This study evaluates existing methods for developing price indices for defense products, proposes an alternative method based on hedonic analysis, and develops price indices for U.S . Army vehicles using the proposed method. Prices indices are estimated for combat vehicles, and trucks and trailers. The period covered is 1981 through 1985. The estimated hedonic price indices show that for trucks and trailers existing historical price indices significantly understate inflation. The estimated hedonic index is 4 to 6 times higher than comparable indices in all years except 1985. In 1985, the index reflected significant deflation which placed it well below comparable indices. The deflation experienced during this period may have, in part, been due to the enactment of the Competition in Contracting Act in 1984. This Act dramatically increased competition for Government contracts. It was not possible to estimate price indices for combat vehicles due to the paucity of data. However, should additional price and attribute data become available it is believed that price indices can be developed using the hedonic approach. Based on the results of this study it is obvious that existing methods for developing price indices are not optimum and hedonic analysis is a viable method for constructing price indices for selected applications. / M.A.

M.S.

Systematic mispricing by the state-of-the-art option pricing models is a paradox in financial economics as both the magnitude and direction of the mispricing is debated. The models have been found to overprice out-of-the-money and deep-in-the-money call options while underpricing in-the-money and deep-out-of-the-money calls. In addition, research has shown these biases have different signs in different time periods. We propose that when investors maximize expected utility for Friedman-Savage-Markowitz utility functions, the option mispricing observed in the market will result. The theories and empirical tests in the literature of higher-order utility functions and risk-neutral valuation (RNV) in the options market are presented. Though investor attitudes towards risk are irrelevant in the non-arbitrage world of modern option pricing, to the extent the options market does not meet the non-arbitrage conditions, investor risk preferences will affect the pricing of options. Risk-loving traders will bid up market prices relative to risk-neutral model prices; risk-averse traders will bid down prices. And investor risk preferences can, and do, change over time as market conditions change. New tests are run to analyze the relationship between mispricing biases and investor preferences before and after the historic stock market crash of October 19, 1987. We find mispricing biases which imply a decreased risk aversion on the part of investors in the IBM call option markets for the period prior to the market crash and mispricing biases which imply an increased risk-averse (and decreased risk-loving) behavior in those markets following the crash. Similar analyses are also performed in the Microsoft call options markets with less conclusive results. / Ph. D.

Job satisfaction has enjoyed a long history of investigation by many scholars in a great diversity of situations. Few studies have been done, however, in the public sector. Earlier studies were restricted in terms of theoretical approach and also methodologically flawed when they ignored the measurement problems in their analysis. The major purposes of this study have been to present a refined model of job satisfaction and to test it with more caution on measurement problems. The structural equations model with latent variables is the approach used to estimate the model. The data were from the Federal Employee Attitude Survey. These data were analyzed by using a computer program called LISREL. The results confirm the findings reported by the job design school. That is, individuals with high growth need strength tend to have positive perceptions about their jobs and consequently are satisfied with them. This study also suggests the direct and indirect effects of goal setting. Race, age, job status, and job longevity are found to have low effects upon job satisfaction. All these findings support the previous research. However, this study indicates the insignificant effects of feedback, sex, and educational level upon job satisfaction. The rejection of sex and educational level confirms the previous research. The rejection of feedback is surprising, however, since it contrasts with the consistent reports on the importance of feedback as a significant determinant of job satisfaction. Overall, the model proposed in this study can explain over 70 percent of variation in job satisfaction, which is considerably high. A major contribution of this study is the introduction of the structural equations model with latent variables as a standard approach to develop and test models in organization research. This study also has important ramifications for practitioners at various levels. Generally, it reminds them of the important role of individual characteristics and goal setting as significant determinants of job satisfaction. All in all, this study serves as a beginning of a very long step attempted to understand job satisfaction. The refined model proposed should be replicated to test whether it can generalize to other samples in both the private and public sectors. / Ph. D.

This investigation is being made in an effort to determine the probable effects on the Southwest of the basing-point changes recently instigated as a result of the Federal Trade Commission rulings.

