Stimulate Consumer Demand Research Articles

Development of Prospective Economic Specializations as a Condition for Regional Economic Growth

Introduction. In the new economic conditions caused by the sanctions pressure, the Russian economy needs new sources of growth. Economic specializations in Russian regions, which are understood as prospective sectoral priorities and types of economic activity, can act as a source of revitalizing economic dynamics revival. Geopolitical turbulence and the associated focus on the development of the domestic market have led to additional attention from researchers and experts to the study of the economic specializations of Russian subjects. The objective of this study is to substantiate the development of economic specializations in the regional economy, acting as a condition for its growth. Materials and Methods. Using the materials of the Vologda Region, the export-oriented region of the Northwest, the list of economic specialization, the development of which is promising from the point of view of long-term economic growth, was formulated. The main sources of information are Rosstat data and input-output tables for the Vologda Region. The economic specializations for the region are primarily based on studies that focus on identifying and developing economic specialization in Russian regions. The use of input-output modeling methodology has allowed to determine the impact on the regional economy of extending the value chain in the timber industry due to increased domestic demand for wood products. Results. Based on the analysis of the dynamics of industrial production in the Vologda Region, it was revealed that the Vologda Region is among the regions that have felt the impact of the sanctions. Вased on the approaches of the authors engaged in the search for promising economic specializations of the region, it is established that the timber industry and tourism can act as such. The results of the input-output modeling are shown that stimulating consumer demand for woodworking products has a significant impact on the growth of a region’s economy. This demand is driven by the needs of the tourism sector. The calculations were performed in determining the significance of promoting projects for the development of hotels utilizing CLT panel-based technologies in the region. Discussion and Conclusion. In the study, it was determined that stimulating demand for the production of deep processing of wood (houses from CLT panels) would have a significant impact on the growth of the regional economy, ensuring an increase in the production of goods and services, the wage fund and the number of employed. It was also shown that the development of proposed economic specializations in the Vologda Region is promising and allows for the concentration of added value within the region, which is particularly important for the development of the domestic market. For the regional authorities, the interest lies in the possibility of obtaining a quantitative assessment of the development of economic specializations on their territory, which can be used by them in the improvement of economic policy.

The impact of population agglomeration on economic resilience: Evidence from 280 cities in China

This paper uses data from 280 cities in the period from 2008 to 2021 to investigate the impact of population agglomeration on economic resilience. The empirical results reveal that population agglomeration significantly improves economic resilience. Moreover, these findings demonstrate the robustness including a new additional sample, alternative measures for economic resilience, the inclusion of supplementary control variables, and the application of the instrumental variable methodology. Furthermore, population agglomeration improves economic resilience through stimulating consumer demand and promoting technological innovation. Analyses also show that, compared to cities with high levels of informatization, industrialization and marketization, population agglomeration is more likely to improve economic resilience. Overall, this study provides new insights into population agglomeration and economic resilience.

Determinants of organic food purchase behaviour in the European Union: a cross-country analysis guided by the theory of planned behavior

PurposeThe purpose of this study is to analyse the impact of behavioural determinants, such as consumer attitude, subjective norm, behavioural control and sustainable buying behaviour, on organic food purchase behaviour in different EU countries.Design/methodology/approachA structured survey of more than 5000 individuals from Germany, Netherlands, Spain, Italy and Czech Republic was conducted to elicit consumer responses regarding behavioural determinants of organic food selection. Both a structural equation modelling approach and a multinomial logit model were employed to analyse the data.FindingsConsumer attitudes, subjective norms and behavioural control were shown to significantly influence the frequency of organic food purchasing behaviour for the whole sample and to varying degrees across each of the countries. The effect of a sustainable buying behaviour was found to be more pronounced for Germany, Netherlands and Italy than for Czech Republic and Spain.Research limitations/implicationsAnalysis is based on self-reported data on frequency of organic food purchases, which might be subject to recall bias. Overestimation may arise as consumers tend to report increased purchasing due to the “desirable” qualities of organic food. We tried to ensure that the translations bore similar meanings cross country although some miscomprehension by survey respondents was a possibility.Practical implicationsTo stimulate consumer demand for organic products, it is important to design policies and interventions that take into account the impact of both behavioural factors and demographic attributes on consumer decision-making across various locations. For example, market analysts and policymakers may find it useful to exploit the impact of consumer attitude towards the qualities of organics to induce sales of such food in their locations.Originality/valueThis paper combines unique survey data from five EU countries using a common model to explore and compare consumer behavioural preferences for multiple organic food products. In addition to a classic triad of behavioural factors believed to influence organic food purchases, sustainable buying behaviour as a determinant of organic purchasing behaviour was included in the analysis.

