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Article
Publication date: 1 March 1995

Sadrudin A. Ahmed and Alain d′Astous

Presents the results of a study in which judgement of quality andpurchase value of three different product categories were obtained from173 purchasing managers and 190…

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3911

Abstract

Presents the results of a study in which judgement of quality and purchase value of three different product categories were obtained from 173 purchasing managers and 190 household consumers. The products varied according to the country where they were designed, the country where they were assembled, their brand name, their price and their warranty. In addition, the respondents rated 13 developed and newly industrializing countries by their capacity to design and assemble products in general. Indicates that the respondents′ perceptions of newly industrializing countries are more negative than their perceptions of developed countries. However, when additional information concerning the product′s brand name, price and warranty is available, their perceptual differences between developed and newly industrializing countries are considerably reduced. Shows significant differences between household and organizational buyers in the relative importance given to country‐of‐origin and other product cues. Discusses strategic implications of these findings for global marketing.

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European Journal of Marketing, vol. 29 no. 3
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 25 October 2018

Jagdish Sheth and Anthony Koschmann

This study aims to question the conventional wisdom that brands compete for customers, especially in mature industries such as soft drinks. Rather than engaging in price…

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2551

Abstract

Purpose

This study aims to question the conventional wisdom that brands compete for customers, especially in mature industries such as soft drinks. Rather than engaging in price wars or promotion wars, brands coexist in the markets by focusing on their own brand loyal customers.

Design/methodology/approach

Consumer panel data of carbonated beverages are examined using Markov chains to measure switching between two brands: Coke and Pepsi. Switching rates are conducted for all Coke households (n = 10,474) and Pepsi households (n = 7,227). This is further examined with respect to heavy half (upper median) consumers of each brand who make up approximately 86 per cent of volume purchases.

Findings

Households that made a majority of their purchase volume in either Coke or Pepsi products stayed with their preferred brands in subsequent quarters: 85 to 97 per cent of households. These findings are validated at all levels of the brand architecture (family brands, product brands and modified brands), even though both brands engage in similar marketing mix tactics (advertising, price cuts, distribution, product offerings). Loyalty was even higher among the heavy user households.

Research limitations/implications

The research was conducted using two well-known brands in a mature industry. Services or non-mature markets may exhibit different loyalty patterns.

Originality/value

The study extends prior research on competition, loyalty and branded offerings to show that brand loyalty remains high despite marketing efforts to switch the brand buying behavior.

Details

European Journal of Marketing, vol. 53 no. 1
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 March 2006

Anne Berlin Blackman and Jack Luskin

The purpose of this paper is to explore the efficacy of a community‐based outreach initiative, piloted in Worcester, Massachusetts, to reduce children's exposure to toxic…

Abstract

Purpose

The purpose of this paper is to explore the efficacy of a community‐based outreach initiative, piloted in Worcester, Massachusetts, to reduce children's exposure to toxic chemicals in common household products by changing parental behavior regarding product purchase and use.

Design/methodology/approach

The program model was based on the premise that community health workers have the potential to deliver health education messages with particular effectiveness. Community health workers in Worcester received customized training to learn about the impact of toxic chemicals on children's health and strategies to reduce children's exposure to toxics in household products. The health workers then delivered this information to low‐income parents in English or Spanish. Through follow‐up interviews, the health workers used short surveys to collect data regarding the effect, if any, of the outreach on parental behavior regarding household product purchase and use.

Findings

Parents were receptive to receiving technical information about toxics and household products from outreach workers who could convey the message at an appropriate comprehension level. Parents' responses to the survey questions suggest that the outreach efforts increased their awareness and understanding of how toxics affect their children's health.

Research limitations/implications

Design and implementation aspects of the initiative – notably the size of the cohort recruited to the project – make it difficult to draw robust conclusions from the survey data. Nevertheless, the data do reflect at least a modest degree of parental behavior change regarding household product purchase and use.

Practical implications

Outreach efforts that reach parents individually in their homes are effective at communicating targeted information but do not necessarily result in parental behavior change. As consumers, many parents need to hear the message more than once before they will change their behavior regarding product use and purchase.

Originality/value

This paper describes a health education model that addresses an important but often overlooked area of risk to children's health: their exposure to toxics in common household products.

