Do consumer perceptions matter in measuring choice variety and variety seeking?

This research marries scanner panel choice data of consumers in single member households to their survey-based perception data and draws upon behavioral and modeling research to contribute to the variety seeking literature. It presents a new consumer-based measure of choice variety based on inter-product similarity perceptions and illustrates that others-based (i.e., researchers, managers, and retailers) measures of choice variety such as number of brand switches underestimate choice variety. Moreover, incorporating the consumer-based measure instead of others-based measures in latent class models improves their efficiency of classifying households into high versus low variety seeking. The consumer-based measure of choice variety is valid in terms of its positive relationship with consumer's intrinsic or trait-based variety seeking tendency. Theoretical (market structure, consideration set) and managerial implications (targeting of price promotions to reduce spending, product design, cross-price elasticity) of the findings are offered.     

Discounting and Its Impact on Durables Buying Decisions

The phenomenon of discounting is well established in the economics literature. However, this research has traditionally assumed that households have a single discount rate and make all intertemporal tradeoffs based on that rate. More current research in decision making and marketing has challenged the economics approach to intertemporal choice behavior. In this article, we propose two aspects of discounting research that are particularly relevant to consumer behavior toward durable goods. We propose first that consumers have individual discount rates for product categories. The second proposition is that, in a multiattribute modeling context, consumers have different discount rates for different attributes. We also discuss the strategic implications of these discount phenomena for marketing managers.     

Canadian Consumer Willingness to Pay for Omega-3 Meat

This study analyzes Canadian consumer willingness to pay for omega-3 enhanced beef, pork, and chicken. Using a nationwide survey conducted by ACNielsen in 2006 and choice modeling framework, results indicate that smaller household, households with high incomes, and households that have previously purchased an omega-3 product are willing to pay a premium for omega-3 beef, pork and chicken. The results also suggest that consumers that have previously purchased an omega-3 product are willing to pay a higher premium for the respective omega-3 meats compared to households that have never purchased an omega-3 product. Also, premiums are highest for omega-3 beef, followed by omega-3 pork, and last, omega-3 chicken.     

Purchase frequency,sample selection,and price sensitivity: The heavy-user bias

We study the relationship between purchase frequency and volume and choice behavior as summarized by brand preferences and price sensitivity. Our most striking finding is that consumers with high purchase frequency or high purchase volume are much more price sensitive and have more sharply defined preferences for national brands than consumers with low frequency or low volume of purchase. In much of the choice literature, analysis is confined to households that have on average a larger number of purchases than is representative of the ERIM panel. Our findings suggest that some caution should be exercised in interpreting studies that employ purchase-frequency or purchase-number sample inclusion rules. Our findings also support an information theoretic point of view in which households become more price sensitive via costly acquisition of information about the distribution of prices.We acknowledge helpful comments from Greg Allenby and Bob Blattberg. Support from the Micro-Marketing Project at the Graduate School of Business at the University of Chicago is gratefully acknowledged. Byung-Do Kim is the corresponding author.     

Brand presentation order in voice shopping: Understanding the effects of sequential product presentation

Nearly half of US households own a smart speaker with voice shopping functionality. Voice shopping product presentation is inherently sequential due to the audio delivery of information, which may give retailers the opportunity to influence customer decisions through the order in which brands are presented. This research examines the effect of brand order presentation in voice shopping and its impact on high-equity versus low-equity brands. Moreover, this research considers the moderating effect of product presentation format (simultaneous vs. sequential, audio vs. visual) on the impact of brand presentation order. The results of six experiments with more than 1,000 participants provide evidence that consumers attempt to balance competing concerns about risk in voice shopping with search costs because products are presented sequentially and information is reduced. If high-equity brands are presented first, the choice distribution in voice shopping is unimodal, with a peak at the first-presented products. However, a bimodal choice distribution results if low-equity brands are presented first. Importantly, choice distribution in voice shopping differs markedly from choice distribution when products are presented simultaneously and visually, as in online shopping.     