A Study on the Impact of Income Gap on Consumer Demand: An Empirical Test Based on the Spatial Panel Durbin Model

The study utilizes China Household Panel Survey (CFPS) data from 2010 to 2020 to create a spatial panel Durbin model and examines the spatial spillover effect of the income gap on consumer demand using spatial econometric techniques. Studies have shown that the income gap has a notable inverted U-shaped influence on consumer demand, and there is a strong inverted U-shaped spatial spillover effect between surrounding locations. Expanding the income difference within a specific range boosts consumer demand in both local and surrounding areas. Further increasing the income difference impedes the growth of consumer demand in both local and surrounding regions. Regional variations significantly impact how the income gap affects consumer demand through spatial spillover. From the perspective of consumption quantity, the “inverted U-shaped” inflection point in economically developed regions and eastern regions is on the left side of economically underdeveloped regions and western regions; from the perspective of consumer quality, this result is exactly the opposite. China should persist in enhancing efforts to advance income distribution system reform and improvement, bolster the development of inclusive, fundamental, and grassroots livelihoods, manage residents’ income gap amid evolving income levels, and stimulate consumer demand in local and neighboring regions.

Sales pricing models based on returns: Bundling vs. add-on

With the proliferation of e-commerce, there has been a remarkable surge in the volume of products sold online, accompanied by a corresponding increase in product returns. In order to stimulate consumer demand, retailers have adopted various promotional strategies, among which the bundling and add-on sales have emerged as the most prevalent. Nevertheless, there is currently no clearly dominant promotion model considering consumer return behavior. Consequently, we construct a game-theory model that considers product returns in the settings of an online retailer, an insurance company, and a continuum of consumers. Within our model, consumers are confronted with uncertainty regarding their valuations and only ascertain the true value of a purchased product after acquisition. Moreover, retailers must carefully consider the tradeoff between the bundling and add-on models: bundling sales may sell more products, but return products increase; on the other hand, add-on sales offer the advantage of single item returns but may result in a decrease in overall product sales. Our findings yield several noteworthy conclusions warranting further examination. First, add-on product substandard rate (Proportion of add-on products with substandard quality to all add-on products) has a significant influence on the retailer’s choice of sales model. More specifically, when the add-on product substandard rate is lower, retailers will definitely choose bundling sales. Otherwise, the retailer’s choice of sales model depends on both core product price and degree of discount. Second, in bundling sales, the better the match between core product and add-on product, the higher the retailer’s profit. However, in add-on sales, highly matched add-on product may hurt the retailer’s profit. Finally, add-on sales is a better choice for commercial groups that have both sales companies and insurance companies.

Державне регулювання процесу ініціювання інноваційних проектів за умов обмеженого фінансування

Державне регулювання процесу ініціювання інноваційних проектів за умов обмеженого фінансування

Impact of digital finance on enterprise green innovation: From the perspective of information asymmetry, consumer demand and factor market distortions.

The study endeavors to empirically assess the influence of digital finance on promoting enterprise green innovation, while simultaneously probing its underlying mechanisms, by leveraging panel data from a sample of 2071 China A-share listed firms over an extensive time frame spanning from 2011 to 2021. The findings demonstrate that digital finance plays a crucial role in promoting enterprise green innovation, and that both the coverage breadth and usage depth of digital finance have a significant effect on enterprise green innovation, but the digitization level of digital finance also has a non-significant effect on enterprise green innovation, and the conclusions hold even after multiple robustness tests and consideration of endogeneity issues. Furthermore, heterogeneity analysis reveals that digital finance is only has a significant promoting effect on green innovation of SMEs, and high-tech enterprises. After conducting the mechanism analysis, it has been noted that digital finance serves as a facilitator in promoting green innovation in enterprises by reducing information asymmetry, stimulating consumer demand, and attenuating the distortion of regional factor markets. Intellectual property protection and environmental governance will strengthen the positive impact of digital finance on enterprises' green innovation. The research results provide policy implications for the green development of digital finance enabling enterprises.

