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Article
Publication date: 23 August 2011

Rajesh Chandrashekaran

This paper aims to investigate how consumers adjust their price expectations for brands in response to previously encountered prices. The effects of two distinct…

Abstract

Purpose

This paper aims to investigate how consumers adjust their price expectations for brands in response to previously encountered prices. The effects of two distinct components of price history, focal and contextual, are examined. The focal component represents the role of a brand's own previous price(s) in determining future price expectations. In contrast, the contextual component represents the impact of the prices of previously considered competing brands.

Design/methodology/approach

A total of 60 subjects were enrolled to participate in a longitudinal, quantitative, survey‐based study that required them to provide information on brand perceptions, price expectations, brand consideration and choice.

Findings

Empirical comparison of several model formulations confirms that both components are crucial in explaining how consumers adjust their price expectations in response to the prices of considered brands. Consistent with a wide body of research, a brand's own previous price exerts the greatest influence on price expectations. However, the extent to which contextual prices are assimilated depends on the composition of consumers' consideration sets. Avenues for future research and implications for brand pricing and positioning are discussed.

Originality/value

The results offer several unique perspectives that stand out from (and build further on) previous research. First, although previous research has examined the effects of competing brands' current prices on brand choices, it has not incorporated the prices of competing brands that may have been observed on previous shopping occasions. Second, measures and assesses the perceived variability within the consumers' consideration sets influences the impact of the contextual component on a brand's current reference price.

Details

Journal of Product & Brand Management, vol. 20 no. 5
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 June 2003

Michel Laroche, Chankon Kim and Takayoshi Matsui

This study empirically investigates consumers’ use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive, and geometric compensatory) in the…

Abstract

This study empirically investigates consumers’ use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive, and geometric compensatory) in the consideration set formation, a critical first phase before actual choice behavior. Data were collected on the selection of beer brands and fast food outlets by real consumers. Using a decomposition approach in determining the consumers’ choice heuristics, it was found that the conjunctive heuristic is the most often used decision model in the consideration set formation for the two product classes. Implications for brand managers and future research directions are developed.

Details

Journal of Consumer Marketing, vol. 20 no. 3
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 1 December 2001

Ronald P. LeBlanc and Neil C. Herndon

This research explores the existence of consideration sets as a marketing universal by evaluating consideration set sizes for a shopping good in a cross‐cultural context…

Abstract

This research explores the existence of consideration sets as a marketing universal by evaluating consideration set sizes for a shopping good in a cross‐cultural context. Previous studies of marketing universals investigated consumers’ use of product quality signals for shopping goods. This study used two operational definitions of a consideration set and found that both the average number of brands considered and the number of brands tried on were statistically equal for two matched samples in different cultures, supporting the status of consideration sets as a marketing universal.

Details

Marketing Intelligence & Planning, vol. 19 no. 7
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 1 February 1999

Rex Eugene Pereira

Develops and tests a general model for understanding the influence of query‐based decision aids (QBDA) on consumer decision making in the electronic commerce environment…

Abstract

Develops and tests a general model for understanding the influence of query‐based decision aids (QBDA) on consumer decision making in the electronic commerce environment. The results show that the use of well‐designed query‐based decision aids leads to increased satisfaction with the decision process and increased confidence in judgements. The number of stages of phased narrowing of the consideration set was higher in the case of subjects who had access to the query‐based decision aids. The mediating variables through which this influence occurs are size of the consideration set, similarity among the alternatives in the consideration set, cognitive decision effort, and perceived cost savings. The size of the consideration set and the similarity among the alternatives in the consideration set were higher in the case of subjects who had access to the query‐based decision aid. Subjects who had access to the query‐based decision aid perceived an increased cost savings and a lower cognitive decision effort associated with the purchase decision. This research is done in the context of consumers searching for information on the World Wide Web prior to the purchase of cars.