Decision Strategy and Structure in Households: A “Groups” Perspective

From a practical perspective, (arguably) most consumer decisions are not made in isolation of the households in which consumers are inserted, yet we commonly treat them econometrically as if they were. The purpose of this workshop was to take some initial steps in defining needed research in household decision making that structurally accounts for goal sharing, utility interdependence, taste heterogeneity, choice set formation, power structures, group size and composition, and so forth. We also considered conditions under which aggregation of tastes, utility and choices might occur and make sense from both behavioral and modeling perspectives.     

Choices and using of washing machines in Chinese households

Rapid urbanization and improvement in living standard skyrocket the demand for washing machines in Chinese households, especially in urban households. This paper discusses the owning rate of different types of washing machines, using frequency, load capacity, factors affect choices of washing machines, etc. in Chinese households and suggest possible strategies in choosing washing machines considering economic expenditure. Quantitative information relates to choice and use of household washing machines was collected through in‐depth interview of the key person who carried out household laundering. A total of 993 households that were randomly selected in eight provinces and a municipality were successfully interviewed. Impeller washing machine is still in a dominate place whereas drum washing machine increasing steadily. Households with higher income tend to buy drum washing machines for their better performances in detergency and superior quality. Load capacity between 4 and 6 kg is very common at present. Larger load capacity is a trend of washing machine choices in Chinese households. Washing machine with better energy efficiency is more popular for its lower expenditure in use. This is more obvious for drum washing machine. Washing machines are often used once every 1 or 2 days in summer, whereas one wash per week and two washes per week are very common in winter. Consumer will expend much more money with the choice of a drum washing machine, not only for paying for the machine, but also for the consumed electricity and water and wastewater discharges in every use.     

Explaining participation in the self-service economy

To explain participation in the self-service economy, competing theorisations have variously depicted participants as rational economic actors, dupes, seekers of self-identity, or simply doing so out of economic necessity or choice. To evaluate motives for self-servicing in the home improvement and maintenance sector, a survey of 120 households in an English locality is reported. This will reveal that all theorisations are valid to differing degrees, and through a process of induction, will offer a typology that combines the existing theorisations by differentiating between ‘willing’ (rational economic actors, choice, identity seeking) and ‘reluctant’ (economic and market necessity, dupes) participants in self-servicing. The outcome is a call to evaluate the broader applicability of this typology when explaining the wider self-service economy.     

Beyond formal retailing and consumer services: an examination of how households acquire goods and services

The aim of this paper is to show that the acquisition of goods and services through formal firms is less widespread than might be expected. Drawing upon empirical evidence from a deprived neighbourhood, this paper finds that a large proportion of goods and services are informally acquired. In the realm of goods acquisition, informalisation is normally a result of economic necessity and is the first option but second choice of households. In the sphere of consumer services, however, informal modes of provision are often preferred by households and actively chosen over formal consumer services. The implications of these findings for how households acquire goods and services in the wider society are then considered so as to start to open up a debate on the consequences of informality in retailing and consumer services.     

Factors affecting households’ seafood purchasing decisions in Auckland,New Zealand: an empirical analysis

This paper uses the binary choice model to identify the factors that are significantly influencing the household purchase decisions of seafood products for home consumption in Auckland, New Zealand. It is found that ‘quality’ and ‘cooking easiness’ are the main product attributes that significantly influence households’ choices of seafood in Auckland. Also, the representative household has shown a strong preference for fresh and other alternative seafood products, including processed, smoked and canned, over frozen products. Retail outlets are found to be more attractive to the household purchasing seafood for home consumption. The New Zealand seafood industry may find this baseline study useful as a guide to developing future research structure on the domestic market.     

