Association Ambiguity in Brand Extension

A research method is developed to effectively identify associations that significantly influence the perceived fit of brand extensions. Contrary to extant brand extension studies that mainly focus on the fit of associations, the current study considers the ambiguity of associations. The proposed measure of association ambiguity, defined as the level of uncertainty based on the perceived conflict of a particular association in a brand extension indicated by the similarity and intensity level of perceived association distance to the parent brand and extension category, was tested and validated using several brand extension cases. Identifying an association's level of ambiguity and the magnitude of its impact on the perceived fit will allow advertisers to adjust their advertising messages and increase consumer receptiveness toward brand extensions. Implications for advertising practitioners and future research are discussed.     

Relationship between Perceived Risk,Evaluation, Satisfaction,and Behavioral Intention: A Case of Local-Festival Visitors

This study analyzes the relationship between perceived risk, evaluation, satisfaction, and behavioral intention of tourists attending a local festival. Based on a survey with a sample of 465 respondents attending a local festival in South Korea, a structural equation model (SEM) is proposed that involves festival-related perceived risk, perceptual evaluation, overall satisfaction, and behavioral intention for future attendance at this and other festivals. Firstly, the results show that while risk may lead to a negative perception of a festival, it has no effect on satisfaction or subsequent behavioral intention. Secondly, the results show that direct causality exists between perception, satisfaction and future intention. Thirdly, a demand for diversity in programs determines perceptions of risk, which in turn permits a segmentation of visitors based on these characteristics. The findings of this study contribute to successful planning and marketing strategies to meet the demands of psychologically segmented tourists, especially in festival studies.     

Measuring festival quality and value affecting visitors’ satisfaction and loyalty using a structural approach

Perceived value is understood to be a precursor of customer satisfaction and loyalty and is itself impacted by product quality. The linkages between quality, value, satisfaction, and loyalty have been gaining increasing attention in the marketing field. Accordingly, this study examines whether quality dimensions have an impact on perceived value, which, in turn, affects satisfaction and loyalty, in the context of the Punggi Ginseng festival.     

Service Orientation: Its Impact on Business Performance in the Medical Service Industry

From the viewpoint of internal marketing, employees who are content in their job may be motivated to satisfy their customers better than ones who are not content. Another relevant premise is that the content employees, because of their work motivation, would eventually help improve the performance of their firm. To verify these relationships, some previous studies looked into the effects of organisational service orientation on employee's satisfaction. But only few of them investigated the mediating effects of variables such as service value and customer orientation for their role in linking service orientation to business performance. This study examines how an organisation's service orientation had an effect on its performance at hospitals. For this purpose, verification of the mediating role of service value perceived by employees as well as the role of customer orientation on the firm's performance was attempted. For this study, a total of 292 usable questionnaires were collected from hospital staffs located in metropolitan cities of Korea. The hypotheses concerning relationships among service orientation, service value, employee satisfaction and customer orientation were verified by covariance structural modelling, using SPSS 10.0 and AMOS 4.0 programs. The result is as follows. First, organisational service orientation had a positive effect on both employee satisfaction and service value perceived by hospital staff. Second, employee satisfaction had a positive impact on service value and customer orientation. Finally, service value as well as employee's customer orientation were found to exert positive influence on the medical firm's performance.     

Optimal route decision with a geometric ground-airborne hybrid model under weather uncertainty

Adverse weather is the dominant cause of delays in the National Airspace System (NAS). Since the future weather condition is only predictable with a certain degree of accuracy, managing traffic in the weather-affected airspace is a challenging task. In this paper, we propose a geometric model to generate an optimal combination of ground delay and route choice to hedge against weather risk. The geometric recourse model (GRM) is a strategic Probabilistic Air Traffic Management (PATM) model that generates optimal route choice, incorporating route hedging and en-route recourse to respond to weather change: hedged routes are routes other than the nominal or the detour one, and recourse occurs when the weather restricted airspace becomes flyable and aircraft are re-routed to fly direct to the destination. Among several variations of the GRM, we focus on the hybrid Dual Recourse Model (DRM), which allows ground delay as well as route hedging and recourses, when the weather clearance time follows a uniform distribution. The formulation of the hybrid DRM involves two decision variables - ground delay and route choice - and four parameters: storm location, storm size, maximum storm duration time, and ground-airborne cost ratio. The objective function has two components: expected total ground delay cost and expected total airborne cost. We propose a solution algorithm that guarantees to find the global optimum of the hybrid-DRM. Based on the numerical analysis, we find that ground-holding is effective only when combined with the nominal route. Otherwise, it is optimal to fly on the route determined by the DRM without ground delay. We also find the formula of the threshold ground-airborne cost ratio, which we call the Critical Cost Ratio (CCR), that determines the efficacy of ground delay: the higher the CCR, the more effective the strategies involving ground delay. We conclude that both ground delay and route hedging should be considered together to produce the best ATM decisions.     

