Price Advertising Research Articles

Performance Measurement Systems and Management Accounting in Supermarket Chain Sector: Analysis in an Italian Complex Business Entity

The paper aims to analyse the way in which management accounting is organised within companies which have a strategic need to centralise some functions and decisions, while simultaneously decentralising others. These characteristics are found above all in the supermarket chain sector, where a pressing need to centralise logistical and purchasing functions goes hand-in-hand with the need to respond to demands arising from the individual outlets’ local requirements. In 2005, with a market share of almost 18%, Coop was Italy’s largest food retailing group. Coop’s distinctive organisational feature is that it consists of a total of 140 cooperatives, nine of them large-sized, grouped together in three district associations. The Adriatic District is the largest of these, accounting for about 40% of Coop’s total sales. The unique characteristic of this type of organisational model is the high degree of autonomy enjoyed by each individual cooperative, deriving from its independent corporate structure, with no particular ownership constraints. In spite of this, it may still be beneficial to centralise a number of corporate functions, in order to obtain full benefits from economies of scale with regard to specific management policies. However, if this centralisation is not carefully calculated, it runs the risk of not yielding its full potential in terms of results.The cooperatives in the Adriatic District have responded to these needs by establishing Centrale Adriatica, assigned the task of performing coordination, marketing and logistics functions. This has made it necessary to acquire management accounting tools capable of planning and controlling the decisions affecting the parameters which are governed at the centralised level, but the effects of which are inevitably felt by each individual cooperative. The definition of selling and purchase price policies, promotion and advertising, and logistics management, form the starting-point for systems for the centralised planning and control of the trading margins of the individual cooperatives. By this mechanism, the cooperatives themselves implement a system of delegation of powers which places management of the main factors for the achievement of their strategic and financial objectives in Centrale Adriatica’s hands. The cooperatives continue to handle the acquisition of data and their communication to Centrale Adriatica, together with the planning and control of all the activities performed within the individual outlets, which are still managed entirely by the specific cooperative concerned.

The Role of Audience Exclusivity: A Study of Radio Advertising Prices

Economic studies of advertising traditionally assume perfect competition and a single market-clearing price. This assumption can result in misleading business and policy conclusions because it holds only if advertisers do not care about the extent to which different media outlets duplicate each other’s audiences, which is not very likely. This empirical analysis on the radio advertising market presents evidence challenging this traditional view. It shows that ad price increases with audience exclusivity (i.e., non-duplicative audience. As media fragmentation and measurement technology continue to develop, this finding suggests a more important role for exclusive audience and targeting in the age of online media.

ADVERTISING PRICES

The Australasian Journal of OptometryVolume 14, Issue 12 p. 3-3 ADVERTISING PRICES First published: March 1932 https://doi.org/10.1111/j.1444-0938.1932.tb00543.xCitations: 1AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article.Citing Literature Volume14, Issue12March 1932Pages 3-3 RelatedInformation

Generic Advertising, Brand Advertising and Price Competition: An Analysis of Free-Riding Effects and Coordination Mechanisms

The main purpose of generic advertising is to enlarge the total market demand rather than capturing further slices from competitors. Several studies point out emergence of free-riding behavior under independent contribution and suggest use of coordination mechanism. However, existing literature does not shed light on the conditions under which generic advertising can be detrimental (beneficial) to stronger firms weakening (strengthening) their competitive advantage. Also, under a setting including both price and brand advertising competition, coordination in generic advertising has not been unraveled. In order to deal with such issues, we consider a one-stage duopoly game in which two firms jointly spend in generic advertising and, simultaneously, compete by setting price and brand advertising. Under independent contribution, we show that when generic advertising effectiveness is high or differences between firms are overall small, weaker firm’s free-riding lowers the profit difference between the two firms and, sometimes, leads the stronger firm to make even lower profit. On the other hand, in presence of low generic advertising effectiveness or high asymmetries between firms, the stronger firm takes more advantage from generic advertising and increases the profit gap. Under coordination we consider two commonly used mechanisms to share generic advertising expenditure, i.e. fixed percentage (FP) mechanism and sales-proportional (SP) mechanism. We discover that neither mechanism is always dominant in terms of industry profit. In fact, under symmetry, SP mechanism always drives firms to spend more in generic advertising. However, this will result in a higher industry profit if either price or brand advertising competition is fierce or generic advertising effectiveness is low. On the other hand, FP mechanism can guarantee a bigger pie when both price and brand advertising competition is mild and generic advertising is highly effective. Numerical analysis under asymmetry seems to confirm our findings.

