The Response of Hotels to Increasing Food Costs due to Food Shortages

During 2008–2009 the hotel industry in Hong Kong had to respond to a steady price increase in general food items and in basic food commodities. As most hotels in Hong Kong predict their food cost budgets a year in advance, these sudden and unexpected increases in food commodities came at a time when there was a downturn in the global economy in the wake of the financial crisis and a worldwide influenza A (H1N1) epidemic. There have been articles published in hospitality and tourism journals that have discussed the issue of food cost and control in hotels resulting from poor storage and purchasing, portion control, and preparation and production methods. However, none of the previous studies has examined the sudden and rapid increases in the cost of foods and the impact that this has had on the hotel industry. The measures adopted by Hong Kong hotels of different tiers to control or reduce expected food costs are analyzed in this study. This study employed a cross-sectional exploratory design, encompassing in-depth personal interviews with food and beverage managers and executive chefs in high-, mid- and low-tier hotels in Hong Kong. Empirical findings revealed that mid- and low-tier hotels found the increases in commodity prices challenging and thus employed innovative methods to combat rising food costs. High-tier hotels were more concerned about satisfying customers' needs by maintaining high-quality food products and services. The findings indicate that hotels and restaurants at all points of the market adopted functional strategies to increase their efficiency and profitability. Based on the operating experience of existing hotels, this study demonstrates that enhancing the quality of suppliers' commodities, good staff communication and training practices, and innovative ideas can improve a hotel's financial situation.     

Dissecting Word-of-Mouth's Effectiveness and How to Use It as a Proconsumer Tool

Companies are increasingly relying on alternative promotional activities, such as word-of-mouth communication (WOM), to reach their target markets. From a consumer protection perspective this may be troubling, as consumers may not always be aware of what is commercially motivated WOM and what is not. Based on a synthesis of the literature, this article develops the first practitioner-friendly model, which explains WOM's effectiveness as an information source for consumers and why it is a powerful tool for nonprofit organizations and government agencies. Then nine recommendations are developed to help nonprofit organizations and government agencies use WOM more effectively as a proconsumer tool. This is the first article to conceptualize proconsumer WOM rather than naturally occurring WOM or commercial WOM and to specifically focus on WOM to protect and educate consumers. The study paves the way to an untapped research area; that of proconsumer WOM by nonprofit organizations and government agencies.     

Monetary and fiscal policy in interdependent two-sector economies

Summary This paper considers a two-country-two-sector world with tradables and non-tradables, floating exchange rates, perfect capital mobility and sluggish labour markets. The model assumes either nominal or real wage rigidity and either perfect or imperfect substitution between home and foreign-produced tradables. The effects and spillover effects of fiscal and monetary shocks are compared with the standard results from well-known macroeconomic two-country counterparts of the model. The purpose is to establish the degree of robustness of the latter with respect to disaggregation and to gain insight into the sectoral transmissions of the shocks.The authors wish to thank Lans Bovenberg, Theo van de Klundert, Christian Mulder, Frederick van der Ploeg, Martin van Tuijl, Leo van Veldhuizen and two anonymous referees for helpful comments on an earlier draft.     

Editorial

This article does not have an abstract     

Boorstin's consumption community concept: A tale of two countries

The concept of consumption community, first proposed by historian Daniel Boorstin, claims that in the modern era of high mobility, people look not only to neighborhood as a basis for feelings of community but also to communality of consumption behavior (e.g., drinking the same brand of beer). The idea was tested cross-nationally by administering a newly devised psychological sense of community (PSC) scale to more than 100 adult respondents in Belgium and a like number in the U.S. The findings support Boorstin in that for both national samples, PSC values for consumption items were generally positive and consistent with social science theoretical expectations. Implications of the study findings are discussed for theory and social policy.

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Zusammenfassung Das Konzept der Konsumgemeinschaft von Boorstin: Eine Geschichte von zwei Ländern. Das Konzept der Konsumgemeinschaft, erstmals durch den Historiker Daniel Boorstin vorgestellt, behauptet, da\ im heutigen Zeitalter hoher Mobilität der Einzelne sein Gemeinschaftsgefühl nicht nur durch seine Beziehung aus der direkten Nachbarschaft bezieht, sondern auch aus der Gemeinsamkeit bestimmter Konsumverhaltensweisen (z. B. das Trinken derselben Biermarke). Diese Idee wurde empirisch geprüft durch eine ländervergleichende Untersuchung, in der eine neu entwickelte psychologische Skala für den Gemeinschaftssinn bei jeweils einer Stichprobe von mehr als 100 erwachsenen Personen in Belgien und in den USA angewendet wurde. Die Ergebnisse stützen Boorstin insofern, als beide Länderstichproben zu Skalenwerten führen, die mit den theoretischen sozialwirtschaftlichen Erwartungen übereinstimmen.

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Koen De Vos is a Research Assistant at the same institution.     

The Method of Purging Applied to Repeated Cross-Sectional Data

In cross-sectional survey research, it is quite common to estimate the(standardized) effect of independent variable(s) on a dependent variable. However, if repeated cross-sectional data are available, much is to be gained if the consequences of these effects on longitudinal social change are considered.To assess these consequences, we describe a type of simulation in whichlongitudinal shifts in the independent variable's distribution, and longitudinal variation in effect on the dependent variable are `purged' from the data. Although the method of purging is known for many years, we add new practical features by relating the method to logistic and linear regression analysis. Because both logistic and linear regression analysis can be found in all majorstatistical packages, the method of purging is made available to a wider group of social scientists. With the use of repeated cross-sectional data, gathered in the Netherlands between 1970 and 1998, the new practical features of the purging method are shown, using the SPSS package.     

Non-linearity and Expectations in Niche-Development Trajectories: Ups and Downs in Dutch Biogas Development (1973-2003)

Non-linearity and changes in the direction of technological trajectories, are related to changes in cognitive rules and expectations that guide technical search and development activities. To explain such changes, the article uses the literature on niche development, which highlights interactions between learning processes, network building and expectations. A long-term case study on Dutch biogas development illustrates how these interactions explain non-linearity, but the case study also shows the importance of external regime dynamics. It is concluded that non-linearity and changes in niche expectations are related to both internal learning processes and external developments.