Prices Of Products Research Articles

To commit or not? The impact of online reviews on retailers' price commitment strategy in competing supply chains

AbstractOnline reviews can effectively mitigate consumers' uncertainty about product valuations, thus affecting firms' pricing decisions. This paper develops a two‐period game model to investigate the impacts of online reviews on the retailer's price commitment strategies in two competing supply chains, each consisting of one manufacturer and one retailer. In the first period, the retailers strategically set prices and decide whether to commit to prices for their products. In the second period, the retailers adjust product prices in response to online reviews, if they choose not to commit to a price. We show that the retailers' price commitment strategies depend on consumers' perceived uncertainty about product valuations, the information value of online reviews and the unit misfit cost. Interestingly, the retailers can benefit from the information value of online reviews by implementing flexible pricing strategies. Furthermore, if the information value of online reviews is sufficiently high, both retailers will choose not to commit to a price in equilibrium. However, if the information value of online reviews is relatively low, the equilibrium in price commitment is asymmetric, that is, the retailer A commits to a price and its competitor chooses not to commit.

A truncated Gaussian distribution based multi-scale segment-wise fusion transformer model for multi-step commodity price forecasting

Accurately forecasting commodity price trends is crucial for producers, market participants, and related enterprises to make informed decisions regarding production planning and scheduling. However, achieving high accuracy in multi-step forecasting poses significant challenges due to the unique financial characteristics inherent in commodities. Thus, this paper proposes a novel truncated Gaussian distribution based multi-scale segment-wise fusion Transformer for multi-step commodity price forecasting. First, a multi-scale segment-wise fusion module, which capture the time dependencies from different time granularity, is designed to describe the time-varying trend characteristics of commodity prices. Second, considering the characteristics of price range fluctuation and truncation, a truncated Gaussian distribution is introduced to describe price uncertainty. Last, to evaluate the proposed method’s effectiveness, extensive experiments are conducted using real data on energy chemical product prices. The experimental results demonstrate that the proposed method accurately captures price change trends and effectively estimates price uncertainty. Compared to the widely adopted Autoformer, our approach achieves approximately 30% reductions in both root mean square error (RMSE) and mean absolute error (MAE) metrics. Additionally, it exhibits certain advantages over the current state-of-the-art (SOTA). In the 20-step and 60-step multi-step prediction tasks, the proposed method achieves RMSE values of 91.18 and 142.94, respectively, surpassing the current SOTA. The introduced research framework provides valuable insights for decision-makers engaged in analyzing and forecasting commodity markets. The code is available on https://github.com/dean-ob/TGD-MSSF.

Emission regulation: Prices, quantities and hybrids with endogenous technology choice

This paper examines the investment incentives of market-based regulation, focusing on the technology characteristics that different regulatory schemes tend to incentivize. The firms’ technology choice is socially optimal if and only if the aggregate emission allowance supply is completely inelastic. Furthermore, in the presence of uncertainty, elastic emission allowance supply, and strictly convex environmental damage, it is optimal to tax investments in technologies that induce a large variance in emissions. Lastly, price elastic supply of emission allowances may either increase or decrease the volatility in the product market, depending on the risk environment the firms face. The results indicate that introduction of permit price-stabilizing measures in an emission trading system will come at the cost of suboptimal technology investments, and may also lead to increased fluctuations in product prices.

Agricultural price prediction based on data mining and attention-based gated recurrent unit: a case study on China’s hog

Under the influence of the coronavirus disease and other factors, agricultural product prices show non-stationary and non-linear characteristics, making it increasingly difficult to forecast accurately. This paper proposes an innovative combinatorial model for Chinese hog price forecasting. First, the price is decomposed using the Seasonal and Trend decomposition using the Loess (STL) model. Next, the decomposed data are trained with the Long Short-term Memory (LSTM) and Seasonal Autoregressive Integrated Moving Average (SARIMA) models. Finally, the prepared data and the multivariate influence factors after Factor analysis are predicted using the gated recurrent neural network and attention mechanisms (AttGRU) to obtain the final prediction values. Compared with other models, the STL-FA-AttGRU model produced the lowest errors and achieved more accurate forecasts of hog prices. Therefore, the model proposed in this paper has the potential for other price forecasting, contributing to the development of precision and sustainable agriculture.

