Has the COVID-19 pandemic changed the influence of word-of-mouth on purchasing decisions?

The COVID-19 outbreak has led to drastic changes in influential media for purchasing decisions. Which media have been used more frequently after COVID-19? Do these changes differ between product types? To provide insights into these questions, we analyzed 12,000 respondents between 2018 and 2021. The results show that the influence of word-of-mouth on purchase decisions decreased after COVID-19, while the influence of social media advertising increased. We also find that the influence is moderated by product type; for example, video advertising, a subset of social media advertising shows a higher influence for search goods than for experience goods.     

Revisiting food delivery apps during COVID-19 pandemic? Investigating the role of emotions

Food delivery apps (FDAs) have transformed the way consumers order and consume food, especially during the mobility limitations of the COVID-19 pandemic. The hospitality industry, especially restaurants are heavily reliant on mobile technology during the pandemic to strengthen essential online to offline food delivery, helping large number of consumers. This study investigates the role of app aesthetics in evoking emotions which predict continued usage intentions for FDAs using the theoretical lens of the pleasure arousal dominance (PAD) framework. Data was collected from 341 consumers during the pandemic. Findings indicate that app aesthetics generate pleasure, arousal, and dominance emotions among consumers during pandemic where pleasure is the most significant predictor of continued usage intentions followed by dominance. Findings also confirm the mediating effect of arousal on pleasure and pleasure on continued usage intentions. The study has implications for academicians, food delivery companies, app designers and other app-based businesses as it proves the significance of an aesthetic app design in evoking positive PAD emotions in consumers during a crisis and strengthens the explanation of continued usage intentions.     

How do customers change their purchasing behaviors during the COVID-19 pandemic?

This study focuses on examining how customers' shopping behaviors have changed during the pandemic and contributing variables. Three primary shopping modes include online purchases, curbside pickup, and in-store shopping. The dependent variables are the changes in customers' spending in those three modes during the pandemic. The theory of fear appeal was used as the theoretical foundation for selecting independent variables. Based on this theory, two groups of independent variables were identified, fears for health and fears for financial conditions due to COVID-19. Additionally, demographic variables were also included in the analysis. The data from Census Bureau's Household Pulse Survey Phase 3.1 collected from June 23 to July 5, 2021, was used with 24,998 useable cases. Logistic regression was used to analyze the data to test the effects of independent variables on customers' shopping behavior changes in the three modes. The results show that both fears for health and fears for financial conditions have effects on the shopping behavioral changes. Due to those fears, residents change their shopping behaviors by considering the shopping modes that allow them to deal with or avoid the risks. Additionally, demographic variables, including age, gender, race, income, and marriage status, also have significant impacts on their shopping decisions.     

Global talent management during the COVID-19 pandemic? The Gods must be crazy!

The ongoing COVID-19 pandemic has brought terrifying effects for labor markets all around the world. Just as we witness rapid changes in terms of the ways of working (working from home), we are also observing an increase in unemployment. The ways in which major corporations with international operations process their global talent management (GTM) already represents a challenge in relatively stable times and clearly, in a period of such great and sustained turbulence as current experienced, this task becomes still more difficult. Hence, our research aims to study the impact of GTM on the international performance of major companies during the COVID-19 pandemic period. To this end, we surveyed a sample of 59 large companies that act in external markets. Through recourse to multiple linear regressions, we conclude that GTM practices return positive impacts on levels of international performance. Our research returns theoretical implications in terms of the application of integrated GTM models and with the results of significant relevance to corporations operating internationally, and thus enabling them to better understand which strategic human resource management policies will return the best GTM results.     

COVID-19 and retail: The catalyst for e-commerce in Belgium?

