Browsing by Author "Park, Sangwon"

Now showing 1 - 10 of 10
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    Assessing advertising in a hierarchical decision model
    Park, Sangwon; Nicolau, Juan Luis; Fesenmaier, Daniel R. (Pergamon-Elsevier, 2013-01)
    Many destination marketing organizations in the United States and elsewhere are facing budget retrenchment for tourism marketing, especially for advertising. This study evaluates a three-stage model using Random Coefficient Logit (RCL) approach which controls for correlations between different non-independent alternatives and considers heterogeneity within individual's responses to advertising. The results of this study indicate that the proposed RCL model results in a significantly better fit as compared to traditional logit models, and indicates that tourism advertising significantly influences tourist decisions with several variables (age, income, distance and Internet access) moderating these decisions differently depending on decision stage and product type. These findings suggest that this approach provides a better foundation for assessing, and in turn, designing more effective advertising campaigns.
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    Asymmetric effects of online consumer reviews
    Park, Sangwon; Nicolau, Juan Luis (Pergamon-Elsevier, 2015-01-01)
    Consumers tend to seek heuristic information cues to simplify the amount of information involved in tourist decisions. Accordingly, star ratings in online reviews are a critical heuristic element of the perceived evaluation of online consumer information. The objective of this article is to assess the effect of review ratings on usefulness and enjoyment. The empirical application is carried out on a sample of 5,090 reviews of 45 restaurants in London and New York. The results show that people perceive extreme ratings (positive or negative) as more useful and enjoyable than moderate ratings, giving rise to a U-shaped line, with asymmetric effects: the size of the effect of online reviews depends on whether they are positive or negative.
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    Determinant Factors of Tourist Expenses
    Park, Sangwon; Woo, Mina; Nicolau, Juan Luis (Sage, 2019-02-22)
    The objective of this article is to analyze travel expenses across and within types. The empirical application examines the determinant factors of total expenses, controlling for potential endogeneity, and relies on quantile regression to analyze the effects of information search behavior on the distribution of total expenses as well as accommodation, shopping, food and beverages, and local transportation expenses. The role of information sources in predicting travel spending behaviors is a new dimension in the literature on expenses, and a sample of 48,113 travelers has led to the detection of effects of variables with relevant managerial implications (e.g., while official information centers show positive impacts at the upper levels of accommodation expenses, they present null effects at the highest levels of shopping expenses) as well as theoretical implications (special attention should be drawn to the variable length of stay, which, after being controlled by endogeneity, completely loses its significance).
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    Differentiated effect of advertising: Joint vs. separate consumption
    Park, Sangwon; Nicolau, Juan Luis (Elsevier, 2015-04-01)
    In a context of intense competition, cooperative advertising between firms is critical. Accordingly, the objective of this article is to analyze the potential differentiated effect of advertising on two basic consumption patterns: individual products (i.e. hotel, restaurant) vs. bundle (i.e. hotel + restaurant). This research adds to the extant literature in that, for the first time, this potential differentiated effect is examined through a hierarchical modelling framework that reflects the way people make their decisions: first, they decide whether to visit or not a region; second, whether to purchase an advertised product in that region; and third, whether to buy products together or separately at the region. The empirical analysis, applied to a sample of 11,288 individuals, shows that the influence of advertising is positive for the decisions to visit and to purchase; however, when it comes to the joint or separate consumption, advertising has a differentiated effect: its impact is much greater on the joint alternative ("hotel + restaurant") than the separate options ("hotel" and "restaurant"). Also, the variable distance moderates the advertising effect.
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    Effects of general and particular online hotel ratings
    Park, Sangwon; Nicolau, Juan Luis (Pergamon-Elsevier, 2017-01-02)
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    If you, tourist, behave irrationally, I'll find you!
