Montana Business Quarterly, Winter 1977

This is an academic publication produced by the Bureau of Business and Economic Research (BBER) at the University of Montana’s College of Business. This is volume 15, number 1.https://scholarworks.umt.edu/mtbusinessquarterly/1070/thumbnail.jp

Montana Business Quarterly, Winter 1977

This is an academic publication produced by the Bureau of Business and Economic Research (BBER) at the University of Montana’s College of Business. This is volume 15, number 1.https://scholarworks.umt.edu/mtbusinessquarterly/1070/thumbnail.jp

Montana Business Quarterly, Winter 1977

This is an academic publication produced by the Bureau of Business and Economic Research (BBER) at the University of Montana’s College of Business. This is volume 15, number 1.https://scholarworks.umt.edu/mtbusinessquarterly/1070/thumbnail.jp

Managerial Process Of Discount Decision-making In The Lodging Industry: The Role Of Human Agency

Management faces a paradox in managing discrepancies between actual demand and expected demand in daily operations, thereby requiring constant adjustments in pricing under the supervision of management in the short term. The purpose of this study is to determine how discount choices are created and to understand information processing related to the pricing and discounting decision-making process as well as narrating the events, stages, and cycles of choices made by hotel managers. This study also determines the role of human judgment based on contextual factors in the decision-making process. This mixed methods research design consists of three steps: observation, classification, and association. First, the observation stage includes the careful observation, documentation, and measurement of the phenomena within the social and institutional context through structured interviews with hotel managers. Second, abstractions are classified into categories based on the attributes of the phenomena. Information attributes are categorized into static and dynamic information, and the source of information is characterized in external and internal sources. Third, the association between the category-defining attributes and the outcome observed (discount or not) is explored using conjoint analysis. This last stage attempts to investigate not only the importance of information attributes, but also the role of social-, institution-, and human agency-related influences in managers’ discounting decisions. The major findings of the study are as follows. First, habitual practices are identified to show how the classification of events, activities, and institutions are put into practice as managers have developed their own knowledge and practices over time. Such practices become iii routine over time when managers encounter a similar problem, disequilibrium. Conventions such as the less than 35 rule, the 80:20 rule, the call around, following suit, and trial and error are manifestations of the coping strategy for the hamstrung complexity in the hospitality industry. Human agency and its perception of reality within a specific context infuse meaning into business practices. The critical role of managers is recognized in making discount decisions as they use a collection of complex patterns in the lodging industry to perceive meaningful patterns in the environment to make a final judgment. The focus on the process of discount decision making allows for detecting how environmental stimuli are watched by managers with deeply held views. Managers use certain rules and patterns to complete their information search. Hotel managers place different values on the information attributes in making a discount choice. The average importance of an attribute represents how important it is to managers when making their discount choices. The results indicate that managers consider the booking window to be the most preferred information, followed by competitors’ room rates, the potential for cancelation, and occupancy rate. A discount choice is the product of human agency and social forces over time, distinct from the rational model. Different hotel operation structures and human agencies seek to make a difference in the process of discount decision making. Hotels in Road Warriors, which are smaller in size, are not located near major attractions but seem to fill the need for leisure travelers passing by the highways. Less competition exists because the regional area does not serve as a main attraction. These hotels in Road Warriors thus place great importance on the booking window and potential for cancellation when considering offering a discount. If they do iv not see enough reservations in the short term and foresee the potential for cancellation, hotels in Road Warriors tend to make a discount choice. These hotels do not seem to indulge in implementing other pricing strategies, but do drop the rate. Hotels in Stars in the Universe, which are larger in size and affiliated with chains/brands, are located near the main attractions (e.g., beach, downtown, or convention center). Hotels in Stars in the Universe consider the booking window to be the most critical information, followed by competitors’ room rates, occupancy rate, and potential for cancellation. The extent of how much time is left before an arrival date serves as the most important piece of information in making a discount choice. These hotels emphasize knowledge of competitors’ room rates as these hotels have many competitors around and consistently compete for more market shares in the area. Moreover, human agency, mostly grounded in industry tenure and age, determines how managers process discount choices. Market Movers consists of more experienced and educated, older, and predominantly male experts. These general managers, assistant general managers, or revenue managers have gained knowledge and know-how during their extended experience in the industry. Managers in Market Movers focus importance on the booking window, followed by competitors’ room rates, occupancy rate, and potential for cancellation. They monitor bookings ahead of time and consider offering a discount as the arrival nears. Managers in Market Movers also show great concern for competitors’ room rates. They compare their rates to competitors’ in order to ensure that their own rates do not go over competitors’ room rates. v Managers in Entourage are considered to be younger, less experienced, and less educated. Most managers in Entourage work in marketing/sales or front desk/operations and tend to follow and attend to the industry leaders. These novices try several trials and make errors along the way, but become rising stars in the industry when their trial-and-error approach succeeds. Entourage’s discount choice is influenced more by the booking window, followed by potential for cancellation, competitors’ room rates, and occupancy rate. Managers in Entourage consider the booking window to be the most critical in making a discount choice, and they act quickly to offer a discount when an arrival date nears. They tend to respond to immediate changes in booking; thus, the potential for cancellation determines the discount choice among Entourage managers. The main theoretical contribution of this study is to demonstrate that managerial frameworks based on a rational premise are not complete. These frameworks should be complemented with a human judgment framework, which provides a richer account of how managers in the lodging industry approach complex price-setting situations. Managerial discounting decision making often falls short of the purely rational model for managers and is bounded by nature. Managers are not always rational in compiling and assessing information leading to discounting that is compatible with the accessibility to information and the computational capacity. The human judgment process, discovered and examined in this study, provides a richer understanding of the process of discounting in the lodging industry. This process is featured by a non-conscious processing of information; the retrieval of the information is based on associations of patterns; the context in which this processing occurs is high paced; and the outcome of the decision is imbued with judgments. vi In terms of managerial implications, this study enables hotel managers to learn under what conditions other managers consider making discount choices. Information attributes such as the booking window and competitors’ room rates are thought to be more valuable than other information. Managers should observe booking windows carefully when making a discount choice. Managers should pay close attention to bookings more in advance so that they detect discrepancies between forecasting and reality in a timely manner. If so, managers can make operational adjustments to rate strategies by controlling not only room rates, but also length of stay (LOS) and channels. Limitations and suggestions for future research are also discussed

