Level Of Price Sensitivity Research Articles

Understanding the Social Determinants of Household Carbon Emissions for Carbon Mitigation Policies: The Case of Mersin, Turkey

Households are the main consumer-side source of carbon emissions. In Europe, consumer-based CO2 consumption per capita fell from 10.8 tons to 7.8 tons between 1990 and 2022, but in Turkey, the same data showed a rise from 4 tons to 5 tons. Strategies to reduce carbon emissions have recently shifted their focus from the production side to the consumption side. However, because different social segments have varying levels of price sensitivity and differing levels of necessity regarding consuming different items, a simple tax policy only targeting the consumption side is doomed to fail. This has prompted a discussion of the factors influencing carbon emissions on the consumption side and how those factors affect the amount of emissions. This study aims to identify the social determinants affecting household carbon emission levels and to demonstrate that such differences play an important role in effective and efficient carbon emission reduction strategies. In this case study, an appropriate testing method was used to test whether there are significant differences in dependent variables (carbon emissions) between categories of independent variables (the social determinants of households). As our literature review demonstrates, the social determinants of households and the local context were found to have an impact on carbon emissions in the case study. Nevertheless, we found that the degree of association lessens when the relationship between the dependent variables and the independent variables is re-evaluated while controlling for income level. Consequently, it may be concluded that the primary element influencing carbon emissions is income. In our field study, on the other hand, poverty stood out as another important factor affecting the level of carbon emissions. Poverty affects total household carbon emissions in two different ways, causing both carbon-intensive consumer goods and household appliances with low energy efficiency to be preferred because they are cheap to purchase. Therefore, the fight against poverty should be recognized as an important component of carbon reduction policies in Turkey, and the issue of environmental justice should not be ignored, because we know that 30% of the population was living in poverty (compared to the other 70% receiving the national median income) in 2022.

How does public recognition affect price sensitivity to green products? The role of self‐construal and temporal distance

AbstractThis study focused on the role of public recognition in fostering lower levels of price sensitivity to green products and the factors that influence this relationship. We conducted three studies to analyze the relationship between public recognition and price sensitivity to green products and the moderating effects of self‐construal and temporal distance on this relationship. A total of 865 persons took part in the research. Study 1 found that public recognition significantly reduces price sensitivity to green products. In addition, with the activation of public recognition, consumers with higher levels of independent self‐construal (IND SC) were more price‐sensitive compared to consumers with higher levels of interdependent self‐construal (INTER SC). Study 2 reassessed the results of Study 1 using a different product and larger sample size; it also provided a sample database for Study 3. Results from Study 2 and Study 3 showed that, in relation to their initial green purchase behavior, consumers with higher levels of IND SC were more price‐sensitive in subsequent green purchase behavior than consumers with higher levels of INTER SC when public recognition was activated. Furthermore, IND SC consumers' price sensitivity to green products between initial purchase and a subsequent purchase appears as an inverse U‐shaped curve by temporal distance matching from present to near future (7 days later) and then to distant future (15 days later). The study sheds light on the important roles of public recognition, self‐construal, and temporal distance in predicting price sensitivity to green products.

스포츠 관광객은 항상 효용을 극대화 하는 선택을 하는가? 확률효용이론과 후회이론의 적용

Many studies using choice experiments used the random utility maximization(RUM) for its theoretical foundation. However, the random regret minimization(RRM) was proposed to deal with irrational decisions. More recent studies proposed the hybrid model combining RUM and RRM in the model estimation process. The present study aims to find the best fitted model among the three models(RUM, RRM, and hybrid) by using a 2018 PyeongChang Winter Olympic travel package as a case hypothetical situation in choice experiment. Among the three models, the hybrid model showed the best model fit and confirmed that sport tourists may follow different decision strategies(RUM or RRM). Our findings showed that, depending on decision strategies, sport tourists would consider different product attributes while making a decision and have a different level of price sensitivity. The theoretical and managerial implications will be discussed accordingly.