Measuring Regional Inequality by Internet Car Price Advertisements: Evidence for Germany

We suggest to use Internet car sale price advertisements for measuring economic inequality between and within German regions. Our estimates of regional income levels and Gini indices based on advertisements are highly, positively correlated with the official figures. This implies that the observed car prices can serve as a reasonably good proxy for income levels. In contrast to the traditional measures, our data can be fast and inexpensively retrieved from the web, and more importantly allow to estimate Gini indices at the NUTS2 level-something that never has been done before. Our approach to measuring regional inequality is a useful alternative source of information that could complement officially available measures.

Retailers' Multichannel and Price Advertising Strategies

Online retailing boasts two major advantages: convenience of home shopping and easy access to information. In this paper, I argue that these two features have important implications for retailers' channel and advertising decisions. Two major questions are addressed: When should a conventional bricks-and-mortar retailer adopt a multichannel strategy? When should a multichannel retailer use its website to advertise offline prices? Analysis shows that the answers hinge on the nature of the product, the retailer's costs, and the competitors' strategies as well as the competitiveness of the market. Multichannel retailing is not necessarily the best strategy for all retailers; no adoption, asymmetric adoption, and symmetric adoption of the strategy are all possible equilibria. Advertising the in-store prices online is not always optimal. Price advertising in multichannel retailing has a different effect when compared with conventional single-channel retailing. It helps coordinate the channels by shifting the sales from online to offline, which is particularly useful when margins online are relatively low. The finding that multichannel retailers can benefit from drawing consumers back to physical stores highlights the risk of boosting online sales without considering the adverse effect on the offline channel and indicates a shifting role of the Web in retailers' businesses.

What Can Television Networks Learn from Search Engines? How to Sell Attention Instead of Time

When a television advertisement causes viewers to switch channels, it reduces the audience available to subsequent advertisers. This audience loss is not reflected in the advertisement price, resulting in an audience externality. The present article analyzes the television network's problem of how to select, order, and price advertisements in a break of endogenous length in order to correct audience externalities. It proposes the Audience Value Maximization Algorithm (AVMA), which considers many possible advertisement orderings within a dynamic programming framework with a strategy-proof pricing mechanism. Two datasets are used to estimate heterogeneity in viewer switching probabilities and advertiser willingness-to-pay parameters in order to evaluate the algorithm's performance. A series of simulations shows that AVMA typically maximizes audience value to advertisers, increases network revenue relative to several alternatives, and runs quickly enough to implement.

How prices matter in politics: the returns to campaign advertising

The apparent ineffectiveness of incumbent campaign spending in congressional elections is one of the enduring puzzles in the political economy literature. Previous work in this area has assumed that advertising prices are uniform across congressional districts, and therefore that campaign spending alone is a good proxy for campaign advertising. However, candidates in different districts face widely different advertising prices and this paper shows that differences in advertising costs are one source of the apparent ineffectiveness of campaign spending. Accounting for the price of advertising, this paper shows that campaign spending is productive for both incumbents and challengers.

Patterns of price endings used in US and Japanese price advertising

PurposeThe purpose of this paper is to guide managers' choices of rightmost digits in retail prices by acquiring a better understanding of the psychological mechanisms by which price endings can influence sales.Design/methodology/approachThe paper observes and compares the price endings used in large matched samples of advertised prices in two countries with considerable cultural differences, the USA and Japan.FindingsAlthough the digit 9 predominates among the rightmost digits of advertised prices in the USA the digit 8 predominates in Japan. In contrast to this difference, the US and Japanese prices are similar in that both show greater use of 9 or 8 endings when this choice lowers the price's leftmost digit and when the advertised price is claimed to be a discount price.Research limitations/implicationsFuture research should include a wider range of price advertising media and should examine usage patterns of less frequently occurring digits.Practical implicationsSetting a price that falls just below a round number can be helpful in creating a low‐price image. Setting this just‐below price with a 9‐ending would be appropriate in the USA and European countries, but in Japan and other Asian countries, it would be more appropriate to set this just‐below price with an 8‐ending.Originality/valueThese results provide guidance to the retail price setter and illustrate to the basic researcher how universal psychological processes and specific cultural meanings can interact to determine consumer perceptions of marketing stimuli.

