Price Impact Research Articles

The Effect of Promotion and Price on Consumer Decisions in Buying Apple Products at the Royal Store in Pontianak City

This study explores the impact of promotion and price on consumer purchasing decisions regarding Apple products at Toko Royal in Pontianak. The rapid growth of technology and communication tools has heightened the demand for smartphones, particularly those offered by well-known brands like Apple. By analyzing data from 100 respondents through questionnaires and interviews, this research aims to examine the influence of promotional strategies and pricing on consumer choices. The findings indicate that while promotion does not significantly affect purchasing decisions, price plays a crucial role in shaping consumer behavior. The results underscore the importance of pricing strategies in maintaining a competitive edge in the smartphone market. This study offers insights for businesses looking to optimize their marketing efforts and pricing models to enhance customer acquisition and retention.

Capturing the Benefits of Autonomous Vehicles in Ride Hailing: The Role of Market Configuration

We develop an economic model of autonomous vehicle (AV) ride-hailing markets, in which uncertain aggregate demand is served with a combination of a fixed fleet of AVs and a flexible pool of human drivers (HVs). Dispatch efficiencies increase with scale because of density effects. We analyze market outcomes in this setting under four market configurations, defined by two dispatch platform structures (common platform versus independent platforms) and two levels of supply competition (monopoly AV versus competitive AV). A key result of our analysis is that the lower cost of AVs does not necessarily translate into lower prices; the price impact of AVs is ambiguous and depends critically on both the dispatch platform structure and the level of AV supply competition. In the extreme case, we show that if AVs and HVs operate on independent dispatch platforms, there is a monopoly AV supplier, and labor supply elasticity is sufficiently high, then prices are even higher than in a pure-HV market. Indeed, to guarantee consistently lower prices (relative to a pure HV market) in all scenarios and under all supply and density elasticities, a common dispatch platform between AVs and HVs is required. Furthermore, competitive AVs lead to lower prices than monopoly AVs in every such scenario. Our results illustrate the critical role that market configuration plays in realizing potential welfare gains from AVs. This paper was accepted by Omar Besbes, revenue management and market analytics. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2020.03112 .

Impact of Energy Prices and Macroeconomic Variables on GDP Prediction UK: Machine Learning Approach

Gross Domestic Product (GDP) is one of the critical indicators of an economy. This study aims to predict the GDP of the United Kingdom using vital macroeconomic variables from 1990 to 2018 as predictors, which include energy prices, unemployment rate, Real Effective Exchange Rate (REER) inflation and net migration. Several machine learning models, namely Support Vector Regression (SVR), Random Forest (RF) and Gradient Boosting Machines (GBM), were implemented, analysed and compared. The models were trained on both scaled and unscaled data, with hyperparameter tuning applied to optimise performance. The models’ performances and accuracy were analysed by employing evaluation metrics Root Mean Squared Error (RMSE), Mean Absolute Error (MAE), and Mean Absolute Percentage Error (MAPE). As per the findings, after hyperparameter tuning, the SVR model performed best in GDP prediction, followed by GBM. The results of this study underscore the critical role of macroeconomic variables in GDP prediction while highlighting the potential of machine learning models to produce valuable and reliable insight into economic forecasting.

ANALYSIS OF THE ECONOMIC PERFORMANCE OF PROJECT ADVANCED OIL RECOVERY WITH CO2 INJECTION (EOR/CCUS-CO2) THROUGH FINANCIAL INDICATORS: BRAZILIAN OVERVIEW

Enhanced Oil Recovery (EOR) is a method associated with Carbon Capture, Utilization, and Storage (CCUS) that consists of injecting CO2 into mature oil fields to store CO2 and enhance production. CO2-EOR projects are costly, requiring technical and economic evaluations to determine their viability. This research analyzes various economic parameters in CO2-EOR projects to develop a comprehensive model for assessing their economic viability in Brazil. The model was tested on projects developed by Silva et al. (2010) and included six scenarios of CO2-EOR in mature reservoirs. The results demonstrate the impact on well completion costs. The scenario with the highest oil production had one additional completion and, for this reason, did not show the best Net Present Value (NPV) result. This work also conducts a sensitivity analysis of parameters and reviews their impacts on NPV. Results indicate a significant impact of barrel price and minimum attractiveness rate on the NPV, while finding that the taxation of excess CO2 was not very significant. Low barrel prices (<$9) proved to be unfeasible with negative NPVs.