Research on Factors Affecting the 3D Jelly Cakes Demand of Hanoi Customers

The study analyzes some factors affecting Hanoi consumers' demand for 3D jelly cake. Based on the theory of commodity demand, the research team conducted a survey and collected answers from 308 consumers on some factors affecting 3D jelly cake demand. The synthesis and analysis of survey data indicated that the demand for 3D jelly cakes of Hanoi consumers is influenced by many factors such as the price of the product, tastes, prices of substitutes, and complementary goods...In addition, the research team also considered the advantages of 3D jelly cake compared to other products, as well as discussed some solutions to stimulate consumer demand with this new and aesthetic product.

Инкорпорация цифровых технологий в строительство: текущая ситуация и перспективы

The current state of the construction industry in the Russian Federation is characterized by a low level of digital-ization at the end of 2020–2021, which seems logical under the high degree of uncertainty in the external envi-ronment in which enterprises operate in the Russian Federation during this period of time. Uncertainty gener-ates risks, which lead to higher investors' requirements to the level of project profitability and increase of the return period of financial investments, which does not encourage owners to invest in such projects. However, the introduction of digital technologies in construction is necessary to achieve the national goal – the digital transformation of the Russian economy. To stimulate the process seems necessary through various govern-ment measures, including subsidizing companies for the purchase of the necessary software and advanced training of employees, formalizing clear and binding requirements for the organization of the construction business in modern conditions, placing government orders for buildings with digital innovations, stimulating consumer demand for residential construction facilities equipped with artificial intelligence systems, etc.

The Impact of Digital Innovation on Economic Growth

Purpose: This study aimed to examine the impact of technology infrastructure, digital lending, and digital payments on real per capita income, public health, and education levels. Theoretical framework: This study is built on the relationship between technology infrastructure, digital lending, and digital payments and their impact on economic and social outcomes. The study draws on theories of technology adoption and diffusion, financial inclusion, and human development. Design/methodology/approach: This study used quantitative research to examine how technology infrastructure, digital lending, and digital payments affect income, health, and education. The sample was data from 2015-2020, cleaned and analyzed using regression analysis in E-views. Findings: The findings revealed that technological infrastructure has a significant positive effect on real per capita income and public health, but a negative and insignificant effect on the education level. Digital lending was insignificantly positive for real per capita income and negatively insignificant for public health and education levels. In contrast, digital payments had a positive and significant impact on the health and education levels but a negative and insignificant effect on real per capita income. Research, Practical & Social implications: The study suggests that governments should prioritize the development of information technology infrastructure for SMEs to increase real per capita income and public health. Furthermore, relevant laws and regulations should be improved to ensure the development of digital payments, credit investigation systems, and standardized digital payment transactions to maintain financial security and stimulate consumer demand, ultimately promoting sustainable economic development. Originality/value: The originality of this study lies in its investigation of the impact of both technology infrastructure and digital finance on income, health, and education. Additionally, the study highlights the importance of addressing regulatory issues to ensure the safe and effective use of digital finance.

ТЕНДЕНЦИИ РАЗВИТИЯ РЫНКА ТРУДА В ТОРГОВЛЕ

Modern trade is an important sector of the Russian economy, creating a significant part of the gross value added. Trade infrastructure and its subjects play a significant role in ensuring employment of the population of the Russian Federation. The number of people employed in wholesale and retail trade is increasing annually, at the same time, there is a tendency to decrease the share of people employed in the field of trade, due to an increase in the share of online trade, which has a lower labor intensity. The analysis of the structure of employees in the trade industry in 2021 in the Russian Federation by the level of education reflects a high proportion of workers with higher education, secondary vocational education and secondary general education. However, the growth of both the absolute and relative number of people employed in trade is not balanced with the dynamics of the output of qualified specialists in this field. In 2023, experts note a shortage of trade and operational personnel, which in the future will affect the level of line managers and top management of trading companies. The processes of consolidation and competition between the two leaders of the Russian market are continuing in the trade industry: the holding company, which includes the retail chains Magnit and Dixie, and the holding X5 Group, non-network trade formats are developing as a tool for promoting goods for small and medium-sized businesses. Street retail is being revived with small retail formats with an emphasis on everyday demand. There is an annual increase in the share of eCommerce. The introduction of artificial intelligence technologies into the activities of trading enterprises will reduce the costs of circulation, which will positively affect the prices of goods and stimulate consumer demand. The impact of scientific and technological progress, globalization processes, and the COVID-19 pandemic on trade has led to the need to modernize the labor market and the vocational education system. In order to reduce the personnel deficit and increase the level of professional training and retraining of trade workers, it is advisable to combine the efforts of large retail companies and educational institutions on the basis of a public-private partnership mechanism.

