High-priced Products Research Articles

Comparative Analysis of the Effects of False Low-Price Marketing Strategy on Multiple Platforms

In order to make full use of the characteristics of commodity prices, merchants on e-commerce platforms have adopted the low-price marketing strategy. Regular promotional discounts can bring new vitality to the commodity sales market, but extreme discount marketing methods would lead to serious impacts on the sales of competing products, thus affecting the stable development of the online shopping market. The sales data of four electrical products using the false low-price marketing strategy on three e-commerce platforms (Taobao, JD, and Amazon) were used in this study. The sales data from different e-commerce platforms and different time periods were analyzed, and one-way ANOVA was used on the factors affecting the effect of marketing strategy. The results showed that there is a significant difference between the direct marketing of high-priced products and low-priced products on Taobao; the difference between the marketing effects of high-priced products and mid-priced products on JD and Amazon is significant. This analysis would help businesses formulate reasonable marketing strategies and promote the stable development of the online shopping market.

SUSTAINABLE MARKETING: A LITERATURE REVIEW

Purpose- The purpose of the present study is to review the various sustainable activities related to the marketing and to investigate the effect of those sustainable marketing activities on people and environment. The other purpose of the study is to investigate the availability of the sustainable products and to study the consumers and marketer's behavior and perception towards it. Design/methodology/approach- The study is based on the 25 literature reviews from India, USA, France, Taiwan, Greece, New Zealand, Portugal, Malaysia, Europe, Italy, China and Brazil from the time period of 2017 to 2021. All the literature reviews were studied from online journals from different publishers. Findings- The study finds out that there is a lack of availability of sustainable products in the markets and marketers also charge high prices of sustainable products from the consumers.The study also reveals that there is no classification of sustainable products and normal products and it makes difficult for consumers to differentiate between sustainable and normal products.The findings of the study also reveal that sustainable marketing activities positively affect the people and environment of our society. Practical Implications-The findings of the study reveals that sustainable marketing is beneficial for consumers as well as for the marketers. The study also finds that advertising of green and sustainable products and activities with basic benefits positively affect the perception,behavior and intention to purchase or purchasing attitude of the consumers.

How online reviews and coupons affect sales and pricing: An empirical study based on e-commerce platform

With rapid economic growth largely fueled by digital technologies, online reviews are among the new wave of technologies that still make a significant contribution to this new digital economy. However, there is scarce academic research in promoting or responding online reviews using reduction coupons with threshold issued by sellers and pricing decisions. We employ a three-stage least squares (3SLS) model to estimate the effects of online reviews and coupons on online product sales and price. We also extend our research using the data of two product categories. Our results mainly include: (1) Negative impact of negative online reviews on sales is moderated by price, and consumers are more tolerant of negative reviews of high-priced products. (2) Consumers' perceived usefulness of online coupons helps promote more sales and weaken the relationship between negative reviews and sales. (3) Positive online reviews weaken the negative relationship between online negative reviews and the price of product. (4) Consumers’ increased perceived usefulness of online coupons will encourage sellers to set a higher price and weaken the negative relationship between negative reviews and the price of product. (5) Compared with the search product, sellers regard negative reviews from the product with experience attributes as less helpful and apply less effective coupon promotion to response to negative reviews. Our study clarifies the interaction between online reviews and online coupons on e-commerce platforms under the operation scenario. We also provide empirical support for accurate promotion and higher sales revenue through reasonable pricing decisions and specified reduction coupons.

Marketing and Its Social Implications

Companies adopt marketing practices to delight their customers, develop customer relationships, and generate revenues and profits. However, sometimes, companies focus solely on their selfish motives of growth and prosperity forgetting about customer welfare and welfare of the society. Marketers are criticized for such practices and the negative impact created on the society. The practices include high prices of products, high distribution costs, high advertising and promotion costs, excessive mark-ups, deceptive practices, high-pressure selling, questionable products, planned obsolescence, and poor service to disadvantaged customers. Marketers are criticized for creating false wants and materialism, scarcity of social goods, and cultural pollution. They are accused of harming and reducing competition. In this age of social marketing, companies should consider societal concerns of various stakeholders and maintain a balance between their own objectives of generating revenues and profits and long-term societal requirements. This will help in sustaining the society.

