Price Sensitivity Research Articles

Standards for Determining Materiality in Securities Misrepresentations and Suggestions for Improving Price Sensitivity Standards

With the development of the securities market, cases of false statements are increasing day by day. Since the criteria for determining "materiality" have not yet been unified, there are disputes in academia and judicial practice. These controversies primarily revolve around three theoretical approaches: monism, which focuses solely on price sensitivity; dualism, which considers both price sensitivity and investment sensitivity; and ternary theory, which introduces additional criteria. This paper undertakes a comprehensive analysis of international standards for determining "materiality" and suggests that China should not only emphasize price-sensitive criteria but also incorporate investment-sensitive assessments to adequately reflect the complexities of modern financial markets. The paper also critiques the reliance on the price sensitivity standard as overly simplistic and potentially insufficient for capturing the full impact of false statements on market behavior. To address these shortcomings, the paper advocates for the involvement of professional institutions to independently verify the impact of false statements on stock prices, thereby ensuring more objective and reliable assessments. Furthermore, it is recommended that the burden of proof be shifted more heavily onto defendants in securities litigation, requiring them to substantiate their claims more rigorously.

A literature review on the drivers and barriers of organic food consumption in China

Research interest in organic food consumption has increased significantly worldwide, but a systematic analysis of this phenomenon in China is still lacking. The existing studies in this area are wide-ranging and fragmented, and there is a lack of comprehensive research into the drivers and barriers specific to the Chinese context. Based on a literature review of 26 articles spanning from 2011 to 2021, this article employs the consumption values theory and the innovation resistance theory to discern patterns on the drivers and barriers of organic food consumption in China. The findings show that the most explored drivers include the functional values of healthiness and safety. Within the social value realm, environmental concern and symbolic value emerge as important influences on Chinese consumers. Conditional values shed light on factors such as perceived healthiness and certification/organic labeling. Regarding barriers, an aspect of research less analyzed, the article finds key obstacles being price sensitivity, perceived uncertainty, lack of knowledge or information, lack of reliability, and lack of availability or visibility.

Patterns and determinants of tobacco purchase behaviors among male cigarette smokers in Vietnam: A latent class analysis.

Understanding smokers' purchasing patterns can aid in customizing tobacco control initiatives aimed at reducing the tobacco smoking prevalence. Therefore, this study identified cigarette purchase behavior among Vietnamese male smokers and associated demographic and consumption factors. We analyzed a secondary dataset of male current tobacco smokers (n=3983) who participated in the Vietnam Global Adult Tobacco Survey in 2015. We applied the latent class analysis (LCA) to identify the classes of purchase behavior among cigarette smokers (n=1241). Multinomial logistic regression was performed to identify demographics (education level, ethnicity, partnership status, and household socioeconomic status) and cigarette consumption variables (smoking years and heavy smoking status) related to purchase behavior classes. The results are reported as an adjusted relative risk ratio (ARRR). The LCA identified four cigarette purchase behaviors classes: Class 1 (price-insensitive and purchased international brand: 44.4%), Class 2 (price-sensitive and purchased domestic brand: 27.6%), Class 3 (price-sensitive and purchased cigarettes in a street vendor: 18.6%), and Class 4: price-sensitive and purchased loose/carton cigarette: 9.4%). The poorer economic groups were more likely to belong to the three price-sensitive classes. Heavy smokers and those who had smoked for a longer period were more likely to belong to Class 3 (ARRR=2.33; 95% CI: 1.51-3.58 and ARRR=1.02; 95% CI: 1.001-1.05, respectively) and Class 4 (ARRR=2.94; 95% CI: 1.71-5.06 and ARRR=1.05; 95% CI: 1.02-1.08, respectively). Varied purchasing behaviors among male cigarette smokers, influenced by divergent price sensitivities and economic backgrounds, underscore the need for comprehensive tobacco control. Future efforts should include targeted policy interventions, behavior modification, and reshaping social norms.