Multi-stage stochastic programming for demand response optimization

The increase in the energy consumption puts pressure on natural resources and environment and results in a rise in the price of energy. This motivates residents to schedule their energy consumption through demand response mechanism. We propose a multi-stage stochastic programming model to schedule different kinds of electrical appliances under uncertain weather conditions and availability of renewable energy. We incorporate appliances with chargeable and dischargeable batteries to better utilize the renewable energy sources. Our aim is to minimize the electricity cost and the residents’ dissatisfaction. We use a scenario groupwise decomposition (group subproblem) approach to compute lower and upper bounds for instances with a large number of scenarios. The results of our computational experiments show that the approach is very effective in finding high quality solutions in small computation times. We provide insights about how optimization and renewable energy combined with batteries for storage result in peak demand reduction, savings in electricity cost and more pleasant schedules for residents with different levels of price sensitivity.

Exploring effective price presentation format to reduce decision difficulty and increase decision satisfaction

Variable pricing is frequently employed by service firms that adopt revenue management practices. This strategy is effective in stimulating and increasing revenue by appealing to customers with different levels of price sensitivity. However, by providing excessive price options, a company may cause choice overload for customers. Within the framework of behavioral economics, this study explores an effective price presentation strategy to mitigate choice overload due to a large assortment size of price options in the context of hotels. The findings of the experimental design study suggest that the number of categories that distinguish and organize price options positively affects consumers' perceived decision difficulty and consequent decision satisfaction when a large assortment size of price options is provided. This research extends the understanding of the effect of variable pricing on consumers' responses and provides marketers with guidance on how to manage variable pricing and its price presentation format.

Analysis of consumers’ attitudinal and emotional factors on luxury apparel brand purchase intentions

ABSTRACTThis study advances both descriptive and managerial research addressing foreign consumers’ attitudinal, attributional and emotional valuations of brand equity for a U.S.-based global luxury brand. Taiwan was selected as the focal population of interest because this foreign market is distinguished by high market penetration and consumer awareness of global apparel brands. Consistent with a call for additional research on this topic, the present study employed both qualitative and quantitative research methods to empirically assess the relationship of foreign consumers’ brand awareness, attitudinal and emotional factors with the ensuing purchase intentions. Notably, customers’ level of price sensitivity is also included in the model, and the empirical findings reveal that price sensitivity negatively influences purchase intentions. The results also suggest that consumers’ susceptibility for perceived quality has a positive influence on purchase intentions for the U.S. apparel brand through emotional value. The takeaway for marketers in the luxury apparel industry is to increase the brand value in the customers’ mind to offset the likely negative effect of consumer price sensitivity. In addition, fashion brand managers could consider penetrating the brand-sensitive buyer’s market with a popular name brand and try to exploit the brand-insensitive buyer market with a generic apparel brand.

Group-buying and channel coordination under asymmetric information

Social media and improvements in technology allow retailers to offer a group-buying option to consumers in a variety of markets. Extant research shows that when consumers are sufficiently heterogeneous, group-buying helps a retailer practice price discrimination. Our paper examines when a manufacturer may prefer its reseller to employ the group-buying mechanism in conjunction with a traditional posted price. In our model, the retailer is privately informed about market heterogeneity, which is summarized via the relative size and the level of price sensitivity of two consumer segments. We show that any value to the manufacturer, of requiring the retailer to offer group-buying, revolves around how profitability varies with market heterogeneity. Our principal finding is that group-buying benefits the manufacturer more when the retailer is privately informed about market size than about the level of consumer price sensitivity.

