Do Nonprofit Hospitals Exercise Market Power?

Several theories of nonprofit hospitals behavior predict that nonprofit hospitals behave in the consumer interest and thus do not exercise market power. If these theories are correct, then antitrust enforcement of hospital mergers should be restricted only to those markets in which a nonprofit hospital cannot offset anticompetitive behavior by for-profit hospitals. In this paper, we examine the relationship between price and market concentration among nonprofit hospitals in California in 1993. We find that nonprofit hospitals set higher prices in more concentrated markets. This result suggests that antitrust enforcement should challenge those mergers of nonprofit hospitals that create market power without creating offsetting efficiencies.     

The Best I Can Be: How Self‐Accountability Impacts Product Choice in Technology‐Mediated Environments

Technology‐mediated environments are important not only as the location for an increasing proportion of purchases, but also as an even more pervasive part of the purchase journey. While most research into online consumer behavior focuses on attitudes as an antecedent of product choice, this article focuses on an important but hardly explored variable that may be impacted by technology‐mediated environments: self‐accountability. Laboratory experiments suggest that self‐accountability may influence online purchases, but this has not been confirmed in field studies. Furthermore, although this prior work suggests that self‐accountability may impact product choice through the elicitation of guilt, the role of positive emotions has not been explored. Using two surveys with online retailers, this paper (a) shows that in a technology‐mediated environment, self‐accountability influences product choice; (b) proposes and confirms a complementary route for this effect through pride that is stronger than that through guilt; and (c) evidences the relationship between self‐accountability and perceived consumer effectiveness. These results show a clear opportunity for digital marketers to encourage self‐accountability, to thereby elicit pride and not just guilt, and hence to impact consumer decision making in technology‐mediated environments, particularly when choices have sustainability implications.     

Simulating Partial Asset Divestitures to 'Fix' Mergers

In this paper, we apply and extend merger simulation methodology to analyze the effectiveness of partial divestitures as a 'fix' to remedy the possible anticompetitive effects of horizontal mergers. Typically, antitrust agencies require merging firms to divest assets so that the status quo before the merger is restored, that is, they favor a 'full divestiture'. We focus on the effectiveness of a partial divestiture as an antitrust remedy (where a subset of products owned by the merging firms is spun off). Although this is not the type of full divestiture favored by antitrust agencies, we argue here that a partial divestiture could leave consumers better off after the merger than they were before - under certain conditions. Using a real-world example, we show how divesting a relatively close substitute creates competition that offsets the anticompetitive effects of combining products that are relatively distant substitutes. This result stands even when the divestee is moderately inefficient.     

“Seize the Deal,or Return It Losing Your Free Gift”: The Effect of a Gift‐With‐Purchase Promotion on Product Return Intention

The current article sheds light on an important issue in marketing: how marketers can prevent consumers from returning previously purchased goods. This research examines the relationship between a gift‐with‐purchase promotion and consumer product returns, hypothesizing that consumers who purchase products that come with a free gift will be less likely to return the products. Evidence shows that a gift‐with‐purchase promotion reduces consumer product returns and that this relationship is mediated by perceived loss in returning a product. Then, the results indicate that the choice of free gifts reduces product return intention and that this relationship is serially mediated by perceived ownership and perceived loss. The findings further suggest that when consumers with high product involvement can select free gifts among alternatives, they tend to perceive more ownership and loss and thereby are less likely to return the promoted product. Overall, the current research proposes that consumers prefer to seize the deal rather than to return it when they get a gift‐with‐purchase, have a chance to select a free gift, and are highly involved with the product.     

Antitrust,Innovation, Entrepreneurship and Small Business

The purpose of this article is to discuss a few aspects of antitrust enforcement that are directly related to small businesses. The first point concerns how the antitrust laws work as an economic "charter of freedom" by protecting our economy from the misuse of market power by dominant firms, or from anticompetitive collusion by groups of firms, or from anticompetitive mergers, all of which can blunt the mainspring of our economic success – competitive markets. Second is an expansion on the first theme which focuses on how antitrust enforcement helps preserve two freedoms that I think small businesses care about very much: the freedom to engage in entrepreneurship, and the freedom to innovate. A final discussion involves a few recent cases recently seen at the Antitrust Division that illustrate the many ways in which antitrust enforcement has helped the small business marketplace.     