    Park, Sangwon; Nicolau, Juan Luis (Elsevier, 2018-12-01)
    When departures from rational behavior can potentially be expected, modeling should allow for their identification and their quantification. In this regard, prices in tourism might have effects that may not be as apparent as economic theory predicts. This article incorporates the sticker shock formulation into the mixed logit model without imposing consistency with consumer theory to accommodate any possible positive or negative price effects. By allowing the parameters of “price” and “sticker shock term” to take any value – negative or positive – we detect abnormal behaviors in the tourist demand: not only is the negative relationship between price and demand inverted for some people but also some tourists might be willing to accept higher-than-expected prices. The “non-well-behaved” groups' shares are estimated.
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    Image effect on customer-centric measures of performance
    Park, Sangwon; Nicolau, Juan Luis (Pergamon-Elsevier, 2019-05-01)
    This study analyzes the effect of the difference between the pre-trip image of a destination and the post-trip image on, for the first time, two key elements of traveler behavior, which in turn are two customer-centric measures of destination performance: travel satisfaction and intention to revisit a destination. While the literature on the analysis of destination image has been prolific, the intricacies of the effects of changes in destination image on traveler behaviors remain unexplored, behaviors whose relevance is still greater when they show destination performance indicators. Based on the concepts of the zone of tolerance (derived from the service quality model) and loss aversion (from prospect theory), we explain the differential asymmetric effects of variation in destination image on intention to revisit and satisfaction, based on a sample of 12,024 individuals. Critical implications for destination marketing organizations are provided.
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    Inconsistent behavior in online consumer reviews: The effects of hotel attribute ratings on location
    Mellinas, Juan Pedro; Nicolau, Juan Luis; Park, Sangwon (Elsevier, 2018-11-05)
    The purpose of this article is to analyze the effects of hotel attribute ratings on location. This analysis is highly pertinent given the prevailing use of reviews and their potential interdependence. Within the framework of prospect theory, the results show that: i) the assessment of location is influenced by the evaluation of other hotel attributes; ii) this influence is asymmetric, in line with the loss aversion phenomenon (the consumer punishes the hotel more harshly for dissatisfaction than praises it lavishly for satisfaction); and iii) the effect of a change in the evaluations of other hotel attributes on the assessment of location presents a pattern that reverses the diminishing sensitivity property. Relevant research and managerial implications are outlined.
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    Testing loss aversion and diminishing sensitivity in review sentiment
    Sharma, Abhinav; Park, Sangwon; Nicolau, Juan Luis (Elsevier, 2019-11-01)
    This article analyzes the relationship between ratings and review sentiment by introducing, for the first time, the tenets of prospect theory. Specifically, we test loss aversion and diminishing sensitivity on a sample of 132,486 reviews and find that: first, negative deviations in ratings (receiving a service with worse performance than expected) bring about a higher impact on review sentiment than positive deviations of equal magnitude (receiving a service with better performance than expected), thus, confirming loss aversion; and second, regardless of whether the service received is better or worse than expected, variations in ratings closer to the reference point result in higher marginal impacts on sentiment than equivalent variations further away from the reference point, thus, proving diminishing sensitivity. These results have relevant theoretical implications related to the use of relative vs absolute measures and the cognitive bias involved, and managerial implications linked to meeting expectations and service recovery.
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    Understanding the dynamics of the quality of airline service attributes: Satisfiers and dissatisfiers
    Park, Sangwon; Lee, Jin-Soo; Nicolau, Juan Luis (Elsevier, 2020-06-05)
    This research aims to determine the relationship between the quality of airline service attributes and overall satisfaction. Although a number of relevant studies have reported a linear relationship (or symmetric effect) between the two concepts, this work suggests that attribute quality exerts heterogeneous effects on satisfaction or dissatisfaction. A total of 157,035 consumer data from online reviews have been analyzed to achieve the research objective. In accordance with Herzberg, Mausner, and Snyderman's (1959) two-factor theory, the findings of this research have determined that the quality of certain service attributes, such as cleanliness, food and beverages, and in-flight entertainment, affects the variations of positive ratings as a satisfier. Other airline service attributes, such as customer service and check-in and boarding, influence the deviations of negative ratings as a dissatisfier. Apart from airline attributes, the individual features and types of airline products have been estimated to improve the understanding of such relationships. In this regard, this study provides important implications to customer-centric marketing in an airline marketplace.