Disclosure and Dynamic Risk Sharing with a Large Shareholder

ABSTRACT We study the effects of disclosure in a dynamic market with imperfect competition. The supply of an asset is determined by a large shareholder with price impact, who trades slowly to diversify away from concentrated ownership. Small investors provide capital and thus risk-bearing capacity to the market. Although it is well known that disclosure impedes risk sharing by shifting risk before future trading opportunities, we show that disclosure, at the same time, can enhance risk sharing by promoting more trades. Resolving this tradeoff, an interior level of disclosure quality maximizes the small investors’ surplus as well as the total surplus, but minimizes the large shareholder’s surplus. Further, efficient disclosure policies feature increasing quality over time. JEL Classifications: D80; E21; G12; L13; M41.

Analyzing the Impact of Service Delivery, Pricing, and Facilities on Customer Satisfaction at Big Mart: A Descriptive and Causal-Comparative Study

This study investigates customer satisfaction at Big Mart, focusing on service delivery, pricing, and facilities. Utilizing a descriptive and causal-comparative research design, data was collected from 125 customers in the Baluwatar area, employing a questionnaire and convenient sampling technique. The research explores the relationship between service delivery, pricing, facilities, and customer satisfaction. Descriptive statistics reveal average satisfaction with service delivery and pricing, but notable dissatisfaction with facilities. Correlation analysis indicates significant positive correlations between service delivery and pricing, while other facilities negatively affect satisfaction. Regression analysis shows that 28.6 percent of the variance in customer satisfaction is explained by the model, with price positively impacting satisfaction and other facilities having a significant negative effect. The findings suggest that enhancing facility quality and maintaining competitive pricing are crucial for improving overall customer satisfaction at Big Mart.

High Price Impact Trade Identification and Its Implication for Volatility and Price Efficiency

We include limit order book (LOB) matchedness as a new trade attribute to identify high price impact trades (HPITs). HPITs are trades associated with large price changes relative to their volume proportion. We show that the inclusion of matchedness provides a finer analysis of the relationship between price contribution and trade categories. We further verify that a stronger presence of HPITs leads to a decline in volatility and improves price efficiency, which suggests a link between HPITs and informed trades.

Echoes of Conflict: Unveiling the Interconnected Tapestry of Russia-Ukraine Warfare, Oil Price Ballet, and the Asian Stock Symphony

The purpose of this research is to look into the impact of the Russia-Ukraine war on the relationship between oil prices and the Asian stock market. While earlier studies have investigated the impact of oil prices on stock markets, there has been little research into the impact of crude oil prices on the Asian stock market in the context of the Russia-Ukraine war. For this purpose, the data is collected from NSE and Bloomberg database the study's findings imply that the Russia-Ukraine war has had a major impact on the relationship between crude oil prices and stock market indices in numerous Asia-Pacific countries. The study suffers from a few limitations such as it only examines the relationship between crude oil prices and stock market indices but there are other macroeconomic factors, such as interest rates, inflation, and political instability which also affect the market.

How Content Attributes of Short Video Influence Online Purchase Intention: The Mediating Role of Perceived Value

In today’s digital landscape, short videos have become a dominant form of visual communication, captivating millions on social media and platforms like “TikTok.” As the short video sector flourishes, increasing businesses are turning to these platforms for marketing purposes. Despite this trend, there’s a noticeable gap in comprehensive understanding and research on the elements that drive consumer purchases through short video platforms. A survey exploring the impact of short video content attributes on consumer buying intentions was conducted to address this problem. The survey received input from 342 Chinese users of short video platforms. SEM was run to analyse data. The results of this study have shown that consumers tend to have both a better understanding and a more favourable impression of the product after watching clear and informative short videos. Additionally, the impact of clarity, practicality, and promotional prices on purchasing intentions is indirectly affected by the lens of the perceived value. The research offers insights into short video marketing and purchasing behaviour by providing valuable information regarding the Chinese market, but results may not apply elsewhere due to cultural and market differences. It is essential to explore in the next stage if the obtained outcomes are applicable to different cultures. Moreover, the study is based on self-reported data that can be influenced by social desirability bias and memory bias. Further studies might equip themselves with behavioral data, such as real purchase records, to complement the information from subjects to make up for the constraints of such self-reporting.

The Influence of Product Quality, Price and Digital Marketing on Purchasing Decisions for Android Smartphones in The City of Denpasar

A smartphone or smartphone being present in the environment. Due to the fact that it facilitates communication and provides instant access to information, this gadget has gained a dominant position in the worldwide electronics market. The purpose of this study is to investigate the following factors: the impact of product quality on decisions to purchase Android smartphones; the influence of price on decisions to purchase; and the impact of quality, price, and digital marketing on decisions to purchase Samsung smartphones. Quantitative surveying is the method that this research use. In Denpasar City, the population that was researched consisted of consumers that either use or purchase Android cellphones. The total sample size of 97 individuals was gathered through the employment of a purposive sampling approach, and the method of data collection was accomplished through the utilization of a questionnaire that had been validated and determined to be trustworthy. For the purpose of data analysis, multiple regression was utilized. The findings of the study indicate that the following factors have a significant impact on purchasing decisions: (1) the quality of the product has a significant impact on purchasing decisions; (2) the price has a significant impact on purchasing decisions; and (3) digital marketing and product quality have a powerful impact on purchasing decisions. The findings of the descriptive test on purchasing decisions obtained a total score of 415.6, with the second largest indicator (419) earning an average score of 4.28 and the smallest indication (412) obtaining the lowest score. The results of the descriptive test on product quality have a total score of 401, with an average score of 4.13 on the third largest indicator (414), which is the smallest 394. Total score for the price descriptive test was 401.6, with an average score of 4.14 on indications 2 and 3, with the maximum score being 403 and the smallest score being 399. There was a total score of 398.6 on the descriptive test for digital marketing, with an average score of 4.10 on indication 3, with the greatest being 413 and the smallest being 386.

THE IMPACT OF PRICE, PRODUCT QUALITY, AND ELECTRONIC WORD OF MOUTH ON PURCHASE DECISIONS FOR BENING’S KINCARE PRODUCTS IN KARAWANG

The objective of this study is to ascertain the impact of price, product quality, and electronic word of mouth on the purchasing decisions regarding Bening's skincare products in Karawang. Employing quantitative research with hypothesis testing, the research involved a sample of 105 consumers of Bening's Skincare products in Karawang.The analytical methods applied include multiple linear regression analysis, coefficient of determination (R2), partial correlation coefficient, t-test, F-test, and classical assumption tests using SPSS version 20 statistical software. Primary data for the study were obtained through a questionnaire. The findings of this research affirm that the price significantly influences the purchasing decisions for Bening's Skincare products in Karawang. Moreover, product quality plays a significant role in influencing the decision to purchase Bening's skincare products in Karawang. However, electronic word of mouth does not exhibit a significant impact on purchasing decisions for Bening's skincare products in Karawang. Additionally, the combined influence of price, product quality, and electronic word of mouth simultaneously affects the purchasing decisions for Bening's Skincare products in Karawang.

Rare earth recycling and remanufacturing: Impacts on oligopoly markets and industry development from a closed-loop supply chain perspective

The recycling of rare earth elements (REEs) yielded a dual benefit by alleviating supply constraints and contributing to environmental preservation. Independent recyclers (IRs), upon extracting REEs from waste materials, not only supplied the recovered REEs to the REE conglomerates but also engaged in competitive relationships by remanufacturing REE products. This study established a closed-loop supply framework, allowing the IR flexibly to choose between remanufacturing or direct sales strategies. Using the Cournot model under inequation constraints and real market data, to explores the impact of REE acquisition prices and recycling technologies on the closed-loop supply chain (CLSC) and society. The results indicated that: (1) The recycling mode and technology do not affect market share. Compared to the IR, REE conglomerate exhibit significant monopolistic advantages, occupying at least 85.1% of the market share, which can increase to a maximum of 98% as acquisition prices rise. (2) The acquisition price of recycled REE has an “inverse U-shaped” relationship with the profits of REE conglomerate and a positive relationship with the profits of IR. (3) The recovery rate is negatively related to the profits of REE conglomerate and positively related to the profits of IR. Increasing the REE recovery rate will enhance the profitability of the IR. (4) In terms of social effects, higher acquisition price of recycled REE continuously reduce consumer surplus and social welfare. Although the REE recovery rate does not affect consumer surplus, it has a significant positive impact on social welfare.

Catalyzing green transformation: mitigating oil price impact on CO2 emissions in Saudi Arabia via renewable energy transition

AbstractExploring the relationship between international oil prices, income, and carbon dioxide (CO2) emissions in Saudi Arabia, this study examines if renewable energy consumption plays a lowering tool in international oil prices' impact on CO2 emissions, employing conventional econometric methods and the functional coefficient approach. The study reveals that the interaction between renewable energy consumption and international oil prices has a negative and statistically significant impact on CO2 emissions. This emphasizes the potential for Saudi Arabia to reduce carbon emissions by prioritizing renewable energy projects. In addition, a positive and statistically significant relationship between income and CO2 emissions is found, emphasizing the need to decouple economic growth from emissions growth. Furthermore, an interesting decoupling effect between oil price elasticity of CO2 emissions and per capita GDP is noted from the early 2000s–2015. This indicates that economic growth driven by rising oil prices can be managed to mitigate environmental impact, showcasing Saudi Arabia's commitment to sustainable development. Policy recommendations involve intensifying efforts to promote renewable energy implementation, lowering fossil fuel dependence in power generation, and incentivizing emissions reduction for a more sustainable energy future.

Unraveling the effect of electricity price on electric vehicle charging behavior: A case study in Shenzhen, China

Estimating price elasticity of demand for electric vehicle charging contributes to the accurate determination of charging price, thereby improving electric vehicle adoption and energy sustainability. However, few studies have studied the impact of electricity price on electric vehicle charging behavior, especially the demand spillover effect caused by price fluctuations. To fill the gaps, on a citywide dataset of public charging piles in Shenzhen, China, first, correlation coefficients and hypothesis tests are used to determine the relationship between charging demand and price. A learning model incorporating two-layer graph attention, temporal pattern attention, and knowledge-embedded meta-learning is developed for accurate spatio-temporal regression. Impulse response analysis is conducted to unravel several noteworthy phenomena: (1) public charging demand is inelastic to electricity price, with an average elasticity of −0.76, and distinction between different functional areas and times is revealed; (2) negative price impulses marginally change the elasticity, while positive ones make electric vehicle charging users more price sensitive, and (3) the spillover effects caused by price increases and decreases bring 89.48% and 53.88% of its local demand changes to neighbors, respectively, with a scope of 3.45 kilometer. These findings provide policy implications for promoting electric vehicle charging to facilitate renewable energy transition.

Customer satisfaction optimization: Impact of PLN mobile application and price in the context of PT. PLN Palembang services

This study aims to evaluate the effect of the PLN Mobile application and price on customer satisfaction at PT. PLN (Persero) UP3 Palembang ULP Rivai. This study also examines the role of price as a mediating variable in the relationship between the PLN Mobile application and customer satisfaction. The method used in this study is a quantitative approach with data analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM). Primary data were collected through a survey involving 100 PLN Mobile customer respondents. The results of the analysis show that the PLN Mobile application has a positive and significant effect on customer satisfaction, with a path coefficient of 5.588 and a p-value <0.001. Price also has a significant effect on customer satisfaction with a path coefficient of 4.434 and a p-value <0.001. Furthermore, the indirect effect analysis revealed that price functions as a partial mediating variable between the PLN Mobile application and customer satisfaction, with a path coefficient of 3.513 and a p-value <0.001. These findings indicate that the PLN Mobile application and price directly affect customer satisfaction, and price plays an important role in strengthening the influence of the PLN Mobile application on satisfaction. Based on these results, it is recommended that PT. PLN continues to optimize the features and services of the PLN Mobile application to improve customer satisfaction and consider competitive pricing strategies. This study also suggests further studies to explore other factors that may affect customer satisfaction in the public service sector.

Cost of Green Hydrogen

Acting in accordance with the requirements of the 2015 Paris Agreement, Poland, as well as other European Union countries, have committed to achieving climate neutrality by 2050. One of the solutions to reduce emissions of harmful substances into the environment is the implementation of large-scale hydrogen technologies. This article presents the cost of producing green hydrogen produced using an alkaline electrolyzer, with electricity supplied from a photovoltaic farm. The analysis was performed using the Monte Carlo method, and for baseline assumptions including an electricity price of 0.053 EUR/kWh, the cost of producing green hydrogen was 5.321 EUR/kgH2. In addition, this article presents a sensitivity analysis showing the impact of the electricity price before and after the energy crisis and other variables on the cost of green hydrogen production. The large change occurring in electricity prices (from 0.035 EUR/kWh to 0.24 EUR/kWh) significantly affected the levelized cost of green hydrogen (LCOH), which could change by up to 14 EUR/kgH2 in recent years. The results of the analysis showed that the parameters that successively have the greatest impact on the cost of green hydrogen production are the operating time of the plant and the unit capital expenditure. The development of green hydrogen production facilities, along with the scaling of technology in the future, can reduce the cost of its production.

