Durable Goods Research Articles

Developing an Expert System for in Adoption of High Technology Consumer Durables

Objectives: There is extant research work that have investigated the influencing and mediating role personality factors or the Big Five traits play in determining a consumer’s environment friendly behaviours. The originality of this paper is in the fact that it is uses the prism of personality traits to study their moderating effect on consumer behavior in the presence of different sales promotion techniques, quality cues and privacy issues. Methods: The ANOVA results, using the SPSS program showed that with the trait of extraversion, sales promotion and quality, it had significant effect on the consumers’ deal, attitude and intention to purchase. Notably, the average value of high extraversion was statistically significant as compared to that of low extraversion. Findings: Based on the TPB framework and personality traits, this study can help practitioners better understand the benefits considering the personality traits of the target set respondents being called to the car clinics in order to efficiently obtain the best outputs from car clinics. Besides, it will be of use to regulatory bodies to devise better standards and regulations for vehicular data privacy. Conclusions: Mechanical advancement like the associated vehicle innovation can possibly acquire numerous positive changes like decrease street mishaps, clog, better natural manageability and so forth. Ultimately, this study helps society to reap the benefits by elucidating the factors in consumer behaviour in technology adoption to help marketers ensure better customer pre purchase consideration and acceptance of the innovation.

Psychological Factors Impacting the Consumer Buying Behaviour with Relation to Select Consumer Durables

Objectives: The study aims to analyse the factors influencing buys, pre-purchase, purchasing and post purchasing by comparing electronic products and white goods and to analyse the consumer behaviour's behaviour and the objective of the study. Methods: The study was carried out utilising a sample survey based on these aims. Data was collected from 428 consumers in Pune City, representing 100% urban population, collected data. and discussed by using statistical analysis such as ANOVA. Findings: There is a positive connection between's every one of the mental and social variables influencing consumer behaviour indicated by the positive sign of Karl Pearson’s coefficient of correlation. Conclusions: The Chi-square test is applied to study the association of age group and level of influence of family on consumer buying behaviour. P-Value is 0.356 which is more than 0.05. hence, the alternative hypothesis is failed to be accepted. From the investigation, it is seen that there is no relationship between age gathering and level of impact of family on the purchase decision. As the younger generations tend to get more influenced by their friends and other social groups than the family members, which is also indicated by the output of the analysis conducted.

CIRCEE, the CIRCular Energy Economy model: Bridging the gap between economic and industrial ecology concepts

AbstractTransitioning to a circular economy (CE) can contribute to the achievement of long‐term climate targets. A comprehensive evaluation of CE strategies requires a macro‐level approach that integrates environmental, social, and economic goals. Policy support, behavioral changes, innovation, and new business models play key roles in this transition. Additionally, understanding the potential synergies, benefits, and trade‐offs associated with these strategies is essential for their effective implementation. This paper proposes a novel approach, using macroeconomic modeling, industrial ecology, and behavioral concepts to evaluate the impacts of CE strategies on socioeconomic and climate systems. As an application, the paper investigates the environmental and economic effects in Japan of increasing the extended producer responsibility (EPR) fee on energy‐using durable goods. We show that increasing the fee makes households substitute conventional goods for circular services. Also, while increasing EPR fees for energy‐using durable goods may decrease the materials needed to produce and operate these goods, the overall impact on sustainability goals is rather low.

Expenditure behaviour of pensioners: exploring differences between breadwinners and non-breadwinners

Abstract This article examines the expenditure behaviours of households headed by pensioners who are financially responsible for other household members. By analysing household-level consumption data from the Spanish Family Income Survey from 2018 to 2021, our findings reveal that pensioner-led households with dependents exhibit a 10.2 per cent reduction in total spending compared to pensioner-led households without dependents. Moreover, expenditure on durable and non-durable goods is lower by 10.4 and 8.8 per cent, respectively. We find no heterogeneous effects across income levels or with cohort-fixed effects.