Evaluation and Choice as a Satisficing Process

The question of whether individuals are rational or irrational in their decision‐making has long been an area of interest to academics and marketers, as the different decision styles require differing use of information sources and choice criteria by consumers during the buying process. As such, marketers would be required to adopt different communication strategies and stress different marketing mix or product features if they were to be successful in influencing the consumer’ s final choice.

The debate can be classified into whether or not consumers follow a formalised decision sequence of search and evaluation leading to final product choice. If consumers are not prepared to commit themselves to the cognitive and behavioural effort required by this formal process then they will satisfice their decision‐making, applying simplifying strategies to arrive at a satisfactory, although not the optimum, choice.

This paper reviews the common assumptions of search and choice, suggesting a three‐stage model which can be used to guide marketing strategy. Research into the decision process used by consumers in the acquisition of a video recorder is used to illustrate the operation of the satisficing model. Implications for marketing strategy are then discussed.     

THE LAST MILE: AN EXAMINATION OF EFFECTS OF ONLINE RETAIL DELIVERY STRATEGIES ON CONSUMERS

The Internet has increased the level of importance of the end‐consumer market to transportation carriers. In two between subject experiments, carrier disclosure on retail merchant websites is examined as a strategic differentiation strategy. Predictions are offered concerning effects of carrier disclosure strategies on product delivery‐related expectations, consumer attitudes, and intentions to purchase a product online. Results from Study 1 reveal significant differences between disclosure and nondisclosure of the carrier for numerous product delivery‐related variables, as well as many differences between the six carriers examined in this first study. Study 2 extends these findings by showing that providing consumers with a choice of carrier leads to increased levels of satisfaction with the online experience and greater willingness to buy, relative to nondisclosure and disclosure strategies.     

Preference for green packaging in consumer product choices – Do consumers care?

In this paper, consumer environmental choice is studied by analysing the relative importance of green packaging when compared with other relevant product attributes. The empirical study is based on a choice‐based conjoint analysis of preferences for functional drink products of a sample of 330 consumers using these products. Our choice‐based approach on environmental behaviour brings new insights to previous research, which predominantly relies on attitude models. Results indicate that consumers differ in their preferences for packaging, brand, price and convenience of use of daily products. In addition, various distinctive consumer segments can be identified on the market. Contrary to several previous studies, we found that the largest consumer segment, one‐third of consumers, favoured environmentally labelled packaging as the most important criteria in their choice. The findings emphasize the increasing importance of ethical and environmental dimension in product choices. We also propose that the attention in environmental consumer research should be shifted from general attitude studies towards the study of actual product choices.     

Repetitive Advertising to Deter Entry

This paper develops a model in which advertising not only informs consumers of brands, but also can influence consumer brand choices through its repetition. By examining a multi‐stage game in which two firms sequentially advertise before simultaneously setting a price, we show that repetitive advertising can be a legitimate entry‐deterrence weapon available to an incumbent in subgame perfect equilibrium. This demonstrates that firms’ conduct of advertising repetition has anticompetitive implications.     

Food choice: student consumers' decision‐making process regarding food products with limited label information

Food label information theoretically facilitates consumer decision‐making and food choice, but the extent to which consumers actually use this information during decision‐making is a subject of considerable debate. Therefore, this study focused on the importance of label information in student consumers' decision‐making process when exposed to limited label information food in a cafeteria environment. Because of a paucity of research in this area, a qualitative research approach that was exploratory in nature was used, accompanied by semi‐structured interviewing and a vignette. Undergraduate students from the North‐West University, Potchefstroom Campus, in South Africa served as the target population. The findings suggest that internal and product‐related strategies are applied when food choices are made whereby the importance of label information only features in the latter strategy. Student consumers with a label interest were more inclined to use label information strategies in the absence of complete label information to base food choice on. Those with a lack of label interest made use of alternative strategies using product and personal‐related information, such as freshness and product knowledge to make decisions. The decision‐making process was more complex because of insufficient label information and product appearance, and thus previous experiences and habitual purchasing became more important to participants. Student consumers should be supported to make healthier food choices through food manufacturers supplying cafeteria products with more complete label information and by providing students with the knowledge to use label information correctly through educational programmes.     

The role of the Internet on free-riding: An exploratory study of the wallpaper industry

This study discusses the role of the Internet on possible free-riding activities for product categories where retail services are a critical part of the completed consumer purchase transaction. The study investigates free-riding in terms of consumer pre-purchase activities during the information search stage (how they process shopping information) and actual purchase decisions with a literature review. The study's empirical findings indicate that full-service retailers’ beliefs about online consumers’ choice of purchase outlet are predominantly influenced by online retailer prices rather than availability of a variety of products (place) on the Internet. This, in turn, indicates the possibility of strong free-riding opportunities in the sample wallpaper market. The study, in this context, proposes strategies and policies to eliminate many of the destructive effects of the opportunities for free-riding provided by the Internet for long-lasting channel and market effectiveness and efficiency.     

