need comparisons are relative to the needs expressed by lumber and wood products firms. As a result, the dummy variable is omitted for lumber and wood products firms in the estimated equations presented in Table 3. Compared with the lumber and wood products firms, furniture and fixtures firms (SIC 25) experience greater needs for locating and identifying buyers and trade show/fair representation. The paper and allied products firms (SIC 26) do not appear to have statistically different needs, except these firms perceive lower needs for locating and identifying potential buyers than the lumber and wood products firms.

BUSINESS EXPERIENCE

Business experience (YBUS), in general, does not appear to influence needs for assistance among forest products firms, with the exception of promoting/advertising products and market research. The positive sign on the coefficients in the estimated equations for these needs suggest that mature firms place higher priority on these forms of assistance.

FIRM SIZE

Firm size (EMP), as measured by number of employees, influences needs for locating and identifying buyers, promoting/advertising products, market research, and marketing across the Internet. In each case, the coefficient carries a negative sign suggesting that smaller firms have greater needs for these types of assistance than larger firms.

MARKETING SITUATION AND PLANS

Advertising intensity (PADV) affects the need for locating and identifying buyers, marketing across the Internet, developing a marketing plan, and help with development of sales displays. In each case, the coefficients carry a positive sign, indicating that more advertising intense firms place a greater priority on these types of assistance. Whether the firms sell solely through wholesale channels (WHLS) does not appear to influence marketing assistance needs, except firms selling solely through wholesale channels are less likely to need help with sales displays than firms selling through other channels, such as retail.

In each of the models, except for assistance with marketing plans and help in preparing to call on marketing outlets, the coefficient on the dummy representing regional growth markets (REGG) is positive and significant. This suggests that compared to firms expecting their greatest growth to occur in local markets, firms expecting regional growth express greater needs for marketing assistance. The coefficient on the national growth dummy (NATG) is positive and significant in the models for market research, marketing across the Internet, developing a marketing plan, and help with sales displays. The coefficient on the international growth dummy (INTG) is positive and significant in each of the models, except for help with developing a marketing plan. These results suggest that firms expecting growth outside the local market level are more likely to perceive need for a variety of market assistance than firms expecting their greatest market growth to occur locally.

The marginal effects are calculated for each of the firm characteristics, marketing situation, and plans variables that have statistically significant impacts on assistance needs. These marginal effects are presented in Table 4. The marginal effects show the changes in probability that an assistance need is moderate to extreme given a change in a firm characteristic, marketing situation, or plan. Notably, compared with lumber and wood products firms, the probability of needing assistance locating and identifying buyers by furniture and fixtures firms is .31 higher.

The marginal effects also show that the impacts of firm size on assistance needs are greatest for market research and assistance promoting/advertising products. The impacts are nearly twice the magnitude of those on locating buyers or marketing across the Internet. The relative magnitudes of the marginal effects of the expected growth market variables indicate that growth in national and international markets creates a larger probability of need for market research than growth in regional markets. This pattern is somewhat different from that for locating buyers, promotion/advertising, and help with displays where growth in national markets does not have a statistically significant impact or the marginal effect is smaller than from regional or international growth. The marginal effects of regional, national, and international growth on need for assistance with marketing across the Internet suggest that the Internet is used as a tool for national market exposure, more so than for international market exposure.

The information in Table 5 represents a summary of profiles of firms perceiving need for particular types of assistance based on the results in Tables 3 and 4. For example, market research is perceived to be of greater need by mature, small firms, with high advertising intensity, projecting international market growth compared to firms without these characteristics, marketing situation, and plans. Also, a small furniture manufacturer with high advertising intensity, projecting international growth would provide a profile for a firm needing assistance locating and identifying buyers.

Two sample profile firms are used to illustrate how the probability of needs for assistance would differ across firms with differing characteristics, marketing situation, and plans. This illustration is provided in Table 6. The first profile firm is a furniture and fixtures firm (SIC 25), with 20 employees, with an advertising intensity of 5 percent, having the greatest projected growth in international markets, selling beyond wholesale channels, with 20 years in business. The second profile firm manufactures lumber and wood products (SIC 24), has 200 employees, an advertising intensity of 1 percent, with projected regional growth, selling only in wholesale channels, with 20 years in business. As can be seen in Table 6, a firm that fits profile 2 is much less likely to need each of the types of marketing assistance than a firm that fits profile 1. In particular, needs for assistance locating and identifying potential buyers, advertising/promotion, market research, trade shows, and displays drop dramatically.

