• Title/Summary/Keyword: Product Price

Search Result 1,553, Processing Time 0.029 seconds

A Test of the Underlying Processes of the Price-Induced Quality Perception

  • Suk, Kwan-Ho
    • Journal of Global Scholars of Marketing Science
    • /
    • v.18 no.2
    • /
    • pp.47-64
    • /
    • 2008
  • It is well known that consumer's quality perception is strongly affected by price. Higher priced products tend to be perceived to have better quality than lower priced products although the objective product quality is the same. However, it is less known the process through which quality perception is affected by price cues. The existing literature suggests three potential hypotheses (i.e., the selectiveprocessing hypothesis, the selective interpretation hypothesis, and the representativeness heuristic hypothesis) that explain the underlying processes of the price-induced quality perception. The current research tests among the three competing hypotheses and also examines the role of consumer knowledge as a moderating factor. An experiment was conducted to test the moderating role of the knowledge in the price-quality relationship and to investigate the underlying process. The results indicate that theinfluence of price on perceived quality differs between novices and experts. Expert consumers' quality perception is not significantly influenced by price and this finding is consistent with the extant literature. On the other hand, novice consumers' quality perception is affected by price and the tests on the underlying process support for the representativeness heuristic hypothesis. Novice consumers assess that a high-priced brand should have good product quality due to the belief that high (low) price brands represent better (worse) brand quality and such a representativeness heuristic occurs without involving selective attention or selective interpretation price-consistent information.

  • PDF

The Study on the Marginal Product Value and Price Elasticity of Disaggregated Industrial Water (업종별 공업용수의 한계생산가치 및 가격탄력성 추정 연구)

  • Min, Dong-Ki
    • Journal of Korea Water Resources Association
    • /
    • v.40 no.11
    • /
    • pp.869-876
    • /
    • 2007
  • This paper estimates the output and price elasticities of disaggregated industrial water in order to afford some information for improving the efficiency of government water policy. This paper uses the marginal productivity method for estimating the output and price elasticities of industrial water. The estimated output elasticity shows that the value of industrial water is much higher than the average price of industrial water and the estimated price elasticity shows that the water pricing policy is effective for controlling the demand of industrial water.

An Empirical Study on the Difference in Price Elasticity by Colors in the Chinese Mobile Phone Market (중국 핸드폰시장의 색상에 따른 가격탄력성 차이에 대한 실증연구)

  • Kwak, Youngsik;Hong, Jaewon;Pak, JiYoung
    • Journal of Platform Technology
    • /
    • v.6 no.2
    • /
    • pp.10-18
    • /
    • 2018
  • The purpose of this study was to empirically analyze relations between color changes in the product specification and demand changes with price elasticity in the Chinese mobile phone market. In previous studies on price elasticity, the usual analysis units were product categories or SBU within a given product category. Unlike them, the this study set an analysis unit of price elasticity to focus on colors, which are investigated in the research fields of experiential marketing, aesthetic marketing, and cognitive psychology. Actual sales data according to the mobile phone price changes by the color were based on the sales volume of a sales agency at China's largest B2C site. The findings were as follows: first, price elasticity according to the six colors was higher than the absolute value of 1, which means that demands made flexible reactions to price changes. Secondly, there were differences in price elasticity according to the colors. Aroma white color made the smallest increase in sales volume at the same price discount, whereas diamond color made the biggest increase in sales in the same price discount scope. These findings indicate that more profit can be generated in mobile phone sales in China by setting different price discount or increase rates according to colors or producing different amounts of mobile phones according to colors. Distributors or sales agents can have a chance for higher profit by ordering and selling mobile phones in certain colors than others from mobile phone manufacturers. The academic findings indicates that there are differences in preference and price elasticity according to colors under the mobile phone category in the Chinese market, which means that the present study made an academic contribution by proposing a microscopic analysis unit for product price elasticity and expanding its concept.