This thesis is concerned with the problems of agricultural price administration. It is an examination of the different agricultural price administration experiments that have been used. These administered price experiments are the topics of discussion.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The aim of this research report is to identify the impact of the changes in retail pricing driving forces since the introduction of the Motor Industry Development Programme (MIDP) in 1995, identify the shortcomings and develop an improved retail pricing principle model for Volkswagen of South Africa (VWSA), taking cognisance of the changing competitor environment. The anticipated outcome will be to improve WVSA's competitive position in the South African automotive industry (SAAI) passenger vehicle market by securing market share and optimising profitability. Prior to 1995, the SAAI passenger vehicle market was highly protected and competition was low. Cost increases affected all Original equipment manufacturers (OEMs) to the same extent and therefore retail price increases were similar. However, the introduction of the MIDP in 1995, resulted in a reduction of the protection levels, inviting new global competition. It furthermore resulted in structural changes which affected the status quo of the competitor framework and caused a relative change in the cost base between competitors. The structural changes lead to new variables affecting costs and ultimately retail prices to different extents for the various competitors. This necessitated the understanding of, not only VWSA's own organisation's cost drivers and behaviour, but also that of key competitors in order to develop optimal retail pricing principles. Retail pricing driving forces are redefined in section 3.4 and divided into the "Role of the economy" (section 3.4.3) and the "Role of the government" (section 3.4.4). As a consequence of the difference in cost basis of the various competitors, this left the SAAr passenger vehicle market uncertain as to retail pricing principles to be followed. The author makes use of primary data collected from interviews and secondary data collected from content analysis, literature reviews and various SAAI passenger vehicle information centres to achieve the aim of this research report. Retail pricing principles and influences based on international marketing are explored and evaluated for the SAAI passenger vehicle market in Chapter 4. Retail pricing principles consist of two elements, namely the determination of a retail price for a new product and the evaluation of inflationary retail price increases for existing products. The former is considered well applied by the SAAI passenger vehicle market. The latter was identified as the main weakness in the SAAr passenger vehicle market and receives attention in Chapter 6 and Chapter 7. The evaluation of the cost position of WlSA for the period 2003 to 2007 indicates that WlSA is at a cost disadvantage (including fixed cost) of 12 percent (of retail pricing)against Toyota SA and six percent against Chinese importers, taking into account the total impact of exchange rate and inflation. Therefore, WISA will be under the most pressure to increase retail prices. This is the case before the effect of a natural currency hedge, MIDP duty differentials and imported content inflation is considered. As a result of price elasticity of demand (PED), the pressure to increase retail prices more, relative to key competition, could have a negative impact on WISA's market share and consequently its profitability and long-term sustainability. Furthermore, should the macroeconomic situation not improve, the cost focussed competitor strategies of Toyota SA and Chinese importers might be more desirable to the end consumer from an affordability perspective. The main strategic focus areas to support WISA's premium pricing strategy are the improvement of: • Consumer centricity satisfaction index for sales and service. • Quality standards. • Brand strength. • Supplier cost competitiveness. • Productivity. A new retail pricing principle model, TRIPP (consisting of three steps), is developed in Chapter 6 to address the changes in the retail pricing driving forces and cost structures, which caused uncertainty with reference to retail pricing in the SAAI passenger vehicle market. This model determines the required percentage retail price increase in order to retain a net margin percentage for WISA relative to key competitors. The aim is to provide VWSA with intelligent market information to assist in the optimisation of retail price increase decisions. By applying TRIPP (STEP ONE and STEP TWO), it has been discovered that, as at the end of quarter two 2008, Toyota SA has experienced the least pressure (6.1 percent of retail pricing), whereas WISA experienced a little more (7.5 percent of retail pricing) and Chinese importers have experienced far more pressure (17.7 percent of retail pricing) than either WISA or Toyota SA to increase retail prices (after taking into account the effect of natural currency hedge and MIDP). Theoretically it means that it should be safe for VWSA to increase retail prices by a minimum of 6.1 in comparison to Toyota SA (Figure 6.10), resulting in VWSA's profitability