Since the turn of the century especially small, local retailers struggle with the advent of e-commerce. It is hence no surprise that the retail sector is one of the hardest-hit sectors in the current pandemic. To understand the short- and longer-term impacts of COVID-19 on retail, we conducted two surveys to understand ongoing changes in the sector. By contrasting changing consumer behavior with the actions taken by local retailers, we assess whether the current pandemic is potentially a catalyst for e-commerce in Belgium. We do this based on a newly constructed framework of e-retail accessibility, as the differences between online and physical retail require a revision of the traditional economic geographical perspective on retail performance as introduced by Christaller (1933). We conclude that the COVID-19 pandemic holds ample opportunities for an increase in the three components of e-retail accessibility, but that a lack of professionalism might prevent traditional local retailers to retain a share of the expanded online market. This could well mean the final blow for local brick and mortar shops if, as is predicted, the share of online shopping in total retail expenditure remains high after the pandemic.     

Why did the equity home bias fall during the financial panic of 2008?

Investors tend to put most of their wealth in local stocks; theories of portfolio choice and uncertainty aversion jointly predict that this home bias should increase during a financial crisis. Yet, using a sample of 45 countries, I document that the equity home bias fell during the financial panic of 2008. Exploiting bilateral stock holdings, I find that investors actively increased their home bias, but large valuation changes subsumed these trades. Across countries, the change in home bias is consistent with partial portfolio rebalancing and increased information asymmetries during the crisis.     

Expatriates on the run: The psychological effects of the COVID-19 pandemic on expatriates’ host country withdrawal intentions

Extant research on expatriation in high-stress environments where stress is caused by ongoing and unexpected natural crises remains limited. Drawing on stress theory, in this study, we develop a model to examine the stress-inducing effects of intra-family concerns and workplace discrimination on the intentions to leave the host country among expatriates in the high-stress environment of the ongoing COVID-19 pandemic. We also explore whether gender and the level of work adjustment moderate the propensity of intra-family health concerns and workplace discrimination to induce psychological stress. Based on our analysis of 381 expatriates living and working in the United Arab Emirates, we find the model to be generally supported. We also reveal an intriguing moderating effect of work adjustment on the relationship between intra-family health concerns and psychological stress. Overall, the analysis is among the first ones to shed light on the role of natural crises’ stressors in defining expatriate outcomes.     

“Should I stay or should I go?”—Why the future of global work may be less binary: Lessons on approaches to global crises from the experiences of expatriates during the COVID-19 pandemic

COVID-19 has significantly impacted expatriates, affecting their ability to work effectively and their personal and family lives. This study explores their experiences in different phases of the pandemic, and their perspectives on the future of international living in light of such global disruption. Involving over 600 expatriates in 48 countries, the research shows shifts in motivation and priorities as a result of the crisis and reveals how family (extended and immediate) topped expatriates' concerns. The study examines if and how support systems worked and looks at coping mechanisms, skills, traits, previous experience, and attitudes which participants found useful. A common theme was “falling between two stools”—where expatriates were ineligible for support in either their home country or in their host country. Others described being “pulled in different directions” or “torn by a dilemma” with pros and cons in either choice. The study contributes to the questions about the future of global work with results of the survey revealing changing norms for expatriation and global mobility raising the possibility of more nuanced approaches to global projects and less binary options for global professionals and their families.     

Decomposing the effect of advertising: What happens in the retail channel?

The diverging interests of manufacturers and retailers famously give rise to the double marginalization problem but have consequences far beyond pricing. Advertising is another marketing instrument that is under the control of the manufacturer but its ultimate effect on consumer demand also depends on retailers’ pricing decisions. We decompose the effect of advertising in the channel and highlight an additional route through which advertising affects sales, namely via the changes in the retail price that a strategic retailer makes in response to changes in demand following manufacturer advertising. The total demand effect of advertising thus comprises the direct effects of advertising on market shares, and the indirect effects coming through adjustments that the retailer makes to the in-store prices of all the brands in a given product category in response to the shifted demand due to advertising. We match advertising data for four different categories (both food and non-food) to store-level scanner panel data, which also include information on wholesale prices. Controlling for wholesale prices, we establish in a reduced-form model that the retailer reacts to manufacturer advertising by changing retail prices instead of simply imposing a constant markup on the wholesale price. To further explore the role of the strategic response of the retailer in a systematic fashion and quantify the effects derived in the decomposition, we estimate a discrete-choice model of demand and determine the magnitude of the direct and indirect effects. We find that the indirect effect of advertising through retailer prices is about half the size of the direct effect, and thus substantively affects advertising effectiveness.     

