Purchases Of Durable Goods Research Articles

Present Bias and Debt-Financed Durable Goods

Abstract It has become common to view credit as problematic for present-biased consumers, who are tempted to incur too much debt because of its deferred costs. But while this view is generally valid when debt is used to finance current consumption, the picture becomes much more nuanced when credit is used to fund the purchase of durable goods—such as houses, cars, and education—which is the most common use of consumer credit. When bundled with the purchase of a durable good, the deferred cost feature of credit can be a feature, not a bug. The reason is that durable goods provide deferred benefits that are also undervalued by present-biased consumers. Moreover, people often need to save in advance to finance the purchase of a durable good, and present-bias makes it difficult to save. As a result, people with present bias tend to underconsume durable goods. We show that the deferred costs of purchase debt can offset these barriers to buying durable goods and make the present-biased consumer better off both by tempting her to buy something that she should—but would not otherwise—buy and by making it easier to save up for the purchase. (JEL D90, K0, G51)

Influences of Gender, Age and Income Differences on Consumers’ Purchase Items

This paper studies whether gender, age and income differences matter for in-store purchases of selected non-durable and durable consumer goods in the Southwest region of the State of Louisiana. Primary data are collected by face-to-face interviewing of randomly selected adult population within the age groups 15 years to 64 years, and above. Using the collected primary data for categorical variables, -tests are implemented for six separate null hypotheses of statistical independence between/among variables of interest. The results reveal that only gender difference matters the most for in-store purchases of both non-durable and durable goods in the region. Age and income differences to have no significant influences on such purchases. As the findings suggest, the regional in-store retailers should focus more on female shoppers to promote sales of non-durable goods. At the same time, they should focus more on male shoppers for promotion of sales of durable goods in the region. Due cautions are in order for any kind of generalization of the findings of this study, given the extreme regional characteristics of the primary data. Key Words: Retail Sales, In-Store, Non-Durable Goods, Durable Goods, Shoppers, Age, Gender, Income JEL Classifications: D10, D11, D12

Pendampingan Rebranding Kemasan Produk Sayuran Segar (Keran Payung Bambu) Kelompok Wanita di RPTRA Payung Tunas Teratai dan Bambu Petung

According to a survey conducted by the Bank of Indonesia (BI) in July 2021, the Economic Conditions Index (IKE) was recorded at 67.1. IKE is composed of three components, namely the Current Income Index, Job Availability Index, and Durable Goods Purchase Index. On the other hand, the rapid expansion of internet access in Indonesia has been influencing consumer shopping trends, especially among those aged 25-38. Through various e-commerce platforms, consumers can access a wide range of products relevant to their daily lives, such as fresh fruits and vegetables. Therefore, it is essential to empower the community through robust and healthy entrepreneurial activities to support the local economy. This can be achieved through various means, including mentorship and training. The role of the community in the RPTRA Payung Tunas Teratai and Bambu Petung areas, through independent business activities, cannot rely on external entities. Hence, the development of micro and small-scale businesses accessible to the community is necessary. The community is encouraged to utilize available land for agriculture, including in RPTRA Payung Tunas Teratai and Bambu Petung. The types of vegetables produced are diverse, including water spinach, long beans, mustard greens, pumpkin, and more. The goal of these activities is to enhance marketing and income through rebranding. Special thanks to the Directorate General of Higher Education, Research, and Technology, Ministry of Education, Culture, Research, and Technology, for providing research funding in 2023, RPTRA Payung Tunas Teratai and RPTRA Bambu Petung, as well as the involvement of the Manpower, Transmigration, and Energy Office, Sub-district Office of Tourism and Creative Economy in East Jakarta, Satpel PPUKM, Satpel KPKP, and Satpel Dinsos in the Cipayung District, who participated and coordinated in the series of research activities. The activities took place on Friday, September 8, 2023, in RPTRA Payung Tunas Teratai in the Cipayung Sub-district and on Wednesday, September 12, 2023, in RPTRA Bambu Petung in the Bambu Apus Sub-district. A total of 79 participants attended, divided into two groups in RPTRA Payung Tunas Teratai and Bambu Petung. The results of this research were increased income, skills, and empowerment of partners. The research outputs include a national accredited journal publication (published in PAMAS, Sinta 4), electronic media coverage (Radar), video documentation (Website and YouTube URINDO), and additional intellectual property (Flyer) with certification. The impact of these activities on the achievement of higher education Key Performance Indicators (IKU) includes students gaining experience outside the campus (IKU-2), faculty members engaging in off-campus activities (IKU-3), and Faculty Work Results Used by the Community (IKU-5). Through these research activities, the beneficiary community members received information on how to process and package vegetables to prolong their shelf life and increase their market value. This series of research activities has proven to be highly beneficial, reducing losses for business operators through appropriate product packaging methods to maintain product freshness, durability, and appeal.
 