Details

Logistics Information Management, vol. 12 no. 1/2
Type: Research Article
ISSN: 0957-6053

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Article
Publication date: 26 April 2019

Christian Laesser, Jieqing Luo and Pietro Beritelli

Most state-of-the-art approaches for the analysis of the process of travel decision-making follow Woodworth’s neo-behaviouristic S–R (stimulus–response) or S–O–R…

Abstract

Purpose

Most state-of-the-art approaches for the analysis of the process of travel decision-making follow Woodworth’s neo-behaviouristic S–R (stimulus–response) or S–O–R (stimulus–organism–response) model. However, within this model, scholars primarily focus on the S–R relationship, investigating specific decisions by describing or explaining an outcome as the result of an input of several stimuli. There is a lack of investigation into the “O” dimension of the S–O–R model. This paper aims to contribute towards closing of this gap by conceptually and holistically expanding existing models with new perspectives and components.

Design/methodology/approach

The authors base the conceptual process on a subjective/interpretative research paradigm, by combining outcomes from different theories and concepts into a new, more holistic approach; and challenging this approach by seeking counterarguments as well as supportive arguments at three conferences and workshops.

Findings

The paper expands the body of literature by positing a generic conceptual operationalization model focusing on the organism (“O”) domain of decision-making. To achieve this, and further to operationalize the S–O–R model, the paper proposes to integrate an M–O–A (motivation–opportunity–ability) approach.

Originality/value

The analysis of the body literature reveals that there is still a lack of analytical and especially workable models/approaches for the analysis of the process of tourist decision-making. The paper contributes to that discussion by offering an alternative and generic operationalization of the tourist decision-making process by inducing a theoretical framework from the deductions gleaned from a number of existing theories.

Details

Tourism Review, vol. 74 no. 3
Type: Research Article
ISSN: 1660-5373

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Article
Publication date: 5 October 2020

Murilo Carrazedo Costa Filho, Roberto P.Q. Falcao and Paulo Cesar de Mendonça Motta

Low-income consumers (LICs) have gained more attention from marketers after Prahalad and Hart (2004) called attention to untapped opportunities among the world’s poorest…

Abstract

Purpose

Low-income consumers (LICs) have gained more attention from marketers after Prahalad and Hart (2004) called attention to untapped opportunities among the world’s poorest. Once neglected and seen as price-driven, more recent research has depicted LICs as brand-conscious consumers who are willing to pay a premium for quality. However, because LICs must balance their tight budgets with aspirations for branded items, this perspective may be too optimistic. To address this issue, the purpose of this paper is to investigate brand consideration and loyalty among LICs across a wide range of products.

Design/methodology/approach

The authors used a qualitative-inductive approach to assess LICs’ brand considerations across ten fast-moving consumer goods. In-depth interviews with 20 Brazilian LICs were conducted.

Findings

The authors found that brand loyalty among LICs is both context- and category-dependent. Patterns of loyalty are influenced by five factors: perceived differentiation, perceived risk, contextual usage, proportion of the category expenditure to household income and hedonic vs functional consumption. It seems that the interplay of these factors ultimately shapes differently the attitudes and repeated patronage of brands within each category among LICs.

Research limitations/implications

Generalizability of findings is limited owing to the qualitative method used.

Practical implications

The authors provide practical insights to managers concerning key attributes that influence brand consideration and loyalty among LICs.

Originality/value

This paper adds to the yet limited knowledge on LICs and provides a deeper and more holistic understanding of the relation of LICs with brands.

Details

Qualitative Market Research: An International Journal, vol. 24 no. 2
Type: Research Article
ISSN: 1352-2752

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Book part
Publication date: 15 January 2010

Emma Frejinger and Michel Bierlaire

This paper deals with choice set generation for the estimation of route choice models. Two different frameworks are presented in the literature: one aims at generating…

Abstract

This paper deals with choice set generation for the estimation of route choice models. Two different frameworks are presented in the literature: one aims at generating consideration sets and one samples alternatives from the set of all paths. Most algorithms are designed to generate consideration sets but fail in general to do so because some observed paths are not generated. In the sampling approach, the observed path as well as all considered paths is in the choice set by design. However, few algorithms can be actually used in the sampling context.

