Search results

1 – 10 of 711
To view the access options for this content please click here
Article

Wei Lu, Yuwei Zhou, Li Sunny Pan and Yuhao Zhao

People often need to make intertemporal choices in their daily life, such as savings and spending, but their decisions are not always entirely rational. The purpose of…

Abstract

Purpose

People often need to make intertemporal choices in their daily life, such as savings and spending, but their decisions are not always entirely rational. The purpose of this paper is to study the effect of hunger on intertemporal choices and the moderating effect of sensitivity to reward.

Design/methodology/approach

Two studies verified these two hypotheses. The first study confirmed the existence of the main effect by manipulating food aroma. In the second study, by manipulating hunger with images, the authors increased external validity of the study and confirmed the regulation of the sensitivity of rewards.

Findings

The authors found that hungry people prefer to reap the benefits as early as possible in an intertemporal choice; this effect is significant only for those people who are sensitive to reward.

Practical implications

The research contributes to understand more about which factors will influence Chinese residents’ decisions on savings and spending. It also has practical implication for government policy, for example, proposing new ideas for reducing household savings rate and stimulating consumption.

Originality/value

The results confirmed that hunger significantly affects consumersintertemporal choices, which broadened the scope of researches on the factors that influence intertemporal choice, and advanced the study on the influence of individual’s physiological state on intertemporal choices. This study filled the gaps in previous researches, and opened up new research ideas for interdisciplinary study.

Details

Journal of Contemporary Marketing Science, vol. 2 no. 3
Type: Research Article
ISSN: 2516-7480

Keywords

To view the access options for this content please click here
Article

Gaetano Marino, Giulio Zotteri and Francesca Montagna

Short delivery time is a feature that can influence consumers’ purchasing decisions and that retailers compete over fiercely. Accordingly, evaluating the effect of…

Abstract

Purpose

Short delivery time is a feature that can influence consumers’ purchasing decisions and that retailers compete over fiercely. Accordingly, evaluating the effect of delivery time on demand and identifying marketing-mix variables that alter this relationship may influence retailers’ strategies and impact supply chain (SC) performance. The paper aims to discuss these issues.

Design/methodology/approach

This study was performed in collaboration with the largest furniture retailer in Italy, which provided its sales and inventory data for 19,000 units sold over a six-month period in 32 stores throughout Italy. Data were analysed using logistic regression with fixed effects.

Findings

The value of delivery time for consumers, even in an industry generally characterised by long delivery lead times, is surprisingly high. The evidence reveals that when the delivery time changes from two days to seven days, demand is reduced by 37.5 per cent, although variables related to location and the marketing mix moderate this relationship.

Practical implications

Retailers can use the findings presented herein to drive their inventory and facility planning decisions and support investments in SC integration.

Originality/value

Supply chain management (SCM) studies consider the value of delivery time anecdotally and have neglected empirical estimations of the magnitude of the effects of delivery time on consumer demand. Further, SCM studies have not explored the factors moderating this relationship, although intertemporal choice and service management studies have demonstrated the existence of such factors.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

To view the access options for this content please click here
Article

Kenneth Backlund, Tomas Sjögren and Jesper Stage

This paper aims to present a theoretical underpinning for the fact that empirical studies have found an inverted-U curve relationship between emigration and per capita…

Abstract

Purpose

This paper aims to present a theoretical underpinning for the fact that empirical studies have found an inverted-U curve relationship between emigration and per capita income, based on credit restrictions. The implications for tax policy are also analyzed.

Design/methodology/approach

Using an intertemporal general equilibrium model, the authors characterize how the presence of an “inverted U-curve” relationship between emigration and per capita income will influence the optimal tax and expenditure policy in a country where agents have the option to move abroad.

Findings

Among the results it is shown that if age-dependent taxes are available, the presence of an inverted-U curve provides an incentive to tax young labor harder, but old labor less hard, than otherwise.

Originality/value

This migration model fits the empirical facts of migration better than most of the migration models previously used in the optimal taxation literature.