 Keywords: Rebranding, Fresh Vegetables, Women's Groups

A comparison of online recommendation methods: Simultaneous versus sequential approaches

This study investigates the relative profitability of online recommendations (sequential or simultaneous) of durable goods used by various firms, such as Walmart and Amazon. To achieve this, we develop a utility model (specified in terms of product attributes) that captures the complementarity between the recommended products. To recover customers’ utility for simultaneous or sequential purchases of durable goods, we conduct incentive-aligned conjoint experiments in which participants select a combination of fully or partially complementary products. The results reveal that the product attribute associations are more noticeable for fully complementary product categories. In addition, customers tend to balance comparable attributes when buying durable goods sequentially over time, while they reinforce comparable attributes when buying simultaneously. The profit analysis based on the estimates shows that the recommendations for simultaneous purchases can yield higher profits for fully complementary product categories than for sequential recommendation purchases. However, the recommendations for sequential purchases generate higher earnings for partially complementary product categories than for simultaneous recommendation purchases. A simulation study reveals that the profits differ considerably by combinations of product attributes because customers evaluate complementarity among attributes differently between the two recommendations.

Forward Guidance and Household Expectations

AbstractWe compare causal effects of forward guidance about future interest rates on households’ expectations of inflation and nominal mortgage rates to the effects of communication about inflation in a randomized control trial using more than 20,000 U.S. consumers in the Nielsen Homescan Panel. We elicit consumers’ expectations, and then provide 22 different forms of information regarding past, current, and/or future interest rates and inflation. Information treatments about current or future interest rates all have similar and offsetting effects on interest rate and inflation expectations, yielding limited pass-through into perceived real rates. Information about mortgage rates has much more powerful effects on interest rate perceptions, with no offsetting effects on inflation expectations, thereby delivering much larger changes in perceived real rates. Revisions in perceived real rates causally lead to changes in the ex-post purchases of durable goods by households.

On Durable-strategies Dynamic Game Theory

An empirically meaningful theory of dynamic games has to incorporate real-life phenomena. Durable strategies, which effects last for a period of time, are prevalent in real-life situations. Revenue generating investments, toxic waste disposal and purchase of durable goods are common examples of durable strategies. This paper first provides a review on durable-strategies dynamic game theory. A practically relevant advancement - random horizon durable-strategies dynamic games - yielding novel results in durable-strategies dynamic games theory is then presented. Dynamic optimization theorem, game formulations and HJB equations are derived. An illustrative example is provided. The theory and solution mechanism of durable-strategies cooperative dynamic games are also discussed.