Modeling Dependencies in Brand Choice Outcomes Across Complementary Categories

We build an econometric model of a household's contemporaneous brand choice outcomes in complementary product categories. This model explicitly captures cross-category dependencies in brand choice outcomes of a household. Such dependencies have not been modeled in existing multi-category demand models.Our model accommodates cross-category dependencies that arise on account of three component effects: (1) complementarity due to the additional utility that a household derives from the joint purchase of brands in complementary categories, (2) marketing spillovers due to the effects of brands’ prices in one category affecting the households’ latent utilities for brands in the complementary category, (3) unobserved dependencies due to correlations in households’ latent utilities for brands across categories.We estimate our proposed multi-category brand choice model using scanner panel data on cake mix and frosting categories. We find that complementarity accounts for the vast majority of the estimated cross-category effects in demand. We also find that as much as 55 percent of the total retail profit impact of price promotions arise on account of brand-level (focus of our study), as opposed to category-level (focus of previous studies), dependencies in household demand. Finally, we propose an easily interpretable visual representation – Largess and Free-Ride Plot – of cross-category price elasticities that summarizes the differential abilities of brands to influence, or be influenced by, brands in the complementary category.     

Young People Are the Front Lines of Financial Inclusion: A Review of 45 Years of Research

Amidst concerns about percentages of households that remain unbanked or underbanked, policy endeavors have emerged to promote financial inclusion by making financial products such as savings accounts readily available. While these endeavors have primarily concentrated on households, young people may be the front lines of financial inclusion because they may be more likely to be banked in young adulthood and beyond when they start off with savings accounts earlier in life. This article addresses young people's financial inclusion by comprehensively reviewing 60 research studies on young people's savings, discussing the role of the family in young people's financial inclusion, discussing financial inclusion from an institutional perspective, presenting policy implications, and identifying gaps in knowledge and opportunities for research. Policies that open savings accounts for young people early in life may be a promising strategy for extending financial inclusion and preventing unbanked or underbanked status later in life.     

The difference in microwave oven ownership and use in London,U.K. and Atlanta,Georgia

In the present study of microwave oven ownership and use, three hypotheses were tested with data from 100 households in London, U.K. and 100 households in Atlanta, Georgia. The data were collected with a survey instrument administered by door-to-door interviews. The results of the study show that microwave owners are younger, have higher incomes, Larger families, and are more innovative than non-owners. The study also revealed that country of residence made a great difference in level of use. Households from Atlanta, Georgia, are younger, have larger families, have microwaves with many more features, and have owned a microwave longer than low level microwave users. The research reinforces the need for cross-cultural studies of this type.     

“合同订单”为何没有成为农户与龙头企业(公司)的“定心丸”

违约屡屡发生已成为定单农业发展过程中的一个突出问题。诱导合同违约现象发生的根本原因在于现有订单农业的内在机制安排 ,无法使农户与企业之间真正能做到既利益共享 ,又风险共担 ,同时欠佳的外部环境又给了其滋生的土壤。因此要使订单农业健康发展 ,合同订单真正成为农户与企业的“定心丸” ,既要以内在机制进行改善与创新 ,又要为其发展提供良好的外部环境。而期权理论中的卖权机制 ,则不失为是一种实现农户与企业双赢的最佳方案     

The Indirect Impact of Price Deals on Households’ Purchase Decisions Through the Formation of Expected Future Prices

We examine the indirect impact of price deals, which occurs through the formation of expected future prices, on households’ purchase decisions. Two competing learning processes of households’ formation of expected future deals that lead to opposite predictions are proposed. Under a deal-probability learning process, a current deal on a brand raises households’ expectations of a deal on the same brand in the immediate future, while under a deal-timing learning process, a current deal on a brand lowers households’ expectations of a deal on the same brand. We embed each learning specification within a comprehensive econometric framework that simultaneously examines three purchase decisions – incidence, brand choice and quantity – at the household level, while explicitly correcting for two sources of selectivity bias in discrete quantity outcomes. We estimate the proposed model using scanner panel data on paper towels, and find that (1) the deal-probability learning process better describes how households incorporate the deal information into the formation of future price expectations compared to the deal-timing learning process; (2) the indirect impact of price deals is greater for brand-loyals than for brand-switchers; (3) the indirect impact of price deals is greater for larger families, heavy users, less educated and less employed households, and infrequent shoppers. We also show that ignoring the indirect impact of price deals severely overstates the sales effects.     