In this paper, we present the two frameworks, with an emphasis on the sampling approach, and discuss the applicability of existing algorithms to each of the frameworks.

Details

Choice Modelling: The State-of-the-art and The State-of-practice
Type: Book
ISBN: 978-1-84950-773-8

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Book part
Publication date: 15 January 2010

Matthieu de Lapparent

This article addresses simultaneously two important features in random utility maximisation (RUM) choice modelling: choice set generation and unobserved taste…

Abstract

This article addresses simultaneously two important features in random utility maximisation (RUM) choice modelling: choice set generation and unobserved taste heterogeneity. It is proposed to develop and to compare definitions and properties of econometric specifications that are based on mixed logit (MXL) and latent class logit (LCL) RUM models in the additional presence of prior compensatory screening decision rules. The latter allow for continuous latent bounds that determine choice alternatives to be or not to be considered for decision making. It is also proposed to evaluate and to test each against the other ones in an application to home-to-work mode choice in the Paris region of France using 2002 data.

Details

Choice Modelling: The State-of-the-art and The State-of-practice
Type: Book
ISBN: 978-1-84950-773-8

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Article
Publication date: 19 June 2009

Thomas Reutterer and Christoph Teller

The purpose of the paper is to identify store format attributes that impact on store format choice when consumers conduct fill‐in or major trips to buy groceries. By doing…

Abstract

Purpose

The purpose of the paper is to identify store format attributes that impact on store format choice when consumers conduct fill‐in or major trips to buy groceries. By doing so, we take into consideration that consumers patronise multiple (store based) formats depending on the shopping situation operationalised by the type of shopping trip.

Design/methodology/approach

The paper adopts the conceptual framework of random utility theory via application of a multinomial logit modelling framework. The analysis is based on a survey of 408 consumers representing households in a clearly defined central European retail area.

Findings

The results reveal a considerable moderating effect of the shopping situation on the relationship between perceived store format attributes and store format choice. Consumers' utilities are significantly higher for discount stores and hypermarkets when conducting major trips. To the contrary, supermarkets are preferred for fill‐in trips in the focussed retail market. Merchandise‐related attributes of store formats have a higher impact on the utility formation regarding major‐trips, whereas service‐ and convenience‐related attributes do so with regards to fill‐in trips.

Research limitations/implications

The findings can only be generalised to retail markets with similar characteristics to the one under study. It is highly concentrated, contains a considerable share of small size retail stores, it is urban and has clear cut boundaries due to its geographical location.

Originality/value

This paper considers the fact that consumers patronise multiple store formats and investigates the moderating effect of the shopping situation – operationalised by different types of shopping trips – on store format choice.

Details

International Journal of Retail & Distribution Management, vol. 37 no. 8
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 17 August 2012

Catherine Viot

The purpose of this paper is to show that consumers' expertise of a product influences the number of attributes considered as important, the importance given to the…

Abstract

Purpose

The purpose of this paper is to show that consumers' expertise of a product influences the number of attributes considered as important, the importance given to the attributes as well as the size and the content of the consideration set (CS).

Design/methodology/approach

A quantitative empirical study was carried out with 287 French wine consumers.

Findings

The results show that the attributes which were considered as important by the novices differ from those considered important by the experts and that the number of important attributes given by the novices (2) is lower than those given by the experts (7). Furthermore, the results show that the size of the CS itself is also influenced by subjective knowledge. On the other hand, this is not the case for the content of the CS.

Research limitations/implications

The empirical study only focuses on one product category. The data were collected on the basis of statements rather than observations, which is liable to distort the results.

Practical implications

The paper shows that the visual attributes, such as the design and the packaging, are not sufficient to sell wine to French consumers, even if they are novices in this field.

Originality/value

While most research devoted to the effects of the CS focus on a single dimension of it, this paper tests simultaneously the effects on the size and on the variety of the CS, which is analyzed according to both a qualitative and quantitative approach.

Details

International Journal of Wine Business Research, vol. 24 no. 3
Type: Research Article
ISSN: 1751-1062

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