Browsing by Author "Mas, Francisco J."

Now showing 1 - 9 of 9
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    Brand alliances and stock reactions
    Mas, Francisco J.; Nicolau, Juan Luis; Calderon, Aurora (Routledge, 2021-05-18)
    Purpose: This paper examines the performance and risk of brand alliances by investigating the market value of brand alliances through the analysis of investors’ response, and look into the different reactions of the stock market to brand alliance-type in terms of co-branding and joint-promotion, as well as into the potential different effects in the contexts of B to B versus B to C. Brand alliances, whereby two or more brands are jointly presented to the consumer, have been investigated extensively. The importance of brand alliances is emphasized by two factors: (1) brands are considered critical elements in business-to-business marketing settings; and (2) firms use brand alliances due to the trading costs and investment necessary to buy brands, the increasingly higher costs of launching a new brand onto the market, the high failure rates in new brand launches and brand extensions, the competitive pressures around product launches and diffusion, and the limitations imposed on the extension of a brand by its own identity. Consequently, brand alliances have exploded over recent years. As indicated later, by accomplishing the purpose of this research we fill a gap in the literature as most of the research on brand alliances revolves around consumers’ perspective. Methodology/Approach: The methodology followed is based on the event study method. First, the event study estimates the excess returns of share prices generated by events that were unanticipated by the market. To this end, we estimate the market model and the subsequent abnormal returns. To examine the impact of the publication of a brand alliance announcement on the share prices of the company, we use the cumulative abnormal returns calculated over k days of the event window for 55 announcements. In the second step, we analyze the returns of the different brand alliances. In particular, the abnormal returns are used as dependent variable in a regression analysis, wherein the central explanatory variable is brand alliance type (co-branding vs joint promotion). Finally, the third stage of the methodology analyzes the change in the variance of returns between the periods before and after the brand alliance announcements. Findings: The results show that brand alliance announcements generate positive abnormal returns, which support the hypothesis that brand alliance announcements are positively related to company stock returns. In particular, we observe that the reactions to brand alliances are spread over the event window. In fact, the window (−5,+5) produces returns that stand at 1.6%, which is the greatest abnormal return over the five days around the publication date. The economic impact of a cumulative return of 1.6% in eleven days is tantamount to annual returns of 69.33%. Considering that the average market value of the sample is €17,494 million, it represents an increase of €279 million for the sample stocks on the period (−5,+5). The regression analysis shows that the coefficients of the variable “co-branding” are positive and significant, which supports the hypothesis that co-branding presents higher abnormal returns than joint promotion. However, no differential effect are found between B to B versus B to C paradigms. The results obtained present an increase in the variance of the share prices after the alliance announcement date, which supports the hypothesis that the variance of the company stock returns is positively associated to announcements of brand alliances. Research Implications: The key implication of the measurement of the market value of brand alliances is that research should be reoriented toward a better understanding of the role of marketing in the value creation of a company. Instead of just concentrating on marketing research into consumer behavior, more emphasis should be given to the core company processes that create shareholder value. Practical Implications: The managerial implications of the specific results obtained are the following: the result that companies increase their market value when they implement brand alliance strategies, leads to a better ken of the way alliance activities can be managed when dealing with other organizations. In this way, finding a partner to form a brand alliance with could be a useful objective in terms of firm performance. Moreover, the results show that co-branding presents higher abnormal returns than joint promotion, which suggests that co-branding is the most valuable strategic decision (or long-term decision) for companies, as it implies the simultaneous participation of two or more brands in a single product. In this way, deciding on whether a short- or long-term branding strategy is pursued turns to be fundamental. Originality/Value/Contribution of the paper: The literature has analyzed the consequences of brand alliance, which looks at each partner’s brand attitude after the alliance, the brand equity of the constituent brands after the alliance, and the impact of the allied brand on the evaluation of the host brand. These studies have focused on the area of consumer behavior; that is, by measuring consumers´ attitudes and evaluation. Still, the measurement of dimensions reflecting the other side of the relationship, i.e. the firm, via brand image and equity is critical. Nevertheless, the examination of the impact of brand alliances on the partner company performance and risk has received little attention, despite the fact that “brand perceptions of companies’ products spill over to investment decisions in the market for companies’ stock”.