Details

Indian Growth and Development Review, vol. 7 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

To view the access options for this content please click here
Book part

William A. Barnett and Apostolos Serletis

This chapter is an up-to-date survey of the state-of-the art in consumer demand analysis. We review (and evaluate) advances in a number of related areas, in the spirit of…

Abstract

This chapter is an up-to-date survey of the state-of-the art in consumer demand analysis. We review (and evaluate) advances in a number of related areas, in the spirit of the recent survey paper by Barnett and Serletis (2008). In doing so, we only deal with consumer choice in a static framework, ignoring a number of important issues, such as, the effects of demographic or other variables that affect demand, welfare comparisons across households (equivalence scales), and the many issues concerning aggregation across consumers.

Details

Quantifying Consumer Preferences
Type: Book
ISBN: 978-1-84855-313-2

Keywords

To view the access options for this content please click here
Book part

Marina Di Giacinto and Francesco Ferrante

The consensus view is that economists should observe consumer choices and abstain from investigating the psychological and physiological causes of wants, or the mechanisms…

Abstract

The consensus view is that economists should observe consumer choices and abstain from investigating the psychological and physiological causes of wants, or the mechanisms governing the formation of preferences. This may be a correct procedure as far as ordinary functional goods are concerned. Problems tend to arise with creative goods (e.g. cultural goods) whose consumption (i) requires skills acquired through education and experience and (ii) generates positive and negative feedbacks and learning-by-consuming processes. This paper presents a simple model of local learning explaining the idiosyncratic accumulation of consumption human capital. Consumption generates local feedback mechanisms whose characteristics depend on the nature of goods and on the type of agent. The model provides some insights on the microeconomics of creative consumption and on the specific role of education.

Details

The Evolution of Consumption: Theories and Practices
Type: Book
ISBN: 978-0-7623-1452-2

To view the access options for this content please click here
Article

John M. Gowdy

Among biologists it is generally recognized that market activity is having a devastating effect on the biological world. The current worldwide loss of biodiversity may be…

Abstract

Among biologists it is generally recognized that market activity is having a devastating effect on the biological world. The current worldwide loss of biodiversity may be of the same order of magnitude as the five mass extinctions which have decimated life on earth during the past 500 million years. One reason for the current crisis is that decisions about resource use are increasingly made from the narrow perspective of market exchange. Decisions made in this context necessarily place a lower value on preservation than those made in a broader social context. Although the phenomenon of discounting generally works against biodiversity conservation, policies may be devised to use discounting to implement land use policies which will take effect in the relatively distant future.

Details

International Journal of Social Economics, vol. 23 no. 4/5/6
Type: Research Article
ISSN: 0306-8293

Keywords

To view the access options for this content please click here
Article

Baozhong Su

The purpose of this paper is to examine the new rural social pension program’s effect on household consumption in rural China.

Abstract

Purpose

The purpose of this paper is to examine the new rural social pension program’s effect on household consumption in rural China.

Design/methodology/approach

The paper employs field data in Hebei Province and comprehensively applies the ordinary least squares regression model and the difference-in-difference matching method.

Findings

The findings show that participation in the Program may not obviously increase household consumption, rather it significantly inhibits the marginal propensity of young families’ consumption temporarily without an apparent impact on participating households’ consumption.

Practical implications

In addition to maintain the stability of the basic system framework of the new rural social pension program and preserve or increase the value of the fund under the Program, dynamic adjustments to pension levels should be made as and when appropriate.

Originality/value

The study provides a new empirical evidence for the relationship between the new rural social pension program and consumption and gives insight into potential modifications and improvements to the Program.