서비스 명성에 따른 준거가격광고 효과

경제적 환경의 변화와 인터넷 등의 다양한 유통경로 등장으로 인해 경쟁이 심화되면서 가격은 아주 강력한 마케팅 수단이 되고 있다. 이에 따라 가격할인 등의 가격전략을 통해 소비자의 구매행동을 강화하는 현상을 볼 수 있는데, 많은 광고에서 가격할인 정보를 제시하면서 준거가격을 함께 제시하는 전략을 활발하게 사용하고 있다. 이에 따라 많은 연구들이 준거가격제시에 따른 광고효과를 검증하였는데, 본 연구에서는 기존의 제품에 한정된 준거가격 연구에서 확장하여 서비스 경우에 준거가격을 제시함에 따른 효과를 검증하고, 서비스의 명성에 따라 준거가격제시 방법에 따른 광고효과의 차이를 검증한다. 서비스의 명성과 준거가격제시 방법에 따른 실험을 설계하여 분석을 실시하였다. 분석결과, 서비스 광고에서 준거가격을 제시하는 경우에 가격태도 및 이용의도가 높은 것으로 나타났는데, 서비스 명성이 높은 경우에는 준거가격을 제시하는 것 보다 할인율을 표시하는 것이 더 효과가 높으며, 서비스 명성이 낮은 경우에는 준거가격 제시만으로 광고효과가 높아짐을 볼 수 있다. 이를 통해 서비스 경우에는 그 명성에 따라 준거가격을 제시하는 방법과 관련한 전략적 관점이 필요함을 알 수 있다. Price is an important marketing issue in current competitive environment characterized by various distribution channels such as economic circumstance and the Internet. Many companies, for their best profits, use a price discrimination strategy such as price discount that reinforces consumer's purchasing behavior and they employ advertising strategy by presenting reference price with information of price discount in advertisements. Accordingly, many research verifies the advertising effects of presented reference price in advertisements, this study tries to expand the existing study area which is limited on reference price of product by examining the its effects on service area. It also aims to verify the effects of reference price advertisements by the level of service reputation. For this experiment, a factorial design with service reputation and presented method of reference pricewas used. The result of this study is that attitude toward price and use intention on presented reference price in service advertisements are higher than not presented it. In the case of high service reputation, advertising effect on presented reference price in service advertisements are greater than presented price discount rates in service advertisements. And in the case of low service reputation, advertising effects can be much greater by just presented reference price in service advertisements. Therefore, in service advertisements, strategic views on presented methods of reference price by the level of service reputation are essentially needed.

Network Formation and the Structure of the Commercial World Wide Web

We model the commercial World Wide Web as a directed graph that emerges as the equilibrium of a game in which utility maximizing websites purchase (advertising) in-links from each other while also setting the price of these links. In equilibrium, higher content sites tend to purchase more advertising links (mirroring the Dorfman-Steiner rule) while selling less advertising links themselves. As such, there seems to be specialization across sites in revenue models: high content sites tend to earn revenue from the sales of content, whereas low content ones earn revenue from the sales of traffic (advertising). In an extension, we also allow sites to establish (reference) out-links to each other and find that there is a general tendency to establish reference links to sites with higher content. Finally, we explore network formation in the presence of search engines and find that the higher the proportion of people using them, the more sites have an incentive to specialize in certain content areas. Our results have interesting practical implications for search-engine optimization, the pricing of online advertising, and the choice of Internet business models. They also shed light on why Google can use the web's link structure to rank sites by content.

The Advertising–price Relationship: Theory and Evidence

The relationship between advertising and price is important because the welfare effect of advertising depends upon the price effect of advertising. We attempt to provide a better understanding of the theoretical relationship between advertising and price. We establish theoretical conditions sufficient for advertising to raise prices. This will occur, for example, when firms play a supermodular game – a structure that considers the type of advertising (i.e., persuasive, image creating, or informative) and the effect that advertising has on a firm’s demand and costs. We also compare results from two simple duopoly models, one with horizontal and the other with vertical differentiation, and find that only the model with horizontal differentiation is supermodular for the forms of advertising that are thought to raise price (e.g., persuasive advertising). In consideration of these theoretical issues, we then develop an empirical model to determine whether advertising raises prices in the US brewing and cigarette industries.

How Prices Matter in Politics: Returns to Campaign Advertising

The apparent ineffectiveness of incumbent campaign spending in congressional elections is one of the enduring puzzles in the political economy literature. Intuitively, higher spending should translate into more advertising, and more advertising should translate into more votes. Previous work in this area has assumed that advertising prices are uniform across congressional districts, and therefore that campaign spending alone is a good proxy for campaign advertising. However, candidates in different districts face widely different advertising prices. This paper emphasizes the importance of media advertising prices for the analysis of campaign spending and shows that differences in advertising costs are one source of the apparent ineffectiveness of campaign spending. Accounting for the price of advertising, this paper shows that campaign spending is productive for both incumbents and challengers.

