Price segment stability in consumer goods categories

Abstract

Access to this document was granted through an Emerald subscription provided by FRIEDRICH ALEXANDER UNIVERSITAET ERLANGEN NUERNBERG For Authors: If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service. Information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comWith over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Pricing strategy & practicePrice segment stability in consumer goods categories Hans H. Stamer and Hermann DillerMarketing Department, University of Erlangen-Nü rnberg, Nü rnberg, GermanyAbstract Purpose -This paper sets out to explore the degree to which consumer price segments can be generalized across product categories. Design/methodology/approach -A comprehensive segmentation framework of price-related activating and cognitive inner processes and preferences is proposed to account for heterogeneity in consumer response to price. Large-scale consumer survey data on price-related attitudes in eight consumer goods categories (paper tissue, soap bar, chocolate bar, detergent, facial moisturizer, television set, washing machine, jeans) are used for cluster analysis. Findings -On the aggregate level, five stable price segments across consumer goods categories are identified and described. On the individual level, it is found that price behavioural consistency is a function of the category context in terms of price uncertainty and quality uncertainty.Practical implications -The findings suggest that price management should be concerned with price segment structures and their specific price needs. Price segmentation could particularly benefit retailers in order to increase the effectiveness and efficiency of consumer targeting. Originality/value -The contribution of the study is to show that identical price segments can be identified across categories, whereas the individual segment membership depends on the nature and level of perceived risk in the category.

The Relationship between Store Brand and Customer Loyalty in Retailing in Malaysia

“…This is because it will create differentiation and increase company's profit (Reda, 2002). Thus, retailers should look for new information on a certain products in order to please consumers' demands (Stamer & Diller, 2006). However, Aaker and Keller (1990) stressed, if the innovation made does not fulfill consumers' wishes, retailers may not be able to retain brand loyal customers.…”

“…For instance, British largest hypermarket, Tesco has expended its store in United Kingdom by opening sub-brands such as Florence and Fred (Elms et al 2010). Stamer and Diller (2006) concluded that retailers or product innovators should seek for new knowledge and understanding about how to innovate store brand effectively regarding to fulfill consumers' demands. Thus, consumers will become loyal to that store brand and always craving for product's innovation.…”

Exploring asymmetric effects in the formation of retail price satisfaction

“…However, the relationships between the dimensions are not the focus of this article and therefore not discussed in detail. Finally, mention should be made that the impact of the dimensions might differ between customer segments, depending on their price and value consciousness (Morschett et al, 2005;Stamer and Diller, 2006). For example, smart shoppers invest considerable time and effort in seeking promotion-related price information to find a good bargain (Schindler, 1989;Mano and Elliot, 1997), while in contrast, qualityconscious customer segments might be indifferent towards or even depreciative of price promotions (Martı´nez and Montaner, 2006).…”

Antecedents of the importance of price in purchase decisions

“…This is due to the fact that they have higher internal reference prices and greater preference for quality, innovation and prestige (STAMER and DILLER, 2006). Consequently, the hypothesis proposed with respect to this variable is:…”