More than Just an Opinion: The Effect of Verbal Self‐Expression on Consumer Choice

In an ever‐widening range of occasions, consumers have the opportunity to comment and express their opinions on brands and products. However, little is known about how voicing opinions about the choice options before actually choosing might affect consumer choice, and specifically liking of choice. This paper proposes that pre‐choice opinion expression undermines the effect of post‐choice bolstering, because opinion sufficiently satisfies self‐expressive needs and therefore supersedes the use of subsequent choice as a self‐expressive resource. This proposition is based on the assumption that opinion can psychologically substitute for choice, because the two represent alternative routes to self‐expression. Two experiments provide empirical support for this hypothesis. Study 1 showed that after articulating their opinions about the choice options, participants were less likely to idealize their choices, and this effect was mediated by a change in the construal of choice as self‐expression. Study 2 further showed that this effect is moderated by public versus private occasions of opinion voicing and by individual differences in the value of expression. Together, findings support that opinion is enough to express the self, and if such an opportunity is made available prior to choosing, consumers’ liking of their choices is weakened.     

Consumer cosmopolitanism: Review and replication of the CYMYC scale

Extant marketing literature mainly focuses on explaining why consumers might prefer domestic products and refrain from buying foreign products but, however, is weak in explaining why consumers might intentionally opt for foreign products. Against this background, consumer cosmopolitanism has gained increasing attention as a potentially relevant consumer characteristic for explaining foreign product preference and choice. However, empirical evidence on the impact of consumer cosmopolitanism on consumption behavior remains scarce. This paper identifies the absence of an appropriate measurement instrument as a main reason for this lack of empirical studies by providing (a) a review of cosmopolitanism scales used in other research fields, and (b) a replication with extensions study of the CYMYC scale, the only consumer cosmopolitanism scale currently available. The findings highlight a need for a new scale to measure the consumer cosmopolitanism construct. To stimulate further research in this direction, the paper proposes a conceptual definition of consumer cosmopolitanism along with a nomological network to guide the scale development process.     

The Professions Under Scrutiny: An Antitrust Perspective

Increasingly, the professions are coming under the scrutiny of the antitrust laws. Such anticompetitive forms of professional conduct as group boycotts, arbitrary and unreasonable licensing requirements, barriers to entry and exclusionary practices, price-fixing, stifling of innovative delivery systems, and restrictions on the scope of professional practice are reviewed in this article. Also examined are the problems encountered by the courts in applying antitrust law to the professions. The review of the literature reveals modest evidentiary support for a shift in the burden of requiring regulation to those proposing it. Several alternatives are set forth to aid in the development of procompetitive professions.     

In Search of a Competition Policy in a Competitive Economy: The Case of Hong Kong

The authors propose an exploratory framework to study competition policy development in general and apply it in the context of Hong Kong. Competition policy (in the U.S., commonly referred to as antitrust policy) is defined here as concerned with the public policy prohibiting anticompetitive behavior and the abuse of dominant market power on the part of businesses. The framework identifies four core variables that are important in influencing the development and implementation of a competition policy. These variables are the consumer protection agenda, external pressure, the political landscape, and the size of the economy. It is proposed that the way government responded to these forces has been instrumental in shaping how and why the competition policy debate in Hong Kong evolved the way it did. It also underscores the importance of recognizing the indigenous nature in the development of competition policy in any economy. Future research directions to generalize the framework are also suggested. These include further development and expansion of the core variables, contextualization of the framework for cross‐national comparisons, and undertaking longitudinal studies to examine the sensitivities of the competition policy to changes in the core forces over time.     

