Price image consequences

This study investigates the consequences of price image. Two conditions, a policy of intermediate price condition and a policy of low price condition, were distinguished in an experiment. Three moderators (consumers' price conscientiousness, retailer's motives perceived by consumers and consumers' familiarity with the retailer) were considered for these two conditions. Using partial least squares analyses (PLS), we propose integrated models of the consequences of price image highlighting the direct and indirect effects of this concept on consumers' satisfaction, trust, attitude and future behavioral intentions to the retailer. This research fills a gap in the literature since previous studies have mainly focused on the antecedents of price image or have only investigated specific links between the variables considered. Finally, considering our findings, we recommend to managers to favor either a policy of intermediate or low price depending of their consumers' characteristics.     

Price competition during and after promotions

We provide a framework for setting regular prices and using promotional discounts in a duopoly where long‐term promotional effects are present and the firms' pricing and promotional strategies are common knowledge (e.g., as in online markets). We show that at equilibrium, the two firms may not promote and instead adopt an Everyday Low Price (EDLP) strategy. Consumers' tendency to stockpile promoted products, the level of brand loyalty and product differentiation, and the possibility of a postpromotional sales increase critically influence regular prices, price discount rates, and profits. Under some conditions consumer stockpiling intensifies promotional competition and reduces firms' profits while the possibility of attracting new consumers reduces the need to heavily promote and ensures better profits. Managerial implications are discussed. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.     

Price promotion landscape in the US and UK: Depicting retail practice to inform future research agenda

Price promotions dominate the modern grocery retail environment. This paper documents the prevalence and nature of these price promotions (i.e., deal types and discount depths) in the United States and United Kingdom. The analysis comprises of 23 categories across five retail chains. One of the key findings is that multiple-unit promotions – deal types that have been under-researched – account for approximately half of all price promotion activity. The analysis also identifies an increase in price promotion prevalence since the Global Financial Crisis, predominantly driven by national brand promotions. This research carries important implications for the alignment of academic research with common industry practices.     

Optimal criteria for selecting price discrimination metrics when buyers have log-normally distributed willingness-to-pay

This paper investigates how a monopoly seller should determine the optimal set of pricing variables (pricing metrics) for third-degree price discrimination applications in which buyers have log-normally distributed willingness-to-pay (WTP). In a setup that closely resembles linear and probit regressions, this paper shows that when the monopoly seller is restricted to using one metric and no price discrimination cost exists, the pricing metric that best reduces the residual variance of buyers’ willingness-to-pay is the one that maximizes revenue. Equivalently, the explanatory power of willingness-to-pay is the ordering criterion. This paper also shows that this criterion is not universally true when willingness-to-pay follows other distributions. When the seller incurs price discrimination costs associated with different metrics, the ordering criterion becomes the explanatory power of each pricing metric divided by its cost. This paper also discusses how to apply this model to solve real-world pricing problems with contingent valuation models or using probit regression.

Price Adjustment Policy with Partial Refunds

Have you ever purchased an item only to notice a short while later that its price was reduced? Many retailers offer to refund customers the full price difference as long as the discount occurred within a short period of time after the original purchase. Such policy looks attractive to consumers as it shields them from future price fluctuations. But can this policy be advantageous for the retailer?In this paper we investigate the price difference refund policy (commonly referred to as price adjustment) and demonstrate how it can result in a higher profit even if all consumers request and receive a price adjustment.Further, the existing literature and practice both assume that if a price adjustment policy is employed, the consumers should get the full price difference refunded. In this paper we endogenize the refund amount, allowing the retailer to determine the optimal percentage of the price difference to be returned to consumers. We fully characterize the conditions under which it is optimal to offer a partial or greater than full price adjustment to customers as well as the optimal refund percentage. Additionally, we demonstrate that the practice of limiting the price adjustment option to a short period after the purchase incident is not necessarily in the best interest of retailers.     

Price competition in retailing: The importance of the price density function

Focusing on two determinant aspects of retail competition, prices and catchment area, this paper aims to specifically investigate the importance of the relative price density function. We answer such questions as whether it pays for a store to offer more low-priced items in a given category than its close competitors and whether a retailer should have a consistent assortment in terms of price tier frequency across all categories. To tackle these issues, we use a store-level panel database provided by IRI covering 34 categories and 150 stores in one province.     