Details

Health Education, vol. 106 no. 2
Type: Research Article
ISSN: 0965-4283

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Article
Publication date: 4 September 2017

Sinne Smed, Anna Kristina Edenbrandt, Pia Koch-Hansen and Leon Jansen

The purpose of this paper is to determine how the typical purchasers of products with nutrition symbols differ from other purchasers with respect to socio-demographic…

Abstract

Purpose

The purpose of this paper is to determine how the typical purchasers of products with nutrition symbols differ from other purchasers with respect to socio-demographic characteristics. Furthermore the authors examine if the typical purchaser is similar across six product types in Denmark and in the Netherlands.

Design/methodology/approach

The authors estimate probit models using a representative panel of households registering all their daily purchases during a year, three years after the introduction of a nutrition symbol in Denmark and the Netherlands (the Keyhole and the Choices). The purchase data are matched with information about labelling status. Other product and purchase characteristics, such as store-type and organic, are controlled for.

Findings

Households with children tend to have a lower probability of purchasing labelled products compared to other household types, while urbanity increases the probability. This holds both across countries and across products. In Denmark education is positively correlated with label purchase, while in the Netherlands it is income. Generally, the observable characteristics of the consumers are poor in explaining the probability of purchasing labelled products which suggests that other aspects as the underlying attitudes and general health awareness may be of greater importance in identifying these consumers.

Originality/value

There is a lack of studies analysing the effect of front-of-pack symbols on householdsproduct choices based on observed data as most previous studies are based on stated observation or purchase intentions.

Details

British Food Journal, vol. 119 no. 9
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 7 December 2015

Tony Muhumuza

The purpose of this paper is to analyze the relationship between access to rural product markets and the extent and nature of child labor. It is built on the view that if…

Abstract

Purpose

The purpose of this paper is to analyze the relationship between access to rural product markets and the extent and nature of child labor. It is built on the view that if physical markets can shape rural development through, for instance, influencing prices, household production decisions, and employment, the associated activity growth could increase child labor.

Design/methodology/approach

Using the Uganda National Household Survey, the author combines two methodological approaches: first, a probit model to estimate the probability of a child engaging in labor, and second, a double-hurdle model to analyze the hours of child work.

Findings

The author finds that children increase time in domestic work when local product markets are distant, while their time in economic activity declines. A similar pattern is observed for the incidence of child labor. The likelihood of child labor in domestic activity increases for each extra hour of travel to the market, while child labor in economic activity declines. This could reflect the possibility that households may switch child work from market-oriented activities to domestic work when they are remotely located from markets. Results confirm findings from earlier cross-country studies that access to product markets may be detrimental to children. Second, they demonstrate that the effect of the markets varies, depending on the age of children, as well as the nature of the work they engage in.

Originality/value

No part of this work has been published anywhere before.

Details

African Journal of Economic and Management Studies, vol. 6 no. 4
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 28 August 2009

Kuo S. Huang and Fred Gale

China's remarkable income growth has changed the food landscape in recent years. Chinese consumers are demanding greater food quantity and quality and changing the…

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2664

Abstract

Purpose

China's remarkable income growth has changed the food landscape in recent years. Chinese consumers are demanding greater food quantity and quality and changing the nutrient content of their diets. Most food demand studies are based on data from earlier time periods before these structural changes had taken hold. The purpose of this paper is to show how the rapid change in food markets and surprisingly slow growth of food imports warrants a new assessment of food demand in China.

Design/methodology/approach

Engel equations measuring elasticities of food quantity and quality purchases with respect to household income are estimated. These estimates are then converted to nutrient elasticities to show how the availability of nutrients varies with income based on the Engel demand relationship.

Findings

The income elasticities diminish as income rises. Households in the top tier of the income distribution appear to have reached a saturation point in the consumption of most food items. As income rises, most additional spending is on foods with higher unit values that may reflect better cuts of meat or branded items. The pattern of food purchases for households at different income levels suggests that protein, saturated fat, and cholesterol intake rises with increased income. The change in diets prompted by rising income is most pronounced for low‐income households.

Originality/value

This paper applies a unique approach to measure income, quality, and nutrient elasticities within the same framework of Engel relationship. The finding has important implications for opening new market opportunities of imported foods and understanding dietary change in China.

Details

China Agricultural Economic Review, vol. 1 no. 4
Type: Research Article
ISSN: 1756-137X

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Article
Publication date: 1 March 1984

Sandra M. Huszagh and Arthur Murphy

This paper examines influence in husband/wife purchasing decisions for durable goods among Mexican consumers in three income groups. Results indicate traditional husband…

Abstract

This paper examines influence in husband/wife purchasing decisions for durable goods among Mexican consumers in three income groups. Results indicate traditional husband dominance in less affluent households, and female participation through joint decision making in middle class households. A set of demographic variables in addition to income further differentiate traditional from joint influence households. Findings by product provide further distinctions between husband dominant and joint influence groups.

