Assessing the Impact of Price Promotions on Consumer Response to Online Stockouts

The recent growth of e‐commerce technologies has disrupted the traditional retail environment, leading to more consumers shopping online. While the manner in which consumers shop is changing rapidly, our understanding of how changing consumer behaviors affect retail supply chain management is lacking. In particular, our understanding of how consumers react to stockouts in an online shopping environment remains unclear. Making the challenge even more difficult is the fact that price promotions are heavily used to attract consumers in an online retail environment where consumer switching costs are low. This research develops a theoretical framework, based on expectation‐disconfirmation theory, to explain the effect of price promotions on consumer expectations of product availability and their reactions to stockouts in an online retail environment. Surprisingly, our findings suggest that consumers are actually less dissatisfied with a stockout of a price promoted item than a nonprice promoted product and are less likely to switch to another retailer's website. These findings may suggest that price promotions actually create a type of switching cost in the online retail environment, leading to interesting implications for researchers and supply chain managers.     

Acceptance of New Food Products: Reference Prices and Psychological Moderators of Heterogeneous Price Effects

This paper emphasizes a consumer-centered perspective to understand new food product success. It pursues two central objectives by showing that consumers are more likely to interpret new product prices as offering gains or losses depending on their individual purchase histories, and consumer psychographics are demonstrated to affect new product adoption directly, and/or moderate effects of prices and promotions as well as quality signalling product attributes. Several hypotheses are generated based on explanations of underlying psychological mechanisms. For data analysis a cross-classified random effects model is applied to household panel data on yoghurt and sausages that includes four crossed random factors. The findings confirm that inclusion of consumer-specific price information is beneficial for understanding new food products’ adoption behavior. Monetary losses as well as gains negatively affect adoption. Purchase habits also hinder adoption while consumer innovativeness is an important driver. Price consciousness and purchase habits moderate price and promotion effects. While price consciousness reinforces negative effects of prices and positive effects of promotions, habits hinder positive effects of promotions. This implies that introductory promotions are an inappropriate strategy for attracting habitual consumers, and managers should identify appropriate target groups in order to improve the efficiency of introductory promotions.     

Marketing Organic Products: Exploring Some of the Pervasive Issues

ABSTRACT

This article explores the marketing of organic products. It identifies the issues that pervade the national, organisational, and individual differences within the global organic industry. These are discussed using the marketing mix framework of product, price, promotion, and place of distribution. It concludes that a large percentage of customers, who are spread throughout the community, purchase organic products, most of whom only purchase it occasionally. The most important attributes of organic products are health, quality, and environment. Promotion of these benefits has the potential to demonstrate that, even at the higher price, they still offer value for money.     

Healthy Food: Determinants of Price Knowledge of Functional Dairy Products

Agri-food business pricing practices assume that consumers know about prices and that price is an impediment to healthy food purchase and consumption. The present article assesses functional dairy food shoppers’ price knowledge accuracy and its determinants. The data were gathered from 207 face-to-face interviews with shoppers at the point of sale and were analyzed with binary logistic regression testing a number of set hypotheses. Results show that healthy food price knowledge is higher than for conventional food but still low, and consumers tend to underestimate the price paid. Price knowledge accuracy increases with high purchase frequency, promotional products, hedonistic consumption, and for enhanced function products. Results provide a basis for higher sustainable pricing strategies. Consumers’ inability to distinguish misleading pricing strategies calls for regulators to ensure fair and ethical market practices, especially for healthy food.     

Meta-Analysis of the Long- and Short-Term Effects of Sales Promotions on Consumer Behavior

ABSTRACT

This article presents a meta-analysis aiming to assess the short- and long-term effects of sales promotions on consumer behavior. We found 221 studies addressing this relationship. Our final sample provided 139 observations. First, the results revealed a significant relationship between sales promotion and both purchase intentions and sales volume. Second, we identified significant and positive connections with brand loyalty, perceptions of quality, consumer attitudes, and switching costs for consumers. Third, we noted that the sample type, the number of promoted products and sample size partially moderated the relationship between sales promotion and short/long-term effects.     