经济适用房、土地价格与住宅价格——基于我国29个省级面板数据的实证研究

本文采用省级面板数据,研究经济适用房、土地价格与住宅价格之间的关系。研究发现:(1)土地出让价格、经济适用房价格和住宅价格之间存在长期均衡关系,土地出让价格和经济适用房对住宅价格的影响力度存在区域性差异;(2)短期内,经济适用房的替代效应大于收入效应,其供给有利于平抑商品房价格的上涨趋势;长期内,经济适用房的收入效应大于替代效应,其供给会起到推高房价的作用;(3)土地价格对住宅价格的长、短期影响效应均为正,但影响力度存在区域差异。     

Price competition between green and non green products under corporate social responsible firm

This article deals with a newsvendor inventory model in light of green product marketing of corporate social responsible firms. In this model, comparison between green and non green marketing is analyzed including subsidy and tax implementation by Government where the Government offers higher subsidy and lower tax to the green producer unlike the lower subsidy and higher tax to the non green producer. There is also price contest between green and non green producer as the demands of the products are dependent on sales price, carbon emission and corporate social responsibility index. Assuming the cost and profit parameters, an expected profit function of the systems is formulated and maximized analytically. Finally, numerical examples are illustrated to justify the proposed model.     

Price as an Indicator of Quality: Implications for Utility and Demand Functions

Consumers often infer quality information from prices and rely on their reference prices. This paper incorporates both behavioral regularities into the classic utility function. The analytical investigation reveals five qualitatively different types of consumers, three of which are relatively new to modeling literature. The authors test the model's theoretical insights using a new experimental method, random allocation of scarce inventories (RASI), which is designed to align people's incentives, such that they state their true rank order preferences. The results support the existence of five different types of consumers; the authors discuss the managerial implications for pricing strategies.     

空间竞争、房价收入比与房价

本文通过构建一个房地产市场空间竞争模型,分别就Cournot竞争和价格合谋情形,探讨了开发商的位置及其密度如何影响均衡开发量、房价和社会福利.本文的基本结论是:空间竞争决定了房价,而非房价收入比;市场决定的价格不一定为合理性价格;房价与市中心距离和开发商密度成反比;空间垄断是房价刚性的根本原因.因此,要将刚性房价降下来,政府一方面应将大项目拆分为小项目,促进竞争,另一方面应对空间垄断进行管制.     

Loyalty programs,loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries

Firms make large investments in loyalty programs (LPs) to build customer relationships with customer loyalty as one of their primary goals. Despite the popularity of LPs, their effectiveness is questioned and the subject of academic debates in relation to outcomes such as profitability. Moreover, extant research has not investigated if customers engage with LPs through LP perceived value and how LP engagement improves LP loyalty, brand loyalty, and customer engagement (CE) with the company brand. This study examines, from a consumer-centric behavioral perspective, LP engagement (LPE) behavior, and how LPE behavior impacts brand and LP loyalty, as well as CE. We introduce LPE behavior, a relatively new concept, in the form of a multi-dimensional set of hierarchically-ordered dimensions. We show a differentiated view of the relationship between the antecedents of brand loyalty as well as LP loyalty and CE. External, convergent and discriminant validity are confirmed by testing our model with a representative sample (n = 593) of the U.S. LP population with participants being members of either a grocery retail chain, department store chain, or airline frequent flyer LP. We show that perceived LP value engages customers with LPs. Subsequently, LPE behavior improves LP loyalty and brand loyalty as well as CE with the company brand.     

地区竞争、土地供给结构与中国城市住房价格

为了分析地区竞争下地方政府间土地供给结构的策略互动及其对住房价格的影响,本文在归纳梳理中国土地供应法规特征的基础上,构建一个同时考虑居住用地需求和工业用地需求的两城市模型,探讨地方政府干预土地供给结构的动机及其经济后果,并基于2006—2015年城市面板数据对提出的理论假说进行检验。研究发现,在城市建设用地总量受约束的条件下,地方政府有激励以减少居住用地为代价提高工业用地供给,进行招商引资竞争;与市场起主导作用的情形相比,地方政府干预土地供给结构时,工业用地的供应量更高,居住用地的供应量则偏低,工业地价与居住用地的价格差异增大;地方政府对土地供给结构的干预,从供给和需求两方面共同推高了房价。此外,地方政府干预土地供给结构会影响到相邻地区的供地策略。研究对加快推进房地产市场长效机制改革、从供给侧解决高房价问题具有启示意义。     

论循环经济条件下的资源环境价格形成

循环经济条件下的资源环境价格形成与传统市场经济条件下的商品价格形成有所不同,它作为一种广义的价格形态,需要政府强力的干预和参与甚至跨国际的集体行动。资源环境价格的形成要充分考虑循环经济视角下的资源环境价值和成本,以资源环境累积成本为依据,可通过试错方法或市场方法求得。要根据循环经济诸环节发生的替代关系,按照四项原则安排资源环境价格,使循环经济产业链与价值链相匹配。     

Price Discrimination and the Cruise Line Industry: Implications for Market Definition,Competition, and Consumer Welfare

This article extends the price discrimination literature and applies it to market definition and competitive effects analysis in recent mergers in the cruise line industry. In that industry, short run output is fixed. If firms want to increase price and restrict output to price‐insensitive customers, they have to increase the output and lower price to the price‐sensitive customers. We show that with fixed output (1) it is in firms’ interest to engage in price discrimination, (2) firms have increased ability to engage profitably in price discrimination as the intensity of competition decreases, and (3) the average price of price‐sensitive and ‐insensitive consumers increase with reduced competition. Unlike the economists at the Federal Trade Commission, our analysis suggests that cruise lines engage in third‐degree price discrimination. Moreover, the cruise industry could be a separate market and a reduction in the number of competitors might raise average prices.     