Analysis of Remittance on Well-being of Households: A Case Study of Sindhupalchok District of Nepal

Remittance is the backbone of Nepalese’s economy in the present time. This study analyses the wellbeing of the remittance receptive household in the Melamchi Municipality of the Sindhupalchok District. Primary data were used as the main sources of information and secondary data were also used as supplementary sources. Primary data were collected by the direct personal interview through the semi-structural questionnaire survey of the sample area people who were selected by judgmental sampling method. Descriptive statistics has been used as the tools of data analysis of wellbeing of the remittance receptive households. Main destination of the employees of the sample area people is Malasia and Golf-country and they had used unorganized sectors as the sources of financing. Bank and money transfer had been used for the sources of money transfer in the sample area migrants. In the sample area people used, remittance has emerged as one of the major sources of income earning and they used that amount for their wellbeing. They increase their living standard through health facility, education facility and purchase of durable and comfortable goods. They invest for land and house purchase but not invest for the production as well as business. It has played a vital role in changing the lifestyle of the sample area people.

The Effect of Crude Oil Price on Merchandise Trade: Evidence from East Asia and Pacific

One of the most important production inputs is energy, particularly crude oil. The impacts of oil price fluctuations on global trade flows can be understood by the uncertainty channel, fluctuations in oil prices may create uncertainty about the future path of the oil price, causing consumers to postpone irreversible purchases of consumer durable goods, and also causing firms to postpone irreversible investments, and also recent hikes and fluctuations in oil prices since 1999 have attracted attention and invoked concerns about their devastating effects on a variety of economic activities. The objective of this research is to determine the influence of crude oil price to merchandise trade in East Asia and Pacific. This research uses quantitative methods and linear regression analysis. The results of the analysis show that there is negative and significance effect of crude oil price on merchandise trade in East Asia and Pacific for the period 1987 – 2019.

Why Has Durable Goods Spending Been So Strong during the COVID-19 Pandemic?

Consumers increased their purchases of durable goods notably during the COVID-19 pandemic. The pandemic may have lifted the demand for durable goods directly, by shifting consumer preferences away from services toward a variety of durable goods. It may also have stimulated spending on durable goods indirectly, by prompting a strong fiscal policy response that raised disposable income. We estimate the historical relationship between durable goods spending and income and find that income gains in 2020 accounted for about half of the increase in durable goods spending, indicating that the direct and indirect effects of the pandemic on durable goods spending were about equally important.

ДЕРЖАВНЕ РЕГУЛЮВАННЯ ГРОШОВИХ ПЕРЕКАЗІВ ВІТЧИЗНЯНИХ МІГРАНТІВ З-ЗА КОРДОНУ

Грошові перекази мігрантів з-за кордону можуть стати одним з найвагоміших позитивних наслідків міжнародної міграції. Однак використання їх потенціалу вимагає науково обґрунтованого, виваженого державного регулювання. В Україні політика у цій сфері перебуває лише на стадії формування. Розглянуто світовий досвід реалізації механізмів стимулювання надходжень від міжнародних мігрантів і основні способи їх залучення в розвиток країн –– донорів робочої сили. Проаналізовано головні канали міжнародних грошових трансфертів і вартість їх послуг. За результатами соціологічного опитування мігрантів з України висвітлено окремі аспекти їх економічної поведінки. Так, з’ясовано, що більшість респондентів надсилають свої кошти в Україну, де вони здебільшого витрачаються на задоволення щоденних потреб родини, а також на проживання самого мігранта під час його перебування вдома. Крім того, поширеними способами використання в Україні зароблених за кордоном грошей є: придбання товарів тривалого користування; заощадження; ремонт, реконструкція житла. Водночас опитування виявило низьку готовність мігрантів вкладати свої кошти в Україні. Інвестиції у підприємницьку діяльність є найпоширенішим способом можливого вкладання мігрантських коштів. Дослідження підтвердило необхідність формування державної політики у сфері регулювання грошових переказів з-за кордону. Заходи такого регулювання систематизовано за двома напрямами. Перший стосується безпосередньо самих переказів і каналів їх пересилання. Метою такого регулювання є грошові трансферти від мігрантів з-за кордону офіційними каналами та збільшення їх обсягів. Другий напрям пов'язаний з використанням переказів. Його метою є витрачання таких коштів в інтересах розвитку та їх продуктивне використання.