Impact of automotive tax incentives during Covid-19

In 2021, as part of the Pemulihan Ekonomi Nasional/ National Economic Recovery (PEN) program, the government introduced additional tax incentives to boost durable goods consumption, the PPnBM incentives, for qualified new car purchases. This study aims to explore the PPnBM incentives’ impact on automotive sectors in 2021, utilizing the Interrupted Time-Series Analysis (ITSA) methodology and seasonal forecasting method with Holt-Winters exponential smoothing and Autoregressive Integrated Moving Average (ARIMA) for four years from 2018 until 2021. In particular, using the automobile wholesales and tax administration data, this paper assesses the impact of the PPnBM incentives on car wholesales, participating firms’ sales, purchases, and wage expenditure. The impact of the PPnBM incentives on automotive sectors in 2021 suggested no significant difference in incentives-qualifying cars’ wholesales before and after the PPnBM incentives. However, the impact of the PPnBM incentives on total sales recovery resulted in the incentive participants recovering their total sales to the pre-Covid-19 level. In general, from the variables tested, the result suggests that the PPnBM incentives had a modest impact on wholesale recovery and economic activity for participating automotive manufacturers during the incentives period.

Household Durable Goods Spending in Urban Areas: A New Keynesian Micro Perspective

In the New Keynesian model, durable goods are typically assumed to be more responsive to monetary policy than non-durable goods. While this assumption is generally based on macroeconomic policy studies, this research aims to identify whether monetary authorities need to consider household microeconomic aspects such as dependents and long-term saving behavior when formulating policies to stimulate durable goods spending. The study employs two inverse semilogarithmic equations with micro data on urban households. Research findings confirm the existing assumption of the New Keynesian model. Durable goods spending remains sensitive to macroeconomic policies, particularly interest rate adjustments by monetary authorities. Furthermore, the research provides evidence supporting the life-cycle hypothesis for durable goods consumption among urban households. Therefore, this study underscores the pivotal role of durable goods expenditures in ensuring sustainable economic stability.

Remarks on Limit Theorems for the Free Quadratic Forms.

In 2021, Ejsmont and Biernacki showed that the free tangent distribution can be used to measure household satisfaction with durable consumer goods. This distribution arises as the limit of free random variables. This, new article serves as the theoretical introduction to the continuation of the research presented in the paper from 2021. We continue the study of the limit of specific quadratic forms in free probability, which is the first step towards constructing a new distribution for the evaluation of satisfaction with material affluence among household. We formulate a non-central limit theorem for weighted sums of commutators and square of the sums for free random variable. In addition we give the random matrix models for these limits.

Correction to: Present Bias and Debt-Financed Durable Goods

Correction to: Present Bias and Debt-Financed Durable Goods

Bayesian calculation of degradation-based burn-in policy for heterogeneous item under two-dimensional warranty

Two-dimensional (2D) warranty service has been greatly used in many heavy equipment and consumer durables. The items with 2D warranty are usually highly reliable and their heterogeneity is unavoidable. Degradation-based failure model is often used to characterize failure modes for highly reliable items. This paper proposes a degradation-based burn-in model for heterogeneous items with renewing 2D warranty. We consider that the degradation of item is modeled through the inverse Gaussian process and that the item is replaced by a new one as soon as it fails within warranty period. We screen the items based on the degradation information of the items during burn-in to enhance the reliability of items passed burn-in. The models based on performance and cost are proposed to analyze the burn-in procedures from different perspectives. Firstly, we investigate the properties of the optimal policies for the three burn-in models. Secondly, we further present a Bayesian method to solve the uncertainty of parameters in the model. The Bayesian method allows us to incorporate prior knowledge and update our beliefs based on observed data, providing more accurate and reliable estimates. Finally, we give an example of the gallium arsenide laser devices to illustrate the benefits of proposed model and method.

