Consumer behaviour: Effects of price

 

In 2007, 50 per cent of all UK car insurance was bought online, and one in five transactions started on a price comparison website. This article, which includes market share data for UK insurance comp ...

Les Binet, European director of DDB Matrix, and marketing consultant Peter Field discuss the measures used to assess effectiveness (doing the right thing) and accountability (being seen to do the righ ...

Some authors are announcing the dawn of informational era marketing, where the consumer acquires real negotiating power based on access to information that is complete, up to the minute and unbiased. ...

Nick Wredin, author and CEO of FusionBrand, explains the importance of pricing in increasing profitability, boosting branding power and fighting off competitors. He suggests four steps to develop an e ...

Correct pricing has greater impact on profitability than any other factor, yet it is one of the worst managed. Often, price setting over-emphasises costs and competitors and fails to get the right bal ...

This paper discusses the importance of the relationship between brands and price, and argues that reducing prices is not always the best solution in securing long-term success and beating consumer apa ...

Review of article in McKinsey Quarterly. Consumers in US and Europe are moving to `value’ in terms of `good enough’ quality plus low prices: evidence the rise of Wal-Mart and the discount retailers su ...

For most of its existence advertising has focused on attracting customers. More recently, enlightened organisations have recognised the need to expand their communications efforts to incorporate all s ...

Interview with Bill Dalton, CEO of the HSBC bank (successor to the Midland). The bank's philosophy is to listen to customers and be seen to cater for their needs. This requires high quality and motiva ...

This paper aims to understand the low income consumers in Egypt and give indicators to marketers on how to build brand loyalty and long-term and sustainable equity among them. The results are based on ...

A discussion on the occasion of a new (second) edition of Andrew Ehrenberg's 'Repeat Buying', originally published in 1972 (Charles Griffin, 1988). This classic book led to a revolution in our underst ...

Six experiments are reported, undertaken to examine whether consumers judge the same offer to be more or less attractive when the supplier offers a better price or more benefits to another group than ...

Theoretical work on the pricing of information suggests that in some circumstances competition can result in prices that are negatively related to the quality or reliability of the information. This c ...

The aim of this paper is to quantify the net unit and net profit impact of promotions for a retailer and to understand the key correlates of this impact. The authors find that for the US drug retailer ...

Content analysis of 13,000+ newspaper retail advertisements was used to explore the interaction between limited-time product availability (i.e. Three days only!) and mentions of reference pricing, and ...

The authors propose a sales response model to explain differences in immediate and dynamic effects of promotional prices and regular process on sales. This model was applied to seven years of data on ...

The authors suggest that the growth of low priced, quality-equivalent store brands has been a key change in the retail environment over the last 20 years, but note that research suggests that one resu ...

Research suggests that recipients of unexpected discounts tend to spend the savings in store. Also shoppers commit more actively to planned purchases when discounts are known in advance, and the key f ...

The authors note that many users of, for example, the internet, cable television etc, prefer flat-rate payments even though their expenditure would be less on a pay-per-use tarrif, and vice versa. Emp ...

Research suggests that greater value is perceived for money in the form of a whole (large denomination) than for equivalent amounts of money in parts (smaller denominations), resulting in a lower incl ...

Research was undertaken to explore the impact of time-interval descriptions on consumers’ discount rates, e.g. in sacrificing short-term benefits for longer-term gains. Consumers exhibit more discount ...

This article reviews the authors’ response to papers from Kruglanski, Aaker and Lee, and Schwarz, commenting on the original 2006 Avnet/Higgins paper (How regulatory fit affects value… ). All these pa ...

The paper offers comments on the Avnet/Higgins paper (How regulatory fit affects value… ) in the same edition of JMR. The author notes recent research which has documented apparently irrational influe ...

The paper offers comments on the Avnet/Higgins paper (How regulatory fit affects value… ) in the same edition of JMR. The authors explore two approaches to bringing about the ‘just-right feeling’. Oth ...

The paper offers comments on the Avnet/Higgins paper (How regulatory fit affects value… ) in the same edition of JMR. The author suggests that regulatory fit as defined corresponds to a match between ...

‘Regulatory fit’ occurs when the manner of people’s engagement in an activity sustains their current goal orientation/concerns with that activity. It can result in people ‘feeling right’ about decisio ...

This brief paper examines the impact of price discounting at various levels (depth) and various frequencies. Findings from a series of experiments demonstrate that specific depth and frequency effects ...

Evidence is presented of differential perceptions of items to be traded, with sellers (as opposed to buyers) focusing more on positive features and less on negative features. Experiments are reported ...

Psychological pricing is used to make the price of goods appear to be just below a round number. The authors studied consumer prices before and after the introduction of the Euro using Benford’s Law a ...

The authors present what they describe as a probabalistic subset-conjunctive rule which allows consumers to use any number of subset or decision criteria when screening alternatives and permits them t ...