Exploring Electronic Word-of-Mouth (eWOM) in The Consumer Purchase Decision-Making Process: The Case of Online Holidays – Evidence from United Kingdom (UK) Consumers

This study explores the role of electronic word-of-mouth (eWOM) in the consumer decision-making process when purchasing a holiday. Using an ethnographic approach, it explores the role of eWOM on consumers’ attitudes toward online reviews (eReviews) and their subsequent behavior. Across the consumer decision-making processes – information search, evaluation, and purchase – the study develops a conceptual framework with three eWOM dimensions: (1) motivation, (2) source, and (3) content. Findings explore the variations of eWOM’s influence across the decision-making stages with implications for theory and practice. The study further highlights implications for segmentation practices in the tourism industry.     

How should we divide the pie? Equity distribution and its impact on entrepreneurial teams

Drawing on a multiple case study approach and data on eight entrepreneurial teams observed over six months this article develops a dynamic model of the consequences of equity distribution among team members. Perceived justice of equity distribution emerged as a key variable influencing entrepreneurial team interactions and important entrepreneurial outcomes. High perceived justice triggered positive team interaction spirals, whereas low perceived justice triggered negative interaction spirals. Teams exposed to external threats drifted from a positive spiral to a negative spiral despite high perceived justice. We discuss the implications of our study for research on entrepreneurial imprints, justice, and exit.     

Research note sport tourism versus event tourism: Considerations on a necessary distinction and integration

Abstract

Interest in sport-related tourism increased perceptibly around the millennium, however, a comprehensive conceptual framework for a classification of sport (event) tourism is still missing. The predominant focus of sport tourism encompasses event-related touristic endeavors, such as mega sport events; however, an holistic approach to sport tourism suggests the need for further integration of other sub-areas such as nonevent-related components. This research note, therefore, provides a sport tourism perspective and a methodological approach to establishing the sport tourism cube as a necessary tool for the further distinction and integration of sport and event tourism. The research aim is, therefore, to build a foundation for further scientific research in sport tourism.     

FDI and Income Inequality—Evidence from Latin American Economies

This paper analyzes whether foreign direct investment (FDI) has contributed to the wide income gaps in Latin America. Panel cointegration techniques as well as regression analysis are performed to assess the impact of inward FDI stocks on income inequality among households in Latin American host countries. The panel cointegration analysis typically reveals a significant and positive effect on income inequality. There is no evidence for reverse causality. The findings are fairly robust to the choice of different estimation methods, sample selection and the period of observation.     

What patents are used as collateral?—An empirical analysis of patent reassignment data

Only anecdotal evidence exists that ventures use patents as collateral to access debt financing. In this paper, we use a novel dataset on patent reassignments with a security interest to explore quantitatively what patents are used as collateral. We analyze characteristics of patents to disentangle whether it is the technology underlying a patent or the patent's exclusion right per se matters for collateralization. We do find empirical support only for technology-related characteristics, suggesting that lenders use patents to collateralize high-quality technology that can, in case of default, be redeployed to ventures in similar technology fields. On the other hand, patent-related characteristics like scope, which are, in general, related to patent value and are particularly important for non-practicing entities, do not matter.     

Forecasting real estate prices in Germany: the role of consumer confidence

The aim of the paper is to analyse the forecasting ability of various potential predictors for real estate prices in Germany over the short term. In the wake of the financial crisis, real estate prices in Germany started to increase markedly and still did so by the end of 2013. Despite a number of fundamental reasons, e.g. favourable lending conditions and Germany’s rapid return to economic growth, this provoked a discussion on whether consumers have too gloomy expectations regarding real estate prices in future. To capture the role of expectations for predicting real estate prices, in our forecast evaluation, we put special emphasis on various components of consumer confidence. Using single indicator models, we find that households’ perceived financial situations as well as their intended consumption/saving plans serve as valuable real estate price predictors.     

Term structure modelling of defaultable bonds

In this paper we present a model of the development of the term structure of defaultable interest rates that is based on a multiple-defaults model. Instead of modelling a cash payoff in default we assume that defaulted debt is restructured and continues to be traded.The term structure of defaultable bond prices is represented in terms of defaultable forward rates similar to the Heath-Jarrow-Morton (HJM) (Heath et al., 1992) approach, and conditions are given under which the dynamics of these rates are arbitrage-free. These conditions are a drift restriction that is closely related to the HJM drift restriction for risk-free bonds, and the restriction that the defaultable short rate must always be not below the risk-free short rate. In its most general version the model is set in a marked point process framework, to allow for jumps in the defaultable rates at times of default.Financial Assistance by Deutsche Forschungsgemeinschaft, Sonderforschungsbereich 303, at the University of Bonn and the DAAD is gratefully acknowledged.I thank Pierre Mella-Barral, David Lando and David Webb for helpful conversations, and the participants of the FMG Conference on Defaultable Bonds (March 1997) in London and the QMF 97 conference in Cairns for helpful comments. All errors are of course my own.