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| Author | : Matthew Osborne |
| Publisher | : |
| Total Pages | : 44 |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
| Author | : Arthur Fishman |
| Publisher | : |
| Total Pages | : 76 |
| Release | : 1995 |
| Genre | : Prices |
| ISBN | : |
| Author | : Yangyang Wang |
| Publisher | : |
| Total Pages | : 204 |
| Release | : 2021 |
| Genre | : Economics |
| ISBN | : |
In the traditional discrete choice model, we assume that consumers know the product attributes without uncertainty. Learning models extend the discrete choice model by assuming that consumers have incomplete information about product attributes and that they can gradually resolve the uncertainty as they receive more information about the product over time. In the first chapter of this dissertation, I conduct a survey on literature of empirical learning models. I distinguish the learning models into three categories. First, demand side learning models which focuses on the effect of different types of consumer learning on demand. Second, supply side learning models which studies the firm's strategies when it does not have full information of consumer demand. Third, consumer learning and firm's marketing strategies which focuses on the interaction of consumer learning and firm's strategies. Empirical learning models have been proved to be a fruitful area of research activity and consumer learning dynamics have been intensively investigated, but there are two areas for future research --- empirical models that combines consumer learning and firm dynamics and empirical models that feature both consumer learning and firm learning.
| Author | : Naresh K. Malhotra |
| Publisher | : Emerald Group Publishing |
| Total Pages | : 215 |
| Release | : 2009-12-01 |
| Genre | : Business & Economics |
| ISBN | : 085724728X |
Contains articles by the marketing field's researchers and scholars. This title presents a view of the marketing research methodologies.
| Author | : Ramón Caminal |
| Publisher | : |
| Total Pages | : 24 |
| Release | : 1997 |
| Genre | : Competencia - Modelos matemáticos |
| ISBN | : |
| Author | : Matthew Osborne |
| Publisher | : |
| Total Pages | : 68 |
| Release | : 2007 |
| Genre | : Brand loyalty |
| ISBN | : |
| Author | : Matthew Osborne |
| Publisher | : BiblioGov |
| Total Pages | : 74 |
| Release | : 2013-06 |
| Genre | : |
| ISBN | : 9781289092177 |
I formulate an econometric model of consumer learning and experimentation about new products in markets for packaged goods that nests alternative sources of dynamics. The model is estimated on household level scanner data of laundry detergent purchases, and the results suggest that consumers have very similar expectations of their match value with new products before consumption experience with the good, but once consumers have learned their true match values they are very heterogeneous. I demonstrate that resolving consumer uncertainty about the new products increases market shares by 24 to 58%. The estimation results also suggest significant switching costs: removing switching costs increases new product market shares by 12 to 23%. Using counterfactual computations derived from the estimates of the structural demand model, I demonstrate that the presence of switching costs with learning changes the implications of the standard empirical learning model: the intermediate run impact of an introductory price cut on a new product's market share is significantly greater when the only source of dynamics is switching costs as opposed to when both learning and switching costs are present, which suggests that firms should combine price cuts with introductory advertising or free samples to increase their impact.
| Author | : David Prakash |
| Publisher | : BoD – Books on Demand |
| Total Pages | : 155 |
| Release | : 2022-08-19 |
| Genre | : Business & Economics |
| ISBN | : 3756863514 |
Digital technologies are driving the application of dynamic pricing. Today, this pricing strategy is used not only for perishable products such as flights or hotel rooms, but for almost any product or service category. With dynamic pricing, retailers frequently adjust their prices over time to respond to factors such as demand, their supply and that of competitors, or the time of sale. Additionally, dynamic pricing allows retailers to take advantage of a large share of consumers' willingness to pay while avoiding losses from unsold products. Ultimately, this can lead to an increase in revenue and profit. However, the application of dynamic pricing comes with great challenges. In addition to the technological implementation, companies have to take into account that dynamic pricing can cause complex and unintended behavioral consequences on the consumer side. The key objective of this dissertation is to provide a deeper understanding of the impact of dynamic pricing on consumer behavior. To this end, this dissertation presents insights from four perspectives. First, how reference prices as a critical component in purchase decisions are operationalized. Second, how customers search for products priced dynamically, differentiated by business and private customers, as well as by different devices used for the search. Third, whether and how dynamic pricing influences the impact of internal reference prices on purchase decisions. Finally, this dissertation demonstrates that consumers perceive price changes as personalized in different purchase contexts, leading to reduced perceptions of fairness and undesirable behavioral consequences.
| Author | : Josef Falkinger |
| Publisher | : |
| Total Pages | : 50 |
| Release | : 1991 |
| Genre | : |
| ISBN | : |
| Author | : Steffen Ahrens |
| Publisher | : |
| Total Pages | : 30 |
| Release | : 2014 |
| Genre | : Consumer behavior |
| ISBN | : |
We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility gains from price decreases of equal magnitude. Price changes are evaluated relative to an endogenous reference price, which depends on the consumers' rational price expectations from the recent past. By implication, demand responses are more elastic for price increases than for price decreases and thus firms face a downward-sloping demand curve that is kinked at the consumers' reference price. Firms adjust their prices flexibly in response to variations in this demand curve, in the context of an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is starkly at variance with past theories. We find that - in line with the empirical evidence - prices are more sluggish upwards than downwards in response to temporary demand shocks, while they are more sluggish downwards than upwards in response to permanent demand shocks.