Ethnocentrism and the selection of white wine by young Australian consumers

ABSTRACT We investigate consumer preferences for domestically produced white wines compared to foreign wines in Australia. A discrete choice experiment was used to analyze young Australian consumers’ preferences regarding white wine and a latent class model was estimated to take preference heterogeneity into account. We examine the relationship between consumers’ ethnocentrism and preferences for wine from a specific origin. Highly ethnocentric Australian wine consumers are found to strongly prefer Australian wines and to a lesser extent wine from New Zealand compared to otherwise identical French wine, confirming a country-of-origin effect. Carefully considering the information to include on wine labels helps to stimulate consumer demand in certain market segments. Producers can use information regarding consumer preferences for specific wine characteristics to put an attractive and profitable product on the market. For instance, Australian wines might have a domestic advantage over similar foreign wines, if this ‘country of origin’ is brought to the consumers’ attention. Hence, labeling wine as ‘Made in Australia’ is likely to increase the willingness to buy wines amongst a significant subgroup of Australian consumers aged 18–38. Adding other specific labels such as gold or silver medals to the bottle can also attract specific customer segments.

Less waste versus higher quality: how to stimulate consumer demand for frozen bread

PurposeBread waste is one of the largest contributors to the environmental footprint of supermarkets, mostly because of the short shelf life of fresh bread. This study examined a possible solution: offering frozen bread with a considerably longer shelf life. Professional freezing of bread can preserve its quality better than freezing at home. In introducing frozen bread, supermarkets can communicate either a high construal social benefit (food waste reduction) or a low construal personal benefit (product quality).Design/methodology/approachAn online experiment (n = 367) with a three group between subjects design was used. Dutch participants saw an offering of frozen bread accompanied by (1) a communication message about food waste, (2) a communication message about product quality, or (3) no communication message (control condition).FindingsIn line with expectations, emphasizing food waste reduction influenced general attitudes toward frozen bread and the bakery department more strongly than the benefit of higher product quality, while the opposite was true for purchase intentions.Practical implicationsRetailers who include frozen bread in their assortment have to make a trade-off between especially stimulating consumer attitudes toward the bakery department by focusing on a food waste reduction message, or especially stimulating sales by focusing on a quality message.Originality/valueThis study provides new insights into the effects of benefit communication on attitudes and purchase intentions. The results show that these effects differ for attitudes and intentions, depending on the communication message.

DIRECTIONS OF COMMUNICATION RELATIONS DEVELOPMENT IN THE AGRICULTURAL AVIATION WORKS MARKET

The basis of better organization of production, strengthening the competitiveness of the business entity in the market, the formation of its image in the socio-economic environment is marketing and marketing communications. The article considers the theoretical foundations of the complex of marketing communications of a special purpose airline with consumers of agricultural aviation services. The target consumers for the special purpose airline in the market of agricultural aviation works are agricultural enterprises. This paper proposes the use of aviation method of plant protection, which is effective for both special purpose airlines and agricultural enterprises. The main component of active influence on the target market of agricultural aviation services is the marketing support of a special purpose airline. Using the «four P» and «four C» models in the development of marketing strategies, a set of marketing elements for a special purpose airline is presented and the impact of marketing communications on the activities of a special purpose airline is determined. Each participant in the market of agricultural aviation works gets the effect only when the consumer benefits from the provided aviation services. The paper proposes a scheme of interconnection of participants in the market of agricultural aviation works, which shows the components of the effectiveness of the process of agricultural aviation works for each of its participants. Thus, marketing support for the effectiveness of agricultural aviation work is a measure carried out by a special purpose airline to attract potential consumers (agricultural enterprises) to services developed, implemented and provided in the field of agricultural aviation agricultural aviation works and aimed at attracting consumer attention and information, persuasion, reminders. ways to meet their needs and quality of services, which allows you to compare similar services, stimulate consumer demand. The scheme of realization of a complex of marketing of the airline of special purpose at performance of agricultural aviation works is developed.

