Price Consciousness Research Articles

Betting exclusively by private labels: could it have negative consequences for retailers?

PurposeThe authors analyze the relationship between different consumer attitudinal variables and a number of variables related to consumer perception of the store and purchasing behavior, in assortments composed exclusively of private labels (PLs).Design/methodology/approachThe authors developed an experiment based on an online survey to test the hypotheses formulated. The model’s causal relationships are established using structural equations.FindingsThe image of stores that only offer their own brand is mainly configured by price consciousness and the attitude toward the private label. The private label purchase intention is strongly influenced by the store image and a favorable attitude toward the brand, and loyalty strategies should be aimed at securing a clear perception of providing real value.Practical implicationsFor retailers who only offer their own brands, an assortment with price-competitive PLs is key to the strategy of differentiating them from other retailers. It is reasonable to assume that, if retailers have a favorable image, customers transfer this brand value to their PLs and trust them. Customer loyalty strategies of these retailers should be aimed at ensuring that consumers clearly perceive that their assortment provides real value and that, although it is limited in terms of number of brands, it can meet all their needs.Originality/valueThis research represents a significant contribution to brand management literature because, includes, together with loyalty to the store, its image and the PL purchase intention as consumer response variables. Another differentiating feature is the methodology used. Estimation of the structural equation model permits the simultaneous estimation of the relationships between the variables.

Collaborative consumption as C2C trading: Analyzing the effects of materialism and price consciousness

Our study aims to bring new critical knowledge on the two kinds of antecedents of collaborative consumption, namely materialism and price consciousness. We are especially interested in studying how materialism and price consciousness are related first, to consumers’ attitudes towards collaborative consumption, and second, to their intentions to engage in such behavior. Furthermore, we approach collaborative consumption as a mode of exchange that includes transfer of ownership, i.e. C2C trading. Five hypotheses were developed to be tested using structural equation modelling (SEM). Our sample consists of 752 Finnish consumers. Overall, our hypotheses are globally supported apart from the unexpected relationship between materialism and consumers’ intentions to engage in collaborative consumption. Based on our findings, it seems that although collaborative consumption is perceived as unfavorable behavior among materialistic consumers it is something that they are still ready to try in the future. Our study contributes the consumer research in general, and sharing economy and collaborative consumption literature in particular.

Assessing Purchase Patterns of Price Conscious Consumers

Price greatly influences consumers’ purchasing decisions. Individuals whose decisions are primarily driven by price are said to be ‘price conscious’. To date, studies have focused on defining price consciousness and identifying factors that contribute to price-conscious behavior. However, research using visual attention to assess how price conscious consumers use in-store stimuli is limited. Here, consumers’ purchasing decisions are assessed using a rating-based conjoint analysis paired with eye tracking technology when shopping for ornamental plants. An ordered logit model is employed to understand price conscious consumers’ purchase patterns and choice outcomes. Overall, price conscious consumers are less attentive to price information. Being price conscious tends to reduce purchase likelihood, ceteris paribus. Increasing visual attention to price decreases consumers’ purchase likelihood, which is amplified for price conscious consumers. Price conscious consumers tend to be quicker decision makers than non-price conscious consumers. Results are beneficial to retailers interested in targeting or primarily catering to price conscious consumers.

관광가이드의 라포형성 행동이 관광객의 긍정적 감정과 후속 행동에 미치는 영향

This study examined the impact of tour guides' rapport-building behaviors on tourists’ positive emotions and how those emotions influence subsequent behaviors in three specific areas: self-enhancing word-of-mouth, decreased price consciousness, and tolerance to service failure. To do this, 322 online and offline surveys were collected from tourists who had taken guided tours with Korean travel agencies during the past five years. By examining prior studies, the rapport-building behaviors were classified into five factors; uncommonly attentive behavior, common grounding behavior, courteous behavior, connecting behavior, and information-sharing behavior. As a result of the study, uncommonly attentive behavior and courteous behavior positively influenced the tourists’ emotions, while common grounding behavior, connecting behavior, and information-sharing behavior had no effect. This study also confirmed that tourists’ positive emotions had a significant effect on both self-enhancing word-of-mouth, decreased price consciousness of tourists, and tolerance for future service failures.