Walking a tightrope: Impact of adopting voluntary right-to-repair policy on firm profit and consumer welfare

Motivated by the current discourse on Right-to-Repair (RTR), we examine the conditions under which a firm decides to voluntarily adopt a pro-RTR policy in the absence of legislation. Understanding such conditions can guide firms and regulators alike. We propose utility theory-based models to capture a firm’s profit function when it adopts either a pro-RTR (PRR) or an anti-RTR (ARR) policy. The key distinction between ARR and PRR policy is the availability of self-repair option in PRR. Additionally, we consider the presence of unauthorized third-party repairers (TPRs), a commonly observed phenomenon worldwide. We find that a firm adopting PRR policy would benefit by improving the cost-effectiveness of its repair operations. Effective repair operations allow a firm to set a superior pricing policy while adopting PRR over ARR. For instance, it allows the firm to set lower product prices without infusing anti-consumer practices to dissuade them from going to unauthorized TPRs. We analyze the conditions under which PRR policy outperforms ARR policy both in terms of firm profit and consumer surplus (“win-win”). We find that repairability of a product has a trade-off between firm profit and consumer surplus and interestingly, optimally setting the part sales price may hamper in achieving “win-win” status. Furthermore, we show that the PRR policy is more suitable for sustainability-conscious markets where consumers prefer repair over a new purchase. In such markets, a firm with a PRR policy can set lower product prices while optimally setting the part sales margin for the self-repair option.

Residual energy use and energy efficiency improvement of European supermarket facilities during the post-COVID and energy crisis period

Supermarkets are significant consumers of electricity and contribute to the generation of associated pollutant emissions. This will help to mitigate the impact of increased energy costs on the prices of products sold in supermarkets. Therefore, it is essential to reduce energy consumption, starting with the equipment that consumes the most electricity, such as refrigeration, and using the residual thermal energy generated in supermarkets. This paper discusses the impact of rising energy costs in the post-Covid era and during the energy crisis. It evaluates the environmental and energy benefits of implementing energy improvements and utilizing residual energy in real supermarkets. The analysis takes into account the socio-economic characteristics of the EU-27 countries, which affect the economic feasibility of these measures. This would prevent the release of 122 tons of CO2 per year for each supermarket, resulting in energy savings of around 70 % or 305 kWh/m2. The required investments would have a payback period of 4 years.

Interconnected Markets: Unveiling Volatility Spillovers in Commodities and Energy Markets through BEKK-GARCH Modelling

Food commodities and energy bills have experienced rapid undulating movements and hikes globally in recent times. This spurred this study to examine the possibility that the shocks that arise from fluctuations of one market spill over to the other and to determine how time-varying the spillovers were across a time. Data were daily frequency (prices of grains and energy products) from 1 July 2019 to 31 December 2022, as quoted in markets. The choice of the period was to capture the COVID pandemic and the Russian–Ukrainian war as events that could impact volatility. The returns were duly calculated using spreadsheets and subjected to ADF stationarity, co-integration, and the full BEKK-GARCH estimation. The results revealed a prolonged association between returns in the energy markets and food commodity market returns. Both markets were found to have volatility persistence individually, and time-varying bidirectional transmission of volatility across the markets was found. No lagged-effects spillover was found from one market to the other. The findings confirm that shocks that emanate from fluctuations in energy markets are impactful on the volatility of prices in food commodity markets and vice versa, but this impact occurs immediately after the shocks arise or on the same day such variation occurs.

Does the amount of pacific salmon catch affect the wholesale prices of their products?

Since 2017, volatility of weekly wholesale prices for pacific salmon increased in the Russian domestic market, particularly in the Far East of Russia, that had coincided with higher fluctuations of the weekly and annual catch. Correlation between these variables is investigated for the period from 2010 to 2022, using graphical and regression analyses and 18-factor model for prices of the pink, chum, and sockeye salmon products. The dynamics of prices for pacific salmon products cannot be fully explained only by catch dynamics, but depends on a number of supplementary factors affecting the activities of fish industry enterprises. Anyway, a degree of the catch and price in preceding weeks influence on the wholesale prices is estimated for the main species of pacific salmon. The impact of the catch factor is not significant though more considerable for pink salmon product prices than for the other pacific salmon species.

