A Balance Model for Evaluating Subsets of Multiattributed Items

Farquhar, Peter H.; Rao, Vithala R.

doi:10.1287/mnsc.22.5.528

Cited by 126 publications

(81 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…7 It is useful to note that our model does not apply to markets where consumers seek variety within purchase occasions by buying portfolios of products from different firms at the same time (as in Farquhar and Rao 1976, McAlister 1979, Walsh 1995, Kim et al 2002. Our model only applies to the discrete choice situation where consumers buy one unit of product at a purchase occasion but seek variety across purchase occasions by buying products from different firms over time.…”

Section: Background Literature On Consumer Variety Seekingmentioning

confidence: 99%

Price Competition in Markets with Consumer Variety Seeking

Seetharaman

Che

2009

Marketing Science

View full text Add to dashboard Cite

W e investigate price competition between firms in markets characterized by consumer variety seeking.While previous research has addressed the effect of consumer inertia on prices, there exists no research on the effects of variety seeking on price competition. Our study fills this gap in the literature. Using a twoperiod duopoly framework as in Klemperer's analysis of inertial markets, we show that the noncooperative pricing equilibrium in a market with consumer variety seeking may be the same as the collusive outcome in an otherwise identical market without variety seeking. Specifically, our variety-seeking model implies tacit collusion between firms in both periods, unlike the inertia model of Klemperer that implies tacit collusion between firms only in the second period but implies fierce price competition in the first period. When consumers are assumed to have rational expectations about future prices, the implied first-period prices increase further, which is consistent with what Klemperer finds in an inertial market. To summarize, while our variety-seeking analyses support two key results (pertaining to second-period prices and rational expectations) previously derived for inertial markets by Klemperer, they depart from one key result (pertaining to first-period prices).

show abstract

Section: Background Literature On Consumer Variety Seekingmentioning

confidence: 99%

Price Competition in Markets with Consumer Variety Seeking

Seetharaman

Che

2009

Marketing Science

View full text Add to dashboard Cite

show abstract

“…Less recognized is that consumers often examine products category by category and create their own (personalized) bundles -e.g., an assortment of liqueurs and brandy to serve to guests after dinner; a grocery shopping basket (Farquhar and Rao 1976;McAlister 1979;Russell and Kamakura 1997). Bundles may be items that happen to be purchased together, say because they meet a buyer's goal (e.g., convenience) simply by being available from the same store or supplier.…”

Section: Inter-category Effectsmentioning

confidence: 99%

Product Complements and Substitutes in the Real World: The Relevance of “Other Products”

Shocker

Bayus

Kim

2004

Journal of Marketing

147

View full text Add to dashboard Cite

Buyers make purchase decisions in a marketplace composed of dynamic and interacting product categories. In such an environment, demand for one product can depend directly and indirectly upon the marketing efforts involving "other products," i.e., products in different categories. Hence, buyer (and seller) decision-making can be influenced by what sellers of these other products are and are not doing, as well as by actions of direct competitors. In this paper, we argue for the relevance of these "other products" by considering a wide range of possible inter-category relationships. We offer a behavioral rationale for the existence of these effects and propose a taxonomy of inter-category relationships that do not fit neatly into the conventional product complement/substitute framework. This discussion allows us to identify a number of promising new research questions.*We thank David Stewart, former editor, and three anonymous reviewers for their many helpful and constructive comments. They have served to substantially improve this paper. Errors of commission and omission remain the responsibility of the authors.

show abstract

“…Early brand loyalty studies (Tucker 1964, McConnell 1968) and a similar study in social psychology (Brlckman and D'Amato 1975) as was mentioned before, suggests that change is rewarding in and of itself regardless of the object from which or to which one changes. Farquhar and Rao (1976) Alternation among familiar alternatives might also result from satiation. Coombs and Avrunin (1977) An important implication of satiation is that the value of a behavior to an individual must be determined relative to her existing stores or "inventories" of attributes.…”

Section: Direct Variationmentioning

confidence: 99%

Variety Seeking Behavior: An Interdisciplinary Review

McAlister¹,

Pessemier²

1982

J CONSUM RES

795

459

View full text Add to dashboard Cite

In an attempt to organize the research findings that pertain to the various phenomena which have been termed "variety seeking" we offer a taxonomy of varied behavior. Within that framework the literature is reviewed. A TAXONOMY OF VARIED BEHAVIORThe phenonema of interest in this paper are those mechanisms which lead individuals to engage in varied behaviors. We include switching among product variants, switching among service alternatives, switching among various activities, etc., under the umbrella of "varied behaviors." A taxonomy of 2 explanations for such varied behavior is presented in Figure 1.- Figure 1 About HereThe taxonomy suggests that there are two basic schools of thought concerning varied behavior. One school considers such behavior to be either inherently inexplicable or, if explicable, to be so complex as to render it operationally inexplicable. This school focuses research on the probabilities with which different behaviors will be enacted.The other school of thought tackles the chore of explanation. We divide the explanations into two classes: those which view varied behavior as the result of some other motivation (DERIVED), and those which view variation as a -2 motivation in and of Itself (DIRECT). Motivations from which varied behavior

show abstract

A Balance Model for Evaluating Subsets of Multiattributed Items

Cited by 126 publications

References 24 publications

Price Competition in Markets with Consumer Variety Seeking

Price Competition in Markets with Consumer Variety Seeking

Product Complements and Substitutes in the Real World: The Relevance of “Other Products”

Variety Seeking Behavior: An Interdisciplinary Review

Contact Info

Product

Resources

About