АНАЛІЗ ВИДАТКІВ ПІДПРИЄМСТВА

The article is devoted to the analysis of enterprise expenses. The object of the study was the municipal non-profit enterprise «Regional base of special medical supply» of the Kherson regional council. The article analyzes the dynamics of expenditures of the municipal non-profit enterprise «Regional base of special medical supplies» of the Kherson regional council. The structural analysis of expenses of the municipal non-profit enterprise «Regional base of special medical supply» of the Kherson regional council is also carried out. The article provides a dynamic analysis of current expenditures, namely: remuneration of employees of the municipal non-profit enterprise «Regional base of special medical supply» of Kherson regional council, accrual of salaries of employees of the municipal non-profit enterprise «Regional base of special medical supply» of Kherson regional council, expenses for goods and services, expenses for items, materials and equipment, expenses for medicines, expenses for payment of services (except for utilities), expenses for business trips, expenses for payment of utilities and energy, other expenses. The article provides a structural analysis of current expenditures, namely: remuneration of employees of the municipal non-profit enterprise «Regional base of special medical supplies» Kherson regional council, payroll employees of the municipal non-profit enterprise «Regional base of special medical supplies» Kherson regional council, expenditures on goods and services, expenditures on items, materials and equipment, expenditures on medicines, expenditures on services (except utilities), expenditures on business trips, expenditures on utilities and energy, other expenditures. The article presents a structural analysis of capital expenditures, namely expenditures for the purchase of equipment and durable goods. The article presents a dynamic analysis of capital expenditures, namely expenditures for the purchase of equipment and durable goods. The article concludes that the funds allocated from the local budget are insufficient, because, according to the above data, they are allocated less than planned.

Empirical evidence on extent oflnfluence of non-advertising sources on purchase of durable goods

Empirical evidence on extent oflnfluence of non-advertising sources on purchase of durable goods

FEATURES OF FORMATION OF HOUSEHOLDS FINANCIAL RESOURCES IN MODERN CONDITIONS

Introduction. The successful operation of any economic entity is largely determined by the financial resources at its disposal. The household sector is an integral part of the national economy, where financial resources are formed to ensure their own livelihoods, there are distribution processes related to the filling of budgets and state trust funds, mobilize domestic investment for the national economy. The changes taking place in the socio-economic processes in Ukraine necessitate the intensification of scientific efforts aimed at studying the peculiarities of the formation of financial resources of households in modern conditions. The purpose of the article is to explore approaches to defining the essence of the concept of “financial resources of households”, to identify the features of their formation in modern conditions and to suggest ways to optimize them. Methods. A system of general scientific and special research methods was used: analysis, synthesis and generalization – in the study of literary and statistical sources; visualization method – for visual presentation of the processed data; abstract-logical method - to generalize the presented material and formulate conclusions. Results. The concept of financial resources of households is studied. The main approaches to the interpretation of household financial resources are considered. It is substantiated that disclosing the essence of financial resources of households it is expedient to take into account: sources of formation, right of use, purpose of use. The own definition of the studied concept is offered. The dynamics of financial resources of households in terms of sources of formation is analyzed. It was found that the source of financial resources of domestic households are both their own income and borrowed funds. The main sources of household income are wages, social benefits and transfers. The dynamics of savings of Ukrainian households is considered. Structural analysis of loans provided by banking institutions revealed that domestic households are characterized by borrowing funds mainly in the form of consumer loans to ensure the viability of the household, improving cultural and living conditions, purchase of durable goods.