Structural change and asymmetry analysis of petroleum product prices in Korea

  • Oh, Sun-Ah;Heo, Eun-Nyeong
    • 한국지구물리탐사학회:학술대회논문집
    • /
    • 2003.11a
    • /
    • pp.669-675
    • /
    • 2003
  • This paper examines structural breaks and asymmetries of prices of four domestic petroleum products, i.e., gasoline, kerosene, diesel, and bunker-C, following the changes in the pricing policies pertaining to petroleum products in Korea from the government-controlled pricing system to the market pricing system. We use the monthly wholesale market price data for the sample period between July 1988 and December 2001. Using the four methods: the Chow test, the CUSUM/CUSUMQ tests, the Bayesian approach and the Dufour test, the structural behaviors of the petroleum product prices are examined. We found that structural change occurred in all petroleum products, with the exception of Kerosene, at the point of pricing policy change from government-controlled to the spot-price related pricing system. We, also conducted asymmetric analysis using the Borenstein, Cameron, and Gilbert (1997)'s model and found evidences of price asymmetry for all four product types, but in different pattern for each product.

  • PDF

The Influences of Service Quality, Product Quality and Pricein University Foodservice on Customer Satisfaction (대학교 학생 식당의 서비스 품질, 메뉴 품질, 가격이 고객 만족에 미치는 영향 - 부산 지역을 중심으로 -)

  • Kim, Kwang-Ji;Cho, Yong-Bum
    • Culinary science and hospitality research
    • /
    • v.13 no.3
    • /
    • pp.127-136
    • /
    • 2007
  • The purpose of this study was to elucidate the relationship of service quality, product quality, price and customer satisfaction. Data were collected from 214 customers at the university foodservice and analyzed with SPSS 14.0. The verified results in these research hypotheses are as follows. First, the relationship between the service quality and customer satisfaction shows that tangibles(t=2.444) and responsiveness(t=2.431) have significantly positive influence upon customer satisfaction. Second, it was indicated that product quality(t=12.711) also has significantly positive influence upon customer satisfaction. Third, price (t=0.051) has no positive effect on customer satisfaction. Managerial contributions, limitation, and future research directions are discussed at the end of the paper.

  • PDF

Predicting Selling Price of First Time Product for Online Seller using Big Data Analytics

  • Deora, Sukhvinder Singh;Kaur, Mandeep
    • International Journal of Computer Science & Network Security
    • /
    • v.21 no.2
    • /
    • pp.193-197
    • /
    • 2021
  • Customers are increasingly attracted towards different e-commerce websites and applications for the purchase of products significantly. This is the reason the sellers are moving to different internet based services to sell their products online. The growth of customers in this sector has resulted in the use of big data analytics to understand customers' behavior in predicting the demand of items. It uses a complex process of examining large amount of data to uncover hidden patterns in the information. It is established on the basis of finding correlation between various parameters that are recorded, understanding purchase patterns and applying statistical measures on collected data. This paper is a document of the bottom-up strategy used to manage the selling price of a first-time product for maximizing profit while selling it online. It summarizes how existing customers' expectations can be used to increase the sale of product and attract the attention of the new customer for buying the new product.

Factor Affecting Customer Purchasing Decision of Poultry Product in Indonesia

  • Jonathan Axcel ANTAPUTRA;Charly HONGDIYANTO;Steven GUNAWAN
    • The Journal of Economics, Marketing and Management
    • /
    • v.11 no.4
    • /
    • pp.77-87
    • /
    • 2023
  • Purpose: In a business, it is very important to be able to pay attention to consumers. When making a purchase, consumers will first evaluate until they make a purchase decision. This study was conducted to analyze the effects of price, promotion, and product quality on consumer purchasing decisions on poultry feed. Research design, data, and methodology: The research was conducted quantitatively using the Google Form Survey instrument to collect respondent data. The population of this research is poultry feed consumers in Indonesia. Ninety-two respondents participated in this study. Results: The findings revealed that all the independent variables used in this research contribute significantly to determining customer purchase decisions. Conclusions: The results of the study found that price, promotion, and product quality had positive and significant effects on consumer purchasing decisions for poultry products

The Effect of Price Promotional Information about Brand on Consumer's Quality Perception: Conditioning on Pretrial Brand (품패개격촉소신식대소비자질량인지적영향(品牌价格促销信息对消费者质量认知的影响))

