Do Skill Mismatches Create a Wage Penalty? Alternative Estimates for Korea*

In this paper, we estimate the wage penalty of skill mismatches among young Korean workers using propensity score matching (PSM) and ordinary least squares (OLS) methods. OLS estimates suggest that a moderate wage penalty results from skill mismatches: 3.8 percent for men and 5.6 percent for women. In contrast, PSM estimates suggest a weakly significant wage penalty for men and women only when kernel matching (KM) is used, but not when nearest neighbor matching(NNM) or radius matching (RM) techniques are used. These results contradict the findings of previous studies and suggest that there may not be a substantial wage penalty associated with skill mismatches.     

A probabilistic analysis of guided tours for tourists during the slack season

Issues germane to the provision of guided tours for tourists wishing to visit a particular location during the slack season have received scant theoretical attention in the tourism literature. Therefore, we conduct a stochastic analysis of guided tours for tourists during the slack season. We first delineate a general model that accounts for the common features of guided tours to city attractions and to other scenic locations. Second, we determine the long run fraction of demand that is lost to the firm providing the guided tours. Third, we ascertain the long run fraction of time that the guided tour providing firm is unable to satisfy the demand for such tours. Finally, we use the stationary Poisson process and show how our previous two general results might be used to shed practical light on the slack season provision of guided tours to tourists.     

Why offer lower prices to past customers? Inducing favorable social price comparisons to enhance customer retention

Price discrimination policies vary widely across companies. Some firms offer new customers the lowest price; others give preferential prices to their past customers. We contribute to the literature on price discrimination in behavior-based pricing by exploring how customers’ social price comparisons, i.e., comparing one’s price to that received by similar peers, impact the optimal structure of price discrimination. Social price comparisons have a negative (positive) impact on customers’ transaction utility if the price charged to past customers is higher (lower) than a new customer’s price. Using an analytical model with vertically differentiated firms, we show that a firm with relatively large market share will reward its past customers with relatively low prices when social price comparisons have a sufficiently large impact on utility. Furthermore, we find that social price comparisons lead to a relaxation of the price competition for new customers. Thus, both firms can earn higher profits when such comparisons are made than when they are absent. We also examine how other factors, such as horizontal competition and strategic customers, interact with social price comparison concerns to impact pricing strategies. Finally, we show how pricing behavior differs when price comparisons are based on historic reference prices rather than on peers’ prices.     

What do we know about fashion adoption groups? A proposal and test of a model of fashion adoption

The purpose of this paper is threefold: (1) to identify gaps in the literature and inconsistencies between empirical data and Rogers' diffusion of innovations model originally outlined in 1962; (2) to propose a model of fashion adoption; and (3) to conduct an empirical test of the proposed model. The proposed model varies from Rogers' model as follows: four (vs. five) ideal‐type adopter groups with unique names and clear operational definitions; proportional distribution of consumers among groups; clear method of statistically identifying group members; categorization based on fashion innovativeness and opinion leadership; and standard procedure for identifying groups based on mean and standard deviation. The proposed model offers greater precision and provides results that are comparable across studies. The model was analyzed empirically using four methods of categorizing participants into fashion adoption groups (independent variable) and fashion involvement as the dependent variable. Participants in the study were 309 students from two universities. The analysis using the proposed model provided clear‐cut results that supported the hypothesis that higher levels of consumers' fashion involvement increased the probability of earlier adoption. Results from the other three analyses were not as clear‐cut. Based on the model for fashion adoption presented in this paper, the foundation is primed for development of a theory of fashion adoption. The proposed model offers a solution to the problem of identifying fashion adoption groups, plus, the solution achieves the desired effect with the simplest effort and is undertaken with appropriate methods.     

Residents' Perceived Impacts of Gaming Development in Macau: Social Representation Perspectives

The purpose of the research was to provide a better understanding of local residents' perceived impacts of gaming tourism based on social representations theory. An empirical investigation was conducted in Macau, where gaming tourism is under explosive development. Through a survey of 396 local residents, two social representation groups were identified: “Ambivalents” and “Rationalists”. The two social representation groups presented significantly different perceptions and attitudes toward the impacts of gaming tourism in Macau. The three most significant factors that influenced residents' representations were personal income, perceptions of gaming tourism being able to increase personal/family income, and satisfaction with government performance in managing gaming tourism development. The research provides theoretical implications for future gaming impact studies and also practical ones for local governments and stakeholders in the tourism industry in Macau and other gaming destinations.     

HOW LARGE ARE LEARNING EXTERNALITIES?*

The quantitative features of human capital externalities are not fully understood. Although static externalities are estimated in some studies, learning externalities remain mostly unestimated. By calibrating a growth model, this article provides an estimate of learning externalities. The calibration uses an equilibrium condition that equates private returns on physical capital and human capital. The results suggest that sizable learning externalities exist, even in a conservative setup. The estimated social rate of return on human capital is 9.0%, compared to the private rate of return, 6.6%. Therefore, human capital externalities are an important source of economic growth.     

The impact of 3d virtual haptics in marketing

Tactile input plays a key role in consumers' evaluation of products' substance properties. Utilization of haptic interfaces and force feedback devices that enable consumers to feel and manipulate three‐dimensional (3D) virtual products is a promising but under‐explored area in marketing and consumer behavior research. This study investigated 3D virtual touch created by Novint Falcon haptic interfaces and its impacts on consumer behavior in the interactive marketing of automobiles. It was hypothesized that consumers' instrumental Need for Touch (NFT) plays a significant moderating role in haptic interfaces. Results from a 2 (nature of tactile stimuli: haptic input with force feedback versus no force feedback) × 2 (haptic orientation: high NFT versus low NFT) full factorial between‐subjects experiment indicated that consumers high in instrumental NFT evaluate products more positively, enjoy the test‐driving experience more, and show stronger brand–self connection when there are force feedback haptic stimuli as opposed to when there is no force feedback. Theoretical and managerial implications of the study are discussed. © 2011 Wiley Periodicals, Inc.     

The mediation of information technology on visitors’ experience at a cultural heritage site

This study identifies perceptual differences between the experiences of using an interactive ubiquitous access tourism service (U-tourism service) at a cultural heritage site and on-site participation-driven services. An interactive U-tourism service, “Hwaseong Haenggung Histour”, a smart phone application, was developed and implemented for this study. The study found (a) visitors who experienced the U-tourism service showed higher recognition on such dimensions as education, novelty, entertainment and fellowships, regarded as important components of on-site experiences, than those who joined on-site participation-driven services and (b) young visitors who used the interactive U-tourism service recorded higher in the dimensions of both education and novelty than those who joined on-site participation-driven services and showed higher satisfaction. These findings provide strong justification for the introduction of U-tourism services, particularly for young visitors. This study contributes to the understanding of a fast-growing and influential electronic tool for cultural heritage sites.     

The long‐term effects of sales promotions on brand attitude across monetary and non‐monetary promotions

This study compares the influence of sales promotions on brand attitude across promotion types over time. An experiment is conducted with 154 subjects, who are exposed to test materials for 12 weeks. Evidence shows that the long‐term effects of sales promotions on brand attitude vary across deal types. Non‐monetary promotions seem to work better in eliciting consumers' favorable brand attitude than monetary promotions over time. However, such effects are moderated by consumers' deal proneness. Although monetary promotions may induce more negative effects than non‐monetary promotions, these effects are weaker for high deal‐prone consumers than for low deal‐prone consumers. © 2011 Wiley Periodicals, Inc.