When Are Deliveries Profitable?

The paper aims to optimize the final part of a firm’s value chain with regard to attended last-mile deliveries. It is assumed that to be profitable, e-commerce businesses need to maximize the overall value of fulfilled orders (rather than their number), while also limiting costs of delivery. To do so, it is essential to decide which delivery requests to accept and which time windows to offer to which consumers. This is especially relevant for attended deliveries, as delivery fees usually cannot fully compensate costs of delivery given tight delivery time windows. The literature review shows that existing order acceptance techniques often ignore either the order value or the expected costs of delivery. The paper presents an iterative solution approach: after calculating an approximate transport capacity based on forecasted expected delivery requests and a cost-minimizing routing, actual delivery requests are accepted or rejected aiming to maximize the overall value of orders given the computed transport capacity. With the final set of accepted requests, the routing solution is updated to minimize costs of delivery. The presented solution approach combines well-known methods from revenue management and time-dependent vehicle routing. In a computational study for a German metropolitan area, the potential and the limits of value-based demand fulfillment as well as its sensitivity regarding forecast accuracy and demand composition are investigated.     

An Exploration of Frequent Service Failures in the Brazilian Airline Industry

This study explores how customer evaluations of service failures and failure recurrence impact negative emotions and intent to complain. A survey of 589 Brazilian airline passengers demonstrates the meditational effect of negative emotions such that customers who perceive failures as severe and/or preventable by the airline develop more negative emotions, which subsequently increases intent to complain. We also demonstrate the moderating role of failure recurrence such that failure recurrence reduces the effect of failure severity on negative emotions. Our findings have important implications for managers and airlines in order to mitigate negative outcomes following a service failure.     

Enterprise in orbit: The supply of communication satellites

This study develops a general understanding of the evolution of the Western World commercial communication sate-llite supply industry. Initial information classifies this industry as an oligopoly with the vendors as price setters. Over three generations, the technical attributes of communication satellites are advancing. Taking the hedonic regression approach, the customer’s willingness to pay for characteristics is calculated. Exploring the relationship between price and complexity, it is demonstrated that in the short run, the oligopoly structure of this industry is accompanied by a simple form of cost plus price setting, whereas in the long run, the engineering satellite pricing ‘rule of thumb’ applies.     

Importance of service for manufacturers: conclusions of an empirical study

This article proposes a conceptual framework for co-operation strategies in industrial channels: the service relationship. A manufacturer may develop into an industrial distributor; the author proposes a typology of service strategies based on observation of French small and medium sized enterprises. The impact of these strategies on supremacy and co-operation mechanisms is then examined.     

Tourism and online photography

This paper documents the use of online travel photo-sharing technologies among Hong Kong residents. The advent of Web 2.0 is changing fundamentally the tourist information search and destination choice process. Yet, to date, no study has documented Web 2.0 usage levels and preferences for certain media for posting travel photographs across an entire community. This study reveals that some 89% of pleasure travelers take photographs and that 41% of them posted their photographs online. Social network sites (SNSs), instant messaging, online photo albums and personal blogs were the most popular media used. In general, people who post photographs online tend to be younger, better educated, and earn a higher income than those who do not. The study determined that most people also use multiple media platforms to disseminate their images. Cluster analysis based on the four major styles of online platform identified five cohorts of users who differed in number and type of media used, demographic profile and travel motive. Implications for destination promotion are discussed.     

Perceptions of climate change impacts,adaptation and limits to adaption in the Australian Alps: the ski-tourism industry and key stakeholders

This paper explores perceptions of ski-tourism representatives and other regional stakeholders about climate change impacts, limits to tourism development and adaptation strategies in the Australian Alps. This area faces rising temperatures, declining rain and snow falls, and shorter skiing seasons. Open-ended interviews examined the perceptions, plans and attitudes of the ski industry and those of conservation managers, local government officials and Australian researchers into tourism and/or climate change effects in the Australian Alps. All interviewees accepted climate change was a reality; several, however, questioned the worst-case scenarios. The major tourism-related adaptation strategies were snowmaking and diversifying to year-round tourism; the success of these strategies will vary according to individual resorts’ snowmaking capacity and potential summer tourism revenue. Currently non-snow-based tourism revenue is worth only approximately 30% of winter revenue. Social resistance to increased water and electricity use for snowmaking emerged as an important issue. Competition for water, including the needs of ecosystems, agriculture and fire protection in this summer-fire-prone region, and fire management issues, is a key concern. Current conflicts between the ski industry and other stakeholders over climate change adaptation call for a collaborative adaptation and change policy within the Australian Alps.     