  • Lee, Min-Hoon;Lim, Hang-Seop
    • Journal of Global Scholars of Marketing Science
    • /
    • v.19 no.3
    • /
    • pp.17-27
    • /
    • 2009
  • Price promotion typically reduces the price for a given quantity or increases the quantity available at the same price, thereby enhancing value and creating an economic incentive to purchase. It often is used to encourage product or service trial among nonusers of products or services. Thus, it is important to understand the effects of price promotions on quality perception made by consumer who do not have prior experience with the promoted brand. However, if consumers associate a price promotion itself with inferior brand quality, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. More specifically, low qualitative perception through price promotion will undercut the economic and psychological incentives and reduce the likelihood of purchase. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. Previous literatures on the effects of price promotions on quality perception reveal inconsistent explanations. Some focused on the unfavorable effect of price promotion on consumer's perception. But others showed that price promotions didn't raise unfavorable perception on the brand. Prior researches found these inconsistent results related to the timing of the price promotion's exposure and quality evaluation relative to trial. And, whether the consumer has been experienced with the product promotions in the past or not may moderate the effects. A few studies considered differences among product categories as fundamental factors. The purpose of this research is to investigate the effect of price promotional informations on consumer's unfavorable quality perception under the different conditions. The author controlled the timing of the promotional exposure and varied past promotional patterns and information presenting patterns. Unlike previous researches, the author examined the effects of price promotions setting limit to pretrial situation by controlling potentially moderating effects of prior personal experience with the brand. This manipulations enable to resolve possible controversies in relation to this issue. And this manipulation is meaningful for the work sector. Price promotion is not only used to target existing consumers but also to encourage product or service trial among nonusers of products or services. Thus, it is important for marketers to understand how price promotional informations about a brand have impact on consumer's unfavorable quality perception of the brand. If consumers associate a price promotion itself with inferior quality about unused brand, the promotion may not achieve the sales increase the economic incentives otherwise might have produced. In addition, if the price promotion ends, the consumer that have purchased that certain brand will likely to display sharply decreased repurchasing behavior. Through a literature review, hypothesis 1 was set as follows to investigate the adjustive effect of past price promotion on quality perception made by consumers; The influence that price promotion of unused brand have on quality perception made by consumers will be adjusted by past price promotion activity of the brand. In other words, a price promotion of an unused brand that have not done a price promotion in the past will have a unfavorable effect on quality perception made by consumer. Hypothesis 2-1 was set as follows : When an unused brand undertakes price promotion for the first time, the information presenting pattern of price promotion will have an effect on the consumer's attribution for the cause of the price promotion. Hypothesis 2-2 was set as follows : The more consumer dispositionally attribute the cause of price promotion, the more unfavorable the quality perception made by consumer will be. Through test 1, the subjects were given a brief explanation of the product and the brand before they were provided with a $2{\times}2$ factorial design that has 4 patterns of price promotion (presence or absence of past price promotion * presence or absence of current price promotion) and the explanation describing the price promotion pattern of each cell. Then the perceived quality of imaginary brand WAVEX was evaluated in the scale of 7. The reason tennis racket was chosen is because the selected product group must have had almost no past price promotions to eliminate the influence of average frequency of promotion on the value of price promotional information as Raghubir and Corfman (1999) pointed out. Test 2 was also carried out on students of the same management faculty of test 1 with tennis racket as the product group. As with test 1, subjects with average familiarity for the product group and low familiarity for the brand was selected. Each subjects were assigned to one of the two cells representing two different information presenting patterns of price promotion of WAVEX (case where the reason behind price promotion was provided/case where the reason behind price promotion was not provided). Subjects looked at each promotional information before evaluating the perceived quality of the brand WAVEX in the scale of 7. The effect of price promotion for unfamiliar pretrial brand on consumer's perceived quality was proved to be moderated with the presence or absence of past price promotion. The consistency with past promotional behavior is important variable that makes unfavorable effect on brand evaluations get worse. If the price promotion for the brand has never been carried out before, price promotion activity may have more unfavorable effects on consumer's quality perception. Second, when the price promotion of unfamiliar pretrial brand was executed for the first time, presenting method of informations has impact on consumer's attribution for the cause of firm's promotion. And the unfavorable effect of quality perception is higher when the consumer does dispositional attribution comparing with situational attribution. Unlike the previous studies where the main focus was the absence or presence of favorable or unfavorable motivation from situational/dispositional attribution, the focus of this study was exaus ing the fact that a situational attribution can be inferred even if the consumer employs a dispositional attribution on the price promotional behavior, if the company provides a persuasive reason. Such approach, in academic perspectih sis a large significance in that it explained the anchoring and adjng ch approcedures by applying it to a non-mathematical problem unlike the previous studies where it wis ionaly explained by applying it to a mathematical problem. In other wordn, there is a highrspedency tmatispositionally attribute other's behaviors according to the fuedach aal attribution errors and when this is applied to the situation of price promotions, we can infer that consumers are likely tmatispositionally attribute the company's price promotion behaviors. Ha ever, even ueder these circumstances, the company can adjng the consumer's anchoring tmareduce the po wibiliute thdispositional attribution. Furthermore, unlike majority of previous researches on short/long-term effects of price promotion that only considered the effect of price promotions on consumer's purchasing behaviors, this research measured the effect on perceived quality, one of man elements that affects the purchasing behavior of consumers. These results carry useful implications for the work sector. A guideline of effectively providing promotional informations for a new brand can be suggested through the outcomes of this research. If the brand is to avoid false implications such as inferior quality while implementing a price promotion strategy, it must provide a clear and acceptable reasons behind the promotion. Especially it is more important for the company with no past price promotion to provide a clear reason. An inconsistent behavior can be the cause of consumer's distrust and anxiety. This is also one of the most important factor of risk of endless price wars. Price promotions without prior notice can buy doubt from consumers not market share.

