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1 – 6 of 6Jewoo Kim, Jaewook Kim and Yiqi Wang
Due to increased health concerns, restaurant customers rely more on credible cues that indirectly represent health-related credence quality. To comprehensively understand the…
Abstract
Purpose
Due to increased health concerns, restaurant customers rely more on credible cues that indirectly represent health-related credence quality. To comprehensively understand the dynamics between credence cues and restaurant delivery with different infection risks, this study aims to investigate changes in cue utilization during the pandemic.
Design/methodology/approach
Data on delivery sales, brand and review rating between 2019 and the first half of 2020 were obtained from Meituan. Fixed-effects estimation was used to investigate 579,858 restaurant observations across 338 cities in China.
Findings
Health concerns significantly increased the use of restaurant delivery and the increased delivery sales remained steady even after infection risk was reduced. However, cue utilization in restaurant delivery substantially changed depending on inflection risk. In the pandemic-spreading period, the sales effect of the brand increased while that of review rating decreased. The decreased effect of review rating was recovered in the pandemic-flattening period, whereas the abnormal brand effect continued only when branded restaurants had a high rating.
Research limitations/implications
The findings demonstrate the selective and contextual nature of cue utilization in the restaurant delivery setting. These characteristics are also manifested in a health crisis from a credence cue perspective.
Practical implications
The findings demonstrate the selective and contextual nature of cue utilization in the restaurant delivery setting. These characteristics are also manifested in a health crisis from a credence cue perspective. Further, this study re-conceptualizes credence quality and cues, considering their roles in risk management. The findings help develop risk management strategies based on customers’ usage patterns of credence cues in health crises.
Originality/value
The dynamics between credence cues and restaurant delivery has not been comprehensively investigated, especially when infection risk changes. This study delivers theoretical and practical contributions about how to use credence cues in the restaurant business amid health crises.
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Sung In Kim, Jaewook Kim, Yoon Koh and John T. Bowen
The research purpose is to conceptualize competitive productivity (CP) in the peer-to-peer (P2P) accommodation businesses. This study aims to conceptualize the four driving forces…
Abstract
Purpose
The research purpose is to conceptualize competitive productivity (CP) in the peer-to-peer (P2P) accommodation businesses. This study aims to conceptualize the four driving forces of P2P hosts’ CP and to empirically capture guest-based equity that supports such conceptual hosts’ CP model.
Design/methodology/approach
The goal of this paper is to apply Bauman’s Firm competitive productivity (FCP) model to the P2P accommodation business to conceptualize the CP of micro-entrepreneurial hosts. Four areas of the FCP model were reviewed to find how each of them contributes to the P2P hosts’ CP maximization.
Findings
Host talent, host resource management, value and host branding were conceptualized as key drivers of P2P hosts’ CP. The study also filled a gap in current literature by empirically analyzing online reviews to successfully capture key guest-based equity as satisfiers contributing to host talent, resource and branding.
Practical implications
Based on the hosts’ CP model, customer-generated resources play a significant role in the managerial implications, so that guest reviews with needs and wants and ratings can be empirically used to strengthen hosts’ CP under specific market circumstances.
Originality/value
This study is the first attempt to conceptualize a P2P host as a micro-entrepreneurial firm in the sharing economy platform for CP. This study looked at how the unique characteristics of the P2P accommodation industry and guest-based equity affect the P2P hosts’ CP.
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Yoon Koh, Minwoo Lee, Jaewook Kim and Yun (Yvonne) Yang
Crowdfunding can be an effective fundraising vehicle to independent restaurants to overcome fundraising limitations due to its small-size and high risk. A few studies have…
Abstract
Purpose
Crowdfunding can be an effective fundraising vehicle to independent restaurants to overcome fundraising limitations due to its small-size and high risk. A few studies have identified contents of communication for successful crowdfunding, yet missing is on how to say. The purpose of this paper is to investigate linguistics styles that are effective in pitches in restaurant crowdfunding.
Design/methodology/approach
The study analyzed 500 restaurant crowdfunding projects listed on Kickstarter.com that is one of the most popular crowdfunding platforms with sizable restaurant projects. By text analysis, this study identifies four linguistic categories – concrete, precise, interactive and language with low psychological distancing – from the project descriptions. A binominal linear regression analysis identified effective language styles that increases success of restaurant crowdfunding.
