The Role of Service Quality,Perceived Value,and Relationship Quality in Enhancing Customer Loyalty in the Travel Agency Sector

Relationship quality is crucial to enhancing a tourist’s loyalty. Little empirical research has been conducted to link service quality, perceived value, and relationship quality to customer loyalty in the travel agency sector. This study attempts to investigate the role of service quality, perceived value, and relationship quality on customer loyalty among tourists. Relationship quality consists of three components: customer satisfaction, customer trust, and customer commitment. Structural equation modeling is used to test the linkages between the six variables that have been identified. Findings reveal that service quality and perceived value of a travel package are antecedent factors to the relationship quality with a travel agency; three components of relationship quality significantly influence a customer’s loyalty to a travel agency.     

The impact of website quality on customer satisfaction and purchase intentions: Evidence from Chinese online visitors

With the increasing popularity of online shopping and being the most populated country in the world, China is one of the major online markets now and is likely to become the largest market in the future. In the academic literature, website quality has generally been recognized as a critical step to drive business online. As such, numerous studies have been devoted to website quality and evaluations. Research efforts are, however, in need of understanding the use of websites in regards to online customers’ behavior, especially Chinese customers. This study developed and empirically tested a conceptual model of the impact of website quality on customer satisfaction and purchase intentions. Results indicated that website quality has a direct and positive impact on customer satisfaction, and that customer satisfaction has a direct and positive impact on purchase intentions. While the influence of website quality on purchase intentions exists, customer satisfaction does significantly mediate this effect. Drawing on the empirical findings, managerial implications and recommendations for future research are offered.     

AN EQUILIBRIUM GUIDE TO DESIGNING AFFINE PRICING MODELS

The paper examines equilibrium models based on Epstein–Zin preferences in a framework in which exogenous state variables follow affine jump diffusion processes. A main insight is that the equilibrium asset prices can be computed using a standard machinery of affine asset pricing theory by imposing parametric restrictions on market prices of risk, determined inside the model by preference and model parameters. An appealing characteristic of the general equilibrium setup is that the state variables have an intuitive and testable interpretation as driving the consumption and dividend dynamics. We present a detailed example where large shocks (jumps) in consumption volatility translate into negative jumps in equilibrium prices of the assets as agents demand a higher premium to compensate for higher risks. This endogenous “leverage effect,” which is purely an equilibrium outcome in the economy, leads to significant premiums for out‐of‐the‐money put options. Our model is thus able to produce an equilibrium “volatility smirk,” which realistically mimics that observed for index options.     

‘We make more money now,but we don’t talk to each other anymore’: on new tourism and capitalism in the Danube Delta

ABSTRACT

In 1991, the Danube Delta (Romania), famous for its biodiversity, became a UNESCO Biosphere Reserve. Tourists have been a constant presence in this area for more than 50 years, being accommodated exclusively, informally, in the local fishing households. Relying on extended participant observation and semi-structured interviews as the main research methods, this study presents how locals from a fishing village relate to tourism and how this process leaves a significant imprint on their social organization, use of natural resources, household economy, norms and values. Exposed to new ideas, opportunities and challenges brought in by tourism, locals are not being swept away, as many of the studies in anthropology of fishing and tourism suggest, but rather act like ‘individuals with agency’, actually empowered by tourism; local fishing and women’s traditional role as ‘the manager of the household’ are reinforced by tourists’ demands for ‘home-cooked fish dish’ and local accommodation. On the other hand, the new tourism has launched local families into a constant competition for natural resources, eroding social cohesion while leading to a commodification of family relationships.     

Board monitoring,firm risk,and external regulation

We examine the relationship between board monitoring and firm characteristics using a broad sample of firms over the 8 year period from 1996 to 2003. We find that board independence and monitoring is negatively related to firm risk in the absence of external regulation. In addition, we find that external regulatory and political pressures affect the level of board monitoring, especially after the increased focus on board composition by the stock exchanges beginning in 1999 and the passage of the 2002 Sarbanes–Oxley Act. We find that the sensitivity of the negative relationship between board monitoring and firm risk decreases in the post 1999 period suggesting that firms have increased board monitoring in response to external regulations. We also find that these external regulations have had an asymmetrical impact on high-risk firm. In our empirical analysis we also control for other factors that affect board monitoring and find that firms in which the CEO has longer tenure and greater equity ownership have less board monitoring activity and that there is a negative relationship between the level of board monitoring and the level of shareholder rights.      

Impact of an unexplained component of real exchange rate volatility on FDI: Evidence from transition countries

The aim of this paper is to examine the impact of an unexplained component of real exchange rate volatility on FDI in transition economies. We make an attempt to overcome some problems associated with previous studies; the aggregation problem, inadequate measures of volatility, short-run focus and the endogeneity problem. Using a GARCH specification, we focus on long-run volatility, while we control for the endogeneity problem by applying SYS-GMM estimation. The obtained results show that the impact of the unexplained component of real exchange rate volatility on FDI differs among economic activities since 2000. As part of the re-estimation exercise, we use two alternative measures of volatility to avoid arbitrariness. The obtained results are to a large extent in accordance with the first one.     

Simultaneous selection and weighting of moments in GMM using a trapezoidal kernel

This paper proposes a novel procedure to estimate linear models when the number of instruments is large. At the heart of such models is the need to balance the trade off between attaining asymptotic efficiency, which requires more instruments, and minimizing bias, which is adversely affected by the addition of instruments. Two questions are of central concern: (1) What is the optimal number of instruments to use? (2) Should the instruments receive different weights? This paper contains the following contributions toward resolving these issues. First, I propose a kernel weighted generalized method of moments (GMM) estimator that uses a trapezoidal kernel. This kernel turns out to be attractive to select and weight the number of moments. Second, I derive the higher order mean squared error of the kernel weighted GMM estimator and show that the trapezoidal kernel generates a lower asymptotic variance than regular kernels. Finally, Monte Carlo simulations show that in finite samples the kernel weighted GMM estimator performs on par with other estimators that choose optimal instruments and improves upon a GMM estimator that uses all instruments.     

Tragedy of the Partnership: A Critique of Elinor Ostrom

Elinor Ostrom thinks she has discovered a third way apart from private and government property: the commons. In her view, there is no “tragedy” associated with this third option. The present article takes strong issue with her. Our claim is that she has not properly distinguished between a commons and partnership arrangements. In the former case, outsiders cannot be excluded from entry; in the latter, they can. The reason for this confusion between the commons and private property in Ostrom's work is that she believes private property is possible only if government protects and enforces it. We show by using various historical examples that this assumption is wrong, and hence the central tenet of Ostrom's model of the commons fails.     

Bad volatility is not always bad: evidence from the commodity markets

ABSTRACT

Using exchange-traded fund (ETF) options data, we examine the predictive power of variance risk premium on returns of four commodities: crude oil, natural gas, gold and silver. We also analyze the predictive power of upside and downside variance risk premiums using a decomposition model conditional on the direction of the underlying market movement. We find that both the undecomposed and decomposed variance risk premiums are able to predict commodity prices. The decomposed variance risk premiums, however, outperform the undecomposed premium. The importance of upside and downside variance risk premiums differs across markets, related to hedging demand. In energy markets, both upside and downside premiums have strong predictive power, while in precious metal markets, only the upside premium is predictive.