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1 – 2 of 2Yubo Guo, Yangyang Su, Chuan Chen and Igor Martek
The Public–Private Partnership (PPP) modality plays an important role in the procurement of global infrastructure projects. Regarding PPP's complex transaction structure, pricing…
Abstract
Purpose
The Public–Private Partnership (PPP) modality plays an important role in the procurement of global infrastructure projects. Regarding PPP's complex transaction structure, pricing of a PPP project is critical to both parties where the government pursues a high value for money (VFM) and the investor strives to maximize its financial gains. Despite the straightforward win–win principle, a formidable compromise is often the case to end up with a fairly acceptable price, subject to many determinants such as the risk profile, expected return, technological innovation and capacities of both parties. Among them, this study chooses to examine the “managing flexibility” (MF) capacity of investors in pricing of a PPP project, in light of the widely recognized importance of a real-option perspective toward the long term, complex and uncertain PPP arrangement. This study addresses two major questions: (1) how is MF in PPP projects to be valued and (2) how are PPP projects to be priced when considering a project's MF value.
Design/methodology/approach
A binomial tree model is used to evaluate the MF value in PPP projects. Based on the developed MF pricing model, net present value (NPV) and adjusted VFM value are then calculated. Finally, a multi-objective decision-making method (MODM) was adopted to determine the optimal level of returns based on invested capital (ROIC), return on operation maintenance (ROOM) and concession period.
Findings
The applicability and functionality of the proposed model is investigated using a real project case. For a given return, extended NPV and adjusted VFM value were calculated and analyzed using sensitivity analysis. Factor influence is shown by the model to be dependent on factor impact on cash flow. Subsequently, a multi-objective decision-making (MODM) model was adopted to determine the optimal level of returns, where the solution approximates the real-world bidding price. Results confirm that the pricing model provides a reliable and practical PPP proposal pricing tool.
Originality/value
This study proposes an integrated framework for valuing MF in PPP projects and thus more accurately determine optimal pricing of PPP projects than revealed in extant research. The model offers a practical tool to aid in the valuation of PPP projects.
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Shichang Liang, Rulan Li, Bin Lan, Yuxuan Chu, Min Zhang and Li Li
This study explores how chatbot gender and symbolic service recovery may improve the satisfaction of angry customers in the context of service failures. It provides a strategy for…
Abstract
Purpose
This study explores how chatbot gender and symbolic service recovery may improve the satisfaction of angry customers in the context of service failures. It provides a strategy for companies to deploy chatbots effectively in customer anger.
Design/methodology/approach
This research relies upon a systematic literature review to propose three hypotheses, and we recruit 826 participants to examine the effect of chatbot gender on angry customers through one lab study and one field study.
Findings
This research shows that female chatbots are more likely to increase the satisfaction of angry customers than male chatbots in service failure scenarios. In addition, symbolic recovery (apology vs. appreciation) moderates the effect of chatbot gender on angry customers. Specifically, male (vs. female) chatbots are more effective in increasing the satisfaction of angry customers when using the apology method, whereas female (vs. male) chatbots are more effective when using the appreciation method.
Originality/value
The rapid advancements in artificial intelligence technology have significantly enhanced the effectiveness of chatbots as virtual agents in the field of interactive marketing. Previous research has concluded that chatbots can reduce negative customer feedback following a service failure. However, these studies have primarily focused on the level of chatbot anthropomorphism and the design of conversational texts, rather than the gender of chatbots. Therefore, this study aims to bridge that gap by examining the effect of chatbot gender on customer feedback, specifically focusing on angry customers following service failures.
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