On the detection of extreme movements and persistent behaviour in Mediterranean stock markets: a wavelet-based approach

We combine the global Hurst exponent and Morlet wavelet multi-resolution analysis (MRA) to investigate the dynamic behaviour of six selected stock markets in the Mediterranean region. Specifically, we employ the resonance coefficients and their power spectra to identify potential extreme movements and long-term dependence in stock returns. Using weekly data for the period 2005 to 2010, our results reveal that the wavelet MRA is able to reconstruct the effects of major extreme shocks on stock returns of studied markets, such as the Asian financial crisis, the 9/11 terrorist attacks and the 2007–2009 financial crisis. Moreover, the wavelet-based global Hurst exponent indicates the presence of long-term dependencies in stock returns of all the considered markets, except for France where the anti-persistent behaviour is detected. Overall, our findings are useful to assess the stock market efficiency and provide new insights into stock market dynamics over different time scales.     

Assessment of the psychometric properties of SERVQUAL in the Canadian banking industry

This study investigates the psychometric properties of the well-known SERVQUAL model in the Canadian banking industry. The study utilises the performance component of SERVQUAL in an empirical survey conducted among 193 Canadian bank customers. The results support the dimensionality, reliability, convergent reliability, discriminant validity and predictive validity of the scale in this service setting. Thus, SERVQUAL is a suitable instrument for assessing bank service in the Canadian context; bank managers can, therefore, confidently use this instrument to undertake continuous evaluation of their service quality. The results also show that responsiveness and empathy are the most important dimensions of overall service quality in the Canadian banking context. Findings show that the service provided by employees makes the largest contribution to bank customer satisfaction. In view of the study's finding, Canadian bank managers must recognise that frontline employees are crucially important in establishing and maintaining a competitive position for their institution.     

Developing e-service quality scales: A literature review

This study reviews the literature on e-service quality (e-SQ), with an emphasis on the methodological issues involved in developing measurement scales and issues related to the dimensionality of the e-SQ construct. We selected numerous studies on e-SQ from well-known databases and subjected them to a thorough content analysis. The review shows that dimensions of e-service quality tend to be contingent on the service industry. Despite the common dimensions often used in evaluating e-SQ, regardless of the type of service on the internet (‘reliability/fulfilment’, ‘responsiveness’, ‘web design’, ‘ease of use/usability’, ‘privacy/security’, and ‘information quality/benefit’), other dimensions are specific to e-service contexts. The study also identifies several conceptual and methodological limitations associated with developing e-SQ measurement such as the lack of a rigorous validation process, the problematic sample size and composition, the focus on functional aspects, and the use of a data-driven approach. This is the first study to undertake an extensive literature review of research on the development of e-SQ scales. The findings should be valuable to academics and practitioners alike.     

Determinants of loyalty and recommendation: The role of perceived service quality,emotional satisfaction and image

This study develops and tests a model for the determinants of loyalty and recommendation. The model considers three drivers – perceived service quality, emotional satisfaction and image – that are positively related to each other and positively influence loyalty and recommendation. The model is tested using data from a survey of 222 Tunisian bank service customers. The hypotheses, which were tested using structural equation modelling, are all supported. The results confirm that perceived service quality, emotional satisfaction and image are key drivers of loyalty and recommendation. The research emphasizes the role of emotional satisfaction and image as mediating variables between perceived service quality and loyalty/recommendation. The study also shows that a better understanding of the determinants of behavioural intentions in the banking industry occurs when affective dimensions are considered along with cognitive ones.     

