The Moderating Role of Water Park Service Quality,Environment, Image,and Food Quality on Perceived Value and Customer Loyalty: A South Korean Case Study

This study empirically examined not only the relationship between perceived value and customer loyalty, but also the moderating role of service quality, environment, image, and food quality at a water park, a segment of the tourism industry. In particular, the current study, using hierarchical regression analyses, examined the direct effects of perceived value on customer loyalties—loyalty and behavioral loyalty—as well as the moderating effect of four elements. As anticipated, this study showed that perceived value has significant and positive effect on both types of loyalty. In addition, the result of the interaction effects showed that service quality and food quality acted as moderators on the relationship between perceived value and attitudinal loyalty; however, water park image acted as a moderator on the relationship between perceived value and behavioral loyalty only. Finally, these results indicated that three elements—service quality, water park image, and food quality—have significant interaction on the relationship between perceived value and attitudinal/behavioral loyalty. These findings may provide water park operators with useful and detailed guidelines for satisfying customer loyalty levels, both attitudinally and behaviorally. More detailed findings and implications are also discussed.     

Disentangling the Predictive Power of Term Spreads under Inflation Targeting

Under inflation targeting, S. Cho and J. Lee (2014, Inflation targeting and predictive power of term spreads. Seoul Journal of Economics, 27, 391–419), A. Estrella (2005, Why does the yield curve predict output and inflation? The Economic Journal, 115, 722–744) and P.L. Siklos (2000, Inflation targets and the yield curve: New Zealand and Australia versus the US. International Journal of Finance &; Economics, 5, 15–32) have reported that the predictive power of yield spreads for future inflation decreases in inflation targeting countries. In this paper, we decompose the yield spread into the expectations hypothesis component and the term premium, and find that the decrease in the predictability is mostly due to the deterioration of information embedded in the expectations hypothesis component. Our finding reveals that if inflation targeting is successful in achieving its main goal, then the expectations for future inflation are anchored at the target inflation rate (or range), and thereby the predictive contents of the term spreads regarding future inflation decrease.     

Anthropomorphizing makes material goods as happiness-inducing as experiences

Prior research suggests that material goods (e.g., electronic gadgets) often provide less happiness than do experiences (e.g., movies). As a boundary condition, the present research proposes a theory-based yet actionable solution to overcome the happiness disadvantage of material goods. Three studies show that when material goods are anthropomorphized (i.e., imbued with humanlike characteristics), consumers gain enhanced feelings of consumption sociality and, in turn, derive a boost in happiness such that they gain as much happiness from these material goods as from experiences. With mediation and moderation approaches, we provide process evidence for these enhanced feelings of consumption sociality that are typically lacking with material purchases, which are prone to being consumed alone rather than with other people. Thus, the present research suggests that even in the absence of other people, consumers can gain greater happiness from their material goods by perceiving them as human.

     

The reluctant Hong Kong consumer: purchasing travel online

Hong Kong consumers have embraced the web but appear reluctant to buy airline tickets online, suggesting that perceptions of risk outweigh perceived convenience. In this study we identify that both risk and convenience factors are associated strongly with willingness to purchase, particularly privacy, security and poor customer service, time savings, site usability and information provision. We identify further that the experienced shopper is only moderately satisfied and that satisfaction appears to be associated strongly with willingness to make further purchases. Overall, findings suggest that although consumers recognize a number of benefits, there is deep‐rooted resistance to buying this particular product online. The explanation may lie in a combination of the physical density of the Hong Kong market, love of the whole shopping experience and a desire to minimize risk. We conclude that to tempt consumers online airlines and agents must target the Hong Kong market with a clear value proposition which includes user‐friendly sites, streamlined payment procedures, on‐ and offline customer support, price‐related promotions and tailored offline services which reinforce online offerings.     

Profiling people’s perceptions of retail management careers

Abstract

Educators are challenged to generate awareness of retail education programs and related career options. A corresponding issue for retailers is the recruitment and retention of career-oriented managers. The issue is complicated by negative attitudes in the general population about retail careers and a lack of awareness about retail career options. This study examines these attitudes through a questionnaire administered to a nation-wide sample of 310. A cluster analysis reveals four groups based on differences in their demographic/psychosocial characteristics and career preferences. The findings provide foci and key messages targeted to the distinct groups upon which retail managers and educators can base discrete career awareness and recruiting strategies.     

Global retailers and logalization: ‘thinking locally and acting globally’

Abstract

This research provides theoretical rationale to explain how global retailers are able to harvest multiple ideas from diverse host-markets and add relevant new ideas into a standardized retail mix that is rolled out globally. To capture this bottom-up harvesting of local information embedded in host-markets, this study adopted the term ‘logalization’ from the economics literature and applied the absorptive capacity framework. Under the activation of absorptive capacity, host-market subsidiaries play a critical role in acquiring and assimilating relevant knowledge from the host market and disseminating it to headquarters. The home-country headquarters (HQ) then transforms relevant knowledge into an innovative standardized retail mix to exploit at the global level. The concept of ‘logalization’ differs from ‘glocalization’ found in the literature; glocalization incorporates the local context to establish a strategy at the local level, while logalization uses local information as a resource to develop a standardized strategy at the global level. The development of propositions is informed by semi-structured interviews with 10 managers employed by global retailers. By illustrating the logalization orientation, this research describes how global retailers can create an innovative retail mix by exploiting heterogeneous information from various host-markets to create and sustain a competitive advantage in the global market.     

THE MOMENT FORMULA FOR IMPLIED VOLATILITY AT EXTREME STRIKES

Consider options on a nonnegative underlying random variable with arbitrary distribution. In the absence of arbitrage, we show that at any maturity T , the large-strike tail of the Black-Scholes implied volatility skew is bounded by the square root of  2| x |/ T   , where x is log-moneyness. The smallest coefficient that can replace the 2 depends only on the number of finite moments in the underlying distribution. We prove the moment formula , which expresses explicitly this model-independent relationship. We prove also the reciprocal moment formula for the small-strike tail, and we exhibit the symmetry between the formulas. The moment formula, which evaluates readily in many cases of practical interest, has applications to skew extrapolation and model calibration.     

Interference of Picture and Brand Name in a Multiple Linkage Ad Context

This study investigates the superiority effects of picture incongruency and brand name suggestiveness on recall of target benefit claims. Depending on the juxtaposition of the picture and brand name with these claims, a relevant picture can interfere with and inhibit recall of a brand name claim under selected conditions. Specifically, recall of brand name claim was higher under an irrelevant rather than a relevant picture condition. Similarly, a suggestive brand name interfered and diminished recall of a picture claim compared to a nonsuggestive brand name. Additionally, the recall patterns of the picture (source) versus the picture claim (target) under various incongruency conditions showed that the effectiveness of picture incongruency on traditional picture recall measure cannot be extended to picture-related claim recall performance. Explanations based on theoretical extensions to the associated network model and interference theory are furnished together with the managerial implications regarding the effective use of picture incongruency and brand name suggestiveness.