deteriorating by 1.4 percent of retail pricing. However one should not price without considering the following: • Current market conditions with consumers having low levels of disposable income. • The impact of the principle of price elasticity. • Exchange rate volatility, keeping in mind that once the SAAI passenger vehicle market has moved pricing, retail prices will not reduce for reasons previously discussed. A concept, the tipping point, is relevant. It is extremely important to take cognisance of the tipping point concept and consider it wisely when making retail price increase decisions. If not, a price war with negative implications on profitability may follow. It will impact on long-term investment strategies taking longer to render a return. This situation will not benefit any competitor in the long run. Other elements that should be monitored and considered before making a final decision whether or not to increase retail prices or on the extent of increases are discussed in section 6.3.5 and also listed in the previous section. These are different for each OEM and importer and it is therefore not possible to do a competitive analysis without inside information, but should not be ignored when considering retail price increases. Having identified the shortcomings in VWSA's current retail pricing principles, with reference to price increases, it is proposed that the current retail pricing model used by VWSA be replaced by the TRIPP model (which was implemented in September 2008)in order to improve the intelligence of decision-making with reference to retail price increases and optimise profitability and market share. In order to ensure meaningful results from the TRIPP model, the following key points are of importance: • Know the SAAI market drivers. • Know your cost drivers, also relative to key competitors. • Understand the impact of certain "other" elements as listed under TRIPP: STEP THREE. • Know and focus on key strategic issues influencing your product in order to allow premium pricing. The above mentioned points should be reviewed regularly, monitored by dedicated project teams and continuous improvement be applied to the TRIPP model. "It is all about getting to the future first." (Roberts, 2008, [Online]) and knowledge is power. Volkswagen of South Africa should therefore ensure it gets there before key competitors do in order to ensure sustainability in the SAAI / AFRIKAANSE OPSOMMING: Die doel van hierdie navorsingsverslag is om die veranderinge in dryfkragte ten opsigte van verkoopsprysbepaling sedert die inwerkingstelling van die Motor Industrie Ontwikkelingsprogram (MIOP) in 1995 te identifiseer en daarvolgens 'n verbeterde verkoopsprysbepalings-model vir Volkswagen van Suid Afrika (VWSA) te ontwikkel, met spesifieke inagneming van die voortdurende veranderinge in die kompeterende omgewing binne die industrie. Die resultaat beoog om VWSA se kompeterende posisie in die Suid Afrikaanse motorindustrie (SAMI), in besonder die passasiersvoertuigmark, te verseker by wyse van die verhoging van markaandeel en winsgewendheid. Die passasiersvoertuigmark binne die SAMI het aansienlike beskerming geniet en kompetisie was gering tot en met 1995. Verhogings in koste het aile plaaslike motorvervaardigers op soortgelyke wyse beinvloed en gevolglik was prysverhogings met betrekking tot verkoopspryse ook soortgelyk. Die inwerkingtreding van die MIOP in 1995 het egter gelei tot verlaagde beskermingsvlakke wat tot gevolg gehad het dat globale kompetisie die mark aantreklik gevind het. Voorts het strukturele veranderinge ingetree wat die status quo van die kompeterende omgewing geaffekteer het en relatiewe veranderinge in onderlinge koste tussen kompetisie tot gevolg gehad het. Nuwe elemente het na yore getree met 'n direkte invloed op koste en eindelik ook op verkoopspryse in die kleinhandelsmark. Begrip van die dryfkragte en gedrag, nie aileen binne VWSA, maar ook ten opsigte van sleutelkompetisie, het noodsaaklik geword ten einde optimale prysbepalingsbeginsels te bepaal. Die dryfkragte word in afdeling 3.4 herdefinieer en opgedeel in die "Rol van die ekonomie" (afdeling 3.4.3) en die "Rol van die regering" (afdeling 3.4.4). Die verskille in die kostebasisse van verskeie mededingers het die passasiersvoertuigmark onseker gelaat met betrekking tot verkoopsprysbepalings. Die skrywer maak gebruik van primere data (by wyse van onderhoude bekom) en sekondere data (gevorder by wyse van inhouds analise, nagaan van literatuur en verskeie inligtingsentrums in die passasiersvoertuigmark) om die einddoel te bereik. Prysbepalingsbeginsels in die kleinhandelsmark en die uitwerking van die internasionale mark daarop. word in Hoofstuk 4 ondersoek en geevalueer. Prysvasstellingsbeginsels bestaan uit twee elemente, naamlik die bepaling van pryse op nuwe produkte en die evaluasie van inflasionere verhogings op die pryse van bestaande produkte. Eersgenoemde word suksesvol geag en redelik volledig toegepas binne die SAM! passasiersvoertuigmark, maar laasgenoemde word as die belangrikste tekortkoming geIdentifiseer en word gevolglik breedvoerig in Hoofstukke 6 en 7 behandel. Die beoordeling van die kosteposisie gedurende die tydperk 2003 tot 2007 het getoon dat VWSA oor 'n 12 persent kostenadeel beskik (vaste koste ingesluit) teenoor