Download or read book Consumer Choice Information Product Quality and Market Implications written by Gennadi Kazakevitch and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumer Choice Under Limited Attention When Alternatives Have Different Information Costs written by Frank Huettner and published by . This book was released on 2018 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Consumers often do not have complete information about the choices they face and therefore have to spend time and effort in acquiring information. Since information acquisition is costly, consumers trade-off the value of better information against its cost, and make their final product choices based on imperfect information. We model this decision using the rational inattention approach and describe the rationally inattentive consumer's choice behavior when she faces alternatives with different information costs. To this end, we introduce an information cost function that distinguishes between direct and implied information. We then analytically characterize the optimal choice probabilities. We find that non-uniform information costs can have a strong impact on product choice, which gets particularly conspicuous when the product alternatives are otherwise very similar. There are significant implications on how a seller should provide information about its products and how changes to the product set impacts consumer choice. For example, non-uniform information costs can lead to situations where it is disadvantageous for the seller to provide easier access to information for a particular product, and to situations where the addition of an inferior (never chosen) product increases the market share of another existing product (i.e., failure of regularity). We also provide an algorithm to compute the optimal choice probabilities and discuss how our framework can be empirically estimated from suitable choice data.

Download or read book Product Quality Service and Pricing written by Ruxian Wang and published by . This book was released on 2017 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Problem Definition: In this paper we develop a unified framework to investigate firms' joint decisions on product quality, price and ancillary service, when they offer a line of products to consumers in a variety of monopolistic and competitive environments.Academic/Practical Relevance: Product quality, price and its ancillary service, such as product warranty and shipping service, are arguably the most important factors consumers consider when purchasing a product. Meanwhile, they are also among the most commonly-used instruments for firms to differentiate consumers and achieve better market segmentation. However, the literature is void of study on the joint decisions on product quality, price and ancillary service under consumer choice behavior.Methodology: We adopt the widely used multinomial logit choice model to formulate consumer choice behavior among substitutable products in the presence of ancillary service. Optimization and game-theoretical analysis are employed. Furthermore, we show that the multi-product problem can be reduced into one-dimensional analyses for each product as if they were isolated, leading to tractable analytical solutions.Results: Quality of each product should be set at a level such that the marginal utility for consumers is equal to the marginal cost to the firm, independent of the decisions on other products, whereas the pricing decision should take into account all other products. Consumer surplus surprisingly increases when the firm decides on both, product prices and quality levels, compared to when it decides only on prices or quality levels. When an ancillary service is available, we show that the firm should only attach it free of charge to high-margin products, only when the utility of the service to the consumers exceeds the cost to the firm. Nevertheless, the "free" service is not free because the firm actually passes its entire cost onto consumers by charging a higher price. Interestingly, consumers are still better off in this case.Managerial Implications: Regardless of product substitution, price competition or the availability of an ancillary service, the quality of each product can be optimally determined in isolation. Ancillary service is an effective strategy for firms to segment markets and improve profit, however, it has pricing implications.

Download or read book Consumer Search and Public Policy written by Howard Beales and published by . This book was released on 1980 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Frontier of Research in the Consumer Interest written by American Council on Consumer Interests and published by . This book was released on 1988 with total page 912 pages. Available in PDF, EPUB and Kindle. Book excerpt: The following papers are included: "JFK's Four Consumer Rights" (Lampman); "Product Safety" (Gerner); "Use of Cost-Benefit Analysis in Product Safety Regulation" (Crandall); "CPCS's Voluntary Standards" (Ault); "Consumer Safety and Issue Emergence Process" (Mayer); "Reflections on Research in the Consumer Interest" (Nelson); "Concept of Quality" (Curry); "Price Quality Relationship" (Geistfeld); "Environmental Considerations and Assessment of Quality" (Huttenrauch); "Weights, Cardinality, and Scaling in Assessing Quality" (Maynes); "Information Processing from Consumer's Perspective" (Russo); "Overlooked Mechanisms for Conveying Information to Consumers" (Mazis); "Determinants of Information Use" (Olshavsky); "Economics of Information in Consumer Markets" (Ippolito); "Economics of Information" (Ratchford); "Consumer Choice Is More than Search" (Morgan); "An Electronic Future?" (Mitchell); "New Technologies in Consumer Information" (Talarzyck); "Marketing Context of Consumer Choice" (Wilkie); "International Trade" (Dardis); "International Trade and Trade-Offs for Third World Consumers" (Reich); "International Trade" (Allain); "International Trade and Trade-Offs for Third World Consumers" (Kinsey); "Increasing Competition through Deregulation" (Kushman); "Case for Minimizing Regulation" (Clarkson); "Financial Services" (Durkin); "Privatization, Competition and Airline Deregulation" (Mitchell); "Issues in Regulation and Deregulation" (Nelson); "Organization of Consumer Movement" (Herrmann et al.); "Why Consumer Education in Japan?" (Imai); "Consumer Organization and Representation in Developed World" (Sand); "Consumer Organization and Representation in Developing Countries" (Allain); "Consumer Policy and European Economic Community" (Orsini); "Consumer Problems" (Thorelli); "Salient Issues in Current European Consumer Policy Research" (Orlander); "Time for a Wingspread" (Kerton); "Self-Fulfillment, Consumer Policy and Consumer Research" (Scherhorn); "Corporate Consumer Affairs Departments" (Fornell); "Consumer Affairs" (Fernstrom); "Consumer Affairs" (Vawter); "Consumer Affairs Professionals and the Consumer Interest" (McKaig); "Advertising" (Eastwood); "Market Research in the Consumer Interest" (Imowitz); "Marketing Research as a Dialogue" (Levy); "How Can Marketing Research Contribute to Consumer Interest?" (Murphy); "Survey Research on Behalf of Consumer" (Warren); "Consumer Complaints and Redress" (Andreasen); "Consumer Satisfaction/Dissatisfaction and Consumer Interest" (Hunt); "Disappearance of Consumer from Modern Products Liability Law" (Priest); "Role of Secondary Schools" (Green); "Role of Federal Government" (Mohr); "Role of Cooperative Extension" (Turner); and "Content of College-University Course in Consumer Education" (Robinson). (MN)

