Book reviews Finally, there is no discussion of comparative advantage, exchange rates, strategic trade or international technology transfer. Still, international trade is arguably more germane to manufacturing than services, and trade issues are covered in other texts (eg Mansfield, 1995). My main criticism with the theoretical chapters in Managerial Economics is not with the topics, but rather with the spotty treatment and number of errors. Chapters 3 and 4 are most at fault in this regard. First, these chapters attempt to cover too much ground in the space allocated. Superficial and misleading treatments of some topics result. Second, consumer theory and demand analysis are divided awkwardly between the chapters. Third, the wholly verbal definition and description of marginal, average, variable and fixed costs is clumsy, and could be conveyed more quickly and accurately with symbols. Fourth, the author is unreserved in his criticism of economic theory--particularly consumer theory and the theory of competitive m a r k e t s - - b u t provides little in terms of alternative methodology. This is fine in the appropriate forum, but what are students to make of it in a textbook? Indeed, the author seems a bit defensive, and appears to be addressing some of his remarks to peers, rather than to students. Fifth, there are a number of errors and omissions. To mention a few: (1)
(2)
(3)
(4)
Market collapse is not inevitable in Akerlof's model of the market for lemons (p 38). Arc and point elasticities are confused in the appendix to Chapter 4. Price elasticity does fall in absolute value with output when demand is linear in price, but not generally. There is no explanation of how marginal revenue is derived from price elasticity.
Finally, I disagree with the statement on p 53 that fashion is an aberration to consumer theory and outside its scope. In fact, people can have tastes for social interaction, or being similar, which can be modeled simply by making demand a function of aggregate quantity 68
demanded (Becker, 1991). Conformity can also be a way of economizing on information acquisition (Bikhchandani et al, 1992). Errors and omissions also crop up in other chapters. I will mention only the more egregious cases. In Chapter 6, Bowers criticizes statistical cost analysis on the grounds that heterogeneous outputs get aggregated, and fluctuations in demand get smoothed over when data points pertain to long time periods. He backs his case by reference to one department store study undertaken in 1942. The reader is left with the impression that no progress has been made since, which is of course not the case. For example, in cost studies of railways and airlines, output is routinely disaggregated as data permit. A n d the importance of measuring quality of service was pointed out some years ago by Spady and Friedlaender (1978). In Chapter 7, Bowers claims (p 134) that, while risk is amenable to decision-making analysis, uncertainty is not. But he then goes on to use subjective expected utility theory, which does just that. The role of 'surprise' is also too terse to understand fully. It is discussed under the subheading 'lexicographic decision procedures', but from its description surprise appears to entail elimination by aspects rather than lexicographic decision making. (Incidentally, it would seem more appropriate to introduce lexicographic decision making in the section on consumer theory, rather than in the restrictive context of uncertainty.) Chapter 9 contains two glaring errors. First, price discrimination between two markets is illustrated incorrectly in Figure 9.3. The marginal revenue curve is determined by summing horizontally the marginal revenue curves in the two markets, not by first aggregating the demand curves and then calculating marginal revenue. Second, one reads on p.176 that the representative consumer model ...assumes a consumer.., with preference for variety centred on a particular product variant and with preferences declining as the characteristics vary increasingly from that variant.
In fact, this is a good description of individual preferences in the spatial/address model, whereas the representative consumer model is emphatically- non-address. Finally, in Chapter 10 reaction functions in the Bertrand model are illustrated (p 199) in quantity rather than price space, and the model is described as having no equilibrium! In summary: Managerial Economics" is a well-motivated text, which fills a worthwhile niche in the managerial economics literature. The empirical content is enlightening, and the appropriate theoretical background is covered. It is unfortunate that errors and omissions compromise an otherwise laudable piece of work.
Robin Lindsey University of Alberta
References Becker, G S (1991) 'A note on restaurant pricing and other examples of social influences on price' Journal of Political Economy 99 (5) 1109-1116 Bikhchandani, S, Hirshleifer, D and Welch, I (1991) 'A theory of fads, fashion, custom, and cultural changes as informational cascades' Journal of Political Economy 100 (5) 992-1026 Mansfield, E ( 1 9 9 5 ) Managerial Economics: Theory, Applications, and Cases 3rd edn, W W Norton, New York Spady, R and Friedlaender, A (1978) 'Hedonic cost functions for the regulated trucking industry' Bell Journal of Economics 9 (1) 154-179
Public Relations for Leisure and Tourism Ylva French Longman Harlow (1994) 162 pp £16.95 ISBN 0 582 24474 9 The Longman/ILAM Leisure Management Series was developed in consultation with the Institute of Leisure and Amenity Management (ILAM) to provide new and up-to-date guides to the management of the leisure services field. Although developed initially to support the syllabuses for the I L A M Certificate and Diploma examinations, the series also serves the new I L A M Qualification Scheme in the UK.