IMPLICATIONS

Furniture and fixtures firms appear to perceive greater needs for certain types of marketing assistance than the other forest products firms. This may be due to differences in the competitive environments of these industry sectors, or firm-based marketing resource capacities. The furniture and fixtures industry is characterized by a high degree of fragmentation, with many small family-owned firms and a few large multi-plant corporations, and a high degree of product differentiation [17]. This greater expression of need may imply that government agencies should tailor certain marketing assistance services to meet the needs of furniture and fixtures manufacturing firms, in particular to those that are small in size. One caveat to this result is that the highest response rate to the survey from any sub-sector was from lumber and wood products, suggesting a greater overall interest in marketing and business assistance.

Agencies in states with limited marketing assistance budgets may best serve forest products industries by concentrating their assistance efforts on the three most needed types of marketing assistance: 1) locating and identifying potential buyers; 2) promoting products/ advertising; and 3) market research. To the extent that state agencies use marketing assistance programs to attract forest products firms, they should understand that the firms most interested in assistance are likely to be smaller. Thus, marketing assistance programs may not serve as attractive bait for larger forest products firms.

Perhaps the most important factor influencing perceived marketing assistance needs is each firm's expectations about future growth and the markets in which that growth will take place. Consequently, staff within agencies that provide marketing assistance programs should understand the growth expectations of each firm they serve. This information is especially important for the three most needed types of assistance, but it is also an important factor for firms requesting almost every other type of marketing assistance.

While the results from this study suggest certain priorities for marketing assistance to forest products firms, caution should be used in extrapolating these results to all producers due to the relatively small sample size and the limited geographic study area. Therefore, it is likely that further studies, including larger samples and broader geographic representation of the forest products industry, should be conducted.

The authors are, respectively, Professor and Associate Professor, Dept. of Agri. Economics and Rural Sociology, 302 Morgan Hall, Univ. of Tennessee, Knoxville, TN 37901. This research was funded by the USDA Agri. Marketing Serv. Federal State Marketing Improvement Program and the Univ. of Tennessee Agri. Expt. Sta. This paper was received for publication in September 1999. Reprint No. 9026.

LITERATURE CITED

(1.) Booth, D. and I. Vertinsky. 1991. Strategic positioning in a turbulent environment: An empirical study of determinants of performance in the North American forest industry. Forest Sci. 37(3):903-923.

(2.) Bumgardner, M. and R. Romig. 1998. An overview of firm innovativeness and the role of public sector assistance in a sample of dimension and millwork firms. Forest Prod. J. 48(1):35-41.

(3.) Dillman, D. 1978. Mail and Telephone Surveys: The Total Design Method. John Wiley and Sons, New York.

(4.) General Accounting Office. 1996. Executive guide: Effectively implementing the Government Performance and Results Act. GAO/GGD-96-l18. U.S. Government Printing Office, Washington, D.C.

(5.) Greene, W. 1993. Econometric Analysis. 2nd ed. McMillan Publishing, New York.

(6.) Hoff, K., N. Fisher, S. Miller, and A. Webb. 1997. Sources of competitiveness for secondary wood products firms: A review of literature and research issues. Forest Prod. J. 47(2):31-37.

(7.) Jones, S., J. Bodenman, and S. Smith. 1992. Characteristics of hardwood manufacturers in the north and central Appalachian states. Forest Prod. J. 42(6):33-41.

(8.) Naidu, G. and T. Rao. 1993. Public sector promotion of exports: A needs-based approach. J. of Business Res. 27:85-101.

(9.) National Research Council. 1993. Learning to Change: Opportunities to Improve the Performance of Smaller Manufacturers. National Academy Press, Washington, D.C.

(10.) O'Rourke, D. 1985. Differences in exporting, practices, and problems by size of firm. American J. of Small Business 9:25-29.

(11.) Peterson, R. 1984. Small business management assistance: Needs and sources. American J. of Small Business 9(2):35-45.

(12.) Rich, S. 1986. Recent shifts in competitive strategies in the U.S. forest products industry and the increased importance of key marketing functions. Forest Prod. J. 36(7/8): 34-44.

(13.) Smith, R., D. Alderman, and A. Hammett. 1998. Evaluating forest-based economic development training needs in Virginia. Forest Prod. J. 49(4):19-23.

(14.) Torok, S. and A. Schroeder. 1992. A comparison of problems and technical assistance needs of small agribusiness and nonagribusiness firms. Agribusiness: An International J. 8(3):199-217.