Lumpy Durable Consumption Demand and the Limited Ammunition of Monetary Policy

The prevailing neo‐Wicksellian view holds that the central bank's objective is to track the natural rate of interest ( r *), which itself is largely exogenous to monetary policy. We challenge this view using a fixed‐cost model of durable consumption demand, in which expansionary monetary policy prompts households to accelerate purchases of durable goods. This yields an intertemporal trade‐off in aggregate demand as encouraging households to increase durable holdings today leaves fewer households acquiring durables going forward. Interest rates must be kept low to support demand going forward, so accommodative monetary policy today reduces r * in the future. We show that this mechanism is quantitatively important in explaining the persistently low level of real interest rates and r * after the Great Recession.

Consumption dynamics under time-varying unemployment risk

In response to an adverse labor-market shock, a calibrated heterogeneous-agent model predicts that aggregate spending on durable goods falls mainly due to the ex-ante increase in income uncertainty caused by higher unemployment risk. In contrast, aggregate spending on nondurable goods falls mainly due to the ex-post income losses associated with realized unemployment spells. When households hold little liquid assets, the nondurable spending response is amplified, whereas the durable spending response is dampened. These differences stem from micro-level adjustment frictions involved in purchases of durable goods. The model is corroborated with evidence from micro survey data.

Household Decision Making and Savings Impacts: Further Evidence from a Commitment Savings Product in the Philippines

Commitment devices for savings could benefit those with self-control as well as familial or spousal control issues. We find evidence to support both motivations. We examine the impact of a commitment savings product in the Philippines on household decision making power and self-perception of savings behavior, as well as actual savings. The product leads to more decision making power in the household for women, and likewise more purchases of female-oriented durable goods. We also find that the product leads women who appear time-inconsistent in a baseline survey to self-report being a disciplined saver in the follow-up survey. For impact on savings balances, we find that the 81% increase in savings after one year did not crowd out savings held outside of the participating bank, but that the longer-term impact over two and a half years on bank savings dissipated to only a 33% increase, which is no longer statistically significant. We discuss reasons why the effect dissipated and the implications for designing and implementing sustainable, equilibrium-shifting interventions.

A Study of Factors Affecting Consumer Behaviour Towards Electronic Durable Goods

Electronic durable goods have become essential household items to be used regularly in day to day life. The purpose of the present study was to identify and explore major factors affecting consumer attitude and subsequently behaviour towards the purchase of electronic durable goods. The study adopted a cross - sectional research design to accomplish the set objectives. A sample of total 514 respondents was selected from eight cities of Uttar Pradesh using convenience sampling method. Data were collected using a structured questionnaire which was prepared through extensive literature review. Data were analyzed using statistical techniques such as exploratory factor analysis, Mann-Whitney and Kruskal-Wallis tests on SPSS. The results indicated that exploratory factor analysis produced a total of five factors, which were identified as Perceived Quality, Price Consciousness, Brand Consciousness, Perceived Risk, and Advertisement. Moreover, demographic variables were also found influencing consumer behaviour towards electronic durable goods. The study contributed through the identification of significant determinants of purchase behaviour towards electronic durable goods. The findings of the study may be useful for marketers in devising their marketing strategies.

