Dale V. Hibst

Publication Date


Document Type


First Advisor

Wasson, Chester R.||Nelson, J. H. (Professor of business)

Degree Name

M.S. (Master of Science)

Legacy Department

Department of Marketing


Input-output analysis


The problem as set forth in this study was to measure and examine the number and types of applications of the Input/Output technique to business situations. The research also attempted to establish: 1. Attitudes of respondents toward the adequacy of information sources on the subject of Input/Output. 2. If the technique was being used, was any additional investment required to develop or refine published data for the in-house applications? If so, how large were these investments? 3. If Input/Output was not used, what alternative methods of analysis were considered more practical? In addition to an extensive literature search, original research was conducted via a mail survey of a sample consisting of every other named company on the 1969 Fortune 500 list. Ten names were also selected at random from each of the Fortune lists of the top fifty companies in five different service businesses for a total sample of 300 companies. The questionnaire was addressed to the Economic or Market Research Department of the selected firms. It was designed to elicit responses from users as well as nonusers of the technique. The response to a single mailing, without the use of any incentive except a postage-paid return envelope, was 44 percent. Considering the total response, less than 10 percent of the respondents reported that they were presently using the Input/Output analytical system. Just over 10 percent of the respondents admitted to not knowing about Input/Output. These percentages change slightly when the replies from the service companies are not considered. The results of this survey, however, indicate that more firms are using Input/Output analysis than is evident by the limited number of actual case histories reported. Fewer firms are using it though than most trade publications imply. The present applications cited and those reported as planned ranged from market identification and forecasting to technological change analysis and merger and acquisition analysis. For most business applications, an additional investment is required to adapt the published data to the firm's specific needs. Half of the firms reporting in-house investments stated over $10,000 was spent in developing their own system or modifying existing data. Several firms reported expenditures of over $100,000 for this purpose. The obsolescence and lack of detail of the Input/Output published data are recognized as problems by both the user and nonuser. Regression, correlation and time series analysis are favored by those not using the Input/Output technique. The Input/Output system undoubtedly has a great deal of potential as an analytical business tool, but it cannot presently be considered as a major tool of the business practitioners.


Includes bibliographical references.


vi, 75 pages




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