IMPACT OF MEDICAL REPRESENTATIVES ON ACCEPTANCE OF HIGH PRICED PRESCRIPTION DRUGS BY DOCTORS: A STUDY

Do rapport and information have any bearing on doctors’ preference for high priced products? This was the study undertaken by me. Doctors in urban areas usually do not have the time to develop rapport with the medical representatives and as a result should not accept high priced products. On the other hand information too will not influence prescription of high priced products because they depend upon peer advice, seminars and conferences and evaluation tests. The situation among rural doctors is different wherein they should welcome medical representatives and their information and develop a rapport with them and thereby prescribe high priced products. However it was seen that developing a rapport was not enough for rural doctors to prescribe high priced products as they looked into the affordability of their patients first. However information was accepted and even high priced products were prescribed by doctors. On the other hand urban doctors were not influenced by either rapport or information and depended on conferences, seminars, peer advice and evaluation tests before prescribing high priced products. The study was conducted on 200 urban doctors and 200 rural doctors in Goa. A personal interview was conducted wherein the questionnaire was direct and structured. Pearson’s coefficient of correlation was used to determine if information and rapport had any correlation with doctors prescribing high priced products.

Bargaining at Retail Stores: Evidence from Vienna

In the West, where posted prices are the norm, it is uncommon to observe consumers receive discounts below the posted price. Nevertheless, we find that when stores are asked, a discount is granted approximately 40% of the time, with a median discount percentage of 10%. Discounts are more likely to be offered by small-scale firms, for higher-priced products, and for nonsale items. More generally, differences in price delegation behavior across firm types serve as an indicator that monitoring costs and employee skills are important drivers of bargaining behavior. This paper was accepted by Duncan Simester, marketing

Hazard severity and time to recall: Evidence from the toy industry

The time a firm takes to recall products that pose severe hazards has serious implications for the firm and its stakeholders. We examine the role of hazard severity and investigate how it influences the impact of recall experience, type of product defect, and product price on time to recall. Operationalizing time-to-recall as the number of days that elapsed from the time a product was first sold in the market to the date it was recalled, we test our hypotheses using data on 833 toy recalls issued by 445 firms in the U.S. during 1988–2018. We find that, under conditions of high hazard severity, time to recall is longer for (i) firms with past recall experience, (ii) recalls of products involving design defects, and (iii) recalls of high-priced products. We discuss the implications of our findings for research and practice.

Pricing and Public Policy Issues

Companies adopt pricing policies to maximize the revenues and profits generated. Some of the policies are not fair. Major public policy issues in pricing include unfair pricing practices within distribution channel levels such as price-fixing and predatory pricing, and across distribution channel levels such as retail price maintenance, deceptive pricing, and discriminatory pricing. Companies set dynamic pricing and high prices for products to cover distribution costs, advertising and promotion costs, and excessive mark-ups. Companies try adopting fair pricing policies. Nevertheless, laws and regulations are enforced to ensure that the policies are followed and customers are benefited. Sometimes, it is difficult to ensure that the practices are legal and ethical. Governments and companies should also be aware about the pricing implications of the social goods used by customers. Proper understanding and implementation of pricing policies will benefit both companies and customers and help in developing sustainable strategies and long-term customer relationships.

Современные тенденции и перспективы экономического развития предприятий севера на примере Мурманской области через призму реляционного взаимодействия.

The production of mineral fertilizers is a priority direction for the development of the chemical industry of the Russian Federation. The importance of studying the state and prospects of mineral fertilizer producers for the development of the Arctic zone of the Russian Federation is due to the high dependence of the economy of one of the northernmost regions of our country, the Murmansk Region, on the enterprises of this industry. In particular, the Kirov branch of JSC Apatit (PhosAgro company), Kovdorsky GOK (Eurochem Company) and JSC North-Western Phosphorus Company (a subsidiary of PJSC Akron) operate in the Murmansk Region. These enterprises make significant contributions to the regional budget of the Murmansk region as well as to the budgets of municipal formations, create jobs and make a significant contribution to the development of the towns of presence. Russian manufacturing companies in their activities are mainly focused on the external market, which is due to the excess of supply over demand and the lack of use of mineral fertilizers on 39 % of Russian sown areas. The main Russian producers of mineral fertilizers include PhosAgro, Akron, EuroChem, Uralchem and Uralkali. The only company claiming the priority of the domestic market is PhosAgro. Analysis of the annual reports of the largest Russian producers of mineral fertilizers indicates their desire to expand the geography of supplies. In the domestic market, there is a positive trend in the consumption of mineral fertilizers, which is associated with high prices for agricultural products, as well as the state policy of subsidizing agricultural enterprises, in addition, state regulation of prices in the domestic market leads to an increase in demand for fertilizers. For fertilizer producers, it is possible to use the three-level relational interaction model presented below. The article presents the results of testing the hypothesis of the need for the development of relational relations in the mineral fertilizers market. The assessment is based on the use of a three-level model of relational interaction of industrial market participants. The results of the analysis can be used in the development and implementation of relational cooperation in economic systems of various levels.