进口贸易视域下国际粮价对国内粮价的传导路径--来自玉米和大豆的证据

基于玉米和大豆等粮食国际、国内价格历史数据,运用协整及误差修正模型、脉冲响应函数等方法,揭示国际粮价对国内粮价的传导作用及影响路径。理论分析表明,国际粮价通过进口直接路径、进口产品成本路径和进口替代路径等三个子路径传导至国内粮价。实证检验发现,国际大豆价格进口直接路径和进口产品成本路径传导均比较充分,即国际大豆价格会影响大豆进口价格,进而影响国内大豆价格,最终影响国内豆油价格;国际玉米价格进口直接路径和进口产品成本路径传导则不充分,国际玉米价格会影响玉米进口价格,但是对国内玉米价格和国内玉米淀粉价格影响程度较低;而在进口替代路径中,玉米和大豆的国际价格传导均不充分。我国应继续推进以提质增效为目标的农业供给侧结构性改革,加大粮食生产科技投入力度,调动农民种粮积极性,集中力量提高粮食供给质量和效率;坚持粮食进口仅为调剂国内供求余缺的方针,把握粮食安全的主动权;建立健全粮食市场的价格调控体系及风险防控体系,规避国际粮食市场剧烈波动对国内粮食市场的影响。     

Marketing Novel Fruit Products: Evidence for Diverging Marketing Effects Across Different Products and Different Countries

The purpose of this study was to compare the influence of four different marketing claims and price information on consumers’ product choices for novel fruits and novel fruit products, using a choice experiment. In total, 1,652 people in Greece (n = 400), the Netherlands (n = 419), Poland (n = 423), and Spain (n = 410) participated in the study. The marketing claims entailed (1) information about scientific findings concerning health benefits, (2) social norm information, (3) information about the products’ naturalness, and (4) information about the products’ time-until-expiration. The results showed that all four marketing claims and price information influenced consumer choice, but the effect of naturalness depended on the specific novel fruit product being advertised, and the effect of time-until-expiration depended on both country and fruit product. These results suggest that marketing communications should be tailored to different national markets and to specific fruit products.     

基于流通经济学视角的蔬菜价格波动问题研究

本文拟从流通经济学视角对蔬菜价格波动问题进行理论分析,通过调查对比分析三次不同时点调查中蔬菜批发业务从业人员来源地、经营方式、经营品种的差异,对不同经济发展阶段蔬菜批发业务行业特点进行系统研究。结果表明,近年来大城市蔬菜经营的市场化、专业化程度迅速提高,主要体现在国营性质的批发商已经完全消失,个体经营者占批发商的比例迅速上升;批发商集货及销售产品的地域更加广泛;蔬菜供销价格完全随行就市,经营规模扩大,入行资本投入增加;品种、品质、价格以及需求等市场行情的迅速变化使蔬菜批发业务需要更多的经营技巧。蔬菜价格的迅速波动是交易市场化和专业化的体现,政府有必要花费更多精力考虑如何提供基础设施、质量监督、信息发布等公共产品,为公平竞争创造良好环境。     

Price Consciousness and Purchase Intentions for New Food Products: The Moderating Effect of Product Category Knowledge when Price Is Unknown

This study examines the degree to which consumers' price consciousness affects their purchase intentions for a newly introduced product when the price of the product is unknown. Based on data from 186 consumers exposed to a new product offering, the results show that price consciousness indeed has a negative effect on purchase intentions, but only for consumers with a high level of product category knowledge. Although perceived risk and perceived value are significantly related to purchase intentions in general, price consciousness seems to affect only those consumers who make inferences about price based on their knowledge of the product category. Both theoretical and managerial implications of the findings are offered.     

When Shopbots Meet Emails: Implications for Price Competition on the Internet

Quantitative Marketing and Economics - The Internet has dramatically reduced search costs for customers by using such technologies as shopbots. Email based targeting is relatively inexpensive; the...     

Personalization has a Price,Controllability is the Currency: Predictors for the Intention to use Personalized eGovernment Websites

Content personalization on government websites provides individuals with a personal selection of information. In this study, we determine the role of trust in a government organization, trust in the technology, and perceived controllability on the intention to use content personalization for eGovernment websites. A total of 1141 participants were presented with scenarios describing a nonpersonalized webpage and one of four approaches to online content personalization, followed by an online survey. Results were analyzed by means of structural equation modeling. Perceived controllability is the most important antecedent of the intention to use online content personalization for eGovernment; trust in the technology also has a considerable influence. Trust in the government organization plays a minor role. The adaptable approach to online content personalization has the highest likelihood of citizen acceptance. When designing personalized eGovernment information services, designers should instill a feeling of controllability over the coming about of tailored content and trust in the technology.     

The Impacts of Retail Promotions on the Demand for Orange Juice: A Study of a Retail Chain

This study examined the impacts of retail promotions on the demand for five brands of orange juices for a retail chain (referred to as Retailer X) and its competitors using the Rotterdam model. Results show that the combination of feature ads and displays had the largest impacts on retail revenue among the four promotional tactics considered, whereas temporary price reductions had no advertising impacts on retail revenue. Results also show that when Retailer X promotes an orange juice (OJ) brand using any of the tactics, a larger portion of the increased demand for the promoted brand comes from reduced demand for other brands of OJ in the same store or chain.A smaller portion comes from the decreased demand in Retailer X's competing stores in the same trading area.     