Global Impact of Renewable Energy Innovations

This study explores how product quality, price, and promotional attractiveness impact consumer purchasing decisions on Shopee in Sidoarjo, Indonesia, using a quantitative descriptive approach with 96 respondents. The findings indicate that higher product quality and attractive promotions positively influence purchase intent, while price sensitivity also plays a role. These insights are valuable for businesses in online marketplaces like Shopee, emphasizing the importance of maintaining high product quality, competitive pricing, and effective promotions to enhance consumer decisions and market performance. Highlight: Online consumer behavior analysis Quality and price influence purchases Promotions impact buying decisions Keyword: consumer behavior, online marketplace, purchase decisions, product quality, promotional attractiveness

Examining the Retail Delivery Choice Behavior in a Technology-Aware Market

This study aims to provide valuable insights into consumer preferences for delivery services in online shopping in Chile. The COVID-19 pandemic has accelerated the evolution of delivery and logistics services, leading to increased competition among online stores. Chile, with its highly digitally enabled population and a competitive landscape of online retailers, serves as an ideal reference case for Latin America. By analyzing key delivery attributes such as delivery time, order arrival time range, compensation policies for delivery delays, and delivery prices, we offer valuable insights into consumer behavior. These insights will, in turn, inform the formulation of effective strategies within the online shopping industry. We examine the following aspects: (a) The willingness of consumers to pay for the service attributes; (b) The relative importance assigned to these attributes by consumers; and (c) The relationship between consumer preferences and socioeconomic characteristics. Using Multinomial Logit Models and a database from a Discrete Choice Experiment, we have discovered that the most significant attributes of delivery service are the time until product arrival and the existence of compensation in case of delivery delays. Additionally, we found that consumers are willing to pay more for the same delivery service if the product is large, as large products generally have higher prices. Furthermore, we observed that delivery time preferences vary by gender and for small products, and price sensitivity varies according to educational level, household size, and socioeconomic status. To the best of our knowledge, no previous research of this kind has been conducted for Chile.

The factors influencing the selection of fund management companies by Malaysian retail investors in the context of islamic unit trust funds

The purpose of this study is to analyze the impact of fund management companies' past performance, fees, perceived religiosity, and perceived risk on Malaysian Muslim investors' attitude toward them. The moderating effects of investor risk aversion, price sensitivity, religiosity, and Islamic financial literacy are considered. A model based on the unified theory of acceptance and use of technology is built to analyze the impact of the variables considered. The study data were collected using a survey of 550 Malaysian retail investors. Our findings show that Muslim investor attitudes are negatively affected by the perceived risk of a fund management company and positively affected by a fund management company's perceived religiosity and past performance. Moreover, the perceived religiosity impact is positively moderated by an investor's Islamic financial literacy and negatively moderated by the investor's price sensitivity. Practical implications of the results and avenues for further investigation in future research are discussed.

Price elasticity of cigarette smoking in Bangladesh: evidence from the Global Adult Tobacco Surveys (GATS)

IntroductionThe overall prevalence of cigarette smoking has not changed significantly for over a decade in Bangladesh. Raising the price of cigarettes through taxation is an important policy instrument for reducing...

BMI/Obesity and consumers' price sensitivity: Implications for food tax policies.

We examine the relationship between BMI and food purchase behavior using a unique dataset that links individual-level food purchases to health data. We find that individuals with higher BMI are significantly more sensitive to price changes in vice categories but do not show similar sensitivity in comparable nonvice categories. We rely on past literature that defines and identifies vice categories as those that are tempting and purchased impulsively. We explore the effectiveness of a 10% price increase on vice food categories, a hypothetical policy similar in spirit to a fat tax or sugar tax. We predict that such a tax would substantially reduce consumption of these foods, and would be particularly effective in reducing consumption by individuals with higher BMI.

The Influence of Electronic Word of Mouth and Price Sensitivity on Sustainable Food Consumption Intentions: Environmental Concern Mediation

The Influence of Electronic Word of Mouth and Price Sensitivity on Sustainable Food Consumption Intentions: Environmental Concern Mediation

DECODING BRAZIL’S BEEF INDUSTRY – AN IN-DEPTH MARKET ANALYSIS UNVEILING MARKET DRIVING FORCES AND THE MEAT REVOLUTION

This case study provides a comprehensive analysis of Brazil’s beef industry, with a specific focus on the economic drivers of supply and demand. The research explores the intricate relationship between supply and demand and investigates the economic factors that shape the industry’s growth. The study examines how external economic conditions impact the industry and delves into the rise of JBS, the prominent Brazilian conglomerate that has played a significant role in the industry’s global expansion since its establishment by Jose Batista Sobrinho in 1953. Furthermore, the analysis considers the internal and external factors that significantly influence Brazil’s thriving beef industry, particularly the delicate balance between domestic demand and the surplus generated by robust beef exports. The driving forces behind beef production and consumption in Brazil, including high levels of exports to China, inelastic domestic demand rooted in cultural significance, economic conditions affecting consumer preferences, and Brazil’s focus on increasing production capacity and exporting, all contribute to ongoing imbalances in the supply-demand relationship. Understanding these driving forces is crucial for addressing the imbalances in the Brazilian beef industry’s supply-demand dynamics.

