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on Marketing |
| By: | Andrew T. Ching (Johns Hopkins University); Matthew Osborne (University of Toronto) |
| Abstract: | Understanding how forward-looking consumers respond to price promotions in storable goods markets is an important area of research in empirical marketing and industrial organization. In prior work, researchers have assumed that consumers in these markets are very forward-looking, and calibrated their weekly discount factors to levels around 0.9995. This calibration has been used because earlier research has assumed that a consumer’s storage cost is a continuous func- tion of inventory, which rules out exclusion restrictions that can be used to identify the discount factor. We show that by properly modeling storage cost as a step function of inventory (be- cause storage cost depends on the number of packages stored, instead of the actual amount of inventory), natural exclusion restrictions arise that allow for the discount factor to be point identified. In an application to a storable good category, we find that weekly discount factors are very heterogeneous across consumers, and are on average 0.71. We show through a counter- factual exercise that if one used a model which fixed the discount factor to be consistent with the standard calibrated value, one would overpredict the effect of increased promotional depth for a product on its quantity sold by 18% in the short-term, and 15% in the long-term. |
| Keywords: | Discount Factor, Exclusion Restriction, Stockpiling, Dynamic Programming |
| Date: | 2019–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:cth:wpaper:gru_2019_023&r=all |
| By: | Asante-Addo, Collins; Weible, Daniela |
| Abstract: | In sub-Saharan Africa, chicken meat is one of the important sources of protein and has great potential to enhance food security. The poultry sector, however, is challenged by rising imports, changing consumers’ preferences, and increasing costs of production. Preference for domestic chicken will depend largely on product characteristics and purchase motives, but also on how consumers’ perceive and judge domestic chicken in comparison to imported chicken. This study provides insight into how consumers in Ghana perceive chicken meat and whether these perceptions differ between domestic and imported chicken as well as the drivers of purchase. We conducted seven focus group discussions involving a total of 44 participants. Among the purchasing criteria, price is the most important factor in consumers’ decision-making process. Other factors include health/safety, convenience, taste, and freshness. Generally, consumers have strong beliefs toward domestic chicken as they perceive it to be fresher, tastier, healthier, and thus, better quality than imported chicken meat. Concerns about the use of growth hormones and antibiotics resulted in the low-quality perceptions of imported chicken meat. Nonetheless, imported chicken is seen as cheaper, convenient, and readily available. The results suggest that the higher price and inconvenience associated with domestic chicken may limit its future growth. Therefore, domestic producers must tailor their products to the characteristics that are important to consumers and build a marketing strategy that stresses more on good taste, freshness, and quality. Additionally, any policy aimed at the poultry industry should consider consumer concerns toward the safety, quality, and convenience of chicken. |
| Keywords: | Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety |
| Date: | 2019–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi19:292291&r=all |
| By: | Arifine, Ghizlane; Felix, Reto; Furrer, Olivier |
| Abstract: | Purpose—Although multi-brand loyalty (MBL) in consumer markets has been identified in previous brand loyalty research, empirical studies have not yet explored the facets of its different types. This article seeks a deeper understanding of MBL by investigating its different types and facets. Design/methodology/approach—This study uses a sequential, qualitatively-driven mixed method design consisting of in-depth interviews and supplementary survey research. Findings—The findings of this study suggest that mood congruence, identity enhancement, unavailability risk reduction and market competition are the most important facets that explains the two types of MBL (complementary-based and product substitutes). Furthermore, the findings show that the family factor can motivate consumers to be multi-brand loyal by adding brands to an initially family-endorsed brand. Research limitations/implications—This study advances the conceptual foundations of MBL and extends previous research on brand loyalty. Some of the findings may be limited to the economic and cultural context of relatively affluent countries with an abundance of market offers. Practical implications—Marketing managers gain insights into how to manage brand loyalty as well as how to transition from MBL to single-brand loyalty. Originality/value—The study generates novel insights into the facets of different types of MBL |
| Keywords: | Multi-brand loyalty; relationship marketing; decision-making heuristics; mixed method design; grounded theory; thematic analysis |
| JEL: | M31 |
| Date: | 2019–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:fri:fribow:fribow00501&r=all |