(15.) _____, D. Menkhaus, and A. Schroeder. 1991. Management assistance needs of small food and kindred products processors. Agribusiness: An International J. 7(5): 447-461.

(16.) U.S. Department of Commerce, Bureau of Census, Economics and Statistics Administration. 1998. 1996 County Business Patterns: Geographic Area Series. Tennessee, CBP 96-44, U.S. Government Printing Office, Washington, D.C.

(17.) West, C. and S. Sinclair. 1992. A measurement of innovativeness for a sample of firms in the wood household furniture industry. Forest Sci. 38(3):509-524.

(18.) Wichmann, H. 1983. Accounting and marketing: Key small business problems. American J. of Small Business 7:19-26.
 Variable names, definitions, and
 summary measures.
Variable Mean or
name Definition percent
SIC24 1 if lumber and wood products firm 77.23%
 (SIC 24), 0 otherwise (omitted)
SIC25 1 if furniture and fixtures firm 14.85%
 (SIC 25), 0 otherwise
SIC26 1 if paper and allied products (SIC 26), 7.92%
 0 otherwise
YBUS Years in business prior to 1999 27.12%
EMP Number of employees 54.99%
PADV Percent of total sales spent on advertising 2.23%
 and promotion
WHLS 1 if sell solely through wholesale market 46.53%
 channels, 0 otherwise
GLOCL 1 if greatest market growth in next 5 22.78%
 years will be local, 0 otherwise (omitted)
REGG 1 if greatest market growth in next 5 years 37.62%
 will be regional, 0 otherwise
NATG 1 if greatest market growth in next 5 years 31.68%
 will be national, 0 otherwise
INTG 1 if greatest market growth in next 5 years 7.92%
 will be international, 0 otherwise
 Marketing and business assistance needs.
 Percent with moderate or
 greater need for
Assistance type assistance
 (%)
Marketing
 Locating and identifying potential buyers
 (BUYERL) 57.4
 Promoting products/advertising (PROMO) 48.5
 Market research (MKTRES) 45.5
 Marketing across the Internet (INTRNT) 33.6
 Formulating a marketing plan (MPLAN) 30.4
 Trade show/fair representation (TSHOW) 26.8
 Help in preparing to call on marketing
 outlets (HCALL) 25.7
 Help with development of sales display types
 and designs (DISPLAY) 20.8
General business
 Locating local suppliers and contacts 33.6
 New product development 31.7
 Obtaining financing 31.7
 Locating reliable transportation/distributio 28.7
 Compliance with product and/or shipping
 regulations/restrictions 27.7
 Obtaining adequate supplies of local inputs 19.8
 Locating or forming local industry
 associations 13.8
 Access to new pilot plants 12.9
 Estimated logit models of marketing
 assistance needs. [a]
 Assistance type
Variable BUYERL PROMO MKTRES INTRNT
INTERCPT -.2636 -0.8203 -1.7429 [***] -2.4132 [***]
 (.5864) (.5947) (.6722) (.9220)
SIC25 1.2981 [**] 1.0369 .7311 .5657
 (.7875) (.7373) (.7350) (.7263)
SIC26 -3.5513 [***] -1.4613 -.1636 .0556
 (1.4401) (1.0892) (.9058) (.9490)
YBUS .0072 .0188 [*] .0206 [**] -.0037
 (.0114) (.0177) (.0118) (.0132)
EMP -.0087 [*] -.0165 [***] -.0174 [***] -.0108 [*]
 (.0058) (.0072) (.0072) (.0074)
PADV .1523 [*] .1187 .0205 .1570 [**]
 (.1016) (.0894) (.0892) (.0956)
WHLS -.5712 -.3836 .2923 -.5475
 (.5027) (.4775) (.4895) (.5209)
REGG 1.2332 [***] .9965 [**] 1.1823 [**] 2.0989 [***]
 (.6167) (.6034) (.6468) (.8988)
NATG .5256 .8312 2.4261 [***] 2.9634 [***]
 (.6267) (.6374) (.7174) (.9200)
INTG 2.718 [**] 2.368 [***] 2.7405 [***] 1.7124 [*]
 (1.5564) (1.2151) (1.0811) (1.1899)
LLR 25.894 [***] 21.887 [***] 24.509 [***] 25.962 [***]
% correct 77.4 75.9 75.9 79.9
Variable MPLAN TSHOW HCALL DISPL
INTERCPT -1.5757 [***] -1.952 [***] -1.514 [***] -3.5893 [***]
 (.6870) (.7647) (.6694) (1.1381)
SIC25 .3963 1.2992 [**] .5104 1.0843
 (.7158) (.6841) (.6779) (.8043)
SIC26 .0325 -1.3256 -1.2289 -.5171
 (.9113) (1.2237) (1.2112) (1.1898)
YBUS -.0008 .0017 .0012 .0143
 (.0115) (.0123) (.0116) (.0132)
EMP -.0040 -.0066 -.0048 -.0052
 (.0048) (.0068) (.0055) (.0039)
PADV .2183 [***] .0809 .1055 .3419 [***]
 (.0997) (.0895) (.0863) (.1221)
WHLS -.3725 -.4579 .0646 -1.6272 [***]
 (.4884) (.5266) (.5302) (.6693)
REGG .7304 1.172 [**] .2567 2.2825 [***]
 (.6819) (.7541) (.6647) (1.0875)
NATG 1.0668 [*] 1.0864 .3846 1.6014 [*]
 (.6997) (.7848) (.6902) (1.1059)
INTG .5169 2.1143 [***] 1.4524 [*] 2.2056 [**]
 (1.0286) (1.0628) (.9907) (1.3195)
LLR 11.617 13.529 [*] 6.504 27.046 [***]
% correct 66.5 73.9 62.3 83.6