Download or read book Consumer firm Relationships in Limited Information Subscription Markets written by Mark A. Israel and published by . This book was released on 2001 with total page 356 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Seeking Success in E Business written by Kim Viborg Andersen and published by Springer. This book was released on 2013-06-29 with total page 638 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the foreword to this volume of conference proceedings for IFIP Working Group 8.4, it is appropriate to review the wider organization to which the Working Group belongs. The International Federation of Information Processing (IFIP) is a non-governmental, non-profit umbrella organization for national societies working in the field of information processing that was established in 1960 under the auspices of UNESCO. IFIP's mission is to be the leading, truly international, apolitical organization which encourages and assists in the development, exploitation and application of Information Technology for the benefit of all people. At the heart of IFIP lie its Technical Committees that, between them, count on the active participation of some two thousand people world-wide. These Groups work in a variety of ways to share experience and to develop their specialised knowledge. Technical Committees include: TC 1. Foundations of Computer Science; TC 2: Software: Theory and Practice; TC 3: Education; TC 6: Communication Systems; TC 7: System Modelling and Optimization; TC 9: Relationship between Computers and Society; TC 11: Security and Protection in Information Processing Systems; TC 12: Artificial Intelligence and TC 13: Human-Computer Interaction. The IFIP website www.ifip.org) has further details. Technical Committee 8 (TC8) is concerned with Information Systems in organisations. Within TC8 there are different Working Groups focusing on particular aspects of Information Systems.

Download or read book Bounded Rationality and Industrial Organization written by Ran Spiegler and published by OUP USA. This book was released on 2011-02-18 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ît then rigorously analyses each model in the tradition of microeconomic theory, leading to a richer, more realistic picture of consumer behavior. Ran Spiegler analyses phenomena such as exploitative price plans in the credit market, complexity of financial products and other obfuscation practices, consumer antagonism to unexpected price increases, and the role of default options in consumer decision making. Spiegler unifies the relevant literature into three main strands: limited ability to anticipate and control future choices, limited ability to understand complex market environments, and sensitivity to reference points. Although the challenge of enriching the psychology of decision makers in economic models has been at the frontier of theoretical research in the last decade, there has been no graduate-level, theory-oriented textbook to cover developments in the last 10-15 years.

Download or read book The Wal Mart Effect written by Charles Fishman and published by Penguin. This book was released on 2006 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: An award-winning journalist breaks through the wall of secrecy to reveal how the world's most powerful company really works and how it is transforming the American economy.

Download or read book Consumer and Industrial Buying Behavior written by Arch G. Woodside and published by North Holland. This book was released on 1977 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Product Lines for Digital Information Products written by Victor Pankratius and published by KIT Scientific Publishing. This book was released on 2007 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: Digital information products are an important class of widely used digital products, whose core benefit is the delivery of information or education (e.g., electronic books, online newspapers, e-learning courses).This book introduces a novel and systematic approach, Product Lines for Digital Information Products (PLANT), which focuses on the creation of variants of such products within a product line, and which extends concepts from the area of software product lines.

Download or read book Consumer Information Seeking written by Dennis Anderson and published by . This book was released on 1978 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This report contains a summary of a two-stage research project which investigated the nature of consumer information seeking for a durable product. In the first stage, the amount and type of information seeking was studied within a sample of recent buyers of this durable. The second stage of the research involved an assessment of the effects of a particular information disclosure requirement, informative labels, on consumer choice behavior"--Summary.

Download or read book Advances in Advertising Research Vol VII written by George Christodoulides and published by Springer. This book was released on 2016-08-24 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: Focusing on a range of advertising formats, this book provides international state-of-the-art research inter alia on the fast evolving and increasingly complex advertising landscape that raises a number of challenges for advertisers. Further research is needed to guide choices regarding ad content and execution, media placement, social networks, and campaign effectiveness. Advances in Advertising Research are published by the European Advertising Academy (EAA). This volume is a selective collection of research presented at the 14th International Conference in Advertising (ICORIA), which was held in London (UK) in July 2015. The conference gathered more than 150 participants from various countries from nearly all continents, including Europe, North and South America, Asia, and Australia.