  • PDF

A Study of the Effect of Inaction Inertia on Intention to Purchase Fashion Products -Focusing on Moderation of Price Levels- (무행동 관성 효과가 패션 상품의 구매 의도에 미치는 영향 -상품 가격대 조절효과를 중심으로-)

  • Choi, Hyemin;Lee, Eun-Jung
    • Journal of the Korean Society of Clothing and Textiles
    • /
    • v.43 no.1
    • /
    • pp.154-166
    • /
    • 2019
  • Consumers believe it is more profitable to buy products at a discount price than at a fixed price. However, consumers who miss an opportunity for a discount would experience regret; consequently, they may also forgo a purchase despite experiencing regret if a subsequent opportunity was no more attractive than the initial one. This phenomenon has been conceptualized as inaction inertia. In this study we investigate if consumers showed behavior of inaction inertia under the situation of fashion products purchase as well as if price and involvement had a moderating effect on product purchase. The following are the results of the research based on an empirical investigation. First, according to the results of influence of inaction inertia on purchase intention, respondents exposed to scenario of experiencing similar price discount in the past, both under high-price situations and low-price situations, made statistically fewer responses than those exposed to situations without such experience; therefore, effect of inaction inertia could be confirmed. Second, the moderating effect of product price on relationships between inaction inertia and purchase intention was not statistically significant.

A Study on CRM in Discount Store of Fashion Product (1) - Focus on Process of Relationship Construction - (대형할인점에(大形割引店)서의 패션 제품(製品) CRM에 관(關)한 연구(硏究) (제1보)(第1報) - 관계형성(關係形成) 과정(科程)을 중심(中心)으로 -)

  • Lee, Seung-Hee;Park, Soo-Kyeong
    • Journal of Fashion Business
    • /
    • v.11 no.1
    • /
    • pp.86-96
    • /
    • 2007
  • The purpose of this study was to examine which variables affect customer relationship management in discount store focusing on satisfaction, trust and commitment. A total of 360 participants who had purchased fashion products in discount store were used in this study. The data was analyzed by factor analysis, correlation analysis and regression analysis using SPSS program. As the result, benefits, information, reputation, product, location, salesperson and price factor were extracted. The price, information, reputation, product and location variables had the effects on satisfaction, especially, price had the major effects on satisfaction. The satisfaction, information, salesperson, price and location had the effects on trust. The satisfaction, trust, information, benefits and product had the effects on commitment. The reputation variable had direct effect on relationship maintenance. Also, satisfaction, trust and commitment had the effects on relationship maintenance. Specifically commitment had higher effect on relationship maintenance than satisfaction and trust did. The results of this study would provide CRM marketing strategy for fashion marketers of discount store.