Book reviews The latest is this series is Public Relations for Leisure and Tourism, a 162-page, half A4-size paperback without illustrations. The book is written by Ylva French, a consultant specializing in marketing and public relations in tourism, leisure and the arts. She previously held the position of Head of Public Relations for the London Tourist Board. The book emphasizes the practice of public relations. It examines the necessary skills required in effective public relations with the general principles and practical aspects related to the leisure industry. The contents of the book are organized in two parts. Part One serves as introduction to public relations. The opening chapter looks at public relations in the 1990s. It defines the subject matter, examines its growing interest, and relates it to the leisure industry and various functions and aspects of management. Chapter 2 deals with organizing public relations, and examines basic aspects such as size and strength of organization, demand for information, and the necessity to communicate. It also discusses the basics of a public relations professional, and the recruitment procedure involved. Chapter 3, 'Public relations strategy', presents the long-term corporate plan, which deals with the four elements of research, objectives, actions and evaluation, and the shortterm public relations plan, which deals with more immediate needs. Part Two, the larger part of the book, consists of 11 chapters, and focuses on putting public relations into practice. Chapter 4 gives an introduction to the media, the context of public relations in a changing media environment, and the major forms of communication in the UK in 1994. Chapter 5 is on dealing with the printed media, and discusses the press office function, press releases, targeting, press mailing/faxing lists, ,exclusives and embargoes, press conferences and briefings, press visits and photographs. Chapter 6 looks at broadcasting, but focuses on opportunities :inch as the news story approach, slots :.n magazine programmes, promoting to programmes, getting into the 'soaps', talking the news, and sponsored programmes. Chapter 7 examines the relationships, and how to deal with
other organizations and influential groups such as the government, investors, shareholders, civil servants and other administrators. Chapter 8 focuses on organizing events and hiring out facilities, and covers a broad range of aspects, including planning time, who is invited, the VIP guest appearance, the people factor, badging, timing, promotional material, follow-up and media contacts. The design of the corporate identity is discussed in Chapter 9, starting from its importance and defining its identity to the basis for the change and the procedure to make the change. Chapter 10 explains the use of advertising and special promotions such as advertorials, reader offers and promotions, competitions, exhibitions and trade fairs, souvenirs and dinners. Chapter 11 examines the issue of public relations in sponsorship, and discusses the pros and cons of media sponsorship. Chapter 12 explains how to handle crisis communications: defining the crisis team, tackling the media, rendering emergency services, and rebuilding the reputation. Chapter 13, on evaluating public relations, looks at market research, how it can be used by public relations practitioners, and the difficult issue of evaluating public relations. The last chapter deals with internal communications: the needs, the objectives and some of the available tools, such as meetings, news, magazines, newsletters and information boards. Case studies based on the leisure services in the UK appear in almost all chapters. These are set in smaller print and appears separately within bold lines. The number of case studies varies from one to eight. The book has a useful appendix giving the addresses of organizations in the UK involved in a wide range of public relations, such as provision of information, monitoring, market research, training and professional bodies. A reading list of general and more specific material is also provided. On pages 152-155 is a public relations education and training matrix, developed and endorsed by the Institute of Public Relations and the Public Relations Consultants Association. The matrix serves as an useful tool for assessing the training
needs of the individual or the organization in public relations. It relates the four skills (knowledge, writing, public relations, business) to five levels of professional training (preentry requirements, professional starter, developing and operating professional, experienced professional specialist and management). The book has a comprehensive index covering the functions and various aspects of public relations. The book is highly readable. Its language is clear and unlikely to pose any difficulty even for the school leaver. The book is organized for each chapter to be self-contained, and the topics are clearly indicated for easy or quick reference. Appropriate font and print make the pages highly visible and easy on the eyes. The book would appeal to candidates at all levels of the new ILAM Qualification Scheme in the UK. Its compact size serves as an easy reference and quick guide for practising professionals to update and improve their practices. Others would find the book a useful and up-to-date introduction to public relations in the leisure services. While there are various texts on public relations, including those stated in the reading list, this one focuses on the leisure industry within the UK. This book stands out for its emphasis on practice and not theory. P P Wong National University of Singapore
On Great Service: A Framework for Action
Leonard L Berry The Free Press, New York (1995) 292 pp $28 ISBN 0 02 918555 6 Service marketing is exciting. And following the breathtaking development of our understanding on how to manage services, it can be even more exciting. Berry's book provides a compelling introduction to and synthesis of the state-of-the-art tools, systems and insights on how to tackle a central management challenge in services marketing: the delivery of great service quality. 69