Download or read book The Formation and Role of Reference Prices in the Choice of Consumer Services written by Jutta Matti Laitamaki and published by . This book was released on 1990 with total page 504 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Formation and Role of Reference Prices in the Choice of Consumer Services written by Jukka M. Laitamäki and published by . This book was released on 1994 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dissertation Abstracts International written by and published by . This book was released on 2005 with total page 620 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Pricing Strategy and the Formation and Evolution of Reference Price Perceptions in New Product Categories written by Benjamin Lowe and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract : This study examines how pioneer and follower pricing strategies affect the formation and evolution of reference price perceptions in new product categories. It contributes to our understanding of pricing new products by integrating two important research streams in the field of marketing - reference price theory and the theory of pioneer brand advantage. This is the first research to address reference price effects for radically new product categories. Prior research has focused solely on products in existing categories, typically in fast moving consumer goods categories. Using three experiments to causally establish the consequences of pioneer and follower pricing strategies on consumer perceptions, three critical research issues are addressed for the first time, consistent with calls for research in the literature: 1. Which reference price do consumers utilise in new product categories? 2. What is the role of consumer confidence in reference price for new product categories? 3. How do reference price perceptions form and evolve as a result of pioneer and follower pricing strategy? In the literature, a frequently cited issue is the fragmented operationalisation of reference price perceptions. With little theory to guide researchers in terms of which measures should be used, experiment 1 provides new theory, finding as hypothesised, that fair price perceptions as opposed to expected price perceptions are more likely to be evoked by consumers for new product categories. Experiment 1 also finds that using consumers' confidence in their reference price beliefs as an additional explanatory variable, does not improve over current reference price models. Overconfidence, a robust consumer behavioural phenomenon (Alba and Hutchinson 2000), might explain this result. Prior research has made several contributions to understanding reference price perceptions in established product categories. However, not much is known about how these reference price perceptions initially form and evolve. Experiments 2 and 3 address this gap by simulating an emerging market and examining the role of pioneership in shaping reference price perceptions. Experiment 2 found the pioneer, due to its perceptual prominence, is able to define the reference price and subsequently define perceptions of value. That is, the value consumers place on a product and their intentions to purchase the product are about the same whether the pioneer follows a penetration (initial low price) or skimming (initial high price) strategy. Experiment 3 extends experiment 2 by examining what happens in the emerging market when a follower brand enters. The follower enters at a large or small discount to the pioneer, and the pioneer completes its penetration or skimming strategy, converging to a 'regular' price. As predicted, the pioneer's initial price frames subsequent price and value perceptions, signifying the importance of the pioneer as a referent brand. Lower initial prices erode value perceptions, whereas higher initial prices substantiate value perceptions. The follower's pricing strategy does not have as much influence as the pioneer's pricing strategy. Other findings from experiment 3 related to reference price theory in general. Specifically, there was strong evidence of an averaging process when forming reference prices. This adds theory to the measurement debate about operationalising reference price as some past price such as last price paid or some average of past prices. Experiment 3 also provides a further measurement contribution by supporting the use of brand specific measures of reference price, rather than category based measures. More generally, because of the causal research design, this thesis provides strong evidence of the use of reference prices in consumer decision making: a key concern emphasised by one of the area's seminal articles (i.e., Kalyanaram and Winer 1995), which stresses the need to provide evidence that consumers actually use reference prices, and not just act as if they do.
Download or read book Am I Getting a Good Deal Reference Dependentdecision Making When the Reference Price is Uncertain written by Vincenzina Caputo and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Models of consumer decision making commonly incorporate reference dependent preferences. In these models, the reference point is typically assumed to be known by the consumer. However, research on price recall and the reference formation process reveals that the reference price is often uncertain at the time of purchase. Reference price uncertainty creates ambiguity for the consumer about whether they are getting a good or bad deal. This paper develops a model of consumer choice in the presence of reference dependent preferences when the reference price is uncertain. Data from two empirical studies that vary the product category and order of the elicitation of reference prices show that the new model generally outperforms conventional discrete choice models that either ignore reference prices or treat reference prices as certain. The new model provides insights into the effect of reducing reference price uncertainty on consumer choice, and reveals that high uncertainty smoothes the kink in the demand curve that is present in traditional reference-price demand models.
Download or read book journal of retailing written by and published by . This book was released on 1993 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Experimental Inquiry Into the Formation of Reference Prices written by Piyush Kumar and published by . This book was released on 1993 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Two Essays on the Role of Price Promotion in Consumer Choice Behavior written by Sangman Han and published by . This book was released on 1993 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Reference Price Theory written by Daniel Steven Putler and published by . This book was released on 1988 with total page 300 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Investigation of the Allocative Role of Price in Consumer Choice written by Dogan Eroglu and published by . This book was released on 1991 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Expectations in Consumer Decision Making written by Lisa Dianne Ordóñez and published by . This book was released on 1994 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Satisfaction A Behavioral Perspective on the Consumer written by Richard L. Oliver and published by Routledge. This book was released on 2014-12-18 with total page 544 pages. Available in PDF, EPUB and Kindle. Book excerpt: Designed for advanced MBA and doctoral courses in Consumer Behavior and Customer Satisfaction, this is the definitive text on the meaning, causes, and consequences of customer satisfaction. It covers every psychological aspect of satisfaction formation, and the contents are applicable to all consumables - product or service.Author Richard L. Oliver traces the history of consumer satisfaction from its earliest roots, and brings together the very latest thinking on the consequences of satisfying (or not satisfying) a firm's customers. He describes today's best practices in business, and broadens the determinants of satisfaction to include needs, quality, fairness, and regret ('what might have been').The book culminates in Oliver's detailed model of consumption processing and his satisfaction measurement scale. The text concludes with a section on the long-term effects of satisfaction, and why an understanding of satisfaction psychology is vitally important to top management.