Findings
Drawing on the language expectancy theory and uncertainty reduction theory, this study found that project descriptions that are concrete and delivering stories with fewer usage of first person pronouns are likely to succeed in restaurant fundraising. Interactive style was counter-effective while preciseness of language did not affect funding success significantly. Findings further reveal the roles of non-linguistic attributes shown in the project pitches.
Research limitations/implications
Despite the increasing practice of restaurant crowdfunding and good matches with small- and medium-sized restaurants’ needs, scant research has been conducted. Notably absent from the research is work on linguistic styles that are effective in restaurant crowdfunding. This study extends the prior literature by investigating how restaurant entrepreneurs should communicate with potential crowdfunders to make crowdfunding successful in the restaurant context. Simply knowing what are important does not provide holistic help to restaurant entrepreneurs; they also should know how to communicate well.
Practical implications
The findings of this study are important for restaurant entrepreneurs who need to present their projects and communicate effectively with potential investors online. Based on the study’s findings, crowdfunding platforms could enhance their project posting systems by developing algorithm that automatically measures language cues embedded in a project description and providing suggestions to improve persuasiveness of languages to maximize funding success for restaurant projects.
Originality/value
Scant research has been conducted in the restaurant crowdfunding; prior crowdfunding literature has focused on the projects other than restaurants such as technology, design and film. This study is the first that uncovers the role of the linguistic styles for the specific context of restaurant crowdfunding. This study sheds the light on the critical communication strategies used by small-sized restaurant entrepreneurs on crowdfunding platform.
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Chris Baumann, Wujin Chu, Hume Winzar, Michael Cherry and Doris Viengkham
Pitabas Mohanty and Supriti Mishra
Fear grips stock markets when a pandemic like COVID-19 strikes, severely affecting stock prices. However, fundamental value drivers of companies do not change drastically during…
Abstract
Purpose
Fear grips stock markets when a pandemic like COVID-19 strikes, severely affecting stock prices. However, fundamental value drivers of companies do not change drastically during pandemics. The sensitivity of firms' cash flows to lockdowns during pandemics depends on their cost structure. This paper develops a financial model incorporating information about value drivers and lockdown sensitivity of companies to find the enterprise value.
Design/methodology/approach
The authors develop a financial model that estimates the effects of COVID-19 on enterprise value and helps to identify wrongly valued stocks. The authors apply the model to five Indian stocks from five different industries to study how firms belonging to various sectors get affected differently in this pandemic.
Findings
Companies belonging to civil aviation and retail sectors get more affected by COVID-19 compared to those in movie exhibition, automobile and hotel industries. The cost structure of the latter category of firms reduces their cash flow effect.
Practical implications
The model can be used by practitioners to understand any pandemic's effect on stock prices. Also, it explains how firms having different cost structures get affected by any crisis and help investors in taking appropriate buy/sell decisions.
Originality/value
The study has two contributions: first, the authors develop a financial model to estimate the effect of COVID-19 on the enterprise value. Second, contrary to popular perception, the authors find companies belonging to movie exhibition, hotel and automobile industries do not get that severely affected.
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Jae Wook Kim and J. Keith Murnighan
This paper investigates the impact of some of the underlying dynamics of volunteering choices in organizational contexts, focusing on individual, group, and organizational level…
Abstract
This paper investigates the impact of some of the underlying dynamics of volunteering choices in organizational contexts, focusing on individual, group, and organizational level causes. Three scenario‐based experiments manipulate individuals' standing within their organization (i.e., whether they are doing well or poorly) in combination with variables such as the expected efficacy of one's team and positive or negative organizational performance. In comparison to other recent volunteering studies, all three current experiments focused on an explicit organizational context and found much stronger intentions to volunteer, particularly when a person's standing was good. The combination of poor standing with expectations of poor performance by one's group or one's organization led to reductions in these otherwise strong intentions to volunteer. The results also show that feelings of obligation, expectations of extrinsic rewards, and identifying with one's organization are all significantly related to volunteering choices.