Astroturfing Global Warming: It Isn’t Always Greener on the Other Side of the Fence

Astroturf organizations are fake grassroots organizations usually sponsored by large corporations to support any arguments or claims in their favor, or to challenge and deny those against them. They constitute the corporate version of grassroots social movements. Serious ethical and societal concerns underline this astroturfing practice, especially if corporations are successful in influencing public opinion by undertaking a social movement approach. This study is motivated by this particular issue and examines the effectiveness of astroturf organizations in the global warming context, wherein large corporate polluters have an incentive to set up astroturf organizations to undermine the importance of human activities in climate change. We conduct an experiment to determine whether astroturf organizations have an impact on the level of user certainty about the causes of global warming. Results show that people who used astroturf websites became more uncertain about the causes of global warming and humans’ role in the phenomenon than people who used grassroots websites. Astroturf organizations are hence successful in promoting business interests over environmental protection. In addition to the multiple business ethics issues it raises, astroturfing poses a significant threat to the legitimacy of the grassroots movement.     

Mature consumers’ patronage motives and the importance of attributes regarding HMR based on the food-related lifestyles of the upper middle class

The objectives of this study are to explore the food-related lifestyle segments of the mature market, to identify its socio-demographic characteristics, and to investigate the differences in their attitudes toward Home Meal Replacement (HMR). A survey was conducted of adults 55 years of age and older living in Seoul, South Korea. Out of the 600 distributed questionnaires, 361 were retained for final analysis, which is a response rate of 60%. Cluster analysis identified five consumer segments. Significant differences were found among the five segments in terms of socio-demographic characteristics and attitudes toward HMR. This study shows operators of HMR the patronage motives and attributes that each segment values when considering HMR.     

Theory of Planned Behavior and Ethics Theory in Digital Piracy: An Integrated Model

Since digital piracy has posed a significant threat to the development of the software industry and the growth of the digital media industry, it has, for the last decade, held considerable interest for researchers and practitioners. This article will propose an integrated model that combines the theory of planned behavior (TPB) and ethics theory, the two theories that are most often used in digital piracy studies. Data were obtained from university students in China, and the model was examined using the structural equation model (SEM). The results show that moral obligation and justice, derived from ethics theories and TPB variables, such as attitude, subjective norms, and perceived behavioral control, influence the behavioral intentions of individuals to commit digital piracy. The attitude of individuals toward digital piracy is also found to be influenced by perceived benefits, perceived risk, and habit.     

Adding a freight network to a national interstate input–output model: a TransNIEMO application for California

The state of the nation’s infrastructure is the subject of widespread discussion and comment because it is thought to include many deteriorating and unsafe bridges. Ever since the terrorist attacks of 9/11, there has been increasing concern over the extent to which an attack on infrastructure could result in serious economic disruption. This research develops a model to analyze the economic consequences of an attack on a major element of the highway network. We add a freight network to a national multiregional economic impact model and make freight traffic flows endogenous. The use of a sub-national interstate model recognizes that most infrastructure planning is at the state level and most political leaders’ interest is local. We base our approach on the National Interstate Economic Model (NIEMO) and refer to an elaboration that we name Transportation network and the National Interstate Economic Model (TransNIEMO). The new model enables us to study the state-specific and industry-specific economic impacts of some significant changes in the nature of highway freight movements. We tested the model for selected freight movements in and out of California. The results are entirely plausible and encourage us to elaborate and test the model for hypothetical disruptions of freight traffic throughout the US.