Non-parametric regression for hypothesis testing in hospitality and tourism research

Abstract

The goal of this paper is to promote the use of Non-Parametric Regression (NPR) for hypothesis testing in hospitality and tourism research. In contrast to linear regression models, NPR frees researchers from the need to impose a priori specification on functional forms, thus allowing more flexibility and less vulnerability to misspecification problems. Importantly, we discuss in this paper a Bayesian approach to NPR using a Gaussian Process Prior (GPP). We illustrate the advantages of this method using an interesting application on internationalization and hotel performance. Specifically, we show how in contrast to linear regression, NPR decreases the risk of making incorrect hypothesis statements by revealing the true and full relationship between the variables of interest.