Research on the Predictive Ability of Economic Policy Uncertainty on Stock Returns of Industries

In recent years, the emergence of economic policy uncertainty has had a certain impact on stock returns. It can be used as a research object to explore whether economic policy uncertainty can significantly predict future stock returns. This paper studies the predictive ability of economic policy uncertainty based on relevant data from major industries in the United States from January 1985 to December 2023, including Food industry (Food), Retail Stores industry (Rtail), Fabricated Products industry (FabPr), Drugs, Soap, Perfumes, Tobacco industry (Cnsum), Construction and Construction Materials industry (Cnstr), Consumer Durables industry (Durbl), Automobiles industry (Cars), Textiles, Apparel & Footwear industry (Clths), Machinery and Business Equipment industry (Machn), Chemicals industry (Chems), and Transportation industry(Trans), Utilities industry (Utils), Steel Works Etc industry (Steel), Mining and Minerals industry(Mines), Oil and Petroleum Products industry (Oil), and Banks, Insurance Companies, and Other Financials industry (Finan). Through both in-sample and out-of-sample examines, it is found that economic policy uncertainty is a reliable indicator for predicting stock returns, and its predictive performance is better in Food industry, Retail Stores industry, Fabricated Products industry, Transportation industry, Construction and Construction Materials industry, Consumer Durables industry, Automobiles industry, Textiles, Apparel & Footwear industry, Machinery and Business Equipment industry, Chemicals industry, and Drugs, Soap, Perfumes, Tobacco industry than in Utilities industry, Steel Works Etc industry, Mining and Minerals industry, Oil and Petroleum Products industry, and Banks, Insurance Companies, and Other Financials industry. Meanwhile, by replacing the measurement indicator of economic policy uncertainty, conducting long-horizon forecasting, and using different evaluation periods for robustness checks, it is found that the research conclusions are robust.

Life Cycle Fluoropolymer Management in Proton Exchange Membrane Electrolysis

Concerns over the life cycle impacts of fluoropolymers have led to their inclusion in broad product restriction proposals for per- and poly-fluorinated alkyl substances (PFAS), despite their non-bioavailable properties and low exposure potential in complex, durable goods such as non-consumer electrical products. Based on the hypothesis that manufacturers are most able to manage the environmental impacts of their products, practical engineering approaches to implementing life cycle fluoropolymer stewardship are evaluated to bridge the ongoing debate between precautionary and risk-based approaches to PFAS management. A life cycle thinking approach is followed that considers product design and alternatives, as well as the product life cycle stages of material sourcing, manufacturing, field deployment, and end-of-life. Over the product life cycle, the material sourcing and end-of-life stages are most impactful in minimizing potential life cycle PFAS emissions. Sourcing fluoropolymers from suppliers with fluorosurfactant emissions control and replacement minimizes the potential emissions of bio-available PFAS substances. A stack-as-service approach to electrolyzer operations ensures a takeback mechanism for the recycling of end-of-life fluoropolymer materials. Retaining electrolytic hydrogen’s license to operate results in over USD 2 of environmental and health benefits per kilogram of hydrogen produced from reduced greenhouse gas and air pollutant emissions compared to conventional hydrogen production via steam methane reforming.

(In)Stability of the Relationship between Relative Expenditure and Price of Durable and Nondurable Goods

AbstractUsing an intertemporal consumption model with nondurable and durable goods, we identify a break in the long‐run equilibrium relationship between their relative expenditure and relative prices. From 1959 to 1981, these goods were gross substitutes with an elasticity greater than one. Post‐1981, the estimated elasticity is below one, indicating complementarity. This shift altered short‐run dynamics with durable goods still driving error correction but the magnitude of adjustment is smaller. The cyclical component of durable goods consumption has become more persistent, suggesting that shocks, such as the COVID‐19 pandemic, now result in more prolonged deviations from the long‐run equilibrium.

