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1 – 10 of over 6000Tianyu Pan, Rachel J.C. Fu and James F. Petrick
This study aims to examine consumer perception during COVID-19 and identifies cruise industry marketing strategies to fill a gap in crisis management and product pricing…
Abstract
Purpose
This study aims to examine consumer perception during COVID-19 and identifies cruise industry marketing strategies to fill a gap in crisis management and product pricing literature.
Design/methodology/approach
This study developed and validated two-factor measurement scales (vaccine perception and protective behavior), which predicted cruise intents well. This study revealed how geo-regional factors affect consumer psychology through spatial analysis.
Findings
This study recommended pricing 7-day cruises at $1,464 (the most preferred length). The results also showed that future price hikes would not affect demand and that coastal marketing would help retain customers.
Originality/value
This study contributed to the business, hospitality and tourism literature by identifying two new and unique factors (vaccine perception and protective behaviors), which were found to affect consumers’ intention to travel by cruise significantly. The result provided a better understanding of cruise tourists’ pricing preferences and the methods utilized could easily be applied to other cruise markets or tourism entities.
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This paper gives a model of collusion formation and a method of measuring the degree of it among the traders/bidders in the agricultural commodity markets in India. The important…
Abstract
Purpose
This paper gives a model of collusion formation and a method of measuring the degree of it among the traders/bidders in the agricultural commodity markets in India. The important assumption is that the bidding is repetitive with a set of common bidders. The theory has been derived based on the behavior of the wholesale market of agricultural commodities in India. The paper is based on full information in the collusion formation. The paper first derives the theoretical structure of the bidders' behavior and thereafter derives a measure of collusion formation with the help of real-life data.
Design/methodology/approach
The paper used the standard theory of optimization and the theory of auction and probability statistics.
Findings
This is a complete information model of cartel formation. The bidding is repetitive and continues forever in discrete time. Hence bidders behavior is observable. Using the proposed method, if the APMC measures for each market and publishes on a periodic basis, say weekly basis, then it will be easier to break the collusion in the market where relative collision is present. For example, if a farmer has three options to sell in three different markets, then the published data would help them to select the market where the degree of collusion is relatively lower. Moreover, the undesirable loss can be avoided based on the right choice of market. As a result, transaction costs will be optima.
Originality/value
The paper first derives the theoretical structure of the bidders' behavior and thereafter derives a measure of collusion formation with the help of real-life data.
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Fatemeh Binesh, Amanda Mapel Belarmino, Jean-Pierre van der Rest, Ashok K. Singh and Carola Raab
This study aims to propose a risk-induced game theoretic forecasting model to predict average daily rate (ADR) under COVID-19, using an advanced recurrent neural network.
Abstract
Purpose
This study aims to propose a risk-induced game theoretic forecasting model to predict average daily rate (ADR) under COVID-19, using an advanced recurrent neural network.
Design/methodology/approach
Using three data sets from upper-midscale hotels in three locations (i.e. urban, interstate and suburb), from January 1, 2018, to August 31, 2020, three long-term, short-term memory (LSTM) models were evaluated against five traditional forecasting models.
Findings
The models proposed in this study outperform traditional methods, such that the simplest LSTM model is more accurate than most of the benchmark models in two of the three tested hotels. In particular, the results show that traditional methods are inefficient in hotels with rapid fluctuations of demand and ADR, as observed during the pandemic. In contrast, LSTM models perform more accurately for these hotels.
Research limitations/implications
This study is limited by its use of American data and data from midscale hotels as well as only predicting ADR.
Practical implications
This study produced a reliable, accurate forecasting model considering risk and competitor behavior.
Theoretical implications
This paper extends the application of game theory principles to ADR forecasting and combines it with the concept of risk for forecasting during uncertain times.
Originality/value
This study is the first study, to the best of the authors’ knowledge, to use actual hotel data from the COVID-19 pandemic to determine an appropriate neural network forecasting method for times of uncertainty. The application of Shapley value and operational risk obtained a game-theoretic property-level model, which fits best.
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Although the effects of both news sentiment and expectations on price in financial markets have now been extensively demonstrated, the jointness that these predictors can have in…
Abstract
Purpose
Although the effects of both news sentiment and expectations on price in financial markets have now been extensively demonstrated, the jointness that these predictors can have in their effects on price has not been well-defined. Investigating causal ordering in their effects on price can further our understanding of both direct and indirect effects in their relationship to market price.
Design/methodology/approach
We use autoregressive distributed lag (ARDL) methodology to examine the relationship between agent expectations and news sentiment in predicting price in a financial market. The ARDL estimation is supplemented by Grainger causality testing.
Findings
In the ARDL models we implement, measures of expectations and news sentiment and their lags were confirmed to be significantly related to market price in separate estimates. Our results further indicate that in models of relationships between these predictors, news sentiment is a significant predictor of agent expectations, but agent expectations are not significant predictors of news sentiment. Granger-causality estimates confirmed the causal inferences from ARDL results.
