Parametric & nonparametric approaches to event studies: an application to a hotel’s market value

The main objective of this paper is twofold: on the one hand, to analyse the impact that the announcement of the opening of a new hotel has on the performance of its chain by carrying out an event study, and on the other hand, to compare the results of two different approaches to this method: a parametric specification based on the autoregressive conditional heteroskedasticity models to estimate the market model, and a nonparametric approach, which implies employing Theil’s nonparametric regression technique, which in turn, leads to the so-called complete nonparametric approach to event studies. The results that the empirical application arrives at are noteworthy as, on average, the reaction to such news releases is highly positive, both approaches reaching the same level of significance. However, a word of caution must be said when one is not only interested in detecting whether the market reacts, but also in obtaining an exhaustive calculation of the abnormal returns to further examine its determining factors.

What makes an ad enjoyable? Analysing advertising appeals as viewed by Portuguese consumers

Nowadays, consumers are faced with a variety of media that convey myriad advertising messages, which struggle amidst a highly competitive environment, with a view to drawing the viewers’ attention, raising awareness, creating interest and inspiring desire and, ultimately, leading to the purchase of the product/service at stake. For this, advertising professionals deliberately intertwine their selling arguments with emotionally-charged creative concepts. It is the aim of this study to analyse the impact of the main creative appeals and to identify groups of consumers based on their attitudes towards them. We have undertaken a quantitative study, by means of a survey administered to a convenience sample with a list of creative appeals, which had to be classified by the respondents according to their attitudes. Globally speaking, the preferred appeals were humour, music and animation. Nonetheless, it was possible to divide the respondents into three groups. ‘Advertising fans’, the ‘rationally-minded’ and the ‘emotionally-minded’. This study presents some limitations, especially as to the sample used. Apart from the reduced number of respondents and lack of more widespread geographic reach, some academic qualifications were underrepresented. The results of this study offer some avenues to be explored by marketing and advertising professionals when it comes to deciding on the best creative approach to select for their advertising campaigns. Besides, this study paves the way to the development of future research on the issue of advertising appeals and its relationship with the psychographic characteristics of consumers.

PoS-tagging the Web in Portuguese. National varieties, text typologies and spelling systems

The great amount of text produced every day in the Web turned it as one of the main sources for obtaining linguistic corpora, that are further analyzed with Natural Language Processing techniques. On a global scale, languages such as Portuguese - official in 9 countries - appear on the Web in several varieties, with lexical, morphological and syntactic (among others) differences. Besides, a unified spelling system for Portuguese has been recently approved, and its implementation process has already started in some countries. However, it will last several years, so different varieties and spelling systems coexist. Since PoS-taggers for Portuguese are specifically built for a particular variety, this work analyzes different training corpora and lexica combinations aimed at building a model with high-precision annotation in several varieties and spelling systems of this language. Moreover, this paper presents different dictionaries of the new orthography (Spelling Agreement) as well as a new freely available testing corpus, containing different varieties and textual typologies.

Industry-specific effect of CSR initiatives: hotels and airlines

Purpose – This study aims to examine the relationships between a firm's corporate social responsibility (CSR) activities and its performance and risk. The authors hypothesize that industry-level effects are highly determinant of the sign and magnitude of these relationships to establish a ranking of industries to identify the position of the most prominent tourism-related industries: hotels and airlines. Based on the cybernetic model of decision making and the heuristics thereof, shareholders base their investment decisions derived from CSR announcements on the idea that the industries behave differently; their fixed costs being a relevant factor. Design/methodology/approach – The authors estimate the industry-specific effects of CSR initiatives on firms' performance and risk using a sample of 583 announcements from the Spanish Stock Market. Findings – The results show that while CSR announcements have a positive effect on performance when the authors do not account for industry-specific factors, once the authors incorporate these factors into the analysis, the authors find that firm performance and risk vary quite substantially as a function of the industry to which the firm belongs. Interestingly, while the hotel industry presents an average behavior (standing at 9th position in returns, 15th in terms of risk, and 8th according to the ratio returns/volatility), the airline industry presents the worst situation of all industries: last in performance and last in risk. Practical implications – The results help managers assess their decisions and allocate CSR resources optimally. Originality/value – This article is the first attempt to empirically test and comprehensively detect the different relationships between CSR and firm performance across industries.

Organizational design, quality management and competitive advantage in hotels

Purpose – The aim of this study is to examine the relationship between practices of quality management (QM) and the characteristics of organizational design, and QM and competitive advantage. Design/methodology/approach – The study uses a partial least squares approach to test these relationships in 350 hotels in Spain. Findings – The findings show that QM influences specialization, formalization and interdepartmental interactions, and that QM practices influence both cost and differentiation competitive advantage. The results also indicate the importance of QM strategic and operational systems as practices that have a key impact on the characteristics of organizational design. Similarly, the QM operational system is key in the relationship between QM and cost competitive advantage. Finally, the QM operational, information and strategic systems positively influence differentiation competitive advantage. Practical implications – When hotels adopt QM practices, there will be significant changes in a number of organizational variables, including specialization, formalization and interdepartmental interactions. This paper provides empirical evidence that QM practices improve both cost and differentiation competitive advantage in the hotel industry. Originality/value – There has been little research on the effects of QM on organizational design in the hotel industry. The contribution of this paper is that analyze the effects of QM on organizational design and competitive advantage, extending knowledge about these issues in a specific sector.

Fashion opinion leadership, innovativeness and attitude toward advertising among Portuguese consumers

In the context of the fashion market, this study aims to analyze opinion leadership and, specifically, to verify the correlation that may exist between opinion leadership, fashion innovativeness and attitude towards fashion advertising. It is also intended to identify two different consumer groups: opinion leaders and fashion followers based on “opinion leadership” construct. Data collection was done through a self-administered questionnaire with a convenience sample of 203 graduate and postgraduate students of two universities of Porto, the second major city of Portugal. Results show a positive correlation between fashion innovativeness, fashion opinion leadership, and attitude towards fashion advertising. It was possible to identify two groups of consumers: fashion influencers, who exhibit a moderate sense of innovativeness and a positive attitude towards fashion advertising; and fashion followers who don’t consider themselves neither innovators nor opinion leaders, but have a moderate positive attitude towards fashion advertising.