Integrated assessment of irrigation and agriculture management challenges in Nepal: An interdisciplinary perspective

Agriculture plays a critical role in ensuring food and nutrition security, livelihood, and rural employment in Nepal. Despite substantial investments and institutional reforms, irrigation projects have faced consistently low performance. While existing studies have shed light on technical aspects of irrigation performance, they often focus on specific themes rather than holistic evaluations of sustainability. This research systematically assesses barriers and challenges to effective irrigation water management in Nepal by assessing and ranking the challenges faced by three irrigation systems in western Nepal: Mahakali, Rani Jamara Kulariya, and Babai. To investigate these challenges, we collected data from 449 households, which provided insights into 33 indicators representing key barriers to effective irrigation and agricultural management. The identified challenges were categorized into four broad thematic areas: physical and structural, agricultural and water, socioeconomic and market, and gender and governance. A comprehensive evaluation was conducted to compare these challenges among the three irrigation schemes, different thematic areas, and various locations within each scheme (namely, the head, mid, and tail sections of the system). The findings revealed that timely access and availability of fertilizers, spring water availability and fair market prices of agricultural products are the most significant challenges. The Babai irrigation system faced the most substantial challenges among the three systems, particularly in the mid section. These findings emphasize the interconnectedness of these challenges, highlighting the need for a holistic approach to planning, implementation, and management. Integrated strategies are essential to address socioeconomic, market, and endogenous farming issues, ensuring reliable irrigation water availability for sustainable agricultural production.

The Impact of COVID-19 on the US Consumer Price Index (CPI)

This research investigates the profound impact of irregular commodity price changes during unusual circumstances, particularly focusing on the COVID-19 pandemic. The research stems from the recognition that global events have the potential to trigger irregular and drastic changes in commodity prices. This research holds significant implications for both consumers and policymakers in navigating the complexities of global crises. The research employs the Consumer Price Index (CPI) as a crucial indicator to chart drastic changes in consumer product prices from January 2019 to September 2023. To establish a baseline, CPI data from January 2010 to December 2018 is utilized, and an Autoregressive Integrated Moving Average (ARIMA) model is employed to forecast hypothetical CPI for the target period. The comparison between forecasted and observed CPI data reveals the vast influence of the COVID-19 pandemic on consumer prices. This research explores various subcategories of CPI, emphasizing sectors such as Food and Beverage, Transportation, Housing, and Medical Care. The research found that COVID-19 leads to delays and lagging effects in certain sectors reflecting the overall increase in consumer product prices. The Medical Care CPI also exhibited the most complexity, reflecting the immediate and direct impact of the pandemic on healthcare costs.

Price Partitioning of Socio-Moral Surcharges

Abstract Many companies are levying mandatory surcharges on products to raise funds for socio-moral causes (e.g., carbon-offset, living-wage, fair-trade, and sustainability surcharges). Should these surcharges be presented separately from the product price (i.e., partitioned pricing) or combined with the product price (i.e., all-inclusive pricing)? This research argues that partitioned pricing for socio-moral surcharges can backfire. When socio-moral surcharges are partitioned, consumers feel that the company is avoiding its own responsibility toward the cause, reducing intrinsic corporate social responsibility attributions and consequently leading to adverse consumer reactions. This theorization is specific to surcharges attached to socio-moral causes; the effects reverse for non-socio-moral surcharges. Further, we document three ways via which firms can alter consumer beliefs and attenuate negative reactions. These include approaches that signal that the firm is not seeking reputational benefits, that the firm is not avoiding responsibility, and by shifting consumers’ focus from the costs they have to bear to the benefits they accrue. Hence, this research presents implications for managers and policymakers seeking to incorporate socio-moral surcharges into product prices while mitigating consumer backlash.

Product rolling strategies in competitive scenarios based on differential games

AbstractIn competitive scenarios, we analyze the optimal pricing, launch timing, and influencing factors of new products by establishing three differential game models. The findings indicate that (1) the depreciation rate of old products directly impacts the pricing strategies of advantaged and disadvantaged enterprises. Enterprises with competitive advantages tend to set higher prices for new products when old products depreciate faster, while those with fewer advantages adjust their pricing strategies by initially increasing prices for the latest prices and eventually reducing them. (2) The rate of old‐product depreciation also affects the timing of new‐product launches. Advantaged enterprises tend to delay their product launches when the impact of the new product on the old ones is significant, while disadvantaged enterprises opt for earlier launches under similar circumstances. (3) The technological level of the new product influences the timing of its launch for both advantaged and disadvantaged enterprises. Higher technological levels prompt advantaged enterprises to launch earlier and disadvantaged enterprises tend to follow suit. (4) High levels of innovation in new products by advantaged enterprises prompt earlier launches by disadvantaged enterprises. These results may offer valuable insights for enterprises in formulating effective product rollover strategies.