Experiential Purchase Quality

Experiential purchases, such as movies, theme parks, and vacations, represent a unique, and exceedingly popular, type of marketing behavior. Despite the increasing popularity of purchased experiences, the question of what makes one experiential purchase superior to another remains elusive. Using a multimethod, grounded theory approach, the authors perform two qualitative studies that reveal high-quality experiential purchases are composed of five dimensions: uniqueness, fun, escapism, servicescape quality, and social congruence. Next, an empirical model of experiential purchase quality (EPQ) and its outcome variables is tested in two different settings. The results find support for the EPQ conceptualization and uncover that a high-quality experiential purchase can positively influence braggart word of mouth, nostalgia, and self-connectedness to the experience while also lowering price consciousness perceptions to repeat the experience. A comparison of short and long experiences found that customers put a heavier weighting on concepts such as escapism and social congruence in shorter experiences where longer experiences had a heavier emphasis on the servicescape and perceptions of fun. From a managerial perspective, our results highlight that a one-size-fits all approach in experiential management is problematic. Managers need to understand that customers have different evaluative criteria depending on the length of an experiential purchase.

Why do consumers prefer static instead of dynamic pricing plans? An empirical study for a better understanding of the low preferences for time-variant pricing plans

Time-variant pricing plans in electricity markets aim to mitigate mismatches between demand and supply by incentivizing consumers to shift their demand from costly peak to cheaper off-peak times. Their implementation can be manifold; they could depend statically on the time of the day (i.e., time-of-use pricing) or adjust prices dynamically in nearly real time (real-time pricing). If consumers reduced demand in peak times, then they would realize lower prices and providers would operate at lower costs. Still, consumers frequently refuse time-variant pricing plans. The authors develop a new conceptual framework to study and explain this behavior. It supports the optimal choice of time-variant pricing plans by jointly considering price fairness and economic antecedents. In a discrete choice experiment, the authors use a hierarchical Bayes covariate extended logit estimation to measure respondents’ probability of switching from a time-invariant pricing plan to a time-variant pricing plan. The results show that economic antecedents, such as price consciousness and flexibility, have a stronger effect on the choice of a time-variant pricing plan than price fairness considerations; cost insurance is a promising instrument for increasing acceptance of dynamic pricing plans. The results also suggest new ways to target prospective customers.

An Empirical Study of Female E-shopper’s Satisfaction with Cosmetic Products in China

This study investigated the factors affecting female e-shopper’s satisfaction with cosmetic products. Particularly it focuses on the online purchasing of cosmetics by female e-shoppers in five northwestern provinces in China. Previous literature claimed that price, quality and delivery speed of cosmetics have a profound impact on customer’s online shopping satisfaction. Through comparison with physical stores’ performance, price differences between online and offline, quality of products and delivery time help us understand the changes in e-shopper buying behavior. To bridge a gap in the current literature, we attempted to investigate which factor is most important to female e-shopper’s satisfaction when they purchase cosmetic products online in China. We adopted a quantitative method in study. Factors analysis and reliability testing was conducted via SPSS. Our analysis indicated that price consciousness is the most influential factor in female e-shopper’s satisfaction. Based on our findings and insights in this study, it suggested that if the online sellers can further adjust the price of cosmetic products or have regular online promotions, it will attract more consumers. In addition, online stores and suppliers should reach an agreement on small profits with quick turnover, thus achieving the dual interests of buyers and sellers. Several policy implications of female e-shopper’s satisfaction with cosmetic products are discussed as well. Through our research, this study further provided conceptual basis for the study of Chinese consumers’ online buying behavior.

Determinants of organic food purchases: Evidence from household panel data

There is an ongoing trend towards the consumption of organic food in many industrialized countries. For food producers and marketers, it is interesting to know the determinants of organic food consumption. The great majority of previous research on this topic was based on consumer surveys or interviews with questions on past or future behaviour or attitudes towards organic food. However, there is a potential bias in these measures. The aim of the present study was therefore to determine the drivers of actual organic food purchases and compare them with the drivers of attitudes towards organic food. The analysis was based on household panel data from Germany provided by the company GfK documenting all food purchases of N = 9470 households during the entire year of 2008. The data on actual purchases of organic food were linked with survey data from the same households on attitudes towards different food characteristics. The analysis confirmed the phenomenon of an attitude-behaviour gap in the market for organic food. Nevertheless, the structural equation models provided evidence that attitudes towards organic food and organic food purchases were both driven by the same determinants; however, the relative importance of the determinants differed. In both models, ‘naturalness and healthiness’ and ‘environmental protection’ were the two most influential drivers. Other significant determinants with a positive influence were the preference for ‘local and domestic food’ and the desire for ‘high quality food and enjoyment of eating’; ‘price consciousness’ and ‘convenience orientation’ both had a significant negative effect. The paper concludes with implications for future survey research on organic food and recommendations for producers and marketers of organic food.

Application of consumer style inventory (CSI) to predict young Indian consumer’s intention to purchase organic food products

The present study attempts to investigate the consumer decision making styles (CDMS) in the organic food category. Sproles and Kendall’s Consumer Styles Inventory (CSI) instrument (1986) was modified and applied in the organic food-product context. Further, two additional constructs identified from the literature were included, namely; environmental consciousness and health consciousness. Responses were collected from 527 young consumers using convenience sampling approach and analyzed with the help of Exploratory Factor Analysis and Structural Equation Modelling. Out of eight CDMS, five styles, namely perfectionism (high quality consciousness); brand consciousness; recreational (hedonistic shopping consciousness); price consciousness and brand loyalty reported significant influences on consumers’ organic food purchase intention. Further, both the additional constructs (environmental consciousness and health consciousness) were also found significant. The finding of the study will help the organic food marketers in identifying the factors important for organic food purchases.

Determinants of knowledge of personal loans' total costs: How price consciousness, financial literacy, purchase recency and frequency work together

Politicians and analysts frequently call for stricter regulation of personal loans. Two variables that are easy to measure, and therefore easy to include in regulations and public policy, are purchase recency and purchase frequency. Politicians and analysts also regularly demand an increase in price consciousness and financial literacy among customers. This paper aims to analyze how these four factors work together to generate perceived and actual knowledge of the personal loans' total costs. An empirical study employing a survey administered through personal in-home interviews was carried out. This paper shows how perceived and actual knowledge of personal loans' total costs are affected differently by these four factors. The results are discussed, and implications for regulators, managers, and researchers are presented.

Assessing channel quality to measure customers' outcome in online purchasing

In this intense competitive era, businesses surrounded with different internal and external factors are striving to improve their distribution strategy. This study investigates the effects of dimensions of e-channel quality and product values on e-customer satisfaction, leading to e-customer loyalty in an economy where e-commerce is still in evolving phase. E-channel quality served as a higher order factor which includes: perceived ease of use (EOU), perceived usefulness (PU), convenience (CON), entertainment (ENT), selection (SEL) and return-ability (RTN); whereas product values served as a higher order factor for product quality (PQ) and price consciousness (PC). Data was collected from 224 university students and PLS-SEM was applied. The results revealed that quality attributes of e-channel and product values have significant impact on e-customer satisfaction which leads to e-customer loyalty. Based on the findings, the results are discussed and directions for future research are also provided.

Do I want to pay to download movies

PurposeThe purpose of this study is to understand the nature and characteristics of legal movie download services and to explore the factors that influence user acceptance of the services.Design/methodology/approachThe authors analyzed the three aspects (i.e. hedonic information systems, ethical and legal consideration and user characteristics) of legal movie download services and empirically examined how they affect the potential users’ behavioral intent to adopt the services based on the theory of reasoned action (TRA). An online survey of 142 respondents about a real legal movie download services, currently operated by a major online service provider, was conducted.FindingsPerceived playfulness and perceived usefulness had statistically significant effects on attitude. The relationships between subjective norms and its influencers are validated for moral judgment as well as risk aversion. The influence of price consciousness and past experience on behavioral intent to adopt the service are both supported. In the TRA model, attitude and subjective norms had statistically significant influence on behavioral intent to adopt the services.Originality/valueThe authors contribute to extending the literature on online pirating behavior from the different perspective, i.e. adoption of new legal alternatives. The study shows that the specific boundary conditions, i.e. hedonic attribute of information systems and existence of illegal alternatives, would generate the different results from the theories and previous literature.

Idiosyncratic service experiences: When customers desire the extraordinary in a service encounter

For many customers “good” service is not enough to create an experience that warrants telling others. Customers want an extraordinary service experience, but what does that really mean? Through an initial qualitative study, the authors tackle this question and conceptualize a term called Idiosyncratic Service Experience (ISE) to represent the interpersonal aspects that create these unique or special service experiences. ISE is a higher order construct made up of a) perceived employee effort, b) surprise, and c) perceived employee empathy. Further, the authors examine the antecedents and consequences of ISEs in a structural model. The results of our study found that ISEs promoted feelings of delight which lead to a higher tolerance to future failures, decreased price consciousness, and stimulated self-enhancing word-of-mouth. We also explore how exception making or the willingness of an employee to break a service norm influences ISEs and evaluations of delight.

Influence of individual characteristics on whether and how much consumers engage in showrooming behavior

This article investigates a set of individual characteristics that can explain whether and how much a consumer engages in showrooming behavior. The authors conceptualized and empirically examined certain variables’ impact on both showrooming probability as well as the extent of behavior. The variables under consideration include consumers’ involvement, prior knowledge, perceived risk, price consciousness, Internet usage, access device usage, and certain demographic variables. The results reveal that involvement and price consciousness significantly explain whether a consumer is a potential showroomer. Further, showrooming frequency is found to be affected by prior knowledge, perceived risk, price consciousness, Internet usage, access devise usage, and age. Some implications are discussed regarding how retailers can handle showrooming.

Factors influencing clothing interest and purchase intention: a study of Generation Y consumers in Malaysia

The purpose of this study is to examine the factors influencing clothing interest among Generation Y consumers in Malaysia. Brand image, word of mouth (WOM), self-concept, perceived quality, and need for uniqueness were hypothesized to be related with clothing interest, which in turn, was deemed to be related with purchase intention. The interaction effect of price consciousness on the relationship between clothing interest and purchase intention was also examined in this study. Self-administered questionnaires were used to collect data from a total of 300 respondents from Malaysia to test the hypothesized relationships. Results showed that need for uniqueness, self-concept, brand image, WOM, and perceived quality are significant predictors of clothing interest among the Generation Y consumers in Malaysia and price consciousness moderated the relationship between their clothing interests and purchase intention. The practical implications of the research findings were discussed.

Remanufactured auto parts market in Japan: Historical review and factors affecting green purchasing behavior

This study investigates consumers' perception and their green purchasing behavior relating to remanufactured auto parts (RAPs) in Japan, where RAPs market remains relatively undeveloped. It also reports factors affecting green purchasing behavior in the US, where RAPs enjoy a long history and continuing success. This study uses an internet survey of 500 Japanese and 473 US respondents to examine how underlying factors, such as consumer knowledge of RAPs, perceptions of benefits and risk, and price consciousness, influence the behavioral intentions of consumers. The results indicate that purchase intention is strongly influenced by these underlying factors in two different markets. This study also provides a brief historical review of the growth of the Japanese RAPs market. In the review, stakeholders' influences on consumers’ perception of RAPs are highlighted. The implications of the results and review on effective measures to promote RAPs in Japan and in an economy where markets for remanufactured products are in their early stage of development are discussed.

PENGARUH GENDER SEBAGAI PEMODERASI PENGEMBANGAN MODEL PERILAKU KONSUMEN HIJAU DI INDONESIA

This study examined the model development causal that can predict the green consumer behavior on organic food as green product. This study tested the influence of values orientation on environmental consciousness. This study also explained the effect of ecological knowledge, ecological affect, premium price and environment consciousness on green purchase intention. The role of gender as moderating variables on the causal model development. The analysis of 723 respondents all of those are people who influence and purchase their daily food. The result, based on path analysis using multi group structural equation modeling, indicated that the model tested had an acceptable fit. The idea implied in this research will be much help in resolving problem and decision making, connected to reinforce the green purchasing.Keywords: green consumer, attitude, behavior, organic food, gender

Choice of mandatory prescribed drugs in Portugal: a consumers’ perspective

PurposeThis paper aims to contribute to the understanding of what influences consumers’ choice of mandatory prescribed drugs, by looking with more detail to the substitution of branded drugs by generics. Specifically, this research looks at three factors that can influence this decision, namely, participative decision-making, perceived risk and price consciousness, within the recent changes introduced in the Portuguese pharmaceutical market by new legislation.Design/methodology/approachA cross-sectional study was conducted, using a self-administered questionnaire, to survey a sample of consumers/patients that visited a doctor and were prescribed some kind of drug. Data were treated using factor analysis for dimensionality reduction purposes and regression analysis to test the main hypothesis.FindingsThe results show that participative decision-making has no impact on purchase decision of generics, while perceived risk and price consciousness show a predictive power regarding purchase intention of generic drugs.Research limitations/implicationsAlthough the results are only applicable to the Portuguese context, it draws important conclusions regarding consumers’ behaviour when choosing between branded and generic drugs.Practical implicationsKnowing what influences consumers’ choices of generic drugs contributes to tune marketing strategies and actions. For public institutions, this paper offers insights on how to adapt public policies.Originality/valueThis paper is valuable because it is the first to look at the Portuguese pharmaceutical market from a consumer behaviour perspective since new legislation was set up.

The Effects of Price and Health Consciousness and Satisfaction on the Medical Tourism Experience.

The objective of this study was to analyze the effects of price and health consciousness on medical tourism. Accordingly, we explore the utility of the theory of planned behavior for assessing the relationships between several variables and explain consumers' intentions to be repeat medical tourists. A 26-item questionnaire was developed, and data were collected from 407 patients who visited South Korea for medical purposes. Structural equation modeling was used to analyze the data. The results indicate that medical tourists' price consciousness was significant with respect to their satisfaction with medical and travel services. However, health consciousness also influenced their decision-making process. The study results reveal that health consciousness did not have a significant effect on tourists' satisfaction with medical travel services. Although this study was conducted in South Korea, the findings may be relevant elsewhere. When developing products and services for the medical tourism industry, policymakers and service providers should focus on the importance of cost-effectiveness.

Collaborative destination marketing and PWYW

Innovative pricing methods such as auctions, Name-Your-Own-Price and Pay-What-You-Want (PWYW) are fairly recent. These pricing approaches allow sellers and customers to collaborate in the price setting process (Amor, 2000; Shapiro & Zillante, 2009). PWYW, in particular, goes a step further by allowing customers to decide which price they want to pay after consumption. As such, this approach takes away the power of price setting from the seller. The customer is free to set any price (even zero) and the seller has to accept it (Kim, Natter, & Spann, 2009). Studies on PWYW provide insights into why the approach works in certain societies (Bolton, 1991; Elster, 1989; Gneezy, Gneezy, Riener, & Nelson, 2012), which factors (e.g. satisfaction, income and price consciousness) impact on the PWYW price people pay, and its profitability for various services (Chao, Fernandez, & Nahata, 2015; Kim et al., 2009; Schons et al., 2014). There is currently no study in the tourism field that either applies PWYW at the destination level to evaluate profitability or the impact of PWYW on subsequent tourist satisfaction. The study contributes to the dearth of literature on collaborative pricing in the tourism field.