The regulatory challenge to branding: An interpretation of UK competition authority investigations 1950–2007

Abstract

Branding is a necessary and important business tool. This study, however, examines whether branding can constitute an anticompetitive act. While most markets and firms do not undertake anticompetitive actions, being identified as such can result in a wide range of negative outcomes. To explore this low-frequency yet high-risk outcome, this study assesses how branding has been perceived to be anticompetitive by the UK competition authorities. This assessment is undertaken by examination of all UK competition law regulatory decisions undertaken over the period 1950–2007 by the UK competition authorities. From this assessment, it is observed that branding can facilitate excessive pricing, requires vertical restraints, and can lead to consumer confusion; all potentially anticompetitive acts. The competition regulatory decisions focused on branding issues are demonstrably different from regulatory decisions without branding concerns and involve larger, often manufacturing, firms, which operate in more concentrated markets. It is concluded that comprehension of competition law needs to be disseminated more widely amongst marketing communities and greater reference to business and marketing theory should be made by competition law agencies to assist the comprehension of marketing techniques such as branding.     

Positioning Strategies for Animal-Friendly Products: A Social Dilemma Approach

Many consumers express concerns about the welfare of animals in agriculture, but often refrain from purchasing animal-friendly alternatives that address their concerns. To support consumers in making choices in line with their values and attitudes, this study approaches consumer animal-friendly product choice as a dilemma between maximizing the buyer's self-interest and maximizing societal interest. To address this social dilemma, we developed and tested positioning strategies that reinforce the animal welfare label with complementary consumption values (functional, emotional, social, and epistemic). The results from a choice experiment with Dutch chicken meat shoppers showed that two strategies—emotional and epistemic—effectively increase consumer value perceptions. These insights imply that animal-friendly products positioned to invoke emotion or curiosity drive consumers towards animal-friendly product choices, and that these strategies are most effective for consumers who base their choice solely on maximizing either self-interest or societal interest.     

人工智能时代个性化定价行为的反垄断规制--从大数据杀熟展开

人工智能时代,数据规模显著扩张,算法能力持续优化。科技实力雄厚、市场力量强大的经营者凭借大数据与算法工具的紧密结合,收集和分析能够反映消费者特征和行为的相关信息,以无限接近消费者购买能力和支付意愿上限的方式对消费者实施个性化定价。个性化定价行为涉及对条件相同的交易相对人在交易价格上实施差别化待遇,可能构成反垄断法所禁止的价格歧视行为。但与以往反垄断实施重点关注的排他性价格歧视不同,个性化定价突出表现为直接针对终端消费者实施的剥削性价格歧视,且在具体情形下呈现出不同的限制竞争效果,引发消费者选择能力与选择范围的双重限制。鉴于此,个性化定价行为的反垄断规制需要准确识别涉案行为,综合判断竞争效果,慎重选择福利标准。对于同时降低消费者剩余和社会总福利的个性化定价行为,可认定其具有限制竞争效果且不具备正当理由,从而构成违法价格歧视;对于降低消费者剩余却提高社会总福利的个性化定价行为,如果选择消费者福利标准则可认定其构成违法价格歧视,如果选择社会总福利标准则可认定其具备正当理由;对于同时提高消费者剩余与社会总福利的个性化定价行为,因涉及消费者之间的剩余转移,对其竞争效果的评价仍待反垄断实施予以明确。     

The effect of information overload on consumer choice quality in an on‐line environment

As more and more consumers become part of the net population, retailers and manufacturers as well as dot‐com storefronts are touting consumers by providing an ever‐increasing amount of product information. Their long‐term survival and profitability may be determined by how much and how well their product information is presented to and processed by the consumers. By combining both the traditional and structural approaches to the information‐overload phenomenon, this study investigates the impact of Web site information on consumer choice and psychological states in an on‐line environment. Varying the number of alternatives and attributes (traditional measure) and attribute level distribution across alternatives (structural measure), this study asks subjects to choose the best (dominant) CD player in a given set. Their subjective states such as satisfaction, confidence, and confusion are also measured. Results show that the number of attributes and attribute level distribution are good predictors of the effect of information overload on consumer choice. In addition, the study finds that on‐line information overload results in less satisfied, less confident, and more confused consumers. Implications and suggestions for future research are provided. © 2004 Wiley Periodicals, Inc.     

Strategies to reduce product proliferation

Major problems associated with product proliferation include higher production, inventory, and record-keeping costs; increased expenses associated with trade promotions and slotting fees; added consumer confusion and stress; and increased susceptibility to stockouts. This article describes how a firm can limit product proliferation without incurring reduced sales or lowering consumer loyalty. An effective product proliferation reduction program needs to be based on several principles: resisting the temptation of asking consumers if a greater assortment is required; classifying goods into consumer behavior-based tiers; using interfunctional product pruning teams; practicing mass customization, where appropriate; placing absolute limits on product choice; and implementing effective strategies for product pruning.