Determinants of Inter-District Variations in Rural Non-Farm Employment in Andhra Pradesh: A District Level Data Analysis

This paper is attempted to examine the nature of rural non-farm employment (RNFE) in Andhra Pradesh (AP) using the district level data gathered from the secondary sources. It seeks to identify the determinants of inter-district variations in the shares and growth of RNFE across a cross-section of 7 categories of rural non-farm employment for 22 districts in AP. The basic objective is to test the hypothesis of ‘distress diversification’ against ‘agricultural growth linkages’ in order to explain the propensity of rural people to be involved in the RNFE. Econometric models have been used to explain the district level variation in the RNFE by pooling the data for 1981 and 1991 for various sub-sectors in AP. The analysis reveals that variations in irrigation, farm size, literacy, urbanisation, commercialisation, infrastructure and poverty are significant determinants of RNFE.

Tourism Sector Perceptions of Vulnerability to Environmental Change in Glacier National Park, U.S.A.

Glacier National Park, a highly visible example of climate change impacts, is also extremely important for local inhabitants that depend on park resources to generate tourism. Consequently, if those resources are altered, tourism could be adversely affected. To explore this range of climate change impacts on the human community, as well as how vulnerability is perceived and experienced, twenty-three operators in the Glacier region were interviewed. These interviews were then analyzed using content analysis, which allowed themes related to vulnerability to be detailed. Operators identified several ways in which they experience vulnerability to climate change, particularly through wildfire, extreme weather, and heavy snowpack. In particular, access to Going to the Sun Road and media sensationalism were key factors identified. A few operators thought the longer summer season might benefit them. Operators are adapting to these impacts by undertaking “green” business practices, diversifying their businesses, and shifting marketing away from Going to the Sun Road. Results indicate that vulnerability is experienced differently among the operators depending on how they leverage resources. Additionally, social factors and multi-scalar processes are significant determinants of adaptation in this study area

Fee Hunting in North and South Dakota

Resource /Energy Economics and Policy,

Agricultural Research Division 102nd Annual Report, July 1, 1987, to June 30, 1988

It is a pleasure to provide the 102nd Annual Report of the UNL Agricultural Research Division. This report contains lists of current faculty, active projects, referred journal articles, books and book chapters, germplasm releases, patents, brief descriptions of research in selected areas, and the financial report for the period of July 1, 1987, through June 30, 1988. This report was compiled in compliance with the intent of the law of the State of Nebraska that established the Nebraska Agricultural Experiment Station on March 31, 1887. Foreword ... v Administrative Personnel ... vii Administrative Units ... viii Organizational Chart ... viii Faculty ... 1 Research Highlights ... 13 Research Projects ... 37 Publications ... 47 Variety and Germplasm Releases and Patents ... 67 Map of Research Sites ... 70 Research Budget ... 7

Agricultural Research Division 102nd Annual Report, July 1, 1987, to June 30, 1988

It is a pleasure to provide the 102nd Annual Report of the UNL Agricultural Research Division. This report contains lists of current faculty, active projects, referred journal articles, books and book chapters, germplasm releases, patents, brief descriptions of research in selected areas, and the financial report for the period of July 1, 1987, through June 30, 1988. This report was compiled in compliance with the intent of the law of the State of Nebraska that established the Nebraska Agricultural Experiment Station on March 31, 1887. Foreword ... v Administrative Personnel ... vii Administrative Units ... viii Organizational Chart ... viii Faculty ... 1 Research Highlights ... 13 Research Projects ... 37 Publications ... 47 Variety and Germplasm Releases and Patents ... 67 Map of Research Sites ... 70 Research Budget ... 7