Compromise pricing in luxury

PurposeGoing beyond odd and even prices, this paper aims to explore the rationale behind the widespread practice of setting prices ending in “50” or “80” in the luxury industry. The authors argue that when they set such prices, managers agree to reduce their profit margin to limit the anticipated guilt luxury consumers associate with luxury shopping while also protecting their brand luxury. The authors label these prices compromise prices and formally define compromise pricing as the practice of choosing a price’s ending so that the price falls below (but not just below) a round number to boost sales without damaging brand luxury.Design/methodology/approachFollowing the observation of the overrepresentation of prices ending in “50” and “80” in the luxury clothing category, an experiment explores the impact of compromise prices on anticipated guilt and brand luxury in the luxury watch category. Then, to identify when luxury pricing managers typically favor compromise prices, multinomial regressions investigate prices collected on two online luxury fashion retailers for the luxury clothing and handbag categories.FindingsCompromise prices reduce the anticipated guilt luxury consumers associate with luxury shopping compared with even prices while enhancing brand luxury compared with odd prices and interestingly, with even prices also. This finding gives rationale to luxury managers’ preference for compromise prices in the ninth hundred (i.e. €X950, €X980), especially for higher-priced products, i.e. when the potential for price underestimation and/or the risk of damaging brand luxury are more important.Originality/valueThis research contributes to the field of luxury pricing by providing evidence to an original price-ending practice, coined compromise pricing, which consists in agreeing to a slight reduction in prices and unit margin to protect brand luxury.

Product-flyer location and type of product categories in retailing

This study examines the often-overlooked effect of product category type—high- vs. low-priced, high- vs. low-frequency, and high- vs. low-perishability—when assessing the effectiveness of product advertisement locations in retailer direct mail flyers. Employing a quasi-experimental design, we analyze a national retail chain’s various featured product weekly advertisements across the transaction records of 1817 products in 225 different product categories that cover a year of sales. All three-product types had a significant moderating effect on increasing the sales volume of the featured products when placed on the interior page feature location. For example, the interior pages are often ignored unless the recipient is sufficiently interested to flip through other parts of the flyer. Placing high-priced products, low-frequency products, and highly perishable products in the interior page feature location led to advertising effectiveness. In terms of frequency, the sales volume of high-frequency products were consistently higher than low-frequency products regardless of the location. On the other hand, the front and back page are the most visible pages of a flyer. In these two most visible locations, placing products that perish quickly maximized the effectiveness of using a flyer. These results highlight the importance of considering these three product types when making retail promotion decisions, including where retailers should position featured products within advertisements.

Pricing and inventory control decisions in the stochastic hybrid production systems with multiple recovery options

Although pricing and inventory control are crucial decisions in each production system, these decisions are usually investigated separately. This paper considers pricing and inventory control decisions simultaneously in a hybrid production system. The hybrid production system has two recovery options, remanufacturing and refurbishing sites. The demand follows Poisson distribution, which depends on the sale price of each product. Returned products arrive according to a Poisson process. Each returned product can be remanufactured, refurbished, or disposed. The time to manufacturing, refurbishing, and remanufacturing a product also follows an exponential distribution. By modeling the system as a Markov chain, the long-run expected profit function is obtained in terms of the dispose-down-to level of returned products and the order-up-to level and the sale price of serviceable products. A three-dimensional state space of the Markov Chain dependent to the sale price is developed considering pricing and inventory control decisions simultaneously with remanufacturing and refurbishing returned products. Since the model is a mixed integer nonlinear programming and known as complex models, the Artificial Bee Colony (ABC) algorithm, simulation and complete search method are used to solve the problem. The results show that by increasing the purchase price of the returned products, the amount of returned products will increase. If the refurbishing cost of the returned products is high or the disposal cost is low, less inventory should be kept in the system with a high price of serviceable products. If the lost sale cost is high, the more inventory should be maintained. Moreover, by decreasing the price elasticity of demand, the customer’s demand increases, and then more inventory should be maintained in the system.