Can Mergers to Monopoly,Price Fixing,and Market‐Division Agreements Raise Welfare?

Naked market division, price fixing agreements and mergers which result in dominant positions have long been opposed by the courts and the government because of the high likelihood that they will result in a reduction in output and an increase in price. We show that the opposite may be true if the market is characterized by marketing spillovers. When marketing investment is required to educate consumers about the general capabilities or qualities of a product, marketing efforts by one producer will benefit rival producers. A theoretical model of these types of markets shows that marketing spillovers can forestall entry altogether or force incumbent firms to engage in ‘limit marketing’ that leaves the market underserved from a welfare‐maximizing perspective. Under these circumstances, market output and social welfare are potentially raised not only through horizontal agreements among competitors, but also through cost‐raising strategies and commitments to predatory behavior by incumbent firms.     

Advertising,Price and Quality in Self–regulating Professions: A Survey

This paper surveys the theoretical and empirical literature on the relationship between advertising, fees and quality in the self–regulating professions. Much of the literature is derived from the perspective of advertising as an information–enhancing device, helping to reduce the information asymmetry between professional and client. This is consistent with the majority of the empirical studies which suggest that advertising tends to have a downward effect on professional fees, with little if any adverse effect on quality. There are, however, important issues of method and measurement which may lessen the force of this conclusion     

国际粮价对国内粮价传递效应研究——以大米、小麦和玉米为例

根据2002年1月至2010年12月的月度数据,运用协整分析、误差修正模型以及脉冲响应函数等方法分析了入世以来国际粮食价格对国内粮食价格波动的影响。结果表明:长期而言,国内粮食市场与国际市场的市场整合度不高,价格传递不完全;短期内,国际粮价对国内粮价的影响也较小;国际价格对国内价格变动的贡献在不断加大,但仍处于较低的水平,主要原因来自于进口需求的低水平、政府的边境控制和国内支持政策。     

Asymmetric Price Adjustment in the US Gasoline Industry: Evidence from Bayesian Threshold Dynamic Panel Data Models

This paper investigates the gasoline price adjustment to changes in the input cost price for a panel of 48 US states using a monthly data set covering the period 1994–2011. We build, for the first time, a non-linear threshold panel vector-error-correction model (PVECM) and propose efficient Markov chain Monte Carlo (MCMC) Bayesian techniques. Our findings indicate that states with high margin experience a slower adjustment and a more asymmetric response to input price cost shocks. Our results are robust to potential structural breaks in the threshold parameter, which is important as market conditions change over time and are very sensitive to production/consumption constraints. Lastly, we attribute fluctuations in the gasoline prices to input cost shocks, arguing that the peak responses occurring one month after the shock are short-lived.     

Persistence of Price–Cost Margin and Technical Efficiency in the Indonesian Food and Beverage Industry

Abstract

This research investigates the persistence of price–cost margin (PCM) and technical efficiency (TE) of firms and the relation between these two factors in 44 subsectors of the Indonesian food and beverage industry in the period 1980–2014. Data envelopment analysis with a bootstrapping approach is applied to estimate TE. An autoregressive model, accounting for endogeneity, is applied to estimate the persistence coefficients of PCM and TE. A cross-sectional regression model is also applied to estimate the relation between the persistence of the PCM and the persistence of TE. The results show that for these food and beverage firms, high PCM and low TE persist. Furthermore, the persistence of PCM negatively affects the persistence of TE in the industry.     

Would You Like to be a Prosumer? Information Revelation,Personalization and Price Discrimination in Electronic Markets

Electronic commerce and flexible manufacturing allow personalization of initially standardized products at low cost. Will customers provide the information necessary for personalization? Assuming that a consumer can control the amount of information revealed, we analyze how her decision interacts with the pricing strategy of a monopolist who may abuse the information to obtain a larger share of total surplus. We consider two scenarios, one where consumers have different tastes but identical willingness to pay and another with high and low valuation customers. In both cases full revelation may only result if the monopolist can commit to a maximum price before consumers decide about disclosure.