Conceptualization of CSR Among Muslim Consumers in Dubai: Evolving from Philanthropy to Ethical and Economic Orientations

Many existing studies postulate that in developing economies philanthropy tends to dominate in the CSR orientation delivered by organizations and expected by local populations. To assess this in the emerging economy of Dubai in the United Arab Emirates, we conducted a preliminary investigation of how locals are responding to the growing number of CSR initiatives that are being implemented in the Emirate. Moreover, given that scholars have argued that Islamic principles of philanthropy should guide CSR initiatives in Muslim countries, we also consider if our Emirati respondents connect CSR with Islamic philanthropy. Results from our survey of 267 local Muslim consumers in Dubai indicate that CSR is not typically equated with philanthropy. In addition, respondents displayed an appreciation of the economic benefits that CSR can generate. The implication is that organizations in Dubai no longer need to base their CSR on the platform of Islamic philanthropy as many scholars have argued. Our findings are significant for the wider Gulf region in that they suggest that in wealthy emerging nations, CSR may not be predominantly interpreted as the corporate philanthropy which is needed in poorer developing economies for the provision of infrastructure, schools, hospitals, and housing, and which in some Muslim contexts is also implemented because of local religious values.     

Time to equilibrium in exchange rates: G-10 and Eastern European economies

This paper reports different times-to-equilibrium for G-10 developed economies and the Eastern European emerging economies. By applying a novel method of value-weighted index to highly-trade-linked economies, we test the purchasing power parity to the full length of time-to-equilibrium. The times-to-equilibrium obtained are: 6 years for developed and 2 years for emerging economies. These results are consistent with the sticky price hypothesis: economies trading in highly aggregated capital goods take longer time to reach price equilibrium in the face of overshooting exchange rates: the opposite is true for primary exporters. This finding is new for these two groups, and could be compared usefully with the earlier reports of long half-life for developed countries. Also, our method of measurement establishes the actual time of the theory prediction on price-to-currency relationship. It is possible to apply this methodology to study more groups of countries.     

A multidimensional classification of market anomalies: Evidence from 76 price indices

This paper makes the first attempt to present explicit empirical evidence that market inefficiency can be multi-dimensional. Testing the Efficient Market Hypothesis (EMH) over 76 stock indices using 17 best established indicators (e.g. runs test), we show that most indices exhibit some type(s) of anomaly and that indicators differ from each other in terms of statistical power and/or the type of anomaly detected. A principal components analysis (PCA) demonstrates that indicators group along orthogonal dimensions, and hence a market can exhibit short-term memory, long-term memory and/or calendar effects, which are all distinct sources of possible inefficiency. This research presents statistical evidence on the extent and nature of market inefficiency, offers possible explanations for conflicting previous findings, and provides new insights into studying market efficiency.     

Quantifying mortality risk in small defined-benefit pension schemes

A risk of small defined-benefit pension schemes is that there are too few members to eliminate idiosyncratic mortality risk, that is, there are too few members to effectively pool mortality risk. This means that when there are few members in the scheme, there is an increased risk of the liability value deviating significantly from the expected liability value, as compared to a large scheme. We quantify this risk through examining the coefficient of variation of a scheme's liability value relative to its expected value. We examine how the coefficient of variation varies with the number of members and find that, even with a few hundred members in the scheme, idiosyncratic mortality risk may still be significant. Next we quantify the amount of the mortality risk concentrated in the executive section of the scheme, where the executives receive a benefit that is higher than the non-executive benefit. We use the Euler capital allocation principle to allocate the total standard deviation of the liability value between the executive and non-executive sections. The results suggest that the mortality risk of the scheme should be monitored and managed within the sections of a scheme and not only on a scheme-wide basis.