The Agro-Industrial Complex of the China and the Position of the State in the World Market

The PRC is integrated into various economic communities, which allows it to play a significant role in the world market in the production of not only industrial products, but also agricultural ones. The purpose of this article is to analyze the export-import policy and dynamics of mutual trade in agricultural products between the EAEU and China, as well as the capitalization structure of Chinese agro-industrial companies. The article examines the legal basis of the export-import agricultural policy of the PRC, analyzes the dynamics of export-import of agricultural products between the EAEU and China, presents the distribution of Chinese agro-industrial companies by type of business and the distribution of capital of Chinese agro-industrial companies. The study used methods of analysis and synthesis of the studied material based on statistical data from the OECD, the World Bank, the IMF, the UN FAO, FAPRI, as well as the ministries specialized in agriculture of the PRC and the Russian Federation from 2015 to 2022. According to the forecast for 2023, India, China, Africa and a number of Central Asian countries will experience a decrease in world prices for agricultural products. The main conclusion is that China will remain self-sufficient in major crops, although production growth will slow in the coming years

Is uniform pricing by competing retailers perceived as fair?

AbstractDespite the enormous negative economic influence on consumer well‐being, price‐fixing remains a largely unexplored area in consumer research. Previous research showed that consumers perceive different prices for the same product as unfair. However, our findings counterintuitively indicate that consumers may also perceive uniform prices as unfair. Two experimental studies examined the effect of price uniformity (uniform/nonuniform) and price patterns over time (increase/no change) on the perception of price unfairness and third‐party complaint intention. The findings show that consumers perceive prices as unfair when retailers increase a uniform price simultaneously. This pricing strategy by retailers increases consumers' intention to report suspected price‐fixing activities to authorities, that is, third‐party reporting. Based on the findings, implications for marketing practices and tactics to enhance public policy are discussed.

Exploring the communication strategies in baby food supply: Differences between online and retail sales of baby milk

ABSTRACT The aim of this paper is to evaluate the variety and depth of the infant formula of milk products (IMP) assortment within the category of baby food comparing two different distribution channels. The marketing mix variables and communication strategies of 3066 references of IMP portfolio were collected directly in-store of large retail chain in the North-West of Italy and on the websites of the major baby food producers. Differences in the assortment composition were determined by considering two product lines, powdered and reconstituted milk (liquid), as well as considering milk categories according to their specialties, origin, packaging, and claims communicated on the product packaging. The results show heterogeneity in the assortment composition of IMP between the two considered channels, which differ in terms of product types and prices. The online channel focuses mainly on satisfying specific consumer needs through the offer of high value-added products. The IMP’ assortment planning is oriented to the exaltation of product nutritional value and safety, to the detriment of quality certifications and product’s origin communication. This research provides concrete tools to managers to improve the IMP planning and communication strategies for a successful sales policy.

Analysis of Potential Economic Damage to Consumers and Business Entities Posed by Circulation of Non-Conforming Food Products and Ways to Reduce It

Introduction: Failure to comply with sanitary and epidemiological requirements poses risks of harm to consumer health and damage to business entities, which reduction necessitates the search for effective preventive measures. Objective: To analyze the potential economic damage to consumers and business entities related to circulation of food products and to consider ways to reduce it. Materials and methods: We have analyzed data collected by the Sverdlovsk Regional Rospotrebnadzor Office on violations of mandatory legal requirements by business entities and administrative fines imposed within inspections; the Center for Hygiene and Epidemiology in the Sverdlovsk Region on laboratory test results and customer complaints; the Federal State Statistics Service (Rosstat) on the prices of food products by groups; the Regional Operator for Municipal Solid Waste Management on the cost of disposal of a ton of withdrawn non-conforming products, and the Yekaterinburg Medical Research Center for Prophylaxis and Health Protection in Industrial Workers on the results of audits and questionnaire-based surveys of food enterprises for the years 2015–2019 and 2022 using Microsoft Excel tools and the Statistica 10 software. Results: The annual economic damage from the circulation of non-conforming products for food retailers averaged 73,893.5 thousand rubles. We observed a 1.5-fold increase in the number of customers’ product quality complaints. The structure of damages shows an increase in disposal costs and those related to customer complaints. At the same time, decreasing administrative fines undermine motivation of businesses to comply with mandatory sanitary and epidemiological regulations. Large and small retailers lose on average 2,630.2 and 16.2 thousand rubles per enterprise per year, respectively. An integrated approach to carrying out preventive measures using theoretical and practical knowledge and skills in managing the quality and safety of products has been shown to reduce the number of violations of sanitary and epidemiological requirements in more than 40 % of enterprises, that of complaints – in 20 % of the companies, and general expenditures on withdrawal and disposal of non-conforming and dangerous products. Conclusions: After supervisory activities have been cut down, the total potential damage to business entities is largely attributed to customer complaints and disposal of non-conforming products. Large retailers selling dairy, meet, and fish products, fruit and vegetables are at higher risk of economic damages. Raising awareness of the total economic damage among business entities when carrying out preventive measures can be considered as an incentive to comply with mandatory quality requirements.