ПРОБЛЕМЫ ЭКОНОМИЧЕСКОЙ УСТОЙЧИВОСТИ АРКТИЧЕСКИХ РЕГИОНОВ КАНАДЫ

The article examines the key issues and risks of the governing and socio-economic development of the Canadian Arctic regions. The relevance of this subject is determined by scientific and practical interest in adapting in Russia the most effective approaches and practices for realizing the economic potential of circumpolar regions in foreign countries. With regard to areas of the Arctic zone of the Russian Federation (characterized by low population density of vast areas, the absence of large urban settlements with scientific and cultural centers, undeveloped ground transport infrastructure, extreme climatic and geological conditions, the absence of large industrial and energy facilities) special interest represents the relevant Canadian experience. The article shows that in the 2000s, Canada did not come close to turning industry into a leading factor in the economy of the Arctic territories. At the same time, a series of federal programs for the modernization of social and transport infrastructure also did not become a significant incentive for the development of the northern regions. As federal statistics shows, the largest share of their GRP is still formed in the public sector, and the degree of diversification of the regional economy remains extremely low. The modern economy of the circumpolar Canada is based on the dominance of the state in investments and stimulating consumer demand. The consequence of this is an increase in wages, provoking an increase in the cost of all goods and the cost of living in general. Small businesses are unable to compete with the public sector for labor, which constrains private entrepreneurship. For Canada, the Arctic has not yet become the driver of national economic growth, and the lack of infrastructure is a serious obstacle to large-scale investment.

Can information drive demand for safer food? Impact of brand‐specific recommendations and test results on product choice

AbstractAs an unobservable attribute, food safety is likely to be under‐provided by markets where regulatory enforcement is weak. In such settings, stimulating consumer demand for safer food can potentially encourage market actors to invest in food safety. Through a randomized trial in Kenya, we test the impact of informing consumers about which maize flour brands are most likely to comply with the regulatory standard for aflatoxin, a carcinogenic fungal byproduct. Providing information on safer brands alone does not significantly affect consumption behavior. However, when the same information is combined with a test performed on the maize flour stocked by the household, the likelihood that a safer brand is consumed 2 months later is 76% higher than in the comparison group. Our findings suggest that providing information on the relative riskiness of substitute foods could encourage consumers to make safer choices.

CONSUMER BEHAVIOR RESEARCH OF ORGANIC FOOD MARKET IN UKRAINE

Purpose. The goal of the research is to characterize the profile and study the behavior of consumers on the market of organic products based on the results of marketing research. It is important to identify marketing tools that will stimulate demand for organic products. Design/methodology/approach. Achieving these goals will contribute to the use of general and special research methods, such as: abstract-logical, analysis and synthesis, comparative analysis and monograph, generalization - to formulate the theoretical and methodological foundations of the study, conclusions and prospects for further research; sample observation with the use of specially designed questionnaires - to form a sample of research and identify key characteristics and motives of consumer behavior in the market of organic products; analysis of time series, averages and relative values - to analyze the state and dynamics of the market of organic products; tabular and graphical - to visualize the results of the study. Findings. As a result of the study, the differences between the concepts of "environmentally eco products", "environmentally friendly products" and "organic products" were established, and the use of the latter term was substantiated. An analysis of the state and dynamics of the market of organic products was conducted to assess the prospects for its development and regulation. Problems of its formation in Ukraine are revealed, a group of marketing threats is singled out. The key characteristics of the consumer of organic products are studied and generalized portrait is given. According to the results of sample observation, the key motives for the behavior of existing and potential consumers of organic food market were identified. Marketing tools are offered to solve current problems of formation of the organic food market and to stimulate consumer demand. Practical implications. The market for organic products is actively developing around the world. Consumers are interested in a healthy lifestyle, care about their health and the environment, so choose food wisely. Therefore, organic products are interesting to consumers, who prefer expensive products if they are confident in its quality. Due to this, the market of organic products is being formed in Ukraine. Therefore, clarifying such issues as determining the theoretical basis, studying the prospects of the organic market, the portrait of the consumer and the motives of the behavior will help to intensify this process. Originality/value. Considering the global trends and possibilities of organic food market in Ukraine, the results of marketing research on the behavior of existing and potential consumers are very important and relevant to intensify this process. The expediency of application of the term "organic products" for formation theoretical and methodological preconditions of formation the organic food market in Ukraine is substantiated in the work; identified prospects and key threats to its development, and suggested directions to eliminate them; the portrait of the consumer of organic products is characterized and motives of its behavior are defined, offers concerning stimulation of this kind of demand are given.