Download or read book Dual Role of Price in Consumer Choice written by Sungjee Choi and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Consumers commonly compare prices as well as consider quality when they are in the grocery store to save their budget and to keep a minimum level of quality. However, consumers cannot gauge every single product's quality, and it is often shown people utilize price as a product quality indicator. The goal of the study is to reassess the price sensitivity theory which is consumers have lower price sensitivity for higher priced product. Also, this research examines price's dual roles in consumers' decision-making processes: 1) as a constraint and 2) as a quality cue. Consumers use price as a quality cue to alleviate uncertainty in their decision-making process. Several literatures in the marketing science area found asymmetric brand switching behavior and price tiers among brands using consumer panel data. Two arguments throughout the previous studies are 1) there is a positive correlation between price and quality, and 2) there is a negative correlation between price and price sensitivity. Following the previous literature, the utility model from the economics traditional logit model is developed by having additional parameter which is price and quality association. By adding price and quality association parameter, this study proposes a new developed model which captures the effects of price role as a quality cue on consumers' utility. The developed logit model is estimated via Hierarchical Bayesian framework.The results provide partial support for the prediction that higher priced products have lower price sensitivity. Overall, however, the findings of this paper argue that consumers react more to high priced products' price change than to low priced products' price change. This is because we have two distinct consumer groups and only small portion of consumers follow the price sensitivity theory. Consumers who have a large P-Q association are not as price sensitive as consumers having a small P-Q association. As a result, the overall level of price sensitivity dictates whether or not a P-Q association is observed. The implications of this finding and directions for future research are also discussed at the end of the paper.

Download or read book Consumer Choice Imperfect Information and Public Policy written by Victor P. Goldberg and published by . This book was released on 1973 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Shaping Consumer Expectations Through Integrated Marketing written by Chenxi Liao and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In my dissertation, I study the managerial implications when firms can use different strategies to influence consumers’ learning process. For example, in the first chapter, I focus on consumers’ learning about product fit, which is relevant to the frequently discussed phenomenon of showrooming. Showrooming is the phenomenon where consumers visit a brick-and-mortar (B&M) store to examine the products but then buy online to obtain lower prices. Though it is usually considered a major threat to the B&M retailers, the popular arguments ignore the strategic role of the manufacturer in the distribution channel. After all, the manufacturer’s need for retail informational services has always been one of the essential reasons for retailers to exist and is a means for retailers to achieve profitability. This chapter analytically shows that when the manufacturer’s decisions are considered (i.e., when the manufacturer-retailer contract is endogenous), consumers’ ability to engage in showrooming may lead to increased, rather than decreased, profitability for B&M retailer(s). Thus, retail efforts to restrict showrooming behavior may be misguided. This result holds even if the manufacturer is restricted to wholesale-only contracts and is not allowed to price discriminate between channels. In the second chapter, I focus on consumers’ learning about product quality. It is common for consumers to rely on opinion leaders, who presumably have a higher expertise in the product category, to form beliefs about the product quality. At the same time, the evaluations and product adoptions of opinion leaders are influenced both by the product quality and by their idiosyncratic preferences (fit). When opinion leaders do not provide a very detailed review, their followers need to form expectations of how much the opinion leader’s recommendation is driven by product quality and how much it is driven by an idiosyncratic fit of the product to the opinion leader. This chapter considers how the firm should adjust its optimal choice of the product variety in the presence of word of mouth, given that the opinion leader is likely to have more expertise and therefore, be better able to choose the version of the product that fits her best. It shows that while the opinion leader’s presence may be a force toward either an increased or decreased number of variants, generally speaking, the distortion is upward if it is more difficult to satisfy the opinion leaders, which could be either due to the higher importance of fit or due to their higher standards. I further show that the firm’s knowledge of the true quality may increase the distortion of the number of product variants it offers even when the equilibrium number of variants is pooling across the product qualities. The third chapter of my dissertation looks into the effect of scalping on consumers’ expected market structure and in turn the firms profit. Scalpers purchase the products with limited supply for reselling them later at inflated prices. Though firms often impose restrictions on scalping, we rarely observe actions that completely eliminate scalpers. This chapter explains why and how an intermediate level of restrictions on scalping can be optimal for the firm purely from the perspective of the firm’s profitability. I consider a firm with limited capacity. Consumers decide between purchasing the product before resolving the uncertainty, and waiting at the risk of the price increasing and the product selling out. I find that the firm’s profitability can indeed be maximized at an intermediate level of scalping. This result is an outcome of two opposing effects of scalping. On the one hand, the scalpers’ higher flexibility in setting the price decreases consumers’ expected payoff of waiting, making them more eager to pay a high price right away. On the other hand, the competition between the scalpers and the firm can decrease the firm’s equilibrium price. This result provides an explanation for the firms’ seemingly contradictory practices: they do impose some but not complete restrictions on scalping.

Download or read book The Effects of Incomplete Information on Consumer Choice written by Ran Kivetz and published by . This book was released on 2000 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: