High Discounts Research Articles

Association Rule Analysis of Student Consumptive Behavior on Shopee Twin Date Promo

Student consumer behavior, especially during big promotions such as twin dates, often raises concerns regarding the balance between needs and wants, as well as the impact on personal finances. This research aims to analyze student purchasing patterns using the Association Rule method and understand how the twin date promo at Shopee influences the consumer behavior of students in the STT Payakumbuh department majoring in D3 Computer Engineering. It was found that products that were often purchased simultaneously during twin date promotions included products with high discounts or attractive cashback. Using the Apriori algorithm, this research identifies relationships between products that are frequently purchased together, and reveals a significant influence between large discounts and increased purchasing frequency. The analysis results show support of 30% and confidence of 80%, with a tendency to buy Hijab with Skincare and HP Accessories with Fashion. It is hoped that this research can provide insight for marketplace managers, especially Shopee, in designing more effective promotions and helping students make wiser consumption decisions. Even though there are limitations in product specifications, the results of this research provide an important contribution in understanding student consumer behavior in the online shopping era and the importance of targeted marketing strategies.

Urban passenger-and-package sharing transportation by e-hailing taxis: A simulation-based pricing analysis in shanghai

This study proposes a framework of an urban passenger-and-package sharing (PPS) system that utilizes e-hailing taxis to transport packages in addition to passengers. We examine the interactions between stakeholders and highlight the role of the pricing strategy in the system, including passenger fare discounts and driver incentives for PPS trips. Higher discounts and incentives stimulate more passengers and taxi drivers, respectively, to participate in the PPS system but possibly limit the profit of the service provider. A multi-agent simulation model is developed to analyze the influences of the pricing strategy on the behaviors of the service provider, passengers, and taxi drivers. The real-world case study demonstrates that the service provider, passengers, and taxi drivers benefit from different combinations of the passenger fare discounts and driver incentives. The pricing strategy could be set up to produce the system optimal (SO) situation that maximizes the total benefit, or win-win situations that simultaneously benefit all stakeholders—the service provider gains a higher profit, passengers enjoy lower travel costs, and taxi drivers have higher incomes when compared to the traditional e-hailing taxi system. The public authority is suggested to provide a subsidy to expand the domain of win-win situations to cover the SO situation, such that the system benefits all stakeholders and obtains the maximum total benefit.

Influence of Ethically-Minded Consumer Behavior, Digital Citizenship, and Retailers’ Green Positioning on the Effectiveness of Store Flyer Sales Promotions (Paper vs. Digital)

This study evaluates the impact of sales promotions that are featured in store flyers distributed by prominent retailers and their capacity to attract consumers to their establishments. A distinctive conceptual framework is introduced that scrutinizes the influence of ethically-minded consumer behavior, digital citizenship/literacy, and a retailer’s orientation toward environmental sustainability and explicit ecological concerns. A quasi-experimental design was used to formulate four distinct scenarios from a possible set of eight, stemming from the combinations of three variables: 2 Retailer Positioning (green vs. without explicit ecological claims) × 2 Flyer Mediums (paper vs. digital) × 2 Discount Levels (5% discount vs. 30% discount). Through an online survey, a sample of 269 responses was garnered to gauge consumer reactions to these store flyers, evaluating their attitudes and receptiveness. The findings suggest that attitudes toward paper flyers were more favorable when presented by non-green retailers compared to their green counterparts. This can be attributed to a perceived inconsistency between a green brand positioning and the use of paper flyers. Furthermore, the propensity to transition to digital flyers was notably stronger for green retailers compared to non-green retailers, but this inclination was most pronounced when higher discounts were offered.

Accounting Accruals, Audit Quality, and Audit Pricing

This study examines the impact of the interaction between firms' accounting choices and auditors' audit effort choices on audit pricing. In a multi-period model, I focus on a central feature of accounting: reversing accruals. I find that initial low-balling, defined as lower audit fees than audit costs, arises independently from the direction of accruals, but increases with more conservatism in the first engagement period. The reason is that a conservative accruals strategy implies understated earnings today and overstated earnings in the future, which creates a higher investor demand for auditing services in future periods. The incumbent auditor can satisfy this future demand better than any competitor, because the first-period learning cost is sunk. Thus, conservatism enhances the competitive advantage of the incumbent and increases the future quasi-rent, which is used for a higher initial low-balling discount. I further show implications of the auditor-firm interaction for fee-cutting, a common proxy for low-balling, and the frequency of modified audit opinions, a common proxy for audit quality. Thus, my model provides a theoretical foundation for the connection between high low-balling discounts, accounting accruals, and audit quality.

Addressing Inconsistent Sales and Determining Continent-Specific Discounts: A Case Study of CeilBrakes Furniture Retail Company

This paper highlights the primary business issues faced by CeilBrakes Furniture Retail Company, namely inconsistent sales across different continents. While Europe demonstrates strong sales, North America, Australia, Asia, and Africa exhibit varying levels of mediocre and low sales in terms of the quantity of products ordered. Additionally, determining appropriate discount percentages for each continent poses a challenge. To address the issue of inconsistent sales, the company aims to enhance advertising efforts, improve customer relationships, and analyze trends in continents with low sales (excluding Europe). For determining continent-specific discounts, a solution involves identifying continents with low sales and offering higher discounts accordingly. In the case of Australia, which experiences low sales, CeilBrakes should provide more significant discounts. Despite Asia and Africa already having high discounts, their sales remain low. This situation calls for considering factors beyond retail price reductions, such as cultural influences. To facilitate easier viewing and analysis, a dashboard has been developed to visualize the aforementioned issues. The dashboard enables the identification of trends and patterns, empowering the company to make informed decisions in addressing the observed problems.
 

High Discounts and Low Fundamental Surplus: An Equivalence Result for Unemployment Fluctuations

We establish an observational equivalence between unemployment fluctuations of the Diamond-Mortensen-Pissarides search economy augmented with time varying risk premia and an otherwise identical economy without risk premia but with a time varying value of leisure. This equivalence holds for general risk premia processes and allows us to view the effects of different models of risk premia as operating through a single channel—one that alters the value of leisure. We derive simple expressions for semielasticities of labor market tightness with respect to productivity and risk premium shocks. We show wages can be used to detect misspecification in the discount rate process used in hiring decisions. This paper was accepted by Lukas Schmid, finance. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mnsc.2022.03712 .

Pengaruh kualitas produk, diskon harga, dan promosi terhadap keputusan pembelian

This study aims to determine the effect of product quality, discounts, and promotions on purchasing decisions: an empirical study on Griya Department Stores. The method used in this study is multiple regression analysis. The data used is primary data collected through collecting questionnaires from 100 Griya Department Store customers. Empirical investigations show that product quality and promotional power have a strong influence on purchasing decisions. While the price discount has no relationship with the purchase decision, Good product quality accompanied by proven promotional power strengthens the customer's decision to buy. High price discounts do not always affect the customer's decision to buy the product. This research is useful for encouraging department store management to pay attention to their promotions so that they are right on target and reach their market. Excellent product quality, management must pay attention to give customers confidence that they are purchasing from the right place.

Internet Appendix for "High Discounts and Low Fundamental Surplus: An Equivalence Result for Unemployment Fluctuations"

Internet Appendix for "High Discounts and Low Fundamental Surplus: An Equivalence Result for Unemployment Fluctuations"

HPR5 Reimbursement of Pharmaceuticals in Turkey: Comparison With Approvals of the FDA Between 2010-2021

Turkey has a highly regulated pharmaceutical market with profound challenges for market approval, pricing and reimbursement decisions. The external and internal reference pricing procedures, low value of exchange rate used in pricing, high statutory discounts required from companies during reimbursement applications, the complex system with imported drugs and alternative reimbursement mechanisms have contributed to the decreased willingness of companies to launch new molecules or new indications for already available ones. This study’s main aim is to have a picture of the new molecule and indication reimbursement trends of Turkey in comparison to FDA approvals between 2010-2021.

Pengaruh kualitas produk, diskon harga, dan Promosi terhadap keputusan pembelian

Competition between retail store owners is now unavoidable because many companies are competing to increase market share and reach new customers. This study aims to determine the effect of product quality, discounts, and promotions on purchasing decisions: an empirical study on Griya Department Stores. The method used in this study is multiple regression analysis. The data used is primary data collected through collecting questionnaires from 100 Griya Department Store customers. Empirical investigations show that product quality and promotional power have a strong influence on purchasing decisions. While the price discount has no relationship with the purchase decision, Good product quality accompanied by proven promotional power strengthens the customer's decision to buy. High price discounts do not always affect the customer's decision to buy the product. This research is useful for encouraging department store management to pay attention to their promotions so that they are right on target and reach their market. Excellent product quality, management must pay attention to give customers confidence that they are purchasing from the right place.

The effect of product touch information and sale proneness on consumers' responses to price discounts

AbstractSince price discounts are costly and can negatively affect consumers' perceptions of quality, it is crucial to identify the factors that make them effective in stimulating purchase behavior. Drawing on cue utilization theory, we examine price discount effectiveness in affecting consumers' reliance on the sale cue based on the provided product touch information as an intrinsic cue and individual consumer differences in sale proneness. Two experimental studies indicate that price discount information, product touch information, and sale proneness interact to determine consumers' responses. Perceived quality is the underlying mechanism behind the observed effects. For nonsale‐prone consumers, product touch information favorably influences responses to large price discounts by addressing product quality concerns and enhancing purchase confidence, but has no effect for regularly priced or low discounted products. For sale‐prone consumers, product touch information is not effective in increasing their responses regardless of the discount size. A qualitative study provides support for these results and highlights the role of perceived quality and purchase confidence. The research contributes to behavioral pricing, cue utilization theory, and sensory marketing and suggests that marketing managers should provide consumers with product touch information when implementing high discounts for products for which prepurchase touch is important.

HML4Rec: Hierarchical meta-learning for cold-start recommendation in flash sale e-commerce

Recommender systems (RSs) have been extensively studied in academia and industry, while few works focus on flash sale recommendations. In flash sale scenarios, period-specific high discounts are applied on ordinal sales during each flash sale period to attract users. According to periodic sales strategies, available and discounted items change significantly across periods. Users are attracted by the high discounts and show a period-specific preference. Besides, the frequently changed available items provoke a cold-start problem, i.e., an impaired recommendation caused by lacking interactions. However, most existing RSs either cannot handle users’ period-specific preferences or suffer from the cold-start problem. Therefore, this work proposes a novel meta-learning-based RS to mitigate the cold-start problem and simultaneously handle users’ period-specific preferences. Moreover, we introduce a novel hierarchical meta-training algorithm to guide the learning of our recommendation model via period-and user-specific gradients. In this way, the learned model contains user- and period-shared knowledge and can fast adapt to the recommendations for new flash sale periods and users. To evaluate the effectiveness of our system in flash sale recommendations and non-flash sale recommendations, we conduct experiments on a real-world flash sale e-commerce dataset and a widely used recommendation dataset, considering both warm and cold scenarios. The experimental results show that our proposed model is remarkably improved over the current state-of-the-art methods in flash sale recommendations and most of the non-flash sale cold-start recommendations.

How displaying price discounts can mitigate negative customer reactions to dynamic pricing

Dynamic pricing has great potential to increase retailers’ profits, but it also creates a risk of negative customer reactions. This paper examines whether and how price discount displays might mitigate negative consequences of dynamic pricing. The results of five studies indicate that when confronted with dynamic pricing customers react negatively due to norm violation, in terms of their perceptions of pricing transparency, price fairness, and value, as well as their purchase intention. However, if retailers display prices as sufficiently high discounts, they can mitigate these negative reactions. The results also suggest that customers tend to focus on the general price-setting process when evaluating a specific transaction in a dynamic pricing context. Therefore, it is necessary to consider both distributive and procedural fairness to explain and predict customers’ reactions to dynamic prices. Further, the results point to how managers may be able to successfully implement dynamic pricing, using price discount displays.

Exploring the Impact of Policies to Improve Geographic and Economic Access to Vegetables among Low-Income, Predominantly Latino Urban Residents: An Agent-Based Model.

Modifying the food environment of cities is a promising strategy for improving dietary behaviors, but using traditional empirical methods to test the effectiveness of these strategies remains challenging. We developed an agent-based model to simulate the food environment of Austin, Texas, USA, and to test the impact of different food access policies on vegetable consumption among low-income, predominantly Latino residents. The model was developed and calibrated using empirical data from the FRESH-Austin Study, a natural experiment. We simulated five policy scenarios: (1) business as usual; (2)–(4) expanding geographic and/or economic healthy food access via the Fresh for Less program (i.e., through farm stands, mobile markets, and healthy corner stores); and (5) expanding economic access to vegetables in supermarkets and small grocers. The model predicted that increasing geographic and/or economic access to healthy corner stores will not meaningfully improve vegetable intake, whilst implementing high discounts (>85%) on the cost of vegetables, or jointly increasing geographic and economic access to mobile markets or farm stands, will increase vegetable intake among low-income groups. Implementing discounts at supermarkets and small grocers is also predicted to be an effective policy for increasing vegetable consumption. This work highlights the utility of agent-based modeling for informing food access policies.

High investor sentiment and initial engagement discounts: evidence from Korea

ABSTRACT This study examines whether high sentiment affects auditors’ risk assessment in a less litigious environment. Specifically, we use a Korean setting with relatively low litigation risks and investigate whether audit fees are lower when firms change auditors during high sentiment times. Lower audit fees responding to high sentiment in a weak legal environment may indicate that auditors perceive the overall audit risk including reputation risk and regulation risk as low within the given period, increasing the possibility of their failure to detect managerial opportunistic behaviour. Using 17,469 Korean public firm-year observations from 2003 to 2017, we find that initial audit fees are significantly lower when investor sentiment is high, while changing auditors has no influence on audit fees when investor sentiment is low. Furthermore, this result is maintained even when auditors are changed to Big4 or industry specialist auditors (SPEC), which are known to have high ability and risk sensitivity. We also find that Big4 and SPEC initial auditors input significantly less audit hours during high investor sentiment periods, suggesting that optimistic bias caused by high sentiment makes auditors expect that relaxed audits are tolerable regardless of the legal environment.

The Expiry of Humira® Market Exclusivity and the Entry of Adalimumab Biosimilars in Europe: An Overview of Pricing and National Policy Measures.

Background: From October 2018, adalimumab biosimilars could enter the European market. However, in some countries, such as Netherlands, high discounts reported for the originator product may have influenced biosimilar entry. Objectives: The aim of this paper is to provide a European overview of (list) prices of originator adalimumab, before and after loss of exclusivity; to report changes in the reimbursement status of adalimumab products; and discuss relevant policy measures. Methods: Experts in European countries received a survey consisting of three parts: 1) general financing/co-payment of medicines, 2) reimbursement status and prices of originator adalimumab, and availability of biosimilars, and 3) policy measures related to the use of adalimumab. Results: In May 2019, adalimumab biosimilars were available in 24 of the 30 countries surveyed. Following introduction of adalimumab biosimilars, a number of countries have made changes in relation to the reimbursement status of adalimumab products. Originator adalimumab list prices varied between countries by a factor of 2.8 before and 4.1 after loss of exclusivity. Overall, list prices of originator adalimumab decreased after loss of exclusivity, although for 13 countries list prices were unchanged. When reported, discounts/rebates on originator adalimumab after loss of exclusivity ranged from 0% to approximately 26% (Romania), 60% (Poland), 80% (Denmark, Italy, Norway), and 80–90% (Netherlands), leading to actual prices per pen or syringe between €412 (Finland) and €50 – €99 (Netherlands). To leverage competition following entry of biosimilar adalimumab, only a few countries adopted measures specifically for adalimumab in addition to general policies regarding biosimilars. In some countries, a strategy was implemented even before loss of exclusivity (Denmark, Scotland), while others did not report specific measures. Conclusion: Even though originator adalimumab is the highest selling product in the world, few countries have implemented specific policies and practices for (biosimilar) adalimumab. Countries with biosimilars on the market seem to have competition lowering list or actual prices. Reported discounts varied widely between countries.

High Discounts and Low Fundamental Surplus: An Equivalence Result for Unemployment Fluctuations

High Discounts and Low Fundamental Surplus: An Equivalence Result for Unemployment Fluctuations

High Discounts and Low Fundamental Surplus: An Equivalence Result for Unemployment Fluctuations

Ljungqvist and Sargent (2017) (LS) show that unemployment fluctuations can be understood in terms of a quantity they call the fundamental surplus. However, their analysis ignores risk premia, a force that Hall (2017) shows is important in understanding unemployment fluctuations. We show how the LS framework can be adapted to incorporate risk premia. We derive an equivalence result which relates parameters in economies with risk premia to those of an artificial economy without risk premia. We show how to use properties of the artificial economy to deduce how risk premia impact unemployment dynamics in the original economy.

Revisiting the Hypothesis of High Discounts and High Unemployment

AbstractWe revisit the hypothesis that cyclical fluctuations in unemployment are caused by shocks to the discount rate. We use a simple but rich search-theoretic model of the labour market in which the UE, EU and EE rates are all endogenous. Analytically, we show that an increase in the discount rate lowers the UE rate and, under some natural conditions, it lowers the EU rate. Quantitatively, we show that an increase in the discount rate from 4% to 10% generates a 3.5% decline in the UE rate and a 6% decline in the EU rate. These findings are at odds with the actual behaviour of the US labour market over the business cycle, which features a negative comovement between the UE and EU rates.

Reputation-based discount effect in imitation on the evolution of cooperation in spatial public goods games

Reputation provides important information to society by recording the historical behavior of individuals. The introduction of reputation helps explain the cooperation phenomenon in human society to some extent. However, in previous explanation models, the benefits of a good reputation bring to individuals are generally described from the perspective of future payoffs they can obtain. In reality, the reputation system also affects the process of mutual imitation among individuals. For instance, the willingness of an individual with a high reputation learning from an individual with a low reputation can be greatly discounted. As such, this paper considers the reputation-based discount effect in imitation and extends the research on reputation from the perspective of imitation learning. Specifically, two situations of discount effect are considered. One is based on relative reputation difference, that is, if the reputation of an individual being imitated is too low compared to the strategy updater and the difference between which exceeds a threshold, the probability of imitation will be discounted. The other is based on absolute reputation difference, that is, if the absolute reputation of an individual being imitated falls below a threshold, the probability of imitation will be discounted. The effect of different thresholds and discount parameters on the evolution of cooperation in spatial public goods games is investigated, respectively, in both situations. Simulation results show that the reputation-based discount effect in mutual imitation plays an important role in the emergence and maintenance of cooperative behavior. Especially, low threshold differences for reputation and high discounts can greatly expand the range of parameters in which cooperation emerges. Moreover, compared with the relative reputation situation, the discount effect based on the absolute reputation is more conducive to the evolution of cooperation.