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    Detecting Free Riders in Collective Brands through a Hierarchical Choice Process
    Nicolau, Juan Luis; Mas, Francisco J. (Sage, 2014-01-07)
    Free-riding behaviors exist in tourism and they should be analyzed from a comprehensive perspective; while the literature has mainly focused on free riders operating in a destination, the destinations themselves might also free ride when they are under the umbrella of a collective brand. The objective of this article is to detect potential free-riding destinations by estimating the contribution of the different individual destinations to their collective brands, from the point of view of consumer perception. We argue that these individual contributions can be better understood by reflecting the various stages that tourists follow to reach their final decision. A hierarchical choice process is proposed in which the following choices are nested (not independent): “whether to buy,” “what collective brand to buy,” and “what individual brand to buy.” A Mixed Logit model confirms this sequence, which permits estimation of individual contributions and detection of free riders.
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    The harmful consequences of failed recoveries in the banking industry
    Casado, Ana B.; Nicolau, Juan Luis; Mas, Francisco J. (Emerald, 2011)
    Purpose: This paper aims to examine which behaviour or set of behaviours customers are prone to follow in double deviation scenarios (i.e. consumption experiences in which customers face both the initial service failure and a failed service recovery), as well as how customers' perceptions of the problem and the firm's recovery efforts may influence these behaviours. Design/methodology/approach: The paper uses multinomial logit models with random coefficients to test the proposed model. Findings: Magnitude of service failure, explanations, apologies, perceived justice, anger and frustration felt by the customer, and satisfaction with the service recovery have significant and different effects on customers' choice of a type of response. Research limitations/implications: Additional research should try to determine the effects of different variables and their potential interactions. Further work incorporating different subjects, service settings or additional combinations of complaining behaviours is needed to validate the results of this investigation. Practical implications: This study highlights the importance of effective management of consumer responses to double deviations. Even when it is not possible to respond to customer complaints the first time, firms can learn from double deviations. Furthermore, new market entrants and competitors who want to capture consumer switchers should recognise what happened and try to avoid making the same mistakes. Originality/value: This study is the first to examine the consequences of double deviations by considering the multi-dimensional nature of complaint behaviour and the existence of simultaneous responses. This study is based on analyses of real service failures and recovery strategies and actual customer behaviour.
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    Heckit modelling of tourist expenditure: evidence from Spain
    Nicolau, Juan Luis; Mas, Francisco J. (Emerald, 2005-01-01)
    Purpose - This study intends to decompose the tourist choice process into two stages (decision to take a holiday and tourist expenditure), and to propose and test various expectations on the dimensions which explain the above decisions. Design/methodology/approach - In order to simultaneously model the two decisions, we use a system of equations based on the Heckit model. Findings - The dimensions affecting the decision to go on holiday are income, household size, education, size of the city of origin and opinion of going on holiday. The determinant factors influencing the level of expenditure are distance between origin and destination, type of accommodation, income, household size, age, marital status and length of stay. An important finding of this analysis is the differentiated effect of a given dimension on each decision. Research limitations/implications - The lack of information on some explanatory dimensions. Joint modelling. The spending decision should be modelled jointly with the decision to go on holiday due to the dependency between them. Practical implications - The promotion of destinations should be developed with special attention paid to some faraway markets of origin, due to the expected propensity for these tourists to spend longer periods at the destination. The specialisation of destinations in terms of accommodation type and length of stay. The design of holiday packages should be adapted to the needs of the tourists identified, as they represent the most profitable tourist profiles. Originality/value - The particular findings, and the research and practical implications proposed show the relevance of the topic analysed. Also, these aspects are backed by a sample of 3,781 individuals, which assures the robustness of the results.
