UNDERSTANDING CUSTOMER CHOICES IN SERVICE OUTSOURCING AND REVENUE MANAGEMENT

This dissertation investigates customer behavior modeling in service outsourcing and revenue management in the service sector (i.e., airline and hotel industries). In particular, it focuses on a common theme of improving firms’ strategic decisions through the understanding of customer preferences. Decisions concerning degrees of outsourcing, such as firms’ capacity choices, are important to performance outcomes. These choices are especially important in high-customer-contact services (e.g., airline industry) because of the characteristics of services: simultaneity of consumption and production, and intangibility and perishability of the offering. Essay 1 estimates how outsourcing affects customer choices and market share in the airline industry, and consequently the revenue implications from outsourcing. However, outsourcing decisions are typically endogenous. A firm may choose whether to outsource or not based on what a firm expects to be the best outcome. Essay 2 contributes to the literature by proposing a structural model which could capture a firm’s profit-maximizing decision-making behavior in a market. This makes possible the prediction of consequences (i.e., performance outcomes) of future strategic moves. Another emerging area in service operations management is revenue management. Choice-based revenue systems incorporate discrete choice models into traditional revenue management algorithms. To successfully implement a choice-based revenue system, it is necessary to estimate customer preferences as a valid input to optimization algorithms. The third essay investigates how to estimate customer preferences when part of the market is consistently unobserved. This issue is especially prominent in choice-based revenue management systems. Normally a firm only has its own observed purchases, while those customers who purchase from competitors or do not make purchases are unobserved. Most current estimation procedures depend on unrealistic assumptions about customer arriving. This study proposes a new estimation methodology, which does not require any prior knowledge about the customer arrival process and allows for arbitrary demand distributions. Compared with previous methods, this model performs superior when the true demand is highly variable.

ESSAYS IN ENERGY, ENVIRONMENT AND TECHNOLOGICAL CHANGE

This dissertation studies technological change in the context of energy and environmental economics. Technology plays a key role in reducing greenhouse gas emissions from the transportation sector. Chapter 1 estimates a structural model of the car industry that allows for endogenous product characteristics to investigate how gasoline taxes, R&D subsidies and competition affect fuel efficiency and vehicle prices in the medium-run, both through car-makers' decisions to adopt technologies and through their investments in knowledge capital. I use technology adoption and automotive patents data for 1986-2006 to estimate this model. I show that 92% of fuel efficiency improvements between 1986 and 2006 were driven by technology adoption, while the role of knowledge capital is largely to reduce the marginal production costs of fuel-efficient cars. A counterfactual predicts that an additional $1/gallon gasoline tax in 2006 would have increased the technology adoption rate, and raised average fuel efficiency by 0.47 miles/gallon, twice the annual fuel efficiency improvement in 2003-2006. An R&D subsidy that would reduce the marginal cost of knowledge capital by 25% in 2006 would have raised investment in knowledge capital. This subsidy would have raised fuel efficiency only by 0.06 miles/gallon in 2006, but would have increased variable profits by $2.3 billion over all firms that year. Passenger vehicle fuel economy standards in the United States will require substantial improvements in new vehicle fuel economy over the next decade. Economic theory suggests that vehicle manufacturers adopt greater fuel-saving technologies for vehicles with larger market size. Chapter 2 documents a strong connection between market size, measured by sales, and technology adoption. Using variation consumer demographics and purchasing pattern to account for the endogeneity of market size, we find that a 10 percent increase in market size raises vehicle fuel efficiency by 0.3 percent, as compared to a mean improvement of 1.4 percent per year over 1997-2013. Historically, fuel price and demographic-driven market size changes have had large effects on technology adoption. Furthermore, fuel taxes would induce firms to adopt fuel-saving technologies on their most efficient cars, thereby polarizing the fuel efficiency distribution of the new vehicle fleet.

A Feminist Affective Turn for Public Relations: Mothers, Passionate Publics, and the Childhood Vaccine Debate

This project proposes a feminist intervention in how affect and publics are theorized in public relations research. Drawing from extant literature, I argue that public relations theories of affect and publics have been apolitical and lack depth and context (Leitch & Motion, 2010a). Using the context of the online childhood vaccine debate, I illustrate several theories and concepts of the new feminist affective turn, as well as postmodern theories of affect, relevant to public relations research: (a) Public Feelings, “ugly” feelings, agency, and community (Cvetkovich, 2012; Ngai, 2007); (b) passionate politics (Mouffe, 2014); (c) postmodern assemblages, biopower, and body politics (Deleuze & Guattari, 1988; Foucault, 1984); (d) affective facts and logics of future threats (Massumi, 2010); and (e) affective ethics (Bertleson & Murphie, 2010). Scholarship in the areas of public relations, risk, feminist and postmodern affect theory, and the vaccine debate provided theoretical grounding for this project. My research questions asked: How is feminist affect theory embodied by mothers in the vaccine debate? How do mothers understand risks as affective facts in the vaccine debate (if at all)? What affective logics are used by mothers in the vaccine debate (if any)? And, What are sources of knowledge for mothers in the vaccine debate? Multi-sited online ethnographic methods were used to explore how feminist affect theory contributes to public relations research, including 29 one-on-one in-depth interviews with mothers of young children and participant observation of 15 online discussions about vaccines on parenting websites BabyCenter.com, TheBump.com, and WhatToExpect.com. I used snowball sampling to recruit interview participants and grounded theory (Glaser & Strauss, 1967) to analyze interview and online data. Results show that feminist affect theory contributes to theoretical and practical knowledge in public relations by politicizing and contextualizing understandings of publics and elucidating how affective facts and logics inform publics’ knowledge and choices, specifically in the context of risk. I also found evidence of suppression of dissent (Martin, 2015) and academic bias in vaccine debate research, which resulted in cultures of silence. Further areas of study included how specific contexts such as motherhood and issues of privilege and access affect publics’ experiences, knowledges, and choices.