Managing strategic inventories in a three-echelon supply chain of durable goods

Firms can hold strategic inventory to bargain with their suppliers about wholesale prices. In this paper, we model a three-echelon durable goods supply chain consisting of a supplier, a wholesaler, and a retailer, where the latter two firms can choose to hold strategic inventory. Our major findings are as follows. First, contrary to the literature, our study shows that the retailer's use of strategic inventory benefits all supply chain members, irrespective of whether the wholesaler holds strategic inventory. Second, the strategic inventories of the wholesaler and the retailer suppress each other when the holding cost is low. Otherwise, the retail strategic inventory can stimulate the wholesale strategic inventory. Third, after the retailer employs strategic inventory, introducing wholesale strategic inventory will harm each supply chain member. However, after the wholesaler employs strategic inventory, introducing retail strategic inventory can benefit all members. For the entire supply chain, holding strategic inventory exclusively at the retailer is optimal. Fourth, when product durability is high, the supplier may suffer from the wholesaler's strategic inventory. Additionally, the retailer's strategic inventory can solve the time inconsistency problem associated with durable goods. Finally, we extend our main model to consider multiple retailers and different holding costs. Our analysis confirms the robustness of our major findings and managerial insights.

Determinants of Purchase Intention for Green Consumer Durables: Investigating the Moderating Role of Price Sensitivity

Drawing upon the theory of planned behavior, the present study investigates the antecedents (perceived value, media exposure, and environmental knowledge) of customer intention toward purchasing green durables. Secondarily, this study also examines whether the driver effect of the precursors of customers’ sustainable purchase intention varies across different levels of their price sensitivity. A mall-intercept survey method was used to acquire data from 261 respondents from India’s National Capital Region, and the relationships were tested using PLS-SEM. The findings reveal that perceived value, media exposure, and environmental knowledge positively impact customer buying intention of green durables. Also, price sensitivity negatively moderates the relationship between media exposure and purchase intention. These results afford critical insights to marketers and policymakers regarding the driving factors of customer intention to purchase eco-friendly durables.

Present Bias and Debt-Financed Durable Goods

Abstract It has become common to view credit as problematic for present-biased consumers, who are tempted to incur too much debt because of its deferred costs. But while this view is generally valid when debt is used to finance current consumption, the picture becomes much more nuanced when credit is used to fund the purchase of durable goods—such as houses, cars, and education—which is the most common use of consumer credit. When bundled with the purchase of a durable good, the deferred cost feature of credit can be a feature, not a bug. The reason is that durable goods provide deferred benefits that are also undervalued by present-biased consumers. Moreover, people often need to save in advance to finance the purchase of a durable good, and present-bias makes it difficult to save. As a result, people with present bias tend to underconsume durable goods. We show that the deferred costs of purchase debt can offset these barriers to buying durable goods and make the present-biased consumer better off both by tempting her to buy something that she should—but would not otherwise—buy and by making it easier to save up for the purchase. (JEL D90, K0, G51)

Community-based elderly home care services policy and household consumption enhancement: Evidence from China

The influence of elderly consumption is increasing, and community-based elderly home care service (CEHCS), as an important social security system, will have a significant impact on household consumption levels and consumption structure. This paper utilizes data from five batches of CEHCS pilot policies implemented in China from 2016 to 2020, combined with data from the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2020, to design a dynamic difference-in-differences model to systematically evaluate the dynamic effects and mechanisms of CEHCS on elderly household non-durable goods consumption. The study found that after the coverage of CEHCS, the consumption levels of non-durable goods such as clothing, daily necessities, and cultural and entertainment products in middle-aged and elderly households significantly increased year by year, while consumption of durable goods significantly decreased. Moreover, the impact of CEHCS was more pronounced in households with lower housing assets and rural households. Mechanism analysis suggests that CEHCS promote the increase in non-durable goods consumption by alleviating children's labor constraints, reducing the family's caregiving burden, and diminishing precautionary savings. This paper provides further empirical evidence on the pathways through which elderly care services influence household consumption behavior, which holds significant implications for proactively addressing population aging and unlocking household consumption potential through micro-institutional design.