Details

China Agricultural Economic Review, vol. 9 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

To view the access options for this content please click here
Article

J.A.H. Maks and M. Haan

Compares Stackelberg’s Grundlagen der theoretischen Volkswirtschaftslehre with a standard modern micro‐economic textbook. Reveals some confusing shortcomings in the…

Abstract

Compares Stackelberg’s Grundlagen der theoretischen Volkswirtschaftslehre with a standard modern micro‐economic textbook. Reveals some confusing shortcomings in the English translation. Focuses on unique peculiarities of Stackelberg’s analysis of the price formation on imperfect markets. Suggests that it might be an effective approach in a course on micro‐economics to combine a modern textbook with Grundlagen since they would complement each other in a number of aspects: at least, but very important, in the different emphasis of the time aspect. Finds that in general the English translation of Grundlagen by A.T. Peacock is of an outstanding quality. Mistakes are rare and hardly ever confusing, with the exceptions related to the perfect market and pure competition concepts. So, if one uses the English translation of Grundlagen as a supplement in a course on micro‐economics one may devote some attention to these concepts. It is quite possible that Stackelberg, at least in Grundlagen, is not convinced of the potential compatibility of Chamberlin’s theory of monopolistic competition and the Edgeworth‐Bertrand oligopoly theory with the method he proposes to derive at “peculiarities of price formation in the imperfect market”. Hence the absence of any reference in Grundlagen to these theories may not be at all accidental.

Details

Journal of Economic Studies, vol. 23 no. 5/6
Type: Research Article
ISSN: 0144-3585

Keywords

To view the access options for this content please click here
Article

Muhamed Zulkhibri and Mohamed Shukri Abdul Rani

This paper aims to examine the role of term spreads to predict domestic output and inflation in Malaysia, a country with a relatively less-developed bond market.

Abstract

Purpose

This paper aims to examine the role of term spreads to predict domestic output and inflation in Malaysia, a country with a relatively less-developed bond market.

Design/methodology/approach

The paper uses regression time-series regressions and probit models that control for past values of the dependent variable to determine the forecast performance of term spread on inflation and output in Malaysia.

Findings

The paper finds that term spread contains little information about future output and inflation at short horizons. Moreover, the usefulness of term spread to play a greater role in monetary analysis beyond conventional indicators in the case of Malaysia is limited. The degree of usefulness of term spread impediment could be attributed to the relatively fragmented, illiquid and captive bond market characteristics as compared to what is available in more matured and developed markets.

Practical implications

It is useful to incorporate technical and model-based approaches using yield curves beyond the usual indicator analysis from the policy point of view. Models could be used in tandem with other monetary and financial indicators to support discussions on the direction of monetary policy.

Originality/value

An efficient bond market could also play an important role in propagating monetary impulses via the relevant monetary transmission channels. Based on the findings, the paper suggests that there is a strong case to deepen domestic bond market. This would greatly enhance price discovery among market participants, improve risk management away from the traditional source for funds (i.e. banking system) and address supply-related issues.

Details

Review of Accounting and Finance, vol. 15 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

To view the access options for this content please click here
Article

Kyu Kim and Gal Zauberman

This paper aims to examine the effect of music tempo on impatience in intertemporal tradeoff decisions. It finds that fast (vs slow) tempo music increases impatience. This…

Abstract

Purpose

This paper aims to examine the effect of music tempo on impatience in intertemporal tradeoff decisions. It finds that fast (vs slow) tempo music increases impatience. This occurs because fast (vs slow) tempo music makes temporal distance, and hence the waiting time until the receipt of delayed benefits, feel subjectively longer.

Design/methodology/approach

The study tests the hypotheses through four laboratory experiments.

Findings

In Studies 1a (N = 88) and 1b (N = 98), the results demonstrate that when participants listen to fast (vs slow) tempo music, they judge temporal distance to be longer. In Study 2 (N = 94), the results demonstrate that when participants listen to fast (vs slow) tempo music, they become more impatient when considering a smartphone purchase. In Study 3 (N = 218), the results demonstrate that when participants listen to fast (vs slow) tempo music, they become more impatient when considering a gift certificate, and that this delay discounting effect is attributable to the change in their temporal distance judgment.

Research limitations/implications

The current research reports a novel factor that influences impatience in intertemporal decisions and temporal distance judgment.

Practical implications

This research provides useful guidelines for retail managers and marketers regarding the effect of background music in stores.

Originality/value

This is the first study demonstrating a music tempo effect on temporal distance judgment and impatience in intertemporal tradeoff decisions.

Details

European Journal of Marketing, vol. 53 no. 3
Type: Research Article
ISSN: 0309-0566

Keywords

1 – 10 of 711