Transition to a green economy, oil prices and the current account

In this paper we propose and develop the hypothesis that a transition to a green economy influences the consumption-smoothing component of the current account. This is important because green economy has the potential to improve current accounts. Using a sample of 23 countries, we discover that when renewable energy consumption as a share of total final energy consumption is below the threshold value of 23.561 %, there is a negative impact of oil prices on the current account. However, the negative impact diminishes when renewable consumption exceeds this threshold. Interestingly, splitting the sample into current account surplus and deficit countries reveals that a transition to a greener economy mitigates the negative impacts of an oil price rise more so for deficit countries than surplus countries.

The impact of energy prices in decarbonizing buildings’ energy use in the EU27

The recent surge in end-use energy prices in the EU has intensified the debate on how price signals influence the decarbonization of the building sector, a key contributor to global energy consumption and emissions. This study investigates the role of energy price signals in driving the decarbonization of the EU-27 building sector using the Invert/EE-Lab model to simulate various scenarios up to 2050. The analysis examines the elasticity of energy demand, particularly how different price scenarios impact investment decisions in energy-related technologies. The findings reveal that a 10 % increase in energy prices can lead to a reduction in energy demand by up to 3 %, depending on the scenario. Furthermore, price elasticity varies across different policy and price settings, with stricter regulations resulting in lower elasticity. The results underscore that while stringent regulatory measures can achieve significant energy savings and reduce greenhouse gas emissions, they also limit the responsiveness to price signals, with heat pump shares reaching 47–86 % in high-efficiency scenarios. Conversely, more moderate policy measures increase price elasticity, leading to 15–55 % heat pump shares. This study highlights the importance of better understanding price elasticity in energy modeling to project better the outcomes of policy interventions aimed at achieving a low-carbon energy system.

Russia-associated sanctions and asset’s value: determination of yield on investment from the liquidity perspective

<p><span lang="EN-US" style="font-size: 14pt; font-family: 'times new roman', times, serif;">In this study, the time-varying pattern of returns with the trading cost is assessed in light of sanctions on the Russia’s economy. The analysis is performed on the Moscow Exchange Index (MOEX) using the ordinary least squares (OLS) method, Bayes’ Theorem technique, and vector error correction model (VECM). Firstly, the transparency of asset’s value in the same trading period was noted to execute the trade with a limited price impact. Thus, the liquidity seems not priced in returns. In addition, the posterior probability of the transparent asset’s value stabilized the market at a limited transaction cost. In this case, there is less likelihood of liquidity acting as a risk element in returns during the same trading session. These results correspond to the era without sanctions, as well as economic restrictions period. Before the economic restrictions, the execution of investment occurred on its real or close value due to the market transparency in the following trading period. This implies, that the past trading cost series is not priced in yields on investment. During the Russia-related sanctions, a higher price impact of transaction was noted due to the ambiguity in the future asset’s value. Therefore, the past liquidity series is a pricing element in the short run and long run. The analysis suggests a potential inference of trading cost to determine the yield on investment. </span></p>

PENGARUH SOLVABILITAS, LIKUIDITAS, DAN HARGA KOMODITAS TERHADAP HARGA SAHAM MELALUI PROFITABILITAS SEBAGAI VARIABEL MEDIASI

This study aims to analyze the relationship between financial performance and commodity prices on the share prices of coal mining companies listed on the Indonesian Stock Exchange during the period 2015- 2022. The research method used is quantitative-descriptive with a multiple linear regression approach. This research focuses on Debt to Equity Ratio (DER), Current Ratio (CR), Return on Assets (ROA), and coal prices. Through path analysis, the research indicate that ROA significantly mediates the impact of DER, CR, and Coal Price on the Stock Prices of coal mining companies. These finding contribute to understanding the factors influencing the stock prices of coal mining companies and have implication for investors, providing information for consideration in making investment decisions