Details

International Marketing Review, vol. 1 no. 3
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 15 May 2017

Colin G. Brown, Scott A. Waldron and John Francis Wilkins

The purpose of this paper is to investigate the impact on household and farming systems of government efforts to modernise production, build scale and develop…

Abstract

Purpose

The purpose of this paper is to investigate the impact on household and farming systems of government efforts to modernise production, build scale and develop specialisation in the Tibet dairy industry.

Design/methodology/approach

An overview of policy strategies and industry developments is used to frame detailed micro-level analysis of household and farming systems where impacts on households are explored from both a comparative static and dynamic perspective.

Findings

Specialisation and intensification improve household returns but elicit major changes in the farming and household systems and engagement with external markets. For instance, scaling up from three to ten improved cows increases returns from farm activities by one-half but shifts households from a state of food self-sufficiency to one where they need to sell two-thirds of their dairy products and buy three-fifths of their livestock feed.

Research limitations/implications

The diversity among Tibetan farm households and the dynamic changes occurring in farm productivity, product markets and agrarian systems means that the empirical results are used as illustrative rather than definitive.

Originality/value

Relative to the large attention on the Chinese dairy industry with regard to food safety and industry development, the impacts of dairy specialisation on smallholders especially in western China have been overlooked. The case highlights several issues relevant to agrarian transition and development including changing labour use, risk exposure and engagement with external markets.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 7 no. 1
Type: Research Article
ISSN: 2044-0839

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Article
Publication date: 24 May 2013

Justin Beneke, Ryan Flynn, Tamsin Greig and Melissa Mukaiwa

This study endeavours to examine the influence of perceived product quality, relative price and risk, respectively, on perceived product value and, ultimately, consumers'…

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Abstract

Purpose

This study endeavours to examine the influence of perceived product quality, relative price and risk, respectively, on perceived product value and, ultimately, consumers' willingness to buy private label household cleaning products.

Design/methodology/approach

Respondents (157) were recruited through an in‐store survey and the data analysed using partial least squares path modelling.

Findings

The results are similar to those proposed by Sweeney, Soutar and Johnson. Strong relationships between perceived relative price and perceived product value, as well as between perceived product value and willingness‐to‐buy, were found to exist. A negative relationship was observed between perceived product quality and perceived risk. The results indicate that establishing a value perception is critical in the buying process. Tangible cues exhibiting high quality (e.g. packaging, shelf space, media placement) need profound attention. Furthermore, it is suggested that risk (which plays an important part in the consumer decision process) is minimised through optimal retail service quality and customer reassurances.

Research limitations/implications

This study is limited in that respondents are consumers of a specific geographic region and demographic grouping. Findings may therefore not be generalisable, particularly with respect to other countries.

Originality/value

This is one of the first studies investigating consumers' perceptions of value, using the attributes of quality, risk and price, in an emerging market setting.

Details

Journal of Product & Brand Management, vol. 22 no. 3
Type: Research Article
ISSN: 1061-0421

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Book part
Publication date: 17 January 2009

Eddie Rhee and Gary J. Russell

Database marketers often select households for individual marketing contacts using information on past purchase behavior. One of the most common methods, known as RFM…

Abstract

Database marketers often select households for individual marketing contacts using information on past purchase behavior. One of the most common methods, known as RFM variables approach, ranks households according to three criteria: the recency of the latest purchase event, the long-run frequency of purchases, and the cumulative dollar expenditure. We argue that RFM variables approach is an indirect measure of the latent purchase propensity of the customer. In addition, the use of RFM information in targeting households creates major statistical problems (selection bias and RFM endogeneity) that complicate the calibration of forecasting models. Using a latent trait approach to capture a household's propensity to purchase a product, we construct a methodology that not only measures directly the latent propensity value of the customer, but also avoids the statistical limitations of the RFM variables approach. The result is a general household response forecasting and scoring approach that can be used on any database of customer transactions. We apply our methodology to a database from a charitable organization and show that the forecasting accuracy of the new methodology improves upon the traditional RFM variables approach.

Details

Advances in Business and Management Forecasting
Type: Book
ISBN: 978-1-84855-548-8

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