Download or read book Reference Price in Online and Offline Channels written by Marta Arce-Urriza and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper (Chapter 3 of a dissertation on online shopping behavior) evaluates the role of reference price on consumer behavior at the online channel, focusing on whether it plays a relevant role, how it is formed, the importance of two broad types of reference prices, internal reference price (IRP) and external reference price (ERP), and potential differences to those effects observed offline. Using a unique data set of online and offline grocery purchases from the same sample of consumers of a large multichannel grocery chain, we analyze purchases and unplanned no-purchases in the orange juice category for consumers who face equal prices across online and offline channels, and use multinomial logit models which account for IRP and ERP effects. To avoid that IRP and ERP drop out of our multinomial estimations, we use item-specific measures for both of them. IRP is measured as the price observed for each alternative by consumers on their last visit to the store, whereas ERP is measured according to four different formulations: ERP (mean), ERP (low), ERP (high) and Rank. In our data we find that ERP (mean) performs better than any other formulation for ERP. One of the main contributions of the chapter is that reference price effects on consumer behavior differ across online and offline channels. Regarding reference price in general, we find that the impact of reference price is greater offline. Regarding IRP and ERP, we find that at both channels, the impact of IRP is greater than that of ERP, but that the relative impact of IRP with regard to ERP is greater online than offline. Besides, results show that whereas the impact of IRP is similar online and offline, the impact of ERP is significantly greater offline; in fact ERP is not significant online. Additionally, the influence of purchase frequency on the impact of IRP and ERP on brand choice across channels is evaluated. For frequent shoppers, the effects of IRP and ERP coincide with those observed for the general population. However, they are slightly different for infrequent shoppers. Results indicate that the role of ERP increases considerably for infrequent shoppers compared to frequent shoppers, and that it becomes significant in the online channel for infrequent shoppers. These results are of remarkable interest for retailers because they would help them to organize correctly the timing of promotion and price changes online. Moreover, these findings become especially relevant for multi-channel retailers operating both online and offline. As shown by a simulation detailed in the chapter, a change in price impacts IRPs and ERPs, and these changes in IRPs and ERPs influence alternatives' choice probabilities in the category. This change in alternative's choice probabilities translate into differences in sales' distribution in the category and, consequently, on the revenues obtained by the retailer. If retailers do not consider that the impact of reference prices differs across channels, they may follow inadequate pricing strategies for the online and offline channels. In fact, for the category of orange juice, we find that the grocery retailer could increase its revenues by 3.43% if it discriminated prices across shopping channels.
Download or read book American Doctoral Dissertations written by and published by . This book was released on 1998 with total page 784 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Reverse Pricing and Online Price Elicitation Strategies in Consumer Choice written by Alexander Chernev and published by . This book was released on 2006 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research examines consumers' willingness to pay in an online environment. Specifically, I compare two price-elicitation strategies: price generation (i.e., quot;name your pricequot;) and price selection i.e., quot;select your pricequot;). Contrary to the common assumption that naming a price will be preferred by consumers because it offers the most flexibility in articulating one's willingness to pay, this research demonstrates that consumers often prefer to select rather than to generate a price. In a series of three experiments, I show that the potential unfavorable effects of the price generation task are associated with the absence of a readily available reference price range. I further demonstrate that the reference price range also has to be externally provided and that internally generated reference prices can as well eliminate the potential negative effect of the price generationtask and strengthen consumer preferences. These findings support the proposition advanced in this research that a pre-choice articulation of reference prices can simplify consumer choice by imposing a structure consistent with the nature of the decision task.
Download or read book Incorporating Reference Price Effects Into a Theory of Consumer Choice written by Daniel S. Putler and published by . This book was released on 1992 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book When Prospect Theory Meets Consumer Choice Models written by Ruxian Wang and published by . This book was released on 2018 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Problem Definition: Reference prices arise as price expectations against which consumers evaluate products in their purchase scenarios. We investigate what will happen when prospect theory (e.g., reference prices) meets consumer choice models from the perspectives of both the consumers and the firm.Academic/Practical Relevance: Consumers see multiple relevant products on a particular purchase occasion, and often compare their prices to form the willingness to pay when considering whether to purchase a particular product. Reference prices, which are not included in many choice models, may impact consumer choice behavior, so we incorporate reference prices into consumer choice models and investigate the operations management problems.Methodology: We take the widely used multi-nomial logit model as a showcase to examine the effects of reference prices through analytical and empirical study. We consider the optimization problems on assortment planning and pricing under consumer choice models with a variety of reference prices, including the lowest price and the assortment variety.Results: Our empirical study on a real data set demonstrates that incorporating reference prices into choice models can significantly improve goodness-of-fit and prediction accuracy of consumer choice behavior. Furthermore, we characterize the optimal policies for the assortment planning and pricing problems under the consumer choice models with various reference prices. In particular for the pricing problems under the reference prices defined by either the lowest price or assortment variety, we show that the optimal pricing policy has the following structure: products can be grouped into several categories based on their costs; the products in the same category charge either the same profit markup or the same price.Managerial Implications: In practice, reference prices should be taken into account in model estimation and operations management. Ignoring reference prices may lead to substantial losses.