Does mobile payment change consumers’ perception during payment process? —An ERP study

Innovative payment methods have been getting worldwide attention. Exploring the mechanisms behind consumers’ purchase behaviors modulated by different payment methods was critical but challenging. In this paper, we proposed a 2 (payment methods: cash payment vs mobile payment) × 2 (price levels of products: high vs low) Event-Related Potentials (ERPs) experiment to study the difference of cash payment and mobile payment on consumers' purchase intention of products in different price level from a neuroscience perspective. Greater P200 amplitude was found in mobile payment condition, which meant that mobile payment captured more early attention resources than cash. Larger N270 amplitude was found in cash payment condition as the participants had to spend more cognitive resources and struggled more when using cash. Moreover, lower N270 amplitude was found in high-price product condition, which indicated that when there were limited cognitive resources, the affective process played a dominating role. Specifically, buying the high-price products with mobile payment, the consumers would experience the pleasure of consumption more rather than the pain of paying. The study offers insights on the cognitive process of consumers when they pay with different methods.

Commodity price pass-through along the pricing chain

This paper analyses the commodity price pass-through along the pricing chain for the global commodity price index and the indices of its main categories (i.e., agricultural raw materials, food and beverages, energy and metals) in the world, advanced and emerging economies. To do so, the study considers country-by-country vector autoregression models and pool the results by taking weighted means for 18 advanced economies and 19 emerging countries, as well as for the world (defined as the sum of advanced and emerging economies). The results show the following: (i) there is evidence in favour of partial pass-through from commodity prices to producer prices, although the evidence for the pass-through to consumer prices is less evident; (ii) the pass-through in the world seems to be led by both advanced and emerging countries for producer prices and only by advanced economies for consumer prices; (iii) higher prices in the four categories (agricultural raw materials only in the short-run) induce significant higher producer prices in almost all cases, with shocks in the prices of energy and metals showing the largest effects; and (iv) energy prices explain the highest variability of producer and consumer prices.

Социально-экономическое развитие Республики Крым в 2018–2020 годах

The article examines features of the socio-economic development of the Republic of Crimea in 2018-2020; in the article the main problems that have a negative impact on the socio-economic processes in the republic are highlighted. Using the method of statistical data analysis, the most and least economically prosperous municipalities of the Republic of Crimea are identified. Problems, that have a negative impact on the socio-economic processes in the republic, include a low GRP per capita, high prices for food products, too fast growth rates of prices for utilities, significant differentiation of municipalities of the republic in terms of average wages of the population and the level of unemployment. In conclusion, in the article the recommendations for reducing the overall level of social tension in the republic are given.

Pricing and Public Policy Issues

Companies adopt pricing policies to maximize the revenues and profits generated. Some of the policies are not fair. Major public policy issues in pricing include unfair pricing practices within distribution channel levels such as price-fixing and predatory pricing, and across distribution channel levels such as retail price maintenance, deceptive pricing, and discriminatory pricing. Companies set dynamic pricing and high prices for products to cover distribution costs, advertising and promotion costs, and excessive mark-ups. Companies try adopting fair pricing policies. Nevertheless, laws and regulations are enforced to ensure that the policies are followed and customers are benefited. Sometimes, it is difficult to ensure that the practices are legal and ethical. Governments and companies should also be aware about the pricing implications of the social goods used by customers. Proper understanding and implementation of pricing policies will benefit both companies and customers and help in developing sustainable strategies and long-term customer relationships.