Strategi Pemasaran dalam Meningkatkan Daya Saing Usaha Keripik Usus Mardha Desa Badrain Kecamatan Narmada Kabupaten Lombok Barat

The background of this research is the existence of sharp competition between companies, both because of the increasing number of competitors, increasing product volume and rapidly increasing technological developments. This forces companies to pay attention and know what kind of marketing strategy is implemented by the company. The focus is this study was to describe the implementation of the marketing strategy of the intestine Mardha Chips Business in increasing competitiveness and the impact of the marketing strategy implementation by the intestine Mardha Chips Business. This study used qualitative descriptive type approach. Data collection methods used were observation, interview and documentation methods. The results of this study indicate that (1) Mardha Intenstinal Chips Business used a good marketing strategy, namely by conducting market segmentation, target market, market position and marketing mix which includes product strategy, price strategy, location and distribution strategy, and promotion strategy; (2) The marketing strategy implemented by Mardha intestine Chips Business has had positive impacts including increasing sales, adding value to the family economy, prodiving satisfaction to consumers with quality product and affordable prices and expanding market share.

Does Consumer’s Happiness and Other Emotions Signaling Affect Seller’s Prices? Theory and Evidence From Six Field Studies

The factors that determine the prices of goods and services are within the core inquiry of economic science. Do consumer’s emotions affect seller’s selling prices? The current study explores this issue through six field studies. The first four studies focus on happiness, demonstrating for the first time that happiness signals affect the prices of products and services. Happy customers are offered to pay lower price for goods–cellphones and bicycles–and for related services. The results are relevant both in face-to-face and online interactions and in between—and within—subject designs, implying that extended real income is another objective benefit of individual happiness. Two additional experiments do not show the same effect when other emotions–anger and disgust–are signaled by the consumer. We present a formal model for the positive happiness premium and discuss the welfare implications of our findings. JEL classification: C93, D01, D21.

Credit Supply Shocks and Prices: Evidence from Danish Firms

We study the response of firms’ output prices to a cut in credit supply. We combine data on loans between Danish firms and banks with survey-based producer prices and transaction-based export unit values. Exploiting banks’ heterogeneous exposure to the global financial crisis, we show that loans to firms with relationships to exposed banks drop and lending rates increase. In response, firms raise prices by 3–5 percent. This effect is decreasing in the elasticity of firms’ demand but positive for most industrial production. Our results show that firms increase prices to raise cash when external sources of liquidity dry up. (JEL D22, E23, E31, E32, E44, G01, G21)

Profitability Analysis of Markets Traded on Borsa Istanbul

Supermarkets significantly increased product prices in response to the sudden and sharp rise in the exchange rate in July 2018. A similar situation unfolded in 2021 when interest rates dropped, and the exchange rate experienced a steep increase. The surge in demand for foreign currency and subsequent interest rate cuts led to an escalation in the exchange rate. Consequently, production costs rose due to inflated raw material prices, resulting in higher product prices. Additionally, supermarkets allegedly engaged in cartel-like behavior, purposely withholding products from sale, further contributing to price hikes between 2021 and 2022. This study evaluates whether supermarkets garnered substantial profits during the period. Financial statement data from 2018 to 2022 was analyzed using vertical, trend, and ratio analyses to assess the financial position and profitability of five companies listed on Borsa Istanbul. Throughout the 2018-2022 period, except for 2022, BIM demonstrated the highest return on assets ratio. The return on assets ratios for 2022 and 2021 exhibited an upward trend, indicating an increase in profitability during 2022. SOK recorded the highest return on equity ratio in the 2018-2022 period, while CarrefourSA reported the lowest. Furthermore, the companies witnessed notable growth in revenues, gross sales profitability, and net profitability in 2022, surpassing previous years. This suggests they earned more profit by increasing prices at a greater rate than their costs in 2022. The operating profitability of the companies also experienced an upswing during this period. BIM held the largest share of operating profit in revenues in 2022, while CarrefourSA possessed the smallest share. In terms of net profitability, the companies fared better in 2022 compared to 2021, with net profitability exhibiting a more substantial increase during 2022.