An empirical study based upon a sample of 645 small businesses assesses the relationship that life cycle stage and level of competition exhibit with the problems perceived to constrain small business strategic planning. Problems have been identified as either internal (cash flow) or external (competition); they have further been classified as either situational or core problems. Among the most prevalent problems reported by decision makers are customer contact, market knowledge, marketing planning, location, and adequacy of capital. A total of 16 problem areas were identified. Traditional wisdom offers the scenario where problems faced will vary as the organization progresses through the life cycle. Much of this research refutes conventional wisdom in that level of competition was determined to have more of an impact on problem perception.

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A national sample of 532 consumers was assessed on 15 different scenarios that reflect questionable behaviors by consumers. The results indicate that consumers are ethically predisposed as they generally express little tolerance for behavioral transgressions on the part of the customer. Factor analysis identified two latent dimensions for the scenarios: direct economic consequences and indirect economic consequences. Respondents expressed greater intolerance of those actions that comprise the indirect economic consequences factor. One‐way analysis of variance identified several instances where age, gender, education, and income were related to specific responses. © 1996 John Wiley & Sons, Inc.

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