Wearout Effects of Different Advertising Themes: A Dynamic Bayesian Model of the Advertising-Sales Relationship

Models of advertising response implicitly assume that the entire advertising budget is spent on disseminating one message. In practice, managers use different themes of advertising (for example, price advertisements versus product advertisements) and within each theme they employ different versions of an advertisement. In this study, we evaluate the dynamic effects of different themes of advertising that have been employed in a campaign. We develop a model that jointly considers the effects of wearout as well as that of forgetting in the context of an advertising campaign that employs five different advertising themes. We quantify the differential wearout effects across the different themes of advertising and examine the interaction effects between the different themes using a Bayesian dynamic linear model (DLM). Such a response model can help managers decide on the optimal allocation of resources across the portfolio of ads as well as better manage their scheduling. We develop a model to show how our response model parameters can be used to improve the effectiveness of advertising budget allocation across different themes. We find that a reallocation of resources across different themes according to our model results in a significant improvement in demand.

Broadening the Scope of Reference Price Advertising Research: A Field Study of Consumer Shopping Involvement

The current understanding of reference pricing requires broadening to reflect contemporary advertising practices and shopping behavior. A content analysis of 13,594 newspaper retail advertisements reveals that it is uncommon for reference pricing to be used alone in advertisements: 87.2% of the advertisements featuring reference pricing also include limited-time availability (i.e., “Three days only!”) or sale announcements in the headline or copy. Using dual-process theories of persuasion as a conceptual framework, the authors conduct three field experiments that compare the conditions under which the use of limited-time availability and sale announcements in advertisements that feature reference prices affects consumer price perceptions and store shopping intentions. The findings yield three insights for reference price advertising. First, reference pricing results in favorable price perceptions and store shopping intentions only when consumers are shopping for a product. Second, when consumers are shopping for a product, reference pricing paired with limited-time availability results in more favorable price perceptions and store shopping intentions than the use of either technique alone. Third, the use of sale announcements and limited-time availability in reference price advertisements has a favorable effect on price perceptions and store shopping intentions when consumers are not shopping for a product.

The 99 price ending as a signal of a low-price appeal

There is evidence that the rightmost digits, or endings, of retail prices can communicate meanings to consumers. To better understand how such meanings are formed, this paper addresses the question of how the 99 price ending can have a low-price meaning even though 99-ending prices tend to be higher rather than lower competitive prices. Analysis of two large samples of newspaper price advertising indicates that there is a strong and robust correlation between the use of the 99 price ending and the presence of a low-price appeal such as a claimed discount. It is suggested that the salience of price advertising leads it to dominate other sources of information in the consumer's learning of price-ending meanings.

Semantic cues in reference price advertisements: The moderating role of cue concreteness

Retailers use a variety of semantic cues to advertise discounts at their stores. In this paper we introduce the concept of cue concreteness and examine its impact on effectiveness of semantic cues. Four studies were conducted which concur with the findings of earlier research in this area and expand our knowledge about the effectiveness of semantic cues. Results indicate that between-store cues are perceived to be more effective than within-store cues at moderate price discount levels only when the cues are concrete in nature. In addition, a between-store cue resulted in more favorable evaluations than a within-store cue when the ad was viewed at home, but only when the cue was concrete. Implications for marketers and public policy makers are discussed.

Brand and Price Advertising in Online Markets

We model an environment where e-retailers sell similar products and endogenously engage in both brand advertising (to create loyal customers) and price advertising (to attract “shoppers”). In contrast to models where loyalty is exogenous, endogenizing the creation of loyal customers by allowing firms to engage in brand advertising leads to a continuum of symmetric equilibria; however, there is a unique equilibrium in secure strategies, and the set of equilibria converges to this unique equilibrium as the number of potential e-retailers grows arbitrarily large. Price dispersion is a key feature of all of these equilibria, including the limit equilibrium. Branding tightens the range of prices and reduces the value of the price information provided by a comparison site, and this reduces profits for platforms (such as an Internet price comparison site) where firms advertise prices. Data from a leading price comparison site are shown to be consistent with several predictions of the model.

Market structure, viewer welfare, and advertising rates in local broadcast television markets

We test the relationship between market structure, the price of advertising, and number of viewers in broadcast television markets, employing FCC license allocations as an instrument for structure. We find a positive relationship between concentration, advertising price, and viewership.

Assessing storefront tobacco advertising after the billboard ban.

This study examined storefront tobacco advertisements in 11 towns in Illinois from 1999 through 2001 to assess possible changes in these types of advertisements since the master tobacco settlement, which banned tobacco advertisements on billboards. Observers assessed the number of merchant- and industry-made tobacco storefront advertisements in Illinois stores and whether these advertisements were either brand- or price-focused. The relationship between the amount of tobacco advertisements and underage tobacco sales to minors was also explored. Findings indicated no significant relationships between tobacco advertisements and underage tobacco sales. However, industry price advertisements decreased over time because of tobacco price increases resulting from the master settlement, whereas industry brand advertisements increased over time, perhaps in an effort by the tobacco industry to retain sales of their products through brand recognition.