Do not shut up and do dribble: social media and TV consumption

This paper investigates the impact of social media interest and sentiment surrounding the 2020 National Basketball Association’s involvement with the Black Lives Matter movement on the television audience in the United States. Twitter (now known as X) serves as the chosen social media platform, and we determine the sentiment expressed in tweets (messages posted on Twitter) using the XLM-RoBERTa deep language model. Our primary findings indicate that the quantity of users’ posts does not significantly influence TV viewership; instead, the tone of the messages plays a crucial role. Positive messages supporting the NBA’s engagement correlate with an increase in the number of viewers, while those expressing opposition do not. We argue that this asymmetry may stem from a positive elasticity among casual (non-habitual) NBA viewers concerning positive sentiments toward NBA involvement. These viewers are likely to align with the NBA’s stances on civil rights and BLM. In contrast, the core NBA fan base exhibits inelastic demand and is unlikely to cease watching NBA games. A comprehensive set of robustness checks reinforces the validity of our key conclusions.

Effect of Input Subsidy Reduction on Greenhouse Emission Reduction Potential in Paddy Production Systems in Karnataka State of India

Increasing concerns and call for reduction in Greenhouse gas (GHG) emission have necessitated the search for broader and all-inclusive policy initiatives, extending into agricultural production, where high carbon energy inputs are used. One classical policy strategy for GHG emission reduction, has been taxation. However, given the critical role of agriculture, especially in developing economies, policies that directly or indirectly increase agricultural inputs costs and reduce their demand require stronger theoretical, conceptual and empirical support to ensure that while agri-environmental quality is promoted, welfare of farming households, food security and overall economic growth are not compromised. Using paddy production in Karnataka state in India, the study assessed effects of agricultural input taxation (reduction in rice input subsidy) on future demand for such inputs and their effect on GHG emission reduction, vis-a-viz production and welfare losses. In microeconomic modelling framework, we applied quadratic almost ideal demand system and stochastic efficiency functions in the analysis of the data. Data for the study, a micro-level farm data, was obtained from Cost of Cultivation Scheme (CSS) for irrigated and non-irrigated production systems, covering the period 2009 -2018 production seasons. Specifically, the study used three future tax regime scenarios- 10%, 20% and 30% input subsidy reduction rates, to model an optimum greenhouse emission reduction potential. The results revealed that inputs evaluated were normal with inelastic demand functions; many input coefficients implied significant complementary relationships; irrigated paddy production system had higher estimates of GHG emissions. Input taxation (reduction in subsidy) under all the three scenarios effectively, resulted in declined inputs consumption patterns, and subsequently led to significant decrease in greenhouse emissions. The highest GHG emission reduction potential was observed in irrigated farming system. Greenhouse emission reduction potential was optimal at moderate subsidy reduction policy rate of 10%. It is recommended that, given the inelastic estimates derived, moderate tax (reduction in subsidy) policy option on inputs would yield effective greenhouse mitigation with appropriate compensation through effective integrative schemes.

Analisis Strategi Pemasaran I Phone Inter dan I Phone Resmi di Kota Surabaya

The research aims to understand market dynamics, identify advantages and disadvantages of official iPhone Inter and iPhone, and formulate effective marketing strategies to increase official iPhone sales in Indonesia. The study uses qualitative methods with in-depth interviews and targeted group discussions to gain insight into perceptions, preferences, and factors that influence consumer purchasing decisions. Research results show that the smartphone market in Indonesia is heavily influenced by price sensitivity and consumer awareness of warranty and after-sales service. The iPhone Inter attracts consumers because of its cheaper price, although without official warranties and reliable after-sales service, while the official iPhone is more in demand by consumers who value quality assurance and trusted technical support. The study found a gap in consumer understanding of the risks and benefits of each category of iPhones. Therefore, marketing strategies for official iPhones should focus on consumer education about the risks of buying an iPhone Inter and the benefits of purchasing an official iPhone. Marketing campaigns that emphasize quality, authenticity, and after-sales support, as well as increased accessibility and financing variations for official iPhones, are expected to change consumer perceptions and encourage them to choose official products. With the right approach, Apple and its distributors can strengthen the official iPhone position in the Indonesian market, reduce the iPhone Inter market share, and win competition in this competitive market. Based on these findings, the study recommends marketing strategies that focus on consumer education about the risks of purchasing an iPhone Inter and the benefits of buying an official iPhone, as well as improved after-sales services to strengthen the official iPhone position in the Indonesian market.