Research limitations/implications
Taken together, the results extend our understanding of the dynamics of expectations and sentiment as exogenous information sources that relate to price in financial markets. They suggest that the extensively cited predictor of news sentiment can have both a direct effect on market price and an indirect effect on price through agent expectations.
Practical implications
Even traditional financial management firms now commonly track behavioral measures of expectations and market sentiment. More complete understanding of the relationship between these predictors of market price can further their representation in predictive models.
Originality/value
This article extends the frequently reported bivariate relationship of expectations and sentiment to market price to examine jointness in the relationship between these variables in predicting price. Inference from ARDL estimates is supported by Grainger-causality estimates.
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The case has been developed by using secondary sources of information.
Abstract
Research methodology
The case has been developed by using secondary sources of information.
Case overview/synopsis
Tesla’s much-awaited foray into the burgeoning Indian electric vehicle (EV) marketplace had hit the “high import tariff” roadblock. Discussions ensued and finally, Elon Musk, the CEO of Tesla and the Indian Government found common ground. The moot point of Tesla’s entry mode was resolved. Musk announced Tesla’s plan to set up an EV supply chain and manufacturing facility in the host country. This case discusses factors affecting location decision, market entry modes and international corporate-level strategies. Tata Motors sold affordable cars and was miles ahead in the EV race in India. Musk had to align Tesla’s India strategy with the company’s global strategy to woo the price-sensitive Indian consumers. What were the options available to him? This case examines different business-level strategic options that could help Tesla drive in the fast lane in India.
Complexity academic level
The case can be used in international strategy course at graduate level. It can also be used in a session on international marketing in marketing management course.
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Keywords
- International business strategy
- Competitive advantage
- International market entry
- Product differentiation
- Marketing strategy
- Market orientation
- Market entry strategy
- International corporate level strategy
- Cost leadership
- Transnational strategy
- Product differentiation
- Location choice
- Indian EV market
- Integrated cost leadership/differentiation
The expected learning outcomes are to understand the complexities involved in the integration of two carriers with different business strategies and approaches, the merger of two…
Abstract
Learning outcomes
The expected learning outcomes are to understand the complexities involved in the integration of two carriers with different business strategies and approaches, the merger of two brands with distinct personas and identities and the confluence of two different cultures; figure out the strategic options in front of the Tata Group and how it can deal with various macro- and micro-level business challenges, defy the financial hiccups and manoeuvre the operational complexities to accomplish mission Vihaan.AI; and develop a pragmatic approach to macro and micro business environmental scanning for making strategic business decisions.
Case overview/synopsis
In November 2022, Tata Group, the salt to software conglomerate, announced the merger of Air India (AI) and Vistara. This would lead to the formation of the full-service airline under the brand name “Air India”. The obvious reason behind this was the higher recognition, salience and recall of the brand AI as compared with Vistara in the global market. The Tata Group envisaged the brand AI to be a significant international aviation player with the heritage, persona and ethos of the brand Vistara in the renewed manifestation of AI. To realise these goals, Tata Group laid down an ambitious plan called “Vihaan.AI”, which was aimed at capturing a domestic market share of 30% by 2027.
Complexity academic level
This case study can be taught as part of undergraduate- and postgraduate-level management programmes.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
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Mandeep Kaur, Maria Palazzo and Pantea Foroudi
Circular supply chain management (CSCM) is considered a promising solution to attain sustainability in the current industrial system. Despite the exigency of this approach, its…
Abstract
Purpose
Circular supply chain management (CSCM) is considered a promising solution to attain sustainability in the current industrial system. Despite the exigency of this approach, its application in the food industry is a challenge because of the nature of the industry and CSCM being a novel approach. The purpose of this study is to develop an industry-based systematic analysis of CSCM by examining the challenges for its application, exploring the effects of recognised challenges on various food supply chain (FSC) stages and investigating the business processes as drivers.
Design/methodology/approach
Stakeholder theory guided the need to consider stakeholders’ views in this research and key stakeholders directly from the food circular supply chain were identified and interviewed (n = 36) following qualitative methods.
Findings
Overall, the study reveals that knowledge, perception towards environmental initiatives and economic viability are the major barriers to circular supply chain transition in the UK FSC.
Originality/value
This research provides a holistic perspective analysing the loopholes in different stages of the supply chain and investigating the way a particular circular supply chain stage is affected by recognised challenges through stakeholder theory, which will be a contribution to designing management-level strategies. Reconceptualising this practice would be beneficial in bringing three-tier (economic, environmental and social) benefits and will be supportive to engage stakeholders in the sustainability agenda.
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Alexandre Tombini, the governor of the Central Bank of Brazil, faced a difficult situation in July 2015. Inflation was in the double digits, well above the target rate of 4.5%…
Abstract
Alexandre Tombini, the governor of the Central Bank of Brazil, faced a difficult situation in July 2015. Inflation was in the double digits, well above the target rate of 4.5%, and unemployment had increased from around 4.5% a year prior to nearly 8%. Any actions Tombini took to control inflation would most likely exacerbate unemployment, at least in the short run. To further complicate matters, Tombini's office was not independent of the executive branch of Brazil's government, and Tombini faced the possibility that any of his actions that were not aligned with the priorities of the current administration could cost him his job.