Cherchez la Femme? Differential Validity in Models of Risky Household Financial Behavior

The purpose of this paper is to investigate whether the choice of household informant for psychological variables included in models of risky household financial behavior matters to the empirical researcher. Five research hypotheses are posited in relation to this purpose, which concentrate on evaluating results from different correlation and regression analyses based on behavior measured at the household level, but with psychological data drawn from either the family financial officer (FFO) or the spouse in family households (N = 807). A sample of one-person households from the same database was used as control group (N = 211).It could not be shown directly that the amount of explained variance differed significantly between multiple regression analyses, in which the psychological data were drawn from different informants. However, other tests and analyses strongly indicate that including FFO data increased the validity of the model, while the inclusion of spouse data gave a marginally positive, albeit statistically significant, effect. The interpretation of the model also differs when different informants' data are used. One-person household data used to estimate an identical model seemed to produce a better fit than family household data. Finally, measures of "couple" variables showed stronger agreement between spouses than "individual" variables. Zero-order correlations between psychological variables and measures of risky financial behavior differed significantly between spouses in a few cases.The implication is that in this behavioral domain, psychological data must be collected from the family financial officer, while the spouse can be excluded without any severe consequences. This will also reduce the need to eliminate households from the analysis because of partial non-response.     

Lessons learned from renewable electricity marketing attempts: A case study

The choice of subscribing to renewable electricity has been available to Australian households for more than a decade, yet consumer uptake remains low for some green marketers. This case study uses a retailer's perspective to examine the implementation of a green marketing program for a renewable electricity retailer. Based on interviews, internal company documentation, and secondary research, findings show that effective differentiation for renewable energy is required to increase consumer involvement levels and the likelihood of consideration. While consumers lack understanding of, and interest in, renewable energy, the marketing program relied on customers to seek information. It was apparent the success of green marketing programs depends on the integration of education into a carefully targeted marketing program emphasizing functional and emotional values to differentiate renewable energy and simplify consumer decision-making processes.     

What Drives Household Choice of Organic Products in Grocery Stores?

This paper studies how households choose organic products on a given store visit. We develop a three-stage purchase incidence/brand choice/purchase quantity model for organic products. Shared random effects parameters link the three stages of the model. We empirically quantify the effects of category variables, marketing mix, and demographic variables on the purchase of organic products using a unique household panel dataset that includes actual organic purchase data from two markets, by over 4,500 households in 25 stores for the period between January 2004 and June 2009. First, we find that the purchase of organic products is greater among the high income, college educated, and older families as well as among consumers holding high-level occupations. Second, households tend not to purchase organic products when buying in concentrated categories. Third, on average, households tend to buy organic store brands more than the organic national brands. Promotions of organic brands (feature ad and display) are less likely to drive households to buy organic brands and so does the organic brand's distribution breadth. Finally, price has an inverted U-shaped effect. We discuss the implications of these results for retailers, manufacturers and researchers.     

Resource use: the complexity of time and energy management in clothing maintenance

The research study examined time management and energy consumption with respect to clothing care. The investigation analysed data and information obtained in the NE-113 Family Time-Use Study collected in 1977–1978. Differences were found between urban and rural households and among different states. Occupational types of home manager, day of the week, education and age of children were variables accounting for differences in clothing care activities. The results have significance for a better understanding of how modem households meet the demands of clothing care management.     

Encouraging Tax‐Time Savings with a Low‐Touch,Large‐Scale Intervention: Evidence from the Refund to Savings Experiment

Low‐ and moderate‐income households often struggle to save, but the annual tax refund represents a prime opportunity for these households to save toward their financial goals or build their emergency savings. This paper presents the results of a randomized, controlled experiment embedded in a free tax‐preparation product offered in 2013 to low‐ and moderate‐income households. The experiment involved approximately 470,000 filers and assessed the impact of behavioral interventions on their savings behaviors. The results show that filers exposed to the treatments, which involved the established behavioral‐economics techniques of anchoring, choice architecture, and persuasive messaging, were more likely than a control group to save their tax refund and, on average, saved more of the refund. A follow‐up survey of these tax filers found that the treatments were associated with saving more of the tax refund six months after filing. The findings also show that anchors encouraging filers to deposit certain amounts are more effective than persuasive messaging emphasizing savings.