Modelling consumer-directed substitution

We discuss the challenges and difficulties arising when approaching and modelling the consumer-directed substitution problem in quick response supply chains. Further, we propose heuristic solutions suited for large problems with complex uncertainty and dependency patterns. Despite the single-period newsvendor model we use, our substitution process is an approximation of the dynamic product choice. To ensure consistency with regard to the information used to establish substitution fractions and information available at the time of optimisation, substitution fraction estimation and inventory/assortment optimisation are discussed simultaneously. The decision-independent substitution preferences applied here do not require inventory or sales transaction data, but reflect understanding on the demand driver attributes. This approach, in turn, leads to increased robustness in assortment planning. Factual substitution is an outcome of the optimisation process, constrained by the available substitutes and unfulfilled demand.Despite being unable to fully describe the dependencies among the substitute choice possibilities, our substitution approach, together with the modelling process, allows handling the most important dependencies, such as negatively correlated substitute choice possibilities and positively/negatively correlated first and second choice possibilities.     

Who takes part in film tourism? The analysis of determinants of visiting film locations

Film tourism is one of the fastest developing sub-segments of creative tourism in the 21st century. Many studies investigated tourists' motivation and behavior towards film tourism in the context of psychological and emotional motives and their involvement and experience. However, we still know very little about the structure of visitors of film sites. Utilizing primary data collected in Slovakia and adopting the econometric approach, the aim of this empirical study is to estimate the relationship between preferred trip parameters and the decision to include a visit to a film location in the travel plan. The results suggest that visits to film sites occur to a significant extent by chance, film tourism is additional, mainly to other segments of tourism, characterized as adventurous and explorative experiences. Visits to film locations occur mainly as trips by younger age groups and longer stays, mostly as self-organized trips, regardless of budget, frequency of travel, or gender.     

Probability and Mode of Acquisition Effects on Choices Between Hedonic and Utilitarian Options

We examine the effects of probability and mode of acquisition on choices between hedonic and utilitarian alternatives. The results suggest that the lower the probability of receiving the selected item, the more likely individuals will be to choose the more hedonic alternative in a choice set. Mode of acquisition (i.e., whether subjects are choosing in a windfall or a standard purchase situation) is also found to affect preferences, even when probability of acquisition is held constant. Hedonic options appear to be more popular as prizes than as purchases, whereas utilitarian options appear to be more popular as purchases than as prizes.