An exploration of the relationship between product selection criteria and engagement with 'show-rooming' and 'web-rooming' in the consumer's decision-making process

The contemporary consumer's decision-making processes have been affected by two independent factors. Firstly, the difficult economic climate heightened their level of price sensitivity and, secondly, the emergence of online shopping provided them with a better means of information searching. These two factors have combined to produce new behaviours in the shopping process, involving purchasing across channels through show-rooming (viewing in store and buying online) and web-rooming (viewing online and buying in store). Using a quantitative methodology, this paper tested consumers' motivation and propensity to engage in 'show-rooming' and 'web-rooming'. It investigated their reasons for acceptance or avoidance of virtual and physical channels to identify the factors that promote cross-channel behaviour. The results indicated that 'show-rooming' behaviour prevailed when efficient price and product comparisons could not be conducted in physical channels; and 'web-rooming' was used when the consumer could not predict garment dimensions online. This demonstrates the need for retailers to acquire a deeper understanding of the information consumers require within each selling interface, with an aim to minimise the potential of lost sales that result when consumers switch to more proactive competitor brands.

Consumer Preferences for Coffee: Hot and Wet, or Quality and Flavor?

ABSTRACTAn econometric model is developed and estimated for all brands of coffee sold at the retail level in four supermarkets in Columbus, Ohio. These brands are segmented into 24 categories, and the four stores are classified into two groups, inner-city and suburban, based on 2010 census tract data. Using estimated measures of price-sensitivity, these 24 categories are further segmented into four groups to help guide and clarify the discussion. Estimated results show different purchasing patterns and different levels of price-sensitivity for inner-city and suburban shoppers. Further, these purchasing patterns and levels of price-sensitivity suggest alternative marketing strategies for retailers. Private-label coffee brands are shown to be quite competitive with many national brands, and indeed private-label brands command a market share among inner-city shoppers that is more than double that for the nation (21.95% vs. 9%).

The Effect of Visual Product Aesthetics on Consumers’ Price Sensitivity

In today's world, due to renewed and changing consumer demands and the rapidly developing technological factors, companies and managers are in search of new strategies to make a difference in their products and services. As competition increased marketers started to focus on new approaches and product innovations to attract consumers’ perception and attention. One of the most effective ways of differentiating is using aesthetics. Visual aesthetics of products creates value for consumers. Visual aesthetics create significant value for product and makes it more special. Also, level of price sensitivity of consumer decreases when the product is more unique and prestigious. This study aims to investigate the relationship between visual aesthetics of products and consumers’ price sensitivity. The data of the study is collected via a survey form from 510 respondents from Eskisehir, Turkey. The results revealed that visual aesthetics of products and also its sub-dimensions including value, acumen, and response are negatively associated with consumers’ price sensitivity. Explanatory power of response dimension was higher than its counterparts.

Does Price Elasticity Vary with Economic Growth? A Cross-Category Analysis

How does price sensitivity change with the macroeconomic environment? The authors explore this question by measuring price elasticity using household-level data across 19 grocery categories over 24 quarters. For each category, they estimate a separate random coefficients logit model with quarter-specific price response parameters and control functions to address endogeneity. This specification yields a novel set of 456 elasticities across categories and time that are generated using the same method and therefore can be directly compared. On average, price sensitivity is countercyclical: It rises when the macroeconomy weakens. However, substantial variation exists, and a handful of categories exhibit procyclical price sensitivity. The authors show that the relationship between price sensitivity and macroeconomic growth correlates strongly with the average level of price sensitivity in a category. They examine several explanations for this result and conclude that a category's share of wallet is the more likely driver versus alternative explanations based on product perishability, substitution across consumption channels, or market power.

High-resolution behavioral economic analysis of cigarette demand to inform tax policy.