The Differential Impact of Price-Related Consumer Promotions on Loyal versus Non-Loyal Users of the Brand

Abstract

Consumer goods manufacturers regularly spend millions of dollars annually on sales promotions such as couponing, rebates, sweepstakes, and other premium offers. Although the impact of advertising on consumer purchase behavior has been documented in the marketing literature, the impact of promotions on purchase behavior has received relatively little attention. The purpose of this research is to investigate the relationship between brand loyalty, purchase involvement, product experience, and their impact on the efficacy of consumer promotions. The results show that sales promotions have applications beyond their traditional role as short-term promotional tools. Managerial implications as well as suggestions for future research are discussed.     

A Cluster Analytic Approach for Consumer Segmentation Using the Vegetarian/Meatarian Distinction

Abstract

In this study, we use cluster analysis to create a consumer segmentation scheme based on individuals' vegetarian/meatarian orientation, along with key attitudinal, personality, and demographic characteristics. Such characteristics include concern for animals, concern with health, concern for the environment, attitude toward corporate ethical practices, need for cognition, social conformity, age, gender, and level of education. In segmenting consumers along these dimensions, this research study not only expands our knowledge about consumers, but also provides useful insight for marketers of food products and services.     

金融因素对我国农产品价格波动的影响研究

随着农产品市场化程度的不断提高,我国农产品价格波动受到金融因素的影响日益显著。利用Newey-West一致协方差估计法分别对稻谷、大豆、棉花和生猪的需求因素进行实证分析的结果表明:从总体上看,由于不同农产品的市场化程度具有差异性,金融因素对我国农产品价格的具体品种影响程度并不一致,其中人口数量对四类主要农产品具有显著影响,而经济的较快发展对整体农产品影响显著;金融变量总体上会对农产品价格产生不同程度影响;对于其他因素,包括居民的消费水平、农业国际直接投资等对农产品价格影响不显著。     

农产品产量与收购价格的因果关系检验

近几年,中国农产品产量一直徘徊不前,通过引入市场竞争提高农产品收购价格,刺激农民务农积极性,一直被视为解决“三农”问题的有效途径之一。基于此,对农产品产量与收购价格进行实证检验极为必要,本文使用格兰杰因果方法检验八种农产品的产量与价格之间的因果关系,结果表明,产量基本不会影响收购价格,粮食、油料、干鲜果、水产品的一阶滞后收购价格与其产量有因果关系,其余农产品的收购价格与产量的因果关系不明显。     

Marketing Sustainable Consumption within Stores: A Case Study of the UK's Leading Food Retailers

Sustainable consumption is a core policy objective within the UK Government's Sustainable Development Strategy and there is a growing awareness that retailers have a vital role to play in promoting more sustainable patterns of consumption. This article explores how the UK's top ten food retailers are communicating sustainable consumption agendas to their customers within stores in the towns of Cheltenham and Gloucester. The findings reveal that while these retailers are providing customers with some information on sustainable consumption the dominant thrust of marketing communication within stores is designed to encourage consumption. The article concludes with some reflections on how sustainable consumption fits into the large food retailers' business models.     

零售商“差价返还”策略对商店整体价格形象的影响

价格是零售商间竞争的一个重要营销要素,而消费者不可能依靠所有具体商品的价格来客观地判断一个商店的整体价格水平,相反他们会依据一些能够感受到的价格线索来形成对整体价格水平的感知。零售商的"差价返还"政策对于商店价格形象具有一定影响,为此在相关的理论框架下须对干扰因素进行实证研究。     

国际农产品价格波动风险研究

基于GED分布,在多种GARCH类模型族假设下,实证研究国际农产品价格指数对数收益率的均值和波动性。以此为基础,利用VaR模型、ES模型以及后验检验方法计算国际农产品价格波动的风险特征。实证结果表明:国际农产品市场的价格波动性风险比较大;国际农产品市场中极端事件发生的可能性大于正态分布下的可能性;2005年以来,国际农产品价格波动性风险有明显增大的趋势。中国要密切关注国际农产品价格波动情况,并提前做出预测,以避免国际农产品价格的大幅波动造成过大的影响。     

The Impact of Price-Based and New Product Promotions on Fast Food Restaurant Sales and Stock Prices

A key tool used in demand or revenue management marketing strategies is the application of pricing tactics based on anticipated demand to enhance both customer utility and maximize firm performance (Wirtz et al., 2003). In the restaurant segment, particularly in quick-service restaurants (QSR), organizations focus on two main promotion formats to attract customers: price-based promotions and new product promotions. The purpose of this article is to explore how the number of price-based promotions and new product promotions influence firm sales growth or decline and change in stock prices. Results suggest that new product promotions can have a significant and positive effect on same store sales, whereas price-based promotions tend to results in lower same-store sales changes and changes in stock price. As an additional control for these results, the study controls for economic and seasonal conditions effects.