Consumer Behaviour Towards Durable Goods: A Study On Thiruvananthapuram District

Understanding consumer behaviour is fundamental to modern marketing, making it essential for effective marketing management. While consumers may articulate their needs and desires, their actual behaviour often diverges, reflecting deeper motivations they might not even recognize. India's consumer market is currently flourishing, fuelled by the nation's robust economic growth. This expansion is largely driven by a youthful population with increasing disposable incomes and easy access to financing options, leading to remarkable market outcomes. The challenges posed by consumer behaviour are becoming more pronounced, especially in the context of durable goods. In recent years, the popularity of durable goods in India has surged, with the introduction of various products bringing about significant changes in consumer tastes and preferences

Financial Reporting and Consumer Behavior

ABSTRACT We show that financial reporting influences consumer behavior by drawing consumer attention to announcing firms. Analyzing global positioning system (GPS) data, we document upticks in foot traffic to firms’ commercial locations immediately following their earnings announcements. This increase is more pronounced for announcements with substantial media attention, fewer concurrent announcements, heightened internet search volume, and extreme stock price jumps and earnings surprises—indicating that announcement coverage impacts consumer behavior by capturing attention. Furthermore, foot traffic increases with positive earnings for firms offering durable goods, suggesting consumers respond to news about firms’ financial prospects. Consumer attention patterns increase revenues and advertising effectiveness, ultimately suggesting that financial reporting serves a marketing function. Data Availability: All other data are available from the public sources cited in the text. JEL Classifications: G10; G11; G12; G14; G40; G41.

Financial inclusion and household consumption behaviour in Ghana

PurposeThis study aims to investigate the relationship between financial inclusion and household expenditure behaviour among Ghanaian households, by taking into account both formal and informal financial inclusion channels.Design/methodology/approachPropensity score matching as well as instrumental variable techniques are applied to data from the Ghana Living Standard Survey to investigate the effect of financial inclusion on the share of total expenditure devoted to different categories, including food, health, education, housing, durables, temptation goods and other goods.FindingsInformal financial inclusion seems to have no substantial effect on households’ consumption behaviour, whereas formal financial inclusion significantly affects it. The study finds that formal financial inclusion is inversely related to the budget share devoted to short-term expenditure (food, temptation goods and other goods such as transport and recreation). Conversely, financially included households spend more on long-term expenditure such as education, housing and consumer durables, thus, suggesting a diversion effect towards investment in long-term physical and human capital.Practical implicationsThe investigation of the heterogeneous impact across households (male vs female headed, rural vs urban) has essential policy implications on how financial inclusion can be improved among the disadvantaged groups, and with what effects.Originality/valueThe study focuses on the importance of financial inclusion in Ghana, considering both formal and informal financial inclusion channels. Previous studies only examined the overall effects on household welfare, overlooking the impact on household expenditure composition and consumption shares. The analysis also considers the heterogeneous impact of financial inclusion on households based on the gender of the household head and the location where households reside (rural, urban).

The Role of Price, Quality, and Brand in Consumer Perception of Durable Goods in Online Shopping: A Study in Chhattisgarh

This research aims to explore the influence of price, quality, and brand on consumer perception of durable goods in online shopping, focusing on the state of Chhattisgarh. The digital marketplace has increasingly become the go-to platform for purchasing durable goods, but understanding the key factors influencing consumer behavior is essential for businesses. Through a mixed-methods approach, this study surveys a diverse population in Chhattisgarh to evaluate how these three variables—price, quality, and brand—shape their online shopping decisions. The findings provide valuable insights for e-commerce platforms, manufacturers, and marketers in tailoring their strategies for the regional market. The paper concludes with actionable recommendations for enhancing consumer satisfaction and loyalty in the online shopping ecosystem.