Optimal pricing of a two-sided monopoly platform with a one-sided congestion effect

This paper studies the optimal pricing of a two-sided monopoly platform when one side is affected by congestion. We show that the divide-and-conquer pricing strategy (or skewed pricing) depends not only on the relative magnitude of the sides’ price elasticities of demand but it also depends on the marginal congestion cost that an agent imposes on the others. Compared with the no-congestion case, this pricing strategy gives rise to some interesting features that violate the results of Rochet and Tirole (J Eur Econ Assoc 1:990–1029 in 2003, Rand J Econ 37:645–667 in 2006). In the case of equal price elasticities of demand, the no-congested side is charged the highest price. On the other hand, in the case of different price elasticities, the platform congestion pricing depends on a certain threshold of the marginal congestion cost. We show, under some conditions, that the divide-and-conquer pricing strategy is reversed. In the social context, the Rochet and Tirole’s (J Eur Econ Assoc 1:990–1029 in 2003) cost allocation condition is modified by the congestion cost. We show that the congestion does not only affect the buyers’ contribution to the sellers’ surplus, but it also affects the sellers’ contribution to the buyers’.     

Personality traits and complaining behaviors: A focus on Japanese consumers

Despite the fact that personality is thought to be one of the main factors that may explain unhappy consumers’ behavior, very little is known about how it affects their attitudes and complaining strategies. This is particularly true in the case of Japanese consumers where scant research has been conducted on their complaining behaviors. Hence, the main objective of this study is to investigate the roles of three personality traits (i.e., self‐confidence, aggressiveness, and altruism) of Japanese consumers in explaining their attitudes toward complaining, perceived likelihood of successful complaints (PLSCs), and complaining behaviors. On a sample of 263 respondents, a univariate general linear model (GLM) analysis is performed to assess the moderating roles of personality traits on complaint‐related variables. The results show that, on the one hand, in contrast to self‐confidence, the levels (i.e., high vs. low) of aggressiveness and altruism have significant impacts on attitudes toward complaining and PLSCs. However, the level of self‐confidence appears to have the most significant impacts on public complaining behaviors. On the other hand, altruism is found to be the only personality trait that may explain consumers’ private complaining behaviors. Additional analyses reveal interactive effects of the personality traits on complaining attitude and behaviors.     

Global financial crisis, extreme interdependences, and contagion effects: The role of economic structure?

The paper examines the extent of the current global crisis and the contagion effects it induces by conducting an empirical investigation of the extreme financial interdependences of some selected emerging markets with the US. Several copula functions that provide the necessary flexibility to capture the dynamic patterns of fat tail as well as linear and nonlinear interdependences are used to model the degree of cross-market linkages. Using daily return data from Brazil, Russia, India, China (BRIC) and the US, our empirical results show strong evidence of time-varying dependence between each of the BRIC markets and the US markets, but the dependency is stronger for commodity-price dependent markets than for finished-product export-oriented markets. We also observe high levels of dependence persistence for all market pairs during both bullish and bearish markets.     

The effect of consumption emotions on satisfaction and word‐of‐mouth communications

This paper examines the impact of consumption emotions on consumers' satisfaction and how it affects what they tell other consumers. The conceptual model is based on the premise that pleasure and arousal influence satisfaction, word‐of‐mouth (WOM) communications, and the likelihood of generating WOM. A study of 470 moviegoers in a French Canadian city supports most of these relationships. The results indicate that even when the effects of satisfaction are accounted for, pleasure and arousal have significant effects on WOM. © 2007 Wiley Periodicals, Inc.     

An independent assessment of the unidimensionality,reliability, validity and factor structure of the LibQUAL+™ scale

This empirical study provides a thorough measurement analysis of the LibQUAL+? scale for measuring library service quality. In particular, the study assesses the unidimensionality of the scale, the scale's psychometric properties and its factor structure. Data were gathered using a self-administered questionnaire distributed to a sample of university library users: 189 in Canada and 374 in Mexico. Using confirmatory factor analysis (CFA), the study confirms the assumption of unidimensionality in only two of the three current sub-dimensions of the scale. The results of this study also show that the LibQUAL+? scale consists of four dimensions. The remainder of the CFA results in the study provides strong support for the general reliability and validity of the four-dimensional structure.