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INFORMATION TO USERS This manuscript has been reproduced from the microfilm master. UMI films the text directly from the original or copy submitted. Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer. The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand comer and continuing from left to right in equal sections with small overlaps. Photographs included in the original manuscript have been reproduced xerographically in this copy. Higher quality 6” x 9” black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge. Contact UMI directly to order. Bell & Howell information and Learning 300 North Zeeb Road, Ann Arbor, Ml 48106-1346 USA 800-521-0600 8207168 Cronin, Jerome Joseph, Jr. THE RELATIVE IMPACT OF FINANCIAL STRUCTURE AND MARKETING PERFORMANCE ON RETAIL PROFITABILITY The Ohio Stale University Pli.D. 1981 University Microfilms International 300 N. Zeeb Road, Ann Arbor, M l 46106 Copyright 1981 by Cronin, Jerome Joseph, Jr. All Rights Reserved NOTE TO USERS Page(s) missing in number only; text follows. Page(s) were microfilmed as received. 35 This reproduction is the best copy available UMI • THE RELATIVE IMPACT OF FINANCIAL STRUCTURE AND MARKETING PERFORMANCE ON RETAIL PROFITABILITY MSSERTATION Presented in Partial F ulfillm ent of the Requirements fo r the Degree Doctor of Philosophy in the Graduate School of The Ohio State University by Jerome Joseph Cronin, J r., B.S., M.B.A. The Ohio State University 1981 Reading Committee: Approved by Bernard J. LaLonde H. Lee Mathews James F. Robeson Advisor Department of Marketing To My Parents Ted and Edith ACKNOWLEDGEMENTS In any project of this magnitude, the credit for any accomplish ments must be shared with a number of individuals. In itia lly , a debt of gratitude is owed to my parents to whom this effort is dedicated. My father and my late mother are largely responsible for instilling in me a great appreciation for the pursuit of knowledge. Without their early insistance upon the necessity of a thorough education, this dissertation would not have been undertaken. For this and much more, I thank them. In one's career, the advice of others is also a necessity. As my advisor throughout the doctoral program, as well as the chairman of my dissertation committee, Dr. Bernard J. LaLonde has contributed greatly to the completion of my education. Many before myself have attempted to describe the contributions of Dr. LaLonde, but his role in shaping the careers of those working with him can not be adequately described nor overestimated. However, I do believe his greatest contribution lies in h dedication to assisting his students in achieving the maximum potential within th e ir chosen area. Dr. LaLonde's totally unselfish giving of his time, along with his ability to motivate a sometimes sluggish student, were of invaluable assistance in the completion of this project. For this, as well as for his guidance throughout ny program, I can not adequately express my grat itude to this absolute gentleman. I can only hope I am able to justify his confidence. In addition, the contributions of several additional professors needs to be acknowledged. Dr. James Robeson and Dr. H. Lee Mathews generously gave of th e ir time to serve on the reading committee. Their excellent comments greatly strengthened the final draft of the dissertation. The contributions of Dr. John Grabner and Dr. Robert House to the early drafts of the dissertation are also gratefully acknowledged. Two other former professors also need to be recognized. Dr. Stanley Stough and Dr. Walter Wilson in it ia lly suggested, even pushed, me towards,the pursuit of Ph.D. during my association with them at the University of Dayton. Their foresight and confidence is appreciated. During the data gathering portion of the project, Management Horizons of Columbus, Ohio graciously permitted me to access their data. Their assistance is also greatly appreciated. In addition the aid of the com pany's lib ra ria n , Ms. Yvonne Speece, is also graciously acknowledged. The contribution of my fellow students to this dissertation can not be neglected. Kenneth Martel 1 assisted in the methodological design and computer analysis phases of the project. Without Ken's assistance I might s t i l l be in some computer room. Martha Cooper also aided me simply by being a cordial o ffic e neighbor and a w illin g sounding board for my ideas and a ll too frequent confusion. The editorial and typing assistance of Ms. Marjorie King is also graciously acknowledged. Her s k ill, as well as her willingness to work under deadline pressures, significantly contributed to the completion of this project. In addition the assistance and support provided by Karen and my often neglected dog Travis are likewise appreciated. Finally, my appreciation to my students and those who have worked as my graders needs to be expressed. Richard Brand and Julie O'Keefe's performance as graders allowed my attention to be directed towards this dissertation without slighting my students. Those students must also be thanked, because th e ir response to my efforts in the classroom have con sistently provided justification for the continuation and completion of this project. v VITA April 27, 1952 ............................ Born - Springfield, Ohio 1974 ................................................. B.S., The Wright State University Dayton, Ohio 1974 - 1976 .................................. Assistant to the Director of the MBA Program, The University of Dayton, Dayton, Ohio 1976 ................................................. Graduate Teaching Assistant, The University of Dayton Dayton, Ohio 1976 ................................................ M.B.A., The University of Dayton, Dayton, Ohio 1976 - 1977 ................................. Account Manager, The Specialty Papers Company, Dayton, Ohio 1977 - 1981 ................................. Graduate Research and Teaching Associate, The Ohio State University 1981 - present ........................... Visiting Assistant Professor The Ohio State University PUBLICATIONS Jerome J. Cronin. "A Preliminary Investigation of the Impact of Financial Structure and Marketing Performance on P rofitability," Proceedings of the Tenth Annual Albert Haring Symposium, 1980. Bernard J. LaLonde and Jerome J. Cronin. "The Winter of 1978: A Strategic Assessment," submitted fo r review, The Journal of Long Range Planning. Bernard J. LaLonde and Jerome J. Cronin. "D istribution Career Patterns," Distribution Worldwide, March 1989. Bernard J. LaLonde and Jerome J. Cronin. "Weathering Winter: What You Can Do," D istribution Worldwide, December 1978. vi Bernard J. LaLonde and Jerome J. Cronin. "Career Patterns in D istribution--Profi1e 1978," Proceedings of the National Council of Physical D istribution Management (Chicago, Illin o is ) , 1978. FIELDS OF STUDY Major Field: Marketing Professors Robert Bartels, Bernard J. LaLonde, James L. Ginter, and Frederick D. Sturdivant Minor Field: Business Logistics Professors Bernard J. LaLonde, John R. Grabner, J r., and Robert G. House Quantitative Methods and Research Tools Professors Alan G. Sawyer, Thomas F. Nygren, and Robert C. Maccal1um TABLE OF CONTENTS Page ACKNOWLEDGEMENTS.................................................................................................. i i i VITA................................................................................................................... vi LIST OF TABLES..................................................................................................... xi i LIST OF FIGURES................................................................................................... xvi Chapter 1. INTRODUCTION................................................................................. 1 The Statement of The Problem ......................................... 3 The Research Objectives ................................................... 7 The Specific Research Questions ................................... 9 The Rationale For The Study ........................................... 10 The Scope of The Research ............................................... 12 The Research Hypotheses ................................................... 12 The Methodology ................................................................... 14 Phase 1: Data C ollection .......................................... 14 Phase 2: The Investigation of The Data Base.. 15 Phase 3: The Data Analysis ...................................... 15 Phase 4: The Id e ntifica tion of TheResearch Models .......................................................... 16 Phase 5: The Validation Procedure ........................ 16 The Potential Limitations of The Research .................. 16 The Potential Contributions of The Research ............ 19 The Potential Contributions To Theory ........................ 19 The