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In the context of sequential multistage utilitarian service processes, the purpose of this study is to develop and validate propositions to study the impact of service quality (SQ) perceptions developed in intermediate stages, along with the impact of service gestalt characteristics, such as peak and end experiences, on quality perception at each stage and on overall service quality (OSQ) perception. The cascade phenomenon (interdependency between process stages) is considered in the evaluation of OSQ perception of customer, who experiences service through a series of planned, distinct and partitioned sequential stages.

In this paper, a conceptual framework is used to evolve the propositions. Subsequently, propositions are tested in three different utilitarian service contexts wherein customer survey was conducted for feedback on attributes at each stage, summary perception evaluations of each stage and OSQ evaluation of multistage process. Peak experiences, considered for OSQ evaluation, were defined by a suitable statistical technique. Ordinal logistic regression with nested models is the technique used for analyzing the data.

This work reveals significant cascade effect of summary evaluation of intermediate stages on the subsequent stage. Peak customer experience (negative or positive) is observed to be marginally significant on intermediate stage and OSQ evaluation. In addition, OSQ is observed to be influenced by summary perception evaluations of intermediate stages, which leads to better model adequacy. Finally, among all the stages, end stage performance is observed to have a significant impact on the overall multistage SQ.

The findings suggest that in view of the cascade effect of intermediate stages, managers need to allocate resources to ensure that all stages are performing at an adequate level instead of only focusing on improving peaks and end effects of customer experiences. The proposed approach is easy to implement and suitable for evaluating SQ and OSQ in varied multistage sequential utilitarian service environment.

An integrated approach for evaluation of SQ in sequential multistage utilitarian service processes is proposed from the perspective of cascade effect of intermediate stages and peak and end effects on OSQ perception.

Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and judicial decisions that contain 2,041 quantitative estimates of overcharges of hard-core cartels. The primary findings are: (1) the median average long-run overcharge for all types of cartels over all time periods is 23.0%; (2) the mean average is at least 49%; (3) overcharges reached their zenith in 1891–1945 and have trended downward ever since; (4) 6% of the cartel episodes are zero; (5) median overcharges of international-membership cartels are 38% higher than those of domestic cartels; (6) convicted cartels are on average 19% more effective at raising prices as unpunished cartels; (7) bid-rigging conduct displays 25% lower markups than price-fixing cartels; (8) contemporary cartels targeted by class actions have higher overcharges; and (9) when cartels operate at peak effectiveness, price changes are 60–80% higher than the whole episode. Historical penalty guidelines aimed at optimally deterring cartels are likely to be too low.

The objective of this paper is to propose and empirically test a potential mechanism for how consumers form reference prices. The proposed peak‐end rule of reference price formation says that reference prices are formed as a weighted average of the highest observed price and the most recent price.

The authors argue why the peak‐end rule observed in satisfaction contexts may also apply to the process by which consumers form reference prices. They then test the proposed peak‐end rule using IRI scanner panel data for decaffeinated coffee.

Fit and predictive validity of a choice model improves when a reference price term based on the peak‐end rule is added. While the most recent price has a greater impact on reference price, the effect of the highest observed peak price is also significant, managerially and statistically.

The study provides evidence for a novel and behaviorally plausible reference price formation process.

Temporarily charging a high price has a longer‐lasting effect on reference price than would be suggested by other reference price models, which typically involve a quickly decaying lag effect. Temporarily charging a very high price to restore the reference price may therefore be a useful pricing tactic.

While the peak‐end rule is amply supported as a mechanism by which consumers form global satisfaction judgements, its application to reference price formation is novel, and has some potentially useful implications.

This study aims to examine the moment-to-moment (MTM) effects of in-consumption dynamic comments on consumers' responses to digital engagement and the underlying mechanisms involved, as well as the interactive role of advertisements embedded in short-form online video.

This study uses data extracted from 2,081 videos posted on the prominent Chinese online live platform, Bilibili. The hypotheses are tested using regression models and natural language processing.

The results indicate that the intensity of live comments at the beginning negatively affects users' digital engagement, while a corresponding increase in live comments at the end elicits a positive effect. A linear trend and peak difference in live comments intensity positively affect digital engagement, while the variability of live comment intensity exerts a negative effect. These MTM effects were driven by sentiments of live comments. Furthermore, in-video advertisements are likely to amplify the negative beginning effect on users' digital engagement and mitigate the negative variability of live comments.

