Manufacturer suggested retail prices, loss aversion and competition

Fabrizi, Simona; Lippert, Steffen; Puppe, Clemens; Rosenkranz, Stephanie

doi:10.1016/j.joep.2016.02.001

Cited by 7 publications

(8 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Subsequently, researchers have studied loss aversion in multiple applications and contexts. For example, when comparing the price of a product with its reference price in a retail setting, the consumer perceives the variation in price as a "gain" or "loss," with their sensitivity to a perceived loss greater than an equally intense gain (Fabrizi et al, 2016;Hardie et al, 1993;Mayhew & Winer, 1992;Putler, 1992).…”

Section: The "Loss Aversion" Cognitive Biasmentioning

confidence: 99%

“…Generally, such studies have presented evidence regarding the benefits of using these biases in sales promotion strategies and have indicated greater chances of impulse purchases in supermarkets. Regarding the "loss aversion" bias, for example, literature has addressed whether shoppers reacted differently if the prices of products shown to them were presented as gains or losses (Fabrizi, Lippert, Puppe, & Rosenkranz, 2016;Kalwani & Yim, 1992;Kalyanaram & Winer, 1995).…”

Section: Introductionmentioning

confidence: 99%

“…While previous studies traditionally investigated promotional incentives for consumers by using specific cognitive biases (Fabrizi et al, 2016), no consensus exists regarding whether the use of merchandising activities without price incentives could also influence sales of a product in supermarkets. Stilley et al (2010b) observe the behavioral economics field as applied to shopper marketing to note that "further research could consider activations without price promotion" (p. 45).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Uso De Vieses Cognitivos Em Ativações De Merchandising E O Efeito Nas Vendas Nos Supermercados

et al. 2020

View full text Add to dashboard Cite

RESUMO A competição entre marcas disponíveis nos supermercados motiva os esforços das empresas na elaboração e ativação de materiais de comunicação no ponto de venda (MPV). Os MPVs objetivam influenciar o shopper e gerar vendas. A economia comportamental, por sua vez, estuda como um indivíduo toma uma decisão de acordo com as suas próprias preferências e crenças, influenciado pelos vieses cognitivos. O objetivo deste trabalho é compreender os efeitos nas vendas a partir do uso dos vieses aversão à perda e contas mentais nas mensagens de materiais de comunicação ativados em supermercados. Para isso, foram realizados dois experimentos de campo aplicados a uma marca de alimento em uma rede de supermercados. Os resultados mostram um efeito positivo e significativo nas vendas apenas quando foi utilizado o viés de aversão à perda na mensagem dos MPVs.

show abstract

Section: The "Loss Aversion" Cognitive Biasmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Uso De Vieses Cognitivos Em Ativações De Merchandising E O Efeito Nas Vendas Nos Supermercados

et al. 2020

View full text Add to dashboard Cite

show abstract

“…Prior research verifies that consumers are unlikely to pay a retail price higher than the recommendation when the recommended price acts as a reference price [5,6]. Other studies point out that a retail price lower than the recommendation may stimulate consumption [7].…”

Section: Introductionmentioning

confidence: 99%

Strategic Analysis of the Pricing Mechanisms in an Online Book Supply Chain in the Presence of Reference Price Effects

Hou¹,

Zeng²

2021

JTAER

View full text Add to dashboard Cite

(1) Background: A binding recommended retail price has been used in several markets in a variety of forms, and the book market is a typical example. Publishers sell books to online retailers at a unit wholesale discount computed on the cover price. Retailers are then allowed to set the retail price. Therefore, if consumers regard the cover prices as reference points, then they may be more likely to purchase books if retail prices are lower than the cover prices. (2) Methods: We develop a Stackelberg game model for a book supply chain to investigates how reference price effects affect retailers and publisher’s pricing strategies. (3) Results: The results show that retailers will sell printed books at a discount only when the publisher’s wholesale discount rate is not high. Further, as the intensity of the reference price effects increases, (a) the lower boundary of the wholesale discount rate rises, (b) publishers’ profits increase and (c) retailers’ profits increase relative to the level of consumers’ e-books acceptance. (4) Conclusions: This result is related to the fact that the online retailer, such as Amazon and JD.com, like to invoke reference price effects in consumers’ minds by highlighting the printed book’s discount rate.

show abstract

“…If consumers compare the price p to some reference pricep (e.g., a suggested retail price), the deviation from the reference point is given by ∆x ≡ p −p, and they suffer from a loss if the price exceedsp. Various models of reference prices have been studied in the marketing literature (seeMazumdar, Raj and Sinha 2005 for a survey) and the industrial organization literature(Spiegler 2011;Puppe and Rosenkranz 2011;Buehler and Gaertner 2013;Fabrizi et al 2016, Lubensky 2017.…”

mentioning

confidence: 99%