Pricing, assembly rate optimizations and coordination for prefabricated construction supply chain with government subsidies

Prefabricated construction, a sustainable construction method, has become the inevitable trend for the future development of the construction industry. The subsidy policies for prefabricated construction enterprises can influence their strategies to promote the development of prefabricated construction. The paper considers a two-echelon prefabricated construction supply chain consisting of a manufacturer and an assembler, aiming to investigate pricing and the assembly rate strategies and coordination under different subsidy objects. The findings demonstrate that subsidy policies can increase the assembly rate. When the government subsidizes the manufacturer, the wholesale price decreases with the subsidy rate, while subsidizing the assembler, the wholesale price does not change. The impacts of subsidy policies on the retail price depend on price sensitivity and the consumer preference for the prefabricated construction market. When the subsidy rates are equivalent, the profit of supply chain with subsidizing the assembler is greater than that with subsidizing the manufacturer. Finally, the paper proposes the revenue-cost sharing contract to coordinate prefabricated construction supply chain with government subsidies. A numerical study is carried out to verify conclusions, and illustrates that a certain range of subsidy affects positively prefabricated construction enterprises by adjusting the retail price and increasing the assembly rate.

Sustainability and Green Marketing

The crucial question is whether consumers will choose green products, even if they are more expensive than traditional things without such environmentally friendly qualities. This subject has important consequences for marketers because it might influence their sustainability plans and budgeting considerations. Numerous elements must be considered to investigate this, including consumer perception of green marketing, its impact on brand loyalty, price sensitivity, and demographic influences.

Financial Implications of Fast Fashion in India: A Comprehensive Study on Profitability, Sustainability, and Consumer Behavior

The emergence of fast fashion has significantly impacted the Indian clothing industry. This research investigates the financial dimensions of fast fashion in India, focusing on profitability, sustainability, and consumer behavior. The study analyzes how fast fashion affects the profitability of clothing companies in India. It also examines the sustainability practices adopted within the fast fashion sector and their implications for both businesses and the environment. Moreover, the research explores the influence of consumer behavior on the financial performance of fast fashion brands in India, considering variables such as price sensitivity, brand loyalty, and the growing demand for sustainable options. By providing insights into these areas, this study aims to offer valuable perspectives on the financial dynamics of fast fashion in India, aiding stakeholders in making informed decisions to balance profitability with sustainability in the industry.

Efficacy of Digital Pricing Strategies on Customer Buying Decisions in the E-Commerce Industry: A PLS-SEM Approach

E-commerce is a vital component of global retail sustainability, expanding at a rate of 14% annually, fuelled by increased internet adoption (55%), with over five billion users worldwide. In Africa, e-commerce revenues have surged to $31.18 million, with Nigeria’s Business to Consumer (B2C) index hitting 53.2 points and boasting a 55% internet penetration rate in 2023, ranking fourth highest on the continent. The globalisation of markets has exposed ecommerce companies to economic downturns, compelling them to adopt strategic pricing approaches to ensure sustained profitability and competitiveness. Consumers have become more price-sensitive, emphasising the need for firms to accurately gauge pricing sensitivity to influence purchasing decisions effectively. This research explores how ecommerce stores utilise digital pricing strategies to impact the purchasing behaviour of Gen Z consumers in Nigeria. By employing an exploratory research design, the study utilised an online survey distributed through Google Form, targeting tech-savvy Gen Z consumers, who represent over 85% of the 384-sample size derived using the Borden sampling model. By being guided by the theory of planned behaviour, the PLS-SEM model indicates that special event pricing (0.433, 91.8% effect), sample product pricing (0.236, 85.0% effect), and loss leader pricing (0.236, 93% effect) significantly impact Gen Z’s consumer patronage (62.4%). Furthermore, product lining pricing (0.457, 93.7% high effect), captive pricing (0.161, 96.21% high effect), and optional pricing strategy (0.252, 96.0% medium effect) influence Gen Z’s online purchase satisfaction (67.2%). This underscores the importance of digital pricing strategies in shaping Gen Z’s online purchase behaviour. The research recommends the need for online stores to incorporate promotional and product mix strategies in business tactics; governments should monitor fair pricing practices, and online retailers should educate consumers about pricing strategies to foster informed purchasing decisions. The research acknowledges potential biases in data collection, stemming from unequal online access among Gen Z consumers, resulting in a partial representation of the diverse range of Gen Z behaviours across the continent, as various cultural, economic, and social factors can influence purchasing behaviours.