Novel methods in behavioral economics permit the systematic assessment of the relationship between cigarette consumption and price. Towards informing tax policy, the goals of this study were to conduct a high-resolution analysis of cigarette demand in a large sample of adult smokers and to use the data to estimate the effects of tax increases in 10 US States. In-person descriptive survey assessment. Academic departments at three universities. Adult daily smokers (i.e. more than five cigarettes/day; 18+ years old; ≥8th grade education); n = 1056. Estimated cigarette demand, demographics, expired carbon monoxide. The cigarette demand curve exhibited highly variable levels of price sensitivity, especially in the form of 'left-digit effects' (i.e. very high price sensitivity as pack prices transitioned from one whole number to the next; e.g. $5.80-6/pack). A $1 tax increase in the 10 states was projected to reduce the economic burden of smoking by an average of $530.6 million (range: $93.6-976.5 million) and increase gross tax revenue by an average of 162% (range: 114-247%). Tobacco price sensitivity is non-linear across the demand curve and in particular for pack-level left-digit price transitions. Tax increases in US states with similar price and tax rates to the sample are projected to result in substantial decreases in smoking-related costs and substantial increases in tax revenues.

Does Price Elasticity Vary with Economic Growth? A Cross-Category Analysis

How does price sensitivity change with the macroeconomic environment? We explore this question by measuring price elasticity using household-level data across 19 grocery categories over 24 quarters. For each category, we estimate a separate random-coefficients logit model with quarter-specific price response parameters, and control functions to address endogeneity. Our specification yields a novel set of 456 elasticities across categories and time that we generated using the same method and therefore can directly compare them. On average, price sensitivity is counter-cyclical — it rises when the macroeconomy weakens. However, substantial variation exists, and a handful of categories exhibit procyclical price sensitivity. We show the relationship between price sensitivity and macroeconomic growth correlates strongly with the average level of price sensitivity in a category. We examine several explanations for this result and conclude a category’s share-of-wallet is the more likely driver versus alternative explanations based on product perishability, substitution across consumption channels, or market power.

Extent of susceptibility to interpersonal influence and price sensitivity among Indian youth: is there a relationship between these two constructs?

PurposeThe purpose of this paper is to estimate the extent of susceptibility to interpersonal influence and price sensitivity prevalent among Indian youth, to test if there is a relationship between these two constructs and identify the reason for the same.Design/methodology/approachIn order to empirically test the given objectives, instruments to measure susceptibility to interpersonal influence as well as price sensitivity were developed by using inputs from the literature. Responses were elicited from a sample of Indian youth (between 16 to 25 years) residing in various Indian cities. Relevant statistical tools were used to analyze the data.FindingsIndian youth showed high scores on their traditional consumer behavioral traits of susceptibility to interpersonal influence and price sensitivity. It was shown that susceptibility to interpersonal influence had a significant impact on the level of price sensitivity among Indian youth. Gender played a significant role in this relationship.Practical implicationsThe results provide many interesting insights with respect to the consumer behavioral traits of Indian youth. These insights will enable managers to develop effective marketing‐mix strategies, which would cater to the requirements of the Indian youth population.Originality/valueThis is the only contemporary paper in the extant literature which measures the level of susceptibility to interpersonal influence and price sensitivity prevalent among Indian youth and which attempts to identify an empirical relationship among these important constructs.

Optimization Techniques for College Financial Aid Managers

In the context of a theoretical model of expected profit maximization, this paper shows how historic institutional data can be used to assist enrollment managers in determining the level of financial aid for students with varying demographic and quality characteristics. Optimal tuition pricing in conjunction with empirical estimation of matriculation probability functions illustrates how financial aid can be used to maximize net tuition revenue given institutionally determined objectives. The model provides insight to the level of price sensitivity of prospective matriculants at a medium-sized comprehensive private college.

On-line Services in India: A Market Analysis

Unlike the on-line service providers in the USA or Western Europe, the growth of the on-line service providers in India has started tapering off. Major factors affecting the growth of Internet access in India have been partial deregulation of the telecom sector as opposed to complete liberalization, poor telecom infrastructure, a narrower home PC base, a high level of price sensitivity among the target audience, and a lack of effective exploitation of the on-line services for delivering content. For these reasons private sector service providers are slowly becoming marginalized in India. Any emerging country which wants to exploit this medium successfully needs to keep these constraints in mind while planning for the future.