Penyederhanaan Informasi Nilai Gizi Pangan Olahan Menggunakan Indeks Nutrient-Rich Foods

Healthy diet is an effort to reduce the risk of non-communicable diseases (NCDs). The use of scientific terms on nutrition information panels (NIP) is complicated and difficult to understand, so that it becomes an obstacle in delivering accurate nutritional information for consumers. Nutrients-Rich Foods (NRFn,3) Index provides an alternative to simplify NIP. In general, nutrient-rich foods are asso-ciated with high-priced products. This study aimed to analyze correlation between NRFn,3 index with nutrients fulfillment and price of products. NIP of dairy products and their analogues were used as research samples. The NRFn,3 index was determined using two calculation bases, 100 kcal and 100 g of ready-to-consume products. NRF12,3 index score in ready-to-drink (RTD) milk and instant powdered milk positively correlated with the fulfillment of 11 nutrients to encourage. The average NRF12,3 index score per 100 g of instant powdered milk was 91, higher than RTD milk which was only 76. As nutrient-dense foods, they had an index score of NRF12,3 per 100 kcal that was higher per 100 g. Products with higher NRF12,3 index scores tended to be marketed at higher price than that of lower ones.

1H NMR spectroscopy, one-class classification and outlier diagnosis: A powerful combination for adulteration detection in paprika powder

Paprika powder is a widely consumed high-priced product and therefore particularly prone to fraudulent practices. Nuclear magnetic resonance spectroscopy combined with one-class classification was applied for non-targeted detection of paprika adulteration and further chemometric tools were tested for diagnostic purposes. The 1H NMR spectra of 186 commercial paprika powders and 216 spiked samples were used to develop and comprehensively validate a data-driven soft independent modelling of class analogy model. The established one-class model yielded 92% sensitivity and exemplary adulterants were detected with 100% specificity at concentration levels of 0.1%, 0.1%, 10% and 20% by weight for Azorubine, Ponceau 4R, beetroot and sumac powder, respectively. After successful classification, visualization tools of robust principal component analysis and orthogonal partial least squares analysis were explored to uncover fingerprints of unusual (atypical and spiked) paprika powders. One-class classifiers based on 1H NMR spectroscopic data seem to be suitable for adulteration screening and, in combination with an outlier diagnosis, may improve prioritization of suspicious products for further confirmatory analysis in food authentication.

COVID-19이 뷰티 제품의 전자상거래 매출에 미치는 영향: 이벤트 스터디를 활용한 분석

The devastating COVID-19 pandemic has disrupted our lives in many ways. Retailers, in particular, are suffering from these catastrophes, and consumers are forced to change their shopping behavior to conform to the next normal. To understand the impact of COVID-19 on consumer behavior, we investigated the impact of the product characteristics on changes in sales performance caused by COVID-19. For this, we collected data on online sales performance of a beauty retailer in Korea, and analyzed them by using an event study approach. Overall, sales of beauty products was found to decline due to COVID-19. However, the level of negative impact was different depending on product characteristics. Specifically, sales of dietary health foods and skin improvement products had less negative impact than general cosmetics. We also found that the negative impact the pandemic had on credence product sales was not as much as its impact on experience product sales. Moreover, the decline in sales of skin care products was less than makeup products. Lastly, the decline in low-priced products was less than that of high-priced products, but the difference was not statistically significant. This research sheds a light on how to overcome the COVID-19 pandemic for online retailers.

Worldwide trends in methods for harvesting and extracting industrial roundwood

ABSTRACT Globally, almost 2 billion cubic meters of industrial roundwood are harvested yearly. Two of the most common methods of harvest and extraction are cut-to-length (CTL) and full-tree or tree-length (FT/TL). The aim of this study was to compile data on annual volumes of industrial roundwood harvested by the main methods in forestry countries. To quantify the effect of potential explanatory variables, the data were subjected to linear regression analysis, using shares of roundwood volumes harvested by fully mechanized CTL and/or FT/TL as response variables. Generally, high diesel price and Gross Domestic Product appear to favor CTL, while high shares of steep terrain (>20°) in forest land decrease the leve l of both mechanization and CTL, and low Social Security Rate (SSR) favor FT/TL. Two models were created for CTL, one with an R2 of 0.64 and another more complex with an R2 of 0.75. A separate model for mechanization (CTL and FT/TL together) showed an R2 0.57. The CTL models could potentially be used to predict shares of roundwood volumes harvested by CTL in countries not included in this study. Predictions for countries with large harvested volumes, e.g. China and India, are presented here, but they require validation, as does the model’s applicability for countries with small harvested volumes. Countries with less than 10% of steep slope forests are almost exclusively mechanized according to the model. For FT/TL, the proposed model is probably not sufficiently robust for prediction, but it highlights SSR as one important explanatory variable.