ОСОБЛИВОСТІ ПРОДАЖУ ІННОВАЦІЙНИХ ПРОДУКТІВ ХАРЧУВАННЯ

The article studies peculiarities of innovative food products sale. It is estimated that every year tens of thousands of new consumer goods are introduced into production in the world. However, the current over-competitive market leaves only a small share of these products. The emergence of a new product is often associated with innovation. It is noted that any innovative product must be critically analyzed, because not every new change leads to development. The economic essence of an innovative product and an innovative food product in particular is revealed. It defines product as such which was developed with the help of technological innovations application, which is characterized by the presence of new, different from the traditional consumer properties of food, when the degree of those properties expression is characterized by radical novelty, improvement, modification. It is manifested in the change of qualitative features of food, production technology, recipe composition, functional purpose, and packaging. Peculiarities of marketing the innovation in the innovative goods market and possible problems that may arise when selling an innovative product are identified. It is noted that the innovative product promotion is made up of a set of measures aimed at stimulating consumer demand and maintaining a favorable attitude to the company, providing information about the innovation benefits to potential consumers and stimulating their desire to acquire innovation through information products, promotions, and sales promotion tools. It is proved that the peculiarities of innovative food products sale are associated with the consumer demand activation and maintaining a favorable attitude towards the enterprise. Meanwhile promotion allows solving the following tasks: informing consumers about the ECONOMICS AND MANAGEMENT OF ENTERPRISES Issue II (82), 2021 29 innovative product and its properties; forming the innovative food product image; changing stereotypes of product perception; stimulating participants in the sales system. It is proposed to consider the organization of innovative food products selling process as a combination of elements of the enterprise sales, pricing and communication policies.

Analysis of the impact of tourism development on the urban-rural income gap: evidence from 248 prefecture-level cities in China

ABSTRACT Based on the panel data of 248 prefecture level cities in China from 2008 to 2018, this paper discusses the impact of tourism development on the urban-rural income gap. The empirical findings indicate that tourism development can significantly reduce the urban-rural income gap, confirming that tourism development can effectively achieve balanced regional development. Domestic tourism has a stronger reducing effect, and this effect is stronger in eastern China than western China. These findings suggest that tourism organizations should pay attention to the economic effects of tourism, formulate targeted tourism preferential policies to stimulate consumer demand.

The Impact of Rising Housing Rent on Residents’ Consumption and Its Underlying Mechanism: Empirical Evidence from China

Based on 465 panel data from 31 provinces, autonomous regions, and municipalities in China from 2001 to 2015 (data come from “China Statistical Yearbook”), static and dynamic panel models were established by Stata16.0 software to analyze the impact of housing rent on household consumption. In order to explore the specific impact of rising housing rents on residents’ consumption, and then adjust housing policies to stimulate consumer demand, this article analyses three research topics: (a) the impact of rising housing rent on the overall consumption level of residents and whether there are regional differences; (b) the internal mechanism underlying the effect of rising housing rent on residents’ consumption; and (c) the different impacts of rising housing rent on different types of residents’ consumption by establishing fixed-effects and random-effects models. The results show that a rise in housing rent causes a wealth effect on residents’ consumption at the national level in all regions. The upgrading of the industrial structure plays a positive role in the relationship between the fluctuation in housing rent and residents’ consumption, that is, the more rational the industrial structure, the stronger the wealth effect of rising housing rent on residents’ consumption. The rise in housing rent positively affects residents’ daily necessities and services consumption; transportation and telecommunication consumption; education, culture, and entertainment consumption; and habitation consumption; while negatively affects food, tobacco, and alcohol consumption; clothing consumption; and other supplies and services consumption. However, the impact on health care consumption is not significant. Accordingly, the government should start by improving the housing rental market and reasonably promote the further development of the housing rental market, thereby further stimulating Chinese consumption level.