Came and gone? A longitudinal study of the effects of COVID-19 on tourism purchasing intentions

The study is based on a multi-year research conducted in three successive years (2019; 2020; 2021). Drawing from three samples (N = 507; 463; 488) it longitudinally examines the complexity and the derived chaordic systems of the impact of COVID-19 upon the purchasing intentions of adult Athenian holidaymakers by using fuzzy-set Qualitative Comparative Analysis. In doing so, it evaluates the simple conditions of impact of recession, destination selection, and price and quality risks, also progressing to a complementary examination through Necessary Condition Analysis. The findings generate three pathways (price-quality nexus; financial focus; destination orientation) leading to the same outcome (purchasing intentions), the hierarchy of which changed over time. They also highlight the impact of recession and quality risks as constant necessary conditions, and demonstrate the transformation over time of destination selection and price risks from influential to necessary. The contribution of the study lies in both the theoretical and methodological domains.     

Did foreign exchange holding influence growth performance during the global financial crisis?

In a context of increased foreign exchange reserves holding from emerging and developing countries, this paper investigates the diminishing return of reserves holding assumption over the most severe phase of the global financial crisis (2008Q1–2010Q4). Relying on a Panel Smooth Transition Regression model, we highlight the differential effect of the accumulation of foreign exchange reserves for a set of financial vulnerabilities variables. In a specific manner, although reserves accumulation is effective above a critical threshold to cope with vulnerabilities related to the financial channel, we show that it becomes less effective beyond a certain threshold for domestic bank vulnerabilities. Our results are robust to alternative specifications.     

What explains default risk premium during the financial crisis? Evidence from Japan

As is well documented, subprime mortgage markets carried significant default risk. This paper investigates the relationship between default risk premium, stock market conditions and macroeconomic variables during the financial crisis. Using iTraxx Japan Credit Default Swap (CDS) index spreads covering the period from March 2006 to November 2009, we employ a time-varying dynamic factor model with Markov regime switching to generate regime probabilities for default risk. We analyze the sensitivity of default risk premium changes to stock market conditions and macroeconomic variables by using two-state Markov switching models: a crisis regime sparked by rising loan defaults in the sub-prime mortgage market, and a non-crisis regime. We found strong evidence that the relationship between default risk premium changes, stock market and macroeconomic variables is regime-dependent. Our results suggest that during periods of crisis, CDS indices behave as a higher-risk indicator and become more sensitive to stock market conditions and macroeconomic variables. This paper examines the effects of the financial crisis in explaining the default risk premium. Understanding the determinants of default risk premium is important for financial analysts, economic policy makers and credit risk management.     

Revealing travellers’ satisfaction during COVID-19 outbreak: Moderating role of service quality

User-Generated-Content (UGC) has gained increasing attention as an important indicator of business success in the tourism and hospitality sectors. Previous literature has analyzed travelers' satisfaction through quantitative approaches using questionnaire surveys. Another direction of research has explored the dimensions of satisfaction based on online customers' reviews using the machine learning approach. This study aims to present a new method that combines machine learning and survey-based approaches for customers' satisfaction analysis during the COVID-19 outbreak. In addition, we investigate the moderating role of service quality on the relationship between hotels' performance criteria and customers' satisfaction. To achieve this, the Latent Dirichlet Allocation (LDA) was used for textual data analysis, k-means was used for data segmentation, dimensionality reduction approach was used for the imputation of the missing values, and fuzzy rule-based was used for the prediction of satisfaction level. Following that, a survey-based approach was used to validate the research model by distributing the questionnaire and analyzing the collected data using the Structural Equation Modeling technique. The result of this research presents important contributions from the methodological and practical perspectives in the context of customers' satisfaction in tourism and hospitality during the COVID-19 outbreak. The outcomes of this research confirm the significant influence of the quality of services during the COVID-19 crisis on the relationship between hotel services and travellers’ satisfaction.     

