Recipe for perceived personalization in hotels

Personalization is commonly practiced in hotels as a means of addressing criticism of hospitality products and services as imitable. However, personalization attempts are not always successful, as customers may not perceive a service as personalized. Limited knowledge exists regarding how to craft personalized service successfully. This study explores how perceived personalization is formed in a hotel context by examining the causal relationship between actual personalization and perceived personalization. Mixed research design was adopted and three studies were executed sequentially. Study 1 comprises qualitative inquiries where two key factors (effort and surprise) of actual personalization attempts were identified. Their effects on perceived personalization were then tested through online experiments in Study 2. Finally, the relationships between actual personalization, perceived personalization and customer behavioral intention were confirmed based on survey data in Study 3. The findings can be conducive for hoteliers to implement successful personalization strategies.     

Geographic Cross-Sectional Fiscal Spending Multipliers and the Role of Local Autonomy: Evidence from European Regions

Using a panel of 268 European regions during 1990–2014, we document that the degree of local government's autonomy, measured with the “Local Autonomy Index,” has a significant positive effect on the fiscal spending multiplier. The estimated geographic cross-sectional fiscal spending multiplier is on average close to zero in countries with the lowest degree of local autonomy, and around unity in countries with the highest degree of local autonomy. Multipliers are state-dependent: larger when gross domestic product is below trend and when there is slack in the labor market; in those states, local autonomy has a particularly large positive effect on the multiplier. To interpret the empirical findings, we build a Dynamic Stochastic General Equilibrium (DSGE) model where both local and central government spending contribute to a public good that enhances private labor productivity. Local governments are more efficient in producing the public good and the multiplier is higher in countries where local government spending has a larger share in the production of the public good.