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McHealthy: How Marketing Incentives Influence Healthy Food Choices
Food choices are often habitual, which can perpetuate unhealthy behaviors; that is, selection of foods high in sodium, saturated fat, and calories. This article extends previous research by examining how marketing incentives can encourage healthy food choices. Building on research examining marketing incentives, temporal goals, and habitual behavior, this research shows that certain incentives (behavioral rewards vs. financial discounts) affect individuals with healthy and less healthy eating habits differently. A field study conducted at a corporate cafeteria and three lab studies converge on a consistent finding: The effects of marketing incentives on healthy food choice are particularly prominent for people who have less healthy eating habits. Results showed that behavioral rewards generated a 28.5% (vs. 5.5%) increase in salad sales; behavioral rewards also led to 2 pounds more weight loss for individuals with less healthy eating habits. The research offers important implications for scholars, the food industry, consumers, governments, and policy makers
CHR Reports Compendium 2017
The 2017 CHR Compendium provides a summary of the Cornell Hospitality Reports published by the faculty of the School of Hotel Administration in the Cornell SC Johnson College of Business. The compendium also includes articles published in the Cornell Hospitality Quarterly, the school’s journal of applied research. Sorted by topic, the reports and articles contain direct implications for hospitality executives and those in related industries. CHR Reports are available for download at no charge
The Effect of Labor Law Changes under the New Administration: Too Soon to Tell
With a new administration in place, experts in labor law joined union leaders and management to observe the straws in the wind regarding what changes might occur in labor laws and regulations. Changes seem inevitable in the National Labor Relations Board, and existing NLRB rulings may be altered as time goes on. On the other hand, it seems nearly certain that franchisors and firms that contract for employees will continue to considered joint employers. The “fissuring” of the hospitality industry invites such an outcome, even as different firms are responsible for specific aspects of a venture. Union leaders anticipate that they will continue to do their best to organize employees and work with their members, and de-emphasize political activity
2017 Argus University Challenge
The Baker Program in Real Estate continued its success in national real estate case competitions over the past year with a second place finish in the 2017 ARGUS University Challenge. This was Cornell’s first time placing in the ARGUS competition in its six years of existence. Cornell’s team included two second-year students (Yang Yang and Yufei Wang), as well as three first-year students (Paul Heydweiller, Julin Yong, and Alejandro Santander). Professor Crocker H. Liu served as the team’s faculty advisor
Hotel Brand Standards: How to Pick the Right Amenities for Your Property
Amenities specified by hotel companies’ brand standards can become a point of contention between hotel owners and brand managers. At issue for the owner is whether offering a particular amenity justifies the expense, while brand managers are typically more concerned with maintaining consistent brand standards systemwide. This report provides another perspective, by analyzing the short-term return on investment for six upscale and luxury brands offering three popular complimentary amenities—bottled water, internet access, and fitness center use—both in terms of their effects on first-time visits and on repeat business. While internet access held the greatest attraction for first-time guests, complimentary bottled water offered the highest ROI for returning guests. Analyzed over a twelve-month period, the fitness center had a negative ROI for both groups. Of particular interest, the study also found that guests greatly overestimated the likelihood that they would use the hotels’ amenities
Do Property Characteristics or Cash Flow Drive Hotel Real Estate Value? The Answer Is Yes
Analysts typically use two types of methods to value hotels: comparable sales and the present value of income (sometimes calculated as discounted cash flow). This report explores whether one model is superior to the other, and whether combining both models results in more precise hotel valuations. This evaluation addresses the issue of which property characteristics and income calculations are the most effective in explaining variation in the prices of hotels, how the descending influence of hotel property characteristics and income present value components determine the prices of hotels, and whether hedonic and income-based models produce similar estimates of hotel values. The findings show that using an approach based on comparable sales or one based on incomes results in similar value estimates. Beyond that, the analysis finds that combining both models does not result in more precise hotel valuations
Ethics from the Bottom Up
Despite considerable research and discussion, the key to ensuring ethical behavior in hospitality organizations remains unclear. Over the years, hospitality industry practitioners have taken numerous substantive steps to establish the importance of ethical conduct. One common practice is for a company to have written ethical standards or a code of conduct. While these efforts help to ensure that standards of ethical practice are understood, a corresponding focus on the daily behavior of individual employees is also essential. Organizational practices that facilitate employees’ ethical awareness and decision making include establishing a clear organizational fit during the selection process, maintaining ongoing performance dialogues, and communicating ethical expectations in daily interpersonal interactions. To foster and direct these communication activities, this report presents the “values discussion tool.” This tool provides scenarios, forced-choice questions, rating scales, and self-reported personal profiles, with the goal of exploring employee priorities, uncovering underlying assumptions, and reaffirming organizational values
The Billboard Effect: Still Alive and Well
Changes in the online travel market are causing hotels to rethink their relationships with online travel agencies (OTAs) and to take a closer look at the impact on bookings from listing their properties with OTAs. One outcome of being listed on an OTA is additional bookings on the brand’s own website, a phenomenon that co-author Chris Anderson labeled the billboard effect. In a 2009 study, Anderson presented an experiment in which a group of hotels was listed and then removed from Expedia.com in alternate weeks. This test found that, compared to being hidden, being listed on the site increased reservations 9 percent to 26 percent (above transactions that occurred at Expedia).1 That was followed by a 2011 study examining consumers’ online pre-purchase research that found about 75 percent of consumers who made reservations with a major hotel brand had visited an OTA in advance of booking directly with the brand.2 In this report we show that the ability of a second-party channel to influence an eventual reservation may be lower now, but the billboard effect still occurs, since many consumers visit an OTA prior to booking
More Multi-Study Articles Wanted
[Excerpt] Cornell Hospitality Quarterly (CQ) readers may have noticed that the lead article for this issue and for each of the previous two issues has been a multi-study paper. The lead article for the next issue of CQ will also be a multi-study paper, and this will be true for future issues as long as I have enough accepted multi-study papers to make it so. I want to use this editorial to explain my preference for multi-study articles and to encourage CQ authors to write and submit more of them