This study is the first to examine the direct effects of MTM comments from the online temporal sequence perspective, differentiating the process- and performance-based engagement. The mechanism and interactive role of in-video advertisements were identified. These findings contribute to literature on interactive marketing and provide valuable guidance for influencer marketing.

Tourism destination marketers use videos that incorporate storytelling and visual and audio components to evoke emotional arousal and memorability. This study aims to examine the increase in participants’ level of arousal and the degree of memorability after watching two different videos.

A quasi-experimental study was conducted with 45 participants who watched two destination promotional videos. One video used storytelling whereas the other used scenic images and music. The level of arousal was measured using both tonic and phasic electrodermal activity levels. The memorability of each video was measured after seven days by testing the recall accuracy.

Scenic imagery and music videos were associated with higher-than-average arousal levels, while storytelling videos generated larger-amplitude arousal peaks and a greater number of arousal-evoking events. After a week, the respondents recalled more events from the storytelling video than from the scenery and musical advertisements. This finding reveals that the treatment, storytelling and sensory stimuli in advertising moderate the impact of arousal peaks and memorability.

These results indicate that nonnarrative videos using only sceneries and music evoked a higher average level of arousal. However, memorability was associated with higher peak levels of arousal only in narrative storytelling. This is the first tourism study to report the effects of large arousal peaks on improved memorability in advertising.

This paper surveys published economic studies and judicial decisions that contain 1,040 quantitative estimates of overcharges of hard-core cartels. The primary finding is that the median long-run overcharge for all types of cartels over all time periods is 25.0%:18.8% for domestic cartels and 31.0% for international cartels. Cartel overcharges are positively skewed, pushing the mean overcharge for all successful cartels to 43.4%. Convicted cartels are on average as equally effective at raising prices as unpunished cartels, but bid-rigging conduct does display somewhat lower mark-ups than price-fixing cartels. These findings suggest that optimal deterrence requires that monetary penalties ought to be increased.

This study aims to investigate the effects of flight delays, distance, number of passengers and seasonality on revenue in the Turkish air transport industry.

The domestic return routes of a Turkish airline company were examined to address this issue. Among five cities and six airports, 14 major domestic return routes were selected. The augmented mean group (AMG) estimator and common correlated effects mean group (CCEMG) estimator were conducted with a two-way fixed effects (FE) robustness test in this study.

The results show that arrival flight delay and departure flight delay had negative effects on revenue, whereas the distance between airports, the number of air passengers and seasonality had positive effects on revenue.

The data used in this study were retrieved from a Turkish airline company; for future research, other airline companies operating in Turkey may be included.

These findings could be evaluated by air transportation leaders to provide a guide to make strategic decisions to achieve greater performance in this competitive environment.

The originality of the paper comes from the facts that besides distance and number of passengers, the authors control for the seasonality when assessing the effects of flight delay on revenue; they use panel data techniques, which permit them to control for individual heterogeneity, and create more variability, more efficiency and less collinearity among the variables; they use two recent panel data techniques, CCEMG and AMG, allowing for cross-section dependence.

This paper quantifies the effects of recent Federal Reserve interest rate changes, specifically recent hikes and cuts in the federal funds rate since 2015, on Midwest farmland values.

The authors apply three autoregressive distributed lag (ARDL) models to a panel data of state-level farmland values from 1963 to 2018 to estimate the dynamic effects of interest rate changes on the US farmland market. We focus on the I-states, Lakes states and Great Plains states. The models in the study capture both short-term and long-term impacts of policy changes on land values.

The authors find that changes in the federal funds rate have long-lasting impacts on farmland values, as it takes at least a decade for the full effects of an interest rate change to be capitalized in farmland values. The results show that the three recent federal funds rate cuts in 2019 were not sufficient to offset the downward pressures from the 2015–2018 interest rate hikes, but the 2020 cut is. The combined effect of the Federal Reserve's recent interest rate moves on farmland values will be positive for some time starting in 2022.

This paper provides the first empirical quantification of the immediate and long-run impacts of recent Federal Reserve interest rate moves on farmland values. The authors demonstrate the long-lasting repercussions of Federal Reserve's policy choices in the farmland market.