Payment methods and their effect on durable goods replacement

Purpose Unlike point of purchase behavior, not much is known about how payment method impacts post-purchase behavior, especially for durable goods where user experience can last over long periods. The purpose of this paper is to link two strands of literature for the first time by uncovering systematic linkages between the payment method (upfront cash vs loan) used for purchase of durable goods and the replacement timings for the same. Design/methodology/approach The authors predict that cash purchases are more likely to have shorter replacement horizons compared to loan purchases and propose a psychological mechanism that accounts for the same. Their arguments are based on how the strength of coupling, which is the degree of psychological association between payment and consumption, depends on the payment method and differentially influences the consumption experience and consequently leads to different replacement horizons. They conduct a field study to test their predictions and find support for their model. Findings The authors find that individuals who financed their durable goods purchases using loan, expressed their intentions to replace the goods after longer period than those who financed their durable goods with cash down payment. As loan installments remind people of painful thoughts of payment, they tend to reduce the dissonance by positively evaluating both retrospective and anticipated usage experiences. This dissonance reduction mechanism eventually leads to reduced willingness to let go of the durable. Practical implications Marketers are faced with a tradeoff between increasing purchase likelihood versus ensuring long-term post-purchase satisfaction. In this paper, the authors uncover the psychological mechanisms that can explain how payment method chosen to pay for a durable can have direct effect on post-purchase consumption experiences and subsequently in the replacement intentions. This finding is crucial for marketers who are interested in planning the product line launches and other post-purchase engagement strategies such as buy-back scheme and upgrades. Social implications Understanding the psychological mechanisms that explain individual’s likelihood to replace their durable goods allows policymakers to design appropriate interventions to induce more sustainable and efficient use of durable goods in the market. While on one hand, marketers might be interested in increasing sales of their product line by inducing faster replacement of older product versions, environmentalists nudge towards the opposite. This paper provides a possible way to achieve the dual objectives. Originality/value While past research on downstream effects of payment methods on behavioral outcomes focused only on consumables, the authors focus on durable goods. Further, they identify the effect of payment method on both psychological and behavioral outcomes.

The role of land tenure security in promoting rural women’s empowerment: Empirical evidence from rural China

The empirical evidence from developing countries suggests that land tenure equity can be regarded as a means of promoting development by empowering women. Despite current prime laws and regulations having provided the basis for rural women to enjoy equal land rights, village rules and regulations and various informal customs have adversely affected their land tenure security under the unique villagers’ autonomy political system in rural China. Chinese rural women land tenure is therefore subject to considerable discrimination and is highly insecure due to the greater risks involved compared to those faced by men. Being entitled to land ownership does not mean women’s land tenure is secure, an issue that has received little attention to date.Accordingly, this paper aims to empirically examine whether women’s tenure security ̶ legal tenure security, de facto tenure security, or economic tenure security ̶ can provide a means of improving their level of autonomy in household decision-making (used to characterize women's empowerment) in such areas as house purchases, durable goods purchases, daily necessities purchases, fertility choice, medicalcare choice, job choice, and social interaction choice. Using 2017 survey data (6073 samples) obtained for 28 provinces of rural China and employing the Tobit model for the analysis, we find that the formal title certificate is a prerequisite for realizing legal land tenure security; the risk of land expropriation and tenure disputes exacerbates the insecurity of land tenure at the de facto level; and that access to land circulation income can enhance land economic tenure security and has a significantly positive effect on women’s empowerment. Moreover, we highlight the potential adverse effects of rapid urbanization on rural women’s empowerment, which might further widen the rural gender gap. Our study indicates that policies enhancing land tenure security have the potential to increase women’s empowerment and associated beneficial welfare effects on the development of women’s rights, family, the rural economy, and also contributes to narrowing the gender opportunity gap within households.

Factors Affecting the Livelihood Outcomes of Households in the Mekong Delta of Vietnam

We explore factors affecting household livelihoods in the Mekong Delta region of Vietnam based on the Department for International Development (DFID)'s approach to sustainable livelihoods. We use the data from Vietnam General Statistics Office (GSO)'s Household Living Standards Survey in 2016. Observed data on livelihood assets are standardized according to the scale [0,1] and the value of livelihood results varies from 1 to 7, and the To bit regression model is used to determine the influencing factors. The result shows there is a positive impact of human capital, social capital and natural capital on farm livelihoods. The study also suggests that the ability to save and access to loans has a different effect on household livelihoods. That farm households save money instead of investing in production and business activities puts their livelihood results at a disadvantage. Meanwhile, accessing to loans has a positive impact on household livelihoods. The characteristics of housing, assets for daily life and regular expenditures for housing, electricity, water and domestic waste have not yet created many sources of household livelihoods. Farmers' purchase of durable goods during the year helps them achieve livelihoods results and generate more revenue in the future