Toyota SA en ses persent teenoor Chinese invoerders. Die totale impak van die wisselkoers sowel as inftasie is in ag geneem by berekening van hierdie syfers. Die gevolg is dat VWSA onder ho;; druk verkeer om prysverhogings toe te pas, relatief tot sleutelkompetisie. Hierdie is die posisie voordat die uitwerking van 'n natuurlike wisselkoersverskansing, MIOP invoerkoste differensiasie en ingevoerde materiaal koste inflasie in ag geneem is. As gevolg van pryselastisiteit van aanvraag (PEA) kan die hoer druk op VWSA om verkoopspryse te verhoog (relatief tot sleutel kompetisie), 'n negatiewe invloed op VWSA se markaandeel en gevolglik op die winsgewendheid en langtermyn volhoubaarheid tot gevolg he. Voorts mag die kostegesentreerde-strategie van Toyota SA en Chinese invoerders vir die eindverbruiker meer bekostigbaar voorkom indien die makro ekonomie nie verbeter nie. Die belangrikste strategiese fokusareas ten einde VWSA se premieprys-strategie te ondersteun, is die verbetering van: • Verbruikers tevredenheidsindeks met betrekking tot verkope sowel as dienste. • Kwaliteit standaarde. • Handelsmerksterkte. • Koste kompeterendheidsindeks. • Produktiwitei!. In Hoofstuk 6 word 'n nuwe prysvasstellingsmodel, die TRIPP model, ontwikkel. Hierdie model bestaan uit drie stappe en spreek die veranderinge aan van die dryfkragte en kostestrukture wat tot onsekerheid in die prysbepaling van passasiersvoertuie gelei he!. Die model bepaal die verlangde prysverhogingspersentasie om 'n vaste winsgewendheidspersentasie te behou. Die model se doel is om intelligente inligting aan VWSA te verskaf wat benodig word om prysverhogings te optimiseer. Die toepassing van stap een en stap twee het aangedui dat Toyota SA tot en met die tweede kwartaal 2008 onder die minste druk verkeer het om prysverhogings toe te pas (6.1 persent van verkoopsprys). Daarenteen het VWSA onder effe meer druk verkeer (7.5 persent van verkoopsprys) en die Chinese invoerders het die meeste druk verduur (17.7 persent van verkoopsprys). Hierdie berekeninge is gedoen met inagneming van die uitwerking van natuurlike wisselkoersverskansing, MIOP invoerkoste differensiasie en ingevoerde materiaal koste inflasie. Die teoretiese afleiding hieruit blyk te wees dat VWSA met veiligheid 'n verhoging van verkoopsprys kan toe pas van ongeveer 6.1 persent (Figuur 6.10). Die effek sal 'n afname van 1.4 persent in winsgewendheid tot gevolg he, maar geen prysverandering behoort te geskied sonder oorweging van die volgende nie: • Huidige marktoestande met verbruikers wat oor lae vlakke van besteebare inkomste beskik. • Die impak van die pryselastisiteits beginsel, gegewe die vorige punt. • Onsekerheid van wisselkoerse, met spesifreke inagneming dat kleinhandelspryse nie sal verlaag nadat aanpassings gemaak is nie. Die "tipping pOint" konsep is van belang op hierdie stadium. Dit is uiters belangrik dat die "tipping poinf konsep in ag geneem word wanneer besluite geneem word in verband met prysbepaling om te verhoed dat 'n prysoorlog ontstaan met vanselfsprekende negatiewe gevolge op winsgewendheid vir die industrie. Geen rolspeler sal in sodanige omstandighede voordeel trek op die lange duur nie, aangesien langtemnyn belegginsstrategiee hierdeur geaffekteer sal word deurdat opbrengste op beleggings uitgestel sal word. In afdeling 6.3.5 word verdere elemente behandel wat oorweeg behoort te word voordat prysverhogings plaasvind. Hierdie elemente is verskillend vir elke plaaslike vervaardiger en invoerder en gevolglik is dit nie moontlik om 'n kompeterende analise te doen sonder interne inli9tin9 nie. Die impak van hierdie elemente mag egter nie gering geskat word nie. Die beginsels ten opsigte van verkoopspryse, soos tans deur VWSA toegepas, is nagegaan en tekortkominge is ge'identifiseer, in besonder wat prysverhogingsbesluite betref. 'n Nuwe verkoopsprys bepalingsmodel, die TRIPP model, is voorgestel en in September 2008 ge"implimenteer binne VWSA ten einde die besluitnemingsproses vir prysbepaling te optimiseer om sodoende markaandeelhouding en winsgewendheid te maksimiseer. Die volgende sleutelpunte is van belang ten einde te verseker dat die TRIPP model effektief toegepas kan word: • Ken die markaanwysers in die SAMI. • Ken die koste aanwysers, oak met betrekking tot sleutelkompetisie. • Verstaan die impak van sekere ander elemente soos gelys in stap drie van die TRIPP model. • Identifiseer en fokus op sleutel strategiese kwessies am premie-pryse te regverdig. Bogenoemde aspekte behoort gereeld hersien te word en dit word vereis dat toegewyde projekspanne dit voortdurend sal monitorr en oak deurgans verbeteringe aanbring aan die TRIPP model. "It is all about getting to the future first." (Roberts, 2008, [Online]) en kennis is mag. Volkswagen van Suid Afrika moet dus verseker dat hul voor hul sleutelkompetisie bly met betrekking tot die verwikkellinge rakende prysbepalings. Slegs dan sal hul 'n kompeterende voordeel verseker en markaandeel en winsgewendheid maksimeer.

published_or_final_version / abstract / toc / Real Estate and Construction / Master / Master of Science in Real Estate and Construction

published_or_final_version / Architecture / Master / Master of Philosophy

published_or_final_version / Real Estate and Construction / Doctoral / Doctor of Philosophy