This case follows classes on fiscal and monetary policy in normal times and is the first class in a sequence on macroeconomic challenges–in this case, stagflation–high inflation and high unemployment. Students are pushed to consider why macroeconomic stabilization involves such acute and unpleasant tradeoffs during episodes of high inflation and unemployment. Students use the IS/LM AD/AS model as a reference.
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Huiyu Cui, Honggang Guo, Jianzhou Wang and Yong Wang
With the rise in wine consumption, accurate wine price forecasts have significantly impacted restaurant and hotel purchasing decisions and inventory management. This study aims to…
Abstract
Purpose
With the rise in wine consumption, accurate wine price forecasts have significantly impacted restaurant and hotel purchasing decisions and inventory management. This study aims to develop a precise and effective wine price point and interval forecasting model.
Design/methodology/approach
The proposed forecast model uses an improved hybrid kernel extreme learning machine with an attention mechanism and a multi-objective swarm intelligent optimization algorithm to produce more accurate price estimates. To the best of the authors’ knowledge, this is the first attempt at applying artificial intelligence techniques to improve wine price prediction. Additionally, an effective method for predicting price intervals was constructed by leveraging the characteristics of the error distribution. This approach facilitates quantifying the uncertainty of wine price fluctuations, thus rendering decision-making by relevant practitioners more reliable and controllable.
Findings
The empirical findings indicated that the proposed forecast model provides accurate wine price predictions and reliable uncertainty analysis results. Compared with the benchmark models, the proposed model exhibited superiority in both one-step- and multi-step-ahead forecasts. Meanwhile, the model provides new evidence from artificial intelligence to explain wine prices and understand their driving factors.
Originality/value
This study is a pioneering attempt to evaluate the applicability and effectiveness of advanced artificial intelligence techniques in wine price forecasts. The proposed forecast model not only provides useful options for wine price forecasting but also introduces an innovative addition to existing forecasting research methods and literature.
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Seyedeh Mehrangar Hosseini, Behnaz Bahadori and Shahram Charkhan
The purpose of this study is to identify the situation of spatial inequality in the residential system of Tehran city in terms of housing prices in the year 2021 and to examine…
Abstract
Purpose
The purpose of this study is to identify the situation of spatial inequality in the residential system of Tehran city in terms of housing prices in the year 2021 and to examine its changes over time (1991–2021).
Design/methodology/approach
In terms of purpose, this study is applied research and has used a descriptive-analytical method. The statistical population of this research is the residential units in Tehran city 2021. The average per square meter of a residential unit in the level of city neighborhoods was entered in the geographical information system (GIS) in 2021. Moran’s spatial autocorrelation method, map cluster analysis (hot and cold spots) and Kriging interpolation have been used for spatial analysis of points. Then, the change in spatial inequality in the residential system of Tehran city has been studied and measured based on the price per square meter of a residential unit for 30 years in the 22 districts of Tehran by using statistical clustering based on distance with standard deviation.
Findings
The result of spatial autocorrelation analysis with a score of 0.873872 and a p-value equal to 0.000000 indicates a cluster distribution of housing prices throughout the city. The results of hot spots show that the highest concentration of hot spots (the highest price) is in the northern part of the city, and the highest concentration of cold spots (the lowest price) is in the southern part of Tehran city. Calculating the area and estimating the quantitative values of data-free points by the use of the Kriging interpolation method indicates that 9.95% of Tehran’s area has a price of less than US$800, 17.68% of it has a price of US$800 to US$1,200, 25.40% has the price of US$1,200 to US$1,600, 17.61% has the price of US$1,600 to US$2,000, 9.54% has the price of US$2,000 to US$2,200, 6.69% has the price of US$2,200 to US$2,600, 5.38% has the price of US$2,600 to US$2,800, 4.59% has the price of US$2,800 to US$3,200 and finally, the 3.16% has a price more than US$3,200. The highest price concentration (above US$3,200) is in five neighborhoods (Zafaranieh, Mahmoudieh, Tajrish, Bagh-Ferdows and Hesar Bou-Ali). The findings from the study of changes in housing prices in the period (1991–2021) indicate that the southern part of Tehran has grown slightly compared to the average range, and the western part of Tehran, which includes the 21st and 22nd regions with much more growth than the average price.
Originality/value
There is massive inequality in housing prices in different areas and neighborhoods of Tehran city in 2021. In the period under study, spatial inequality in the residential system of Tehran intensified. The considerable increase in housing prices in the housing market of Tehran has made this sector a commodity, intensifying the inequality between owners and non-owners. This increase in housing price inequality has caused an increase in the informal living for the population of the southern part. This population is experiencing a living situation that contrasts with the urban plans and policies.
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