It’s in the air: Aroma marketing and affective response in the hotel world

Smell is considered to be the sense that is most closely attached to emotional reactions. This makes scent in the hotel environment an important atmospheric variable to study, because fragrances are expected to increase the likelihood of producing an emotional reaction from consumers. Capitalizing on smell’s ability to cue memories and conjure up emotions, the purpose of this research is to examine the emotional states evoked by various hotel scents in a hotel business in Hong Kong that uses scent throughout its premises. More specifically, this study intends to make a connection between the emotional states evoked by the hotel scents and how hotel businesses can make use of their guests’ emotional responses. Scent marketing is an overlooked subject in hospitality and tourism research.     

Exploring pilgrim satisfaction on facilities for religious events: a case of Ratha Yatra at Puri

This article relates to the annual Ratha Yatra festival at Puri, India, and aims at quantifying the pilgrim perception of the event on three major aspects of every facility – adequacy, quality, and signage – to measure their satisfaction. A questionnaire survey (N?=?680) was conducted, from which a five-factor structure was extracted using exploratory principal component analysis, further examined through partial least squares-path modeling. The final model was found to have significant positive effects on three factors that comprised adequacy and quality of physiological needs, quality of ancillary facilities, and signage. The outcome may be utilized in planning other pilgrim events for achieving a higher pilgrim satisfaction score.     

Competition,External Economies of Scale,and Unionized Wage

We provide a rationale for the mixed relationship between product market competition and unionized wage, and more importantly, for a generally unexplained empirical evidence of a positive relationship between product market competition and unionized wage. We show that a higher product market competition decreases (increases) unionized wage if the external scale economies are weak (strong). However, a higher product market competition may decrease or increase the unionized wage if the external scale economies are moderate.

     

Competitive strategies,innovation, and firm performance: an empirical study in a developing economy environment

This paper studies the relationships between competitive strategies, innovation, and firm performance within the context of Turkish manufacturing companies. The data were collected from top management of the firms via Computer Assistant Telephone Interviewing method. One hundred and forty manufacturing firms operating in various sectors including textile, automotive supply, computer and electronics provide the basis for this empirical research. In order to test our model, we employ structural equation modelling using partial least squares. The results show that competitive strategies such as cost-leadership and differentiation can lead to innovation, which, in turn, increase firm performance. Managers implement cost-leadership and differentiation strategies to take part in competitive market conditions; however, they should put additional importance on innovation that plays a significant role as a bridge between competitive strategies and firm performance.     

Creditor rights and debt allocation within multinationals

We analyze the optimal debt structure of multinational corporations choosing between centralized or decentralized borrowing. We identify how this choice is affected by creditor rights and bankruptcy costs, taking into account managerial incentives and coinsurance considerations. We find that partially centralized borrowing structures are optimal with either weak or strong creditor rights. For intermediate levels of creditor rights fully decentralized (centralized) borrowing structures are optimal if managers have strong (weak) empire-building tendencies. Decentralized borrowing is more attractive for companies focussing on short-term profitability. Credits are rather taken in countries with better creditor rights and more efficient insolvency systems.     

Fashionable hospitality: A natural symbiosis for Hong Kong's tourism industry?

Despite the well-accepted synergy between shopping and tourism, co-branding between hotels and retail brands has not been realized by either academia or practitioners. Considering the international recognition of retail brands, hotel and retail co-branding may be a sustainable competitive advantage, especially in shopping destinations such as Hong Kong. Using a one-shot cross-sectional design, this study investigated potential consumer reactions and preferences about likely hotel and retail co-branding in Hong Kong and mainland China. Findings indicated several opportunities as well as threats for hotels and retail brands as well as the need to understand specific markets, especially mainland Chinese before venturing into hotel and retail co-branding. Practical implications and future research suggestions are provided.     

How does the design of international environmental agreements affect investment in environmentally-friendly technology?

In this paper, we investigate how the design of international environmental agreements (IEAs) affects the incentives for the private sector to invest in environmentally-friendly technology. The givens are a transboundary pollution problem involving two asymmetric countries in terms of benefits arising from global abatement. There is a single polluting firm in each country. We account for two types of IEAs: an agreement based on a uniform standard with transfers and an agreement based on differentiated standards without transfers. To carry out this study, we use a two-stage game where the private sector anticipates its irreversible investment given the expected level of abatement standards resulting from future negotiations. Our findings indicate that the implementation of the agreement based on a uniform standard with transfers may be preferable for the two countries, as it creates greater incentives for firms to invest in costly abatement technology. This result arises when this technology’s level of the sunk cost of investment is low. If this level is sufficiently high, the implementation of the same agreement is not beneficial to countries, because it takes away the incentive of each firm to invest in new abatement technology. Moreover, this agreement is not able to generate any positive gains for either country through cooperation, thus no country is motivated to cooperate.     

Currency Prices, the Nominal Exchange Rate, and Security Prices in a Two‐Country Dynamic Monetary Equilibrium

This paper examines a continuous‐time two‐country dynamic monetary equilibrium in which countries with possibly heterogeneous tastes and endowments hold their own money for the purpose of transaction services formulated via money in the utility function. Given a price system, no‐arbitrage pricing results are provided for the price of each money and the nominal exchange rate. Characterizations are provided for equilibrium prices for general time‐additive preferences and non‐Markovian exogenous processes. Under a Markovian structure of model primitives, the currency prices are shown to solve a bivariate system of partial differential equations. Assuming that each country is endowed with heterogeneous separable power utility and the exogenous quantities all follow geometric Brownian motions, an equilibrium is shown to exist and additional characterization is provided. A further example of nonseparable Cobb–Douglas preferences is investigated. The additional features over the customary environment of homogeneous logarithmic preferences are emphasized.     

Multiplicity in general financial equilibrium with portfolio constraints

This paper explores the role of portfolio constraints in generating multiplicity of equilibrium. We present a simple financial market economy with two goods and two households, households who face constraints on their ability to take unbounded positions in risky stocks. Absent such constraints, equilibrium allocation is unique and is Pareto efficient. With one portfolio constraint in place, the efficient equilibrium is still possible; however, additional inefficient equilibria in which the constraint is binding may emerge. We show further that with portfolio constraints cum incomplete markets, there may be a continuum of equilibria; adding incomplete markets may lead to real indeterminacy.     

An Analysis of The Lowest Fares and Shortest Durations for Air-Tickets on Travel Agency Websites

Despite the existence of numerous published articles on website evaluations, the present tourism literature has no prior studies that examined the topics of lowest fares and shortest durations for air-tickets that are offered by travel websites. This study reports the findings of a study that investigated the practices of five online travel agency (OTA) websites. In terms of lowest airfares and the shortest in-flight durations (hereafter known as shortest durations) in four destinations for travelers who originated from Hong Kong, empirical findings showed the regional OTA outperformed other global leaders in airfares. Likewise, a smaller scale OTA offered lowest-fare air-tickets with the shortest durations. Practical implications are offered at the end of the article.