Change in Consumer Patronage and Willingness to Pay at Different Levels of Service Attributes in Restaurants: A Study in India

Consumer patronage and consumer willingness to pay are the two most important criteria for business development. The current study investigates the changing preferences of consumers in a developing economy with respect to three major service attributes from the restaurant industry: food quality, service, and ambiance. Results indicated that consumers give greater preference to quality over service in high-end restaurants and prefer service compared with ambiance in quick-service restaurants. Food quality was found to have strong interaction effect with two other variables. When food quality was improved from low to high, consumer preferences for ambiance and service tended to change accordingly in the same direction, but not necessarily at the same level. Thus, restaurateurs have a strategic advantage when they choose high quality food and an appropriate level of service or ambiance. Consumer expectations are significantly different for high-end, full-service restaurants and quick-service restaurants in service attributes.     

Voluntary Disclosures When There Is an Option to Delay Disclosure

What incentives drive managers to disclose immediately when they have an option to delay disclosures? I examine this question in a two-period setting in which public news that is positively correlated with firm value arrives periodically. I show that, when the manager's likelihood of receiving information is independent of the public news, an informed manager is more likely to disclose immediately when the public news is good. This happens even as the disclosure threshold itself increases in the public news. My model provides a potential explanation for why managers have a higher propensity to provide earnings forecasts when current earnings are high. I also show that, even when disclosures are credible, the average price reaction to a voluntary disclosure is (i) decreasing in the magnitude of the public news and (ii) lower when the manager is more myopic. These results have potential implications for studies that use stock returns to measure the news contained in management disclosures.     

ACTION RESEARCH IN SUPPLY CHAIN MANAGEMENT—A FRAMEWORK FOR RELEVANT AND RIGOROUS RESEARCH

In this article we present a framework that researchers can use when they prepare and conduct Action Research (AR) projects. Authors can also use the framework as a guide for how to write relevant and rigorous AR articles. AR is an applied form of case‐based research that can provide exceedingly relevant research in applied fields such as supply chain management. At the same time, AR is also a criticized research approach, particularly in terms of research rigor. With the ambition to address, as well as bridge, the gap between the relevance and rigor within AR research, we first develop a comprehensive research methodology framework that synthesizes the crucial aspects of the AR research methodology. Secondly, we review existing AR articles within logistics, operations management, and supply chain management and present the current state of AR research. After a critical review of the existing articles using our framework, we delineate vital aspects that should be addressed in future AR research. As relevance and rigor are not at odds, we believe that our comprehensive framework will pave the way for a growing stream of rigorous, as well as relevant, AR research.     

The Effect of Graduated Response Anti‐Piracy Laws on Music Sales: Evidence from an Event Study in France

Despite the problem that filesharing poses to the creative industries, there is little research on the effectiveness of governmental anti‐piracy policies. This study analyzes how the HADOPI ² graduated response law in France affected digital music sales. Using a panel of sales data from the four major labels, we applied a difference‐in‐difference approach, comparing sales trends in France to a control group of European countries. We find that increased consumer awareness of HADOPI caused French iTunes music sales to increase by 22‐25%. The observed sales increase is larger in high piracy genres than low piracy ones, strengthening the causal interpretation of our results.     

The interrelationships between brand and channel choice

We propose a framework for the joint study of the consumer’s decision of where to buy and what to buy. The framework is rooted in utility theory where the utility is for a particular channel/brand combination. The framework contains firm actions, the consumer search process, the choice process, and consumer learning. We develop research questions within each of these areas. We then discuss methodological issues pertaining to the use of experimentation and econometrics. Our framework suggests that brand and channel choices are closely intertwined, and therefore studying them jointly will reveal a deeper understanding of consumer decision making in the modern marketing environment.     

Effect of Internal Marketing on Hotels: Empirical Evidence for Internal Customers

Internal marketing is a concept where firms apply marketing tools to attract and retain the best employees that will later affect business performance in monetary and nonmonetary terms. This article deals with the effect of internal marketing in hotels on their performance, based upon data obtained from India. Researchers identified the constructs of internal marketing: interfunctional coordination and integration, job satisfaction, job security, empowerment, employee motivation, vision of the organization, quality of service, employee development, strategic reward, and senior leadership. Researchers analyzed the effects of these processes on interactive marketing and thereby business performance. This study seeks to help organizations design their own internal marketing plan by outlining the important elements necessary to improve the business performance of hotels.     

Complementarities and competition: Unpacking the drivers of entrants' technology choices in the solar photovoltaic industry

Entrants in new industries pursue distinct technologies in hopes of winning the technology competition and achieving sustainable competitive advantage. We draw on the complementary assets framework to predict entrants' technology choices in an emerging industry. Evidence from the global solar photovoltaic industry supports our arguments that entrants are more likely to choose technologies with higher technical performance and for which key complementary assets are available in the ecosystem. However, diversifying entrants are more likely to trade off superior performance for complementary asset availability whereas start‐up entrants are more likely to trade off complementary asset availability for superior performance. This difference is largely due to diversifying entrants with pre‐entry capabilities related to the industry. The study offers a novel illustration of how complementarities and competition shape entry strategies. Copyright © 2013 John Wiley & Sons, Ltd.     

The impact of individual and institutional investor sentiment on the market price of risk

We examine the effect of individual and institutional investor sentiment on the market price of risk derived from DJIA and S&P500 index returns. Consistent with behavioral asset pricing models, we find significant positive response of rational sentiment suggesting greater incentive for rational investors to engage in arbitrage when the compensation for taking risk is greater. Further, an increase in irrational optimism leads to a significant downward movement, but an increase in rational sentiment does not lead to a significant change market price of risk. These results are robust for both market indexes, DJIA and S&P500 and for both individual and institutional investor sentiment.     

Drop-the-loser design in the presence of covariates

In the present work we develop a randomized two-treatment adaptive allocation design with covariates ensuring smaller variability of treatment allocations. We study, both numerically and theoretically, several exact and limiting properties of the design and consider an inferential problem following the allocation design. We compare the design with some of the existing allocation designs by computing its various performance measures.