Why do satisfied customers switch? Focus on the restaurant patron variety-seeking orientation and purchase decision involvement

Company efforts to make customers switch from competitive brands to their own or induce them to repurchase their own brands are very important in their marketing activities and in this regard studies of customer variety-seeking orientation and level of involvement in decision making play a crucial role in explaining customers’ product selection activities. The purpose of this study intends to examine interrelationships among customer satisfaction, loyalty, and switching intent in family restaurants and verify the moderating effect of customer variety-seeking orientation and purchase decision involvement. A total of 305 patrons in Korea participated. The results showed a positive relationship between customer satisfaction and loyalty. Participants expressing a high level of satisfaction were more likely to switch restaurants. Whether customers feel loyalty determines their switching intent. There were moderating effects related to customer variety-seeking orientation in the causal relationships between customer loyalty and switching intent. Limitations and future research directions are also discussed.     

PIGS or Lambs? The European Sovereign Debt Crisis and the Role of Rating Agencies

This paper asks whether rating agencies played a passive role or were an active driving force during Europe??s sovereign debt crisis. We address this by estimating relationships between sovereign debt ratings and macroeconomic and structural variables. We then use these equations to decompose actual ratings into systematic and arbitrary components that are not explained by previously observed procedures of rating agencies. Finally, we check whether systematic, as well as arbitrary, parts of credit ratings affect credit spreads. We find that both do affect credit spreads, which opens the possibility that arbitrary rating downgrades trigger processes of self-fulfilling prophecies that may drive even relatively healthy countries towards default.     

Determinants of collective intelligence quality: comparison between Wiki and Q&A services in English and Korean users

Although web-enabled collective intelligence (CI) plays a critical role in organizational innovation and collaboration, the dubious quality of CI is still a substantial problem faced by many CI services. Thus, it is important to identify determinants of CI quality and to analyze the relationship between CI quality and its usefulness. One of the most successful services of web-enabled CI is Wikipedia accessible all over the world. Another type of CI service is Naver KnowledgeiN, a typical and popular CI site offering question and answer (Q&A) services in Korea. Wikipedia is a multilingual and web-based encyclopedia. Thus, it is necessary to study the influence relationships among CI quality, its determinants, and CI usefulness according to different CI type and languages. In this paper, we propose a new research model reflecting multi-dimensional factors related to CI quality from user’s perspective. To test a total of 15 hypotheses drawn from the research model, a total of 691 responses were collected from Wikipedia and KnowledgeiN users in South Korea and US. Expertise of contributors, community size, and diversity of contributors were identified as determinants of perceived CI quality. Perceived CI quality has significantly influenced on perceived CI usefulness from user’s perspective. CI type and different language partially play a role of moderators. The expertise of contributors plays a more important role in CI quality in the case of Q&A services such as KnowledgeiN compared to Wiki services such as Wikipedia. This implies that Q&A service requires more expertise and experiences in particular areas rather than the case of Wiki service to improve service quality. The relationship between community size and perceived CI quality was different according to CI type. The community size has a greater effect on CI quality in case of Wiki service than that of Q&A service. The number of contributors in Wikipedia is important because Wiki is an encyclopedia service which is edited and revised repeatedly from many contributors while the answer given in Naver KnowledgeiN cannot be edited by others. Finally, CI quality has a greater effect on its usefulness in case of Wiki service rather than Q&A service. In this paper, we suggested implications for practitioners and theorists.     

Do Consumption Goals Matter? The Effects of Online Loyalty Programs in the Satisfaction‐Loyalty Relation

This study investigates the effects of online loyalty programs in the customer satisfaction‐loyalty relationship. It is proposed that loyalty programs may induce loyalty toward programs (program loyalty), which may then influence loyalty toward stores (store loyalty). According to the results of a two‐wave survey, consumption goals matter in the effects of program loyalty on online store loyalty. For consumers with hedonic goals, hedonic program loyalty (e.g., free gifts) has a significant effect on online loyalty. For consumers with utilitarian goals, however, utilitarian program loyalty (e.g., coupons) has a significant influence on online loyalty. Theoretical and managerial implications are also discussed.     

Some Reflections on U.S. Treaty Commitments

Abstract

The world oil price has risen significantly since the late 1990s and reached a record high in 2008. The recent oil price hike raises concerns regarding the possible negative effects of the rising oil price on the economy as in the 1970s. We investigate the effects of the oil price hike on the Korean economy using a Bayesian dynamic stochastic general equilibrium (DGSE) model. We explicitly model the small open economy nature of the Korean economy and its oil usage and estimate the constructed model within a unified Bayesian framework. We also examine possible changes in the effects of world oil shocks on the Korean economy using counterfactual simulations. We find the adverse effects of world oil shocks as well as their importance in Korean business cycles have diminished due to reductions in the relative usage of crude oil in the economy, while world oil shocks themselves have changed relatively little over time.     

Tourism and economic development: Which investments produce gains for regions?

Across three decades numerous metropolitan regions have made substantial investments in different tourist amenity packages. These investments were made to either capture a portion of the growing tourism market or establish an image that attracted the human capital needed to advance economic development. This article analyzes the returns for the tourism industry and for economic development from different amenity packages and finds those related to sports and amusements generated the most significant gains for regions.     

Advertising and brand attitudes: Evidence from 575 brands over five years

Quantitative Marketing and Economics - Little is known about how different types of advertising affect brand attitudes. We investigate the relationships between three brand attitude variables...     

Do young firms owned by recent immigrants outperform other young firms?

This study compares the performance of new businesses owned by recent immigrants with that of other new firms. It addresses an on-going unresolved discussion in the academic and professional literatures by drawing on a large sample of Canadian business owners whose firms began trading between 2000 and 2004 and using taxation data to track 2004 to 2008 performance. The results provide empirical evidence that young immigrant-owned exporter firms outperformed young domestically-founded firms whether or not they exported; however, immigrant-owned young enterprises that did not export underperformed other young firms. Owner-level factors such as gender, growth intentions and experience also influenced growth performance among young SMEs. The results provide evidence that suggests that immigrants have resources such as access to international networks that provide competitive advantage over non-immigrant owners that export or aspire to export. Not all immigrant business owners, however, are able to lever such advantages. The implications of the findings for research and policy are discussed.