Off the cliff and back? Credit conditions and international trade during the global financial crisis

We study the collapse of international trade flows during the global financial crisis using detailed data on monthly US imports. We show that credit conditions were an important channel through which the crisis affected trade volumes, by exploiting the variation in the cost of capital across countries and over time, as well as the variation in financial vulnerability across sectors. Countries with higher interbank rates and thus tighter credit markets exported less to the US during the peak of the crisis. This effect was especially pronounced in sectors that require extensive external financing, have limited access to trade credit, or have few collateralizable assets. Exports of financially vulnerable industries were thus more sensitive to the cost of external capital than exports of less vulnerable industries, and this sensitivity rose during the financial crisis. The quantitative implications of our estimates for trade volumes highlight the large real effects of financial crises and the potential gains from policy intervention.     

Supervisor incivility and frontline employees’ performance amid the COVID-19 pandemic: A multilevel moderated mediation analysis

Underpinned by conservation of resources (COR) theory, the study examines how supervisor incivility affects in- and extra-role performance by assessing the intermediary role of self-efficacy of frontline employees (FLEs) and moderating role of person-job fit (P-J Fit) at the store-level in the COVID-19 context. The study samples 366 FLEs from 48 retail stores in India. The findings show that the association between supervisor incivility and FLEs’ in- and extra-role performance through self-efficacy is only strong when the P-J Fit remains weak. The theoretical model backed by empirical findings provides potential value to the existing literature.     

Has the acceleration of privatization become inevitable in Bahrain?

Bahrain remains the most vulnerable Gulf country due to its limited savings and sharp rise in debt levels, leaving it exposed to high financing risks. The financial crisis has been deepened by the economic double blow of the decline in oil prices and the effects resulting from the outbreak of the coronavirus pandemic. Bahrain has decreased subsidies and increased taxes on many products. Those measures seem, however, insufficient to mitigate the negative impacts on the economy. This paper presents a model based on a comparison between fast privatization and gradual privatization strategies undertaken in some Bahraini economic sectors. It shows that the contribution of privatization to economic restructuring is only as effective as the commitment of the government to maintain a high pace of privatization. This condition can provide needed revenues, and can particularly foster private investments and initiatives. Therefore, it may represent an appropriate context to elevate Bahrain out of the present equilibrium characterized by slow privatization and government dominance on the economy.     

China’s Investments in Germany and the Impact of the COVID-19 Pandemic

Intereconomics - This paper analyses how China’s investments in Germany have developed over time and the potential impact of the COVID-19 pandemic in this regard, based on four different...     

Export diversification: How much does the choice of the trading partner matter?

This paper studies how a country's export diversification varies across destination markets. It develops an extension of the Romalis (2004) model which yields two testable predictions. According to the first, exports between similarly endowed countries (“South–South” and “North–North”) are more diversified than exports between differently endowed countries (“South–North” and “North–South”). The second implication is that, for given countries' production patterns, low bilateral trade costs lead to greater export diversification. These predictions find empirical support in a panel of 102 trade partners and 4998 HS-6 industries over the period 1995–2007. Results show that similarities between trading partners in physical capital, land and human capital endowments per worker are associated with more diversified bilateral exports. Exports are also more diversified when bilateral trade costs are relatively low.     

Moral imagination or heuristic toolbox? Events and the risk assessment of structured financial products in the financial bubble

The paper uses the example of the failure of bankers and financial managers to understand the risks of dealing in structured financial products, before the financial collapse, to investigate how people respond to crises. It focuses on whether crises cause people to challenge their habitual frames by the application of moral imagination. It is proposed that the structure of financial products and their markets triggered the use of heuristics that contributed to the underestimation of risks. It is further proposed that such framing heuristics are highly specialised to specific contexts and are part of a wider set of heuristics that people carry in their cognitive ‘adaptive toolboxes’. Consequently, it is argued, when a crisis occurs, the heuristics are not challenged, but are simply put away, and other more appropriate heuristics are put to use until a sense of normality returns, and the use of the old heuristics is resumed.