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    The influence of distance and prices on the choice of tourist destinations: The moderating role of motivations
    Nicolau, Juan Luis; Mas, Francisco J. (Elsevier, 2006-10-01)
    The literature of tourist destination choice pays great attention to the direct impact of the attributes of "distance to the destination" and "prices of the destination", but does not reach any consensus around them regarding their-inhibitory or attraction-effect. Alternatively, our study proposes that the effects of distance and prices are moderated by tourist motivations at the moment of choosing a destination, which leads us to make hypotheses to explain this decision through the interaction between destination attributes and the personal motivations of the individual tourists. The methodology applied estimates random coefficient logit models, which control possible correlations between different destinations and consider tourist heterogeneity. The empirical application carried out in Spain on a sample of 2127 individuals, shows that the dissuasive influence of distance and prices on the selection of destinations is moderated by motivations, in the sense that the motivations have a direct (increasing the dissuasive effect) or inverse (reducing the dissuasive effect) moderating effect on the influences of distance and prices.
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    Sequential choice behavior: Going on vacation and type of destination
    Nicolau, Juan Luis; Mas, Francisco J. (Elsevier, 2008-10-01)
    The literature of destination choice has so far studied multi-stage decision making processes that are more representative of the general choice behavior of tourists (e.g. going on vacation, going abroad, and destination country). Alternatively, this study proposes a multi-stage decision process to the choice of tourist destination types (going on vacation, coastal character, and urban character of the destination) as these choice sets are more idiosyncratic to tourists who prefer a specific type of tourist destination (e.g. Spain with clear coastal and inland variations). In order to test this multi-stage choice process as well as the sequential order of both decisions, coastal character and urban character, the current study analyses decision processes vs. different hierarchical multi-stage processes (going on vacation and coastal character preceding urban character; and going on vacation and urban character preceding coastal character). The empirical findings support the existence of a multi-stage choice process where coastal character precedes the urban character destination choice. The main implication of these findings is that, given the limited human analytical capability, a hierarchical choice process can be useful to handle the information overload and the complexity inherent to the destination type choice.
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    Simultaneous analysis of whether and how long to go on holidays
    Nicolau, Juan Luis; Mas, Francisco J. (Routledge, 2009-07-14)
    This article assumes that the decision to go on holiday and the length of stay are nested and non-independent, thus the objective of this study is to propose a two-stage choice process: Going on holiday and length of stay. To do this, we rely on the randomparameter logit model, which accounts for the unobserved heterogeneity of individuals and allows representation of different correlation patterns among nonindependent alternatives. We propose hypotheses on the effect on the above decisions of individual's characteristics relating to the destination, personal restrictions and socio-demographic and psychographic characteristics. The empirical application, which is carried out in Spain on a sample of 3781 individuals, evidences the proposed two-stage choice process, and that these decisions also explained by individual tourist characteristics.
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    Stochastic modeling - A three-stage tourist choice process
    Nicolau, Juan Luis; Mas, Francisco J. (Pergamon-Elsevier, 2005-01-01)
    This study analyzes a multistage tourist choice process which includes three basic decisions: first taking a vacation; second visiting foreign vs. domestic destinations, and third taking multi- vs. single-destination vacations. Various research hypotheses relating to the impact of a number of personal characteristics on these decisions are stated. The methodology uses multinomial logit models with random coefficients estimated by hierarchical Bayesian procedures. The empirical application is carried out in Spain and leads to the conclusion that personal characteristics relating to the chosen destination, personal restrictions, and sociodemographic and psychographic characteristics are determinants of these decisions and that the nested and nonindependent character of the three decisions reveals a multistage decisionmaking process.
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    The effect of movie and television placements
    Sharma, Abhinav; Nicolau, Juan Luis; Mas, Francisco J. (Elsevier, 2022-08-01)
    Brand integration has become an increasingly common marketing strategy employed by companies today. By incorporating branded content into various media formats, companies use placements as an advertising device intended to promote their products and services. However, although much of the extant literature has used behavioral methods to assess the effectiveness of brand promotions, there is only a modest body of academic work that has sought to quantify the impact of these placements on the financial performance of companies. This is especially true with regards to the travel and hospitality literature, despite the popularity of brands placements as a form of advertising across these industries. Using the event study methodology, this paper assesses the performance impacts resulting from travel and hospitality industry product placements in film and television.