Using Fuzzy Preference Method for Group Package Tour Based on the Risk Perception

This study explores group package tour (GPT) itineraries based on comparative risk methodology using the fuzzy Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE). It combines the concepts of fuzzy sets to represent the uncertain information in intrinsic risks with PROMETHEE, a subgroup of Multi-Criteria Decision Making methods. Based on in-depth interviews with 40 GPT leaders, this study identifies comprehensive intrinsic risk factors. Furthermore, this study compares the risk perceptions associated with 12 factors by applying traditional PROMETHEE and fuzzy PROMETHEE methods to four itineraries. The PROMETHEE method can be used when the input data are numeric and crisp. The fuzzy PROMETHEE method is preferred when substantial uncertainties and subjectivities exist in GPT itinerary information. Finally, several academic and managerial implications about GPT tour risk controls are outlined.     

The Relationship between Corporate Social Responsibility and Firm Performance: An Application of Quantile Regression

This study empirically examines the relationship between a firm’s fulfilling of corporate social responsibility (CSR) and performance. We developed a CSR index (CSRI) to quantitatively evaluate CSR, which consists of four dimensions measuring a firm’s contributions to the economy, society, environment, and corporate governance, respectively. With data from publicly-listed firms in Taiwan during the period of 2004–2009, results of quantile regression show that fulfilling CSR has a significantly positive impact on firm performance, and that the impact in a more profitable firm tends to be significantly greater than that in a less profitable firm. Specifically, when a firm is more profitable, its management would be more willing to implement CSR. The implication is that a firm could pursue better performance while serving as a good corporate citizen.     

Work, leisure, and tourism in the Pacific Rim

This issue of JBR is the consequence of a call for a special issue on Work, Leisure, and Tourism in the Pacific Rim. Who the special issue editors are presumably prompted submissions related to tourism or hospitality. The articles in the issue relate to the business aspect of tourism, and they show the diversity in tourism research. The study of entertainment in Macao's future presents stakeholder views. The wine tourism paper is not on demand or tourism behavior but addresses supply side issues. The articles on employees' work-family conflict moderating life and job satisfaction and telepresence affecting the demand for tourism have business ramifications. The paper on empowerment pursues applying Western views in applying a concept in the East. The study of tourists' perceptions on safety broaches some important analysis issues. The paper on using diagrams to improve survey research has broad ramifications for survey research, particularly regarding getting and using complex data. The final article addresses effectiveness and offers ideas that apply to application of DEA in business research.     

Responses of air cargo carriers to industrial changes

This study examines how product characteristics, values, inventory cost, shipping charges, shipping distance, and time affect an international firm's choice of air carrier. An individual choice model is constructed by assuming that the shipper in a specific industry chooses the optimal air cargo carrier with the minimal logistics cost. The study further aggregates air cargo demands on different routes for the carriers by considering the spatial distribution of the origin-destination pattern and any temporal changes in the industrial structure. A case study is used to illustrate the application of the proposed model using data from Taiwan Taoyuan International Airport and the industrial economics database in Taiwan. The results show that shippers with high product value and short delivery distance focus on the shipping charge and prefer choosing the air cargo carrier that offers more flights. Further a carrier may achieve a larger market share if its supply attributes match the industrial structure and the product characteristics of the market on the route. Finally, because dynamic changes in the industrial structure and product value have been captured, the results are more accurate than that from the Grey model.     

Key account relationship management: the moderating effects of relationship duration and transaction volume

This study investigates the impact of three relational benefits (i.e. financial benefits, human interaction benefits, preferential treatment benefits) on switching barriers, customer satisfaction, and behavioral loyalty for key accounts in the context of the air express delivery industry in Taiwan. Empirical results indicate that relational benefits impact switching barriers, switching barriers influence customer satisfaction and loyalty, and customer satisfaction effects loyalty. Findings also confirm most of the hypothesized moderating effects for relationship duration and transactional volume on the relationship between relational benefits and switching barriers. Specifically, long-term key accounts place greater emphasis on the human interaction and preferential treatment benefits. Key accounts that have less established relationships based on the length of business relationship place more importance on financial benefits. Financial benefits were found to have a positive influence on switching barriers only for low annual transactional volume clients, while both human interaction benefits and preferential treatment benefits have positive effects for both low and high transactional volume key accounts.     

Fuzzy multiple criteria selection of government-sponsored frontier technology R&D projects

Selection of government-sponsored frontier R&D projects is made difficult by the coexistence of the conflicting participating parties, the availability of experts for new frontier technology review, and the ambiguity of new frontier technology. This paper presents a model that includes (1) using the analytical hierarchy process (AHP) method to integrate various expectations from different interest groups into evaluating objectives/criteria, (2) the group-decision method by technical experts based on the predetermined objectives/criteria, and (3) the fuzzy approach in scoring the subjective judgments of the experts. The results reveal that differences of weights toward each criterion exist among various groups. The government and academia care more about social benefits, the researchers are more concerned about intellectual properties, and the experts from industry emphasize the importance of feasibility. The method presented in this paper was applied at a national research institute in Taiwan. The results reveal that: (1) the approach can solve the disparity between the profound knowledge required for evaluation and the different expectation from various interest groups, (2) the fuzzy approach is suitable to frontier technology R&D project selection because of the vagueness of the nature of frontier technology and the difficulties in evaluating quantitatively and accurately.     

Asymmetric effect of advertising on the Chinese stock market

In this paper, we investigate whether investor attention to advertising has an asymmetric effect on Chinese stock returns by using a multivariate Markov switching model with time-varying regime transition probabilities. Using the Chinese stock market as a setting, we obtain lagged conditional volatility from generalized autoregressive conditional heteroskedasticity (GARCH) for modelling the time-varying transition probabilities of the regime-switching process to capture changes in the market regime. Our evidence documents that the high advertising portfolio does earn higher abnormal return than the low advertising portfolio in low-volatility periods. In high-volatility periods, however, the abnormal return is insignificant when the firm increases advertising spending. Our results support the behavioural model argument that in high-volatility period, advertising information diffuses slowly due to cognitive dissonance. Thus, the effect of advertising on stock returns is asymmetric, and it shows statistical significance in low-volatility periods.     

Technology prospects and the cross-section of stock returns

In an economy with time-varying investment opportunities, the changes in technology prospects affect aggregate consumption and individual firm's future dividends, and lead to systematic technology risk. We construct a technology factor to track the changes in technology prospects measured by U.S. patent shocks, and find that this factor explains the growth of aggregate consumption, helps to price important stock portfolios, and carries significant risk premium. Our empirical results suggest the existence of technology risk in the cross-section of stock returns.