(a.)The following notation is used to indicate significance of the overall model and individual coefficients:

(***.)=significant at [alpha] = .05

(**.)=significant at [alpha] = .10

(*.)=significant at [alpha] = .15.

A chi-square likelihood ratio test is used to test significance of the overall model and Wald chi-square tests are used to test significance of individual coefficients.
 Marginal effecfs of firm characteristics,
 marketing situation, and plans on assistance
 needs.
 Assistance type
Variable BUYERL PROMO MKTRES INTRNT MPLAN TSHOW HCALL DISPLAY
SIC25 .3180 -- -- -- -- .2236 -- --
SIC26 -.8700 -- -- -- -- -- -- --
YBUS -- .0046 .0049 -- -- -- -- --
EMP -.0021 -.0041 -.0042 -.0021 -- -- -- --
PADV .0373 -- -- .0300 .0469 -- -- .0410
WHLS -- -- -- -- -- -- -- -.1949
REGG .3021 .2447 .2821 .4013 -- .2017 -- .2734
NATG -- -- .5790 .5666 .2292 -- -- .1918
INTG .6658 .5816 .6540 .3274 -- .3638 .2628 .2642
 Comparison of probabilities of needs for
 assistance across two profile firms.
 BUYERL PROMO MKTRES INTRNT
Profile firm 1: furniture and fixtures firm, .9856 .9387 .7979 .5090
20 employees, advertising intensity of
5%, international growth, selling beyond
wholesale channels, 20 years in business
Profile firm 2: lumber and wood products .2602 .0469 .0350 .0503
firm, 200 employees, advertising intensity
of 1%, regional growth, selling only in
wholesale channels, 20 years in business
Change in probability of need: profile firm -.7254 -.8918 -.7629 -.4587
2 compared to profile firm 1
 MPLAN TSHOW HCALL DISPLAY
Profile firm 1: furniture and fixtures firm, .5530 .8278 .6814 .8075
20 employees, advertising intensity of
5%, international growth, selling beyond
wholesale channels, 20 years in business
Profile firm 2: lumber and wood products .1400 .0800 .1168 .0338
firm, 200 employees, advertising intensity
of 1%, regional growth, selling only in
wholesale channels, 20 years in business
Change in probability of need: profile firm -.4130 -.7478 -.5646 -.7737
2 compared to profile firm 1


Assistance needs as predicted by firm characteristics, marketing situation, and plans.

Furniture and fixtures

Locating buyers, trade shows

Mature firms

Promotion/advertising, market research

Small firms

Locating buyers, promotion/advertising, market research, marketing across the Internet

Advertising intensive firms

Locating buyers, marketing across the Internet, marketing plan, display design

Firms selling some or all product through retail or direct sales

Display design

Firms anticipating regional growth

Locating buyers, promotion/advertising, market research, marketing across the Internet, trade shows, display design

Firms anticipating national growth

Market research, marketing across the Internet, marketing plan, display design

Firms anticipating international growth

Locating buyers, promotion/advertising, market research, marketing across the Internet trade shows, help in preparing to call on buyers, display design
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Copyright 2000 Gale, Cengage Learning. All rights reserved.

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Author:JENSEN, KIM; POMPELLI, GREG
Publication:Forest Products Journal
Date:Jul 1, 2000
Words:5549
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