Price Sensitivity of the Consumer

Gabor, André; Granger, Christophe

doi:10.1108/eb001212

Cited by 82 publications

(77 citation statements)

References 2 publications

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“…Academic researchers have long recognized that price response functions need not be smooth or even monotonic (e.g., Gabor andGranger 1964, Monroe 1990). Thus, there is agreement with practitioners on the existence of price thresholds as an empirical phenomenon.…”

Section: Price Thresholds and Gapsmentioning

confidence: 99%

Commercial Use of UPC Scanner Data: Industry and Academic Perspectives

1999

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The authors report the findings from an exploratory investigation of the use of UPC scanner data in the consumer packaged goods industry in the U.S. The study examines the practitioner community's view of the use of scanner data and compares these views with academic research. Forty-one executives from ten data suppliers, packaged goods manufacturers, and consulting firms participated in wide-ranging, inperson, interviews conducted by the authors. The interviews sought to uncover key questions practitioners would like to answer with scanner data, how scanner data is applied to these questions, and the industry's perspective regarding the success that the use of scanner data has had in each area.The authors then compare and contrast practitioners' views regarding the resolution of each issue with academic research. This produces a 2 ‫ן‬ 2 classification of each question as "resolved" or "unresolved" from the perspectives of industry and academia. Along the diagonal of the 2 ‫ן‬ 2, issues viewed as unresolved by both groups are important topics for future research. Issues deemed resolved by both groups are, correspondingly, of lower priority. In the offdiagonal cells, industry and academics disagree. These topics should be given priority for discussion, information exchange, and possible further research.Practitioners reported that scanner data analysis has had the most success and been most widely adopted for decision making in consumer promotions (i.e., coupons), trade promotions, and pricing. For example, logit and regression models applied to scanner data have revealed very low average consumer response to coupons which has directly led to reduced couponing activity. Managers also reported high levels of comfort with and impact from analyses of trade promotions and price elasticities. While industry views most of the issues in these areas to be resolved, academic research raises concerns about a number of practices in common commercial use. These include price threshold analysis and trade promotion evaluation using baseline and incremental sales.In product strategy, advertising, and distribution management, practitioners reported that the use of scanner data has had more limited development, success, and impact. In the case of new product decisions, scanner data use has been slow to develop due to the inherent limitations of historical data for these decisions and a heavy reliance on traditional primary research methods. In advertising, scanner data is widely analyzed with models, but confusion among practitioners is very high due to controversies about methods (e.g., what level of data aggregation is best) and conflicting results. In distribution and retail management, scanner data use has tremendous potential but a mixed track record to date. Thus, practitioners view the use of scanner data as unresolved for most issues in product strategy, advertising, and distribution. This view is largely, though not entirely, consistent with academic research, which has only begun to address many of the key quest...

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Section: Price Thresholds and Gapsmentioning

confidence: 99%

Commercial Use of UPC Scanner Data: Industry and Academic Perspectives

1999

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“…, Tull(1964) [2], Gabor & Granger(1964) [3], Lambert(1970) [4], Peterson(1970) [5] 등은 소비자의 품질평가시 가격의 영향을 연구하였다.…”

Section: 단일요소에 의한 연구 소비자가 제품품질을 평가하는데 Scitovsky(1945)는 가격이나 회사의 규모와 같unclassified

The Effects of Superstores Fashion Accessories Quality on Customer Behavior

Park¹,

Park²,

Lee³

2017

AJMAHS

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“…While considering price behaviour a personality trait, the product category itself is observed as a determinant (Gabor and Granger, 1964;Erdem et al, 2002). This may be due to the distribution of quality uncertainty and price uncertainty in a product category.…”

Section: Introductionmentioning

confidence: 99%

Price segment stability in consumer goods categories

Stamer

Diller

2006

Journal of Product &Amp; Brand Management

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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.

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Price Sensitivity of the Consumer

Cited by 82 publications

References 2 publications

Commercial Use of UPC Scanner Data: Industry and Academic Perspectives

Commercial Use of UPC Scanner Data: Industry and Academic Perspectives

The Effects of Superstores Fashion Accessories Quality on Customer Behavior

Price segment stability in consumer goods categories

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