Circular economy via chat: Evaluation of adoption and use of whatsapp instant messaging platform for trading second-hand products

This research presents a comprehensive evaluation of the adoption and widely-used Instant Messaging Platform (IMP) for buying and selling second-hand products (SHP), framed within the context of the Circular Economy (CE). The findings reveal that effort expectancy, hedonic motivations, initial trust, and habitual use positively and significantly affect the intention to use IMP for second-hand transactions. Conversely, perceived risk negatively impacts this behavioural intention, underscoring the need to mitigate user concerns to encourage participation in second-hand transactions via these platforms. Besides, this research also shows that facilitating conditions, performance expectancy, price sensitivity, and social influence does not directly impact behavioural intention. These findings highlight the unique dynamics of consumer behavior in digital second-hand markets and suggest that these traditional aspects might play a different role in this context. The research adapts the Expanded Unified Theory of Acceptance and Use of Technology (UTAUT2) by applying it to the second-hand market via IMPs, offering new insights into consumer behavior in a digital marketplace setting. The study's theoretical contributions underscore the importance of adapting existing theories to understand consumer behavior in the digital landscape, providing valuable insights for researchers, practitioners, and policymakers. From a practical standpoint, the findings can guide businesses and developers of IMPs in developing user-centric features and marketing strategies tailored to the second-hand market.

Role of smart charging of electric vehicles and vehicle-to-grid in integrated renewables-based energy systems on country level

The energy transition based on variable renewable energy sources raises concerns on satisfying the electricity demand at all hours of a year, which is amplified by the ongoing energy system electrification. Balancing variable electricity supply and inelastic demand requires additional sources of flexibility in the system: flexible electricity generation, energy storage, grids, flexible demand, and overall sector coupling. Electrification of transport increases the electricity demand; however, it offers the opportunity to use additional low-cost flexibility from electric vehicles batteries. The LUT Energy System Transition Model was modified to model the smart charging and vehicle-to-grid functionality of electric vehicles in integrated energy systems. The results show that, in countries with a large fleet of electric vehicles, smart charging and vehicle-to-grid allow for a substantial reduction of energy storage requirements, reducing the electricity and heat storage capacity by 35% and 25%, respectively and leading to 4% lower system cost. Flexible operation of electrolysers required for e-fuels synthesis have a similar effect and, in combination with smart charging and vehicle-to-grid, can lead to 8% lower system cost. The impact of vehicle-to-grid naturally depends on assigned operational cost; however, it contributes to system cost reduction even at high costs of 50 or 100 €/MWh.

Investigating the Impact of Product Quality, Price Sensitivity, and Brand Reputation on Consumer Purchase Intentions in the FMCG Sector

This research investigates the intricate dynamics influencing consumer purchase intentions within the fast-moving consumer goods (FMCG) sector, focusing on the impact of product quality, price sensitivity, and brand reputation. A quantitative research design was adopted, with data collected from a sample of 500 respondents through an online survey. Descriptive statistics, correlation analysis, regression analysis, and ANOVA were employed to analyze the data comprehensively. The findings reveal a strong positive correlation between perceived product quality and consumer purchase intentions, emphasizing the importance of maintaining high-quality standards. Price sensitivity was found to negatively impact purchase intentions, highlighting the need for strategic pricing strategies. Brand reputation emerged as a significant predictor of purchase intentions, emphasizing the enduring value of strong brand equity. Demographic analyses identified distinct target segments based on age and income levels. The study contributes valuable insights for FMCG companies in developing tailored marketing strategies and enhancing market competitiveness.