A note on the determinants of airline choice: The case of Air Asia and Malaysia Airlines

Logit analysis is employed on primary data from departing air passengers at the Penang International Airport, Malaysia to examine the determinants of airline choice between incumbent Malaysia Airlines and low-cost Air Asia. With the exception of educational level and ethnicity, other socio-demographic characteristics do not play a statistically significant role in determining airline choice. Instead, behavioral factors such as concerns over schedules and fares, routes, booking methods and purpose of journey are found to be predictors of airline carrier choice.     

TRACTABLE ROBUST EXPECTED UTILITY AND RISK MODELS FOR PORTFOLIO OPTIMIZATION

Expected utility models in portfolio optimization are based on the assumption of complete knowledge of the distribution of random returns. In this paper, we relax this assumption to the knowledge of only the mean, covariance, and support information. No additional restrictions on the type of distribution such as normality is made. The investor’s utility is modeled as a piecewise‐linear concave function. We derive exact and approximate optimal trading strategies for a robust (maximin) expected utility model, where the investor maximizes his worst‐case expected utility over a set of ambiguous distributions. The optimal portfolios are identified using a tractable conic programming approach. Extensions of the model to capture asymmetry using partitioned statistics information and box‐type uncertainty in the mean and covariance matrix are provided. Using the optimized certainty equivalent framework, we provide connections of our results with robust or ambiguous convex risk measures, in which the investor minimizes his worst‐case risk under distributional ambiguity. New closed‐form results for the worst‐case optimized certainty equivalent risk measures and optimal portfolios are provided for two‐ and three‐piece utility functions. For more complicated utility functions, computational experiments indicate that such robust approaches can provide good trading strategies in financial markets.     

The effect of consumers' involvement and innovativeness on the utilization of fashion wardrobe

This study proposed wardrobe utilization as a means of explaining consumer clothing use behaviour, and aimed to explore its relationship with other antecedent variables. We posit that use innovativeness functions as an antecedent of wardrobe utilization within a model comprised of fashion‐related variables, such as fashion innovativeness and fashion involvement. An empirical study was conducted to test this relationship with 211 adult women between the ages of 20 and 40 years. In order to calculate wardrobe utilization, the number of clothing items worn by each respondent was divided by the total number of clothes that the respective respondent owns. The findings of this study revealed a measureable effect of use innovativeness on wardrobe utilization and apparel purchase behaviour. In addition, fashion innovativeness and fashion involvement was shown to affect use innovativeness; however, the two variables did not have a significant impact on influencing wardrobe utilization. These results showed that use innovativeness plays a role of the full mediator variable in the path from fashion involvement and fashion innovativeness to wardrobe utilization. These also indicated that people who are very innovative in their use of fashion are likely to broadly utilize their respective wardrobes. Finally, the impact of purchase behaviour on wardrobe utilization was dismissed, as purchase behaviour and use behaviour were found to be clearly distinguished from one another. Clothing utilization is related to the life cycle of clothes including their purchase, usage and disposal. And in better understanding clothing utilization, the needless waste of clothing would be reduced and would encourage better management of clothes after their purchase. In the context of the product life cycle, this study of clothing use behaviour can assist in building a more sustainable environment for the textile and fashion industry.     

Antecedents of Green Brand Equity: An Integrated Approach

A steady demand for green products from concerned consumers has led companies to introduce new product lines that match or exceed consumer environmental concerns. Nonetheless, not all the organizations were able to achieve significant returns on their investments in green products. These failures are generally attributed towards companies’ inability to overcome consumer scepticism towards the performance of functional and green attributes of their brands to generate a positive green image and green value in consumers mind. Therefore, the question arises that does the success in promoting green brand image and value depend on consumer existing perceptions about the brand quality and credibility? This study analyzes the influence of brand perceive quality and credibility on consumer perceptions towards a brand green image, green value and green equity. A theoretical model with hypothesized relationships is developed and tested to answer these research questions. Data have been collected from the consumers of electrical and electronic goods. The hypothesized relationships were tested with the help of structural equation modeling procedure. The results suggest that brand perceived quality and its overall credibility does have a significant influence on generating a greener image, green perceive value and green brand equity.     

An information theoretic analysis of stock returns,volatility and trading volumes

Information theory is used to examine the dynamic relationships between stock returns, volatility and trading volumes for S&P500 stocks. This provides an alternative approach to traditional Granger causality tests when dealing with nonlinear relationships. The article highlights the dominant role played by trading volumes in all of these relationships – even in the return–volatility relation – and finds evidence of a market level feedback effect from index returns to the return–volatility relation at the stock level. The article also produces a number of stylized facts from an information theoretic perspective.     

Perception and reality of managing sustainable coastal tourism in emerging destinations: the case of Sihanoukville,Cambodia

The emergence of Sihanoukville as a coastal destination came at the time when the global community was calling for sustainable practices. As one of the newly emergent coastal resorts in Asia, Sihanoukville has the advantage of learning from other, less sustainable Asian destinations. The Cambodian Government has partnered with international agencies in drawing up programs and incorporating practices to make the destination more sustainable. This research seeks to better understand the effectiveness and success, or otherwise, of implementing sustainability programs for tourism development, especially for an Asian coastal destination. The aim is to compare the sustainability practice outcomes according to differing stakeholders and their perceptions of sustainability. The research identifies gaps between policies and their implementation where the intent is to highlight those aspects of contemporary resort growth that need greater attention by policy makers and planners. Generally, it was found that there was alignment between the perceptions and the reality of sustainable tourism practices within and across the stakeholder groups. Where notable differences in perception arose, it was often linked to the group's mission or self-interest that influenced the views of these stakeholders. The research also points to the challenges ahead for all stakeholders in managing coastal destinations sustainably.     

The firm's demand for daily hours of work: Some implications

Conclusion This paper starts with an intuitively plausible assumption about the way in which a worker's effectiveness varies over the workday. It develops a number of interesting implications of this assumption. First, in the absence of fixed costs of hiring and premium pay for overtime, hours per day per worker desired by the firm would not vary with the wage. Second, with fixed costs of hiring and a premium-pay-for-overtime requirement, there is likely to be a bunching of firms with desired workdays of eight hours. Third, holding hiring costs constant, desired hours will decrease with expected length of stay (expected tenure) of the employee. Fourth, the framework can be used to analyze the way in which increases in the minimum wage affect both hours per worker and the number of employees. The authors would like to thank Sherwin Rosen for helpful comments on an earlier draft of this paper.