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Article
Publication date: 1 May 2005

Monika Kukar‐Kinney

The paper proposes investigating the timing of consumer requests for price‐matching refunds, the relationship between the refund timing and consumer repeat store purchase…

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Abstract

Purpose

The paper proposes investigating the timing of consumer requests for price‐matching refunds, the relationship between the refund timing and consumer repeat store purchase and the reasons for buying from the price‐matching store when a lower competitive price is found before purchase.

Design/methodology/approach

In Study 1, qualitative research (consumer interviews) was conducted; Study 2 uses a shopping simulation in which the timing of consumer refund‐seeking behavior is observed, and Study 3 involves a consumer survey in which information on consumer refund‐seeking behavior at real stores is gathered.

Findings

The paper finds that consumers request price‐matching refunds more frequently at the time of purchase than after the purchase. Seeking (and receiving) the price‐matching refund is associated with higher repeat store purchase behavior than not having had a refund‐seeking experience. Key reasons for buying from the price‐matching retailer when a lower competitive price is found before purchase include convenience, tangible extras, and store reputation/service quality.

Research limitations/implications

A student convenience sample was used. In Study 2, fictitious stores were used. In Study 3, the timing of refund seeking may have been different on other (not reported) occasions. Ability to seek the refund was not accounted for.

Practical implications

The majority of the retailer's price‐matching cost will come from issuing at‐the‐time‐of‐purchase refunds, when consumers possess more bargaining power. A positive refund‐seeking experience may create a more loyal customer. In addition to being a low‐price signal, price‐matching policies can serve as signs of retailers' customer orientation.

Originality/value

This research fills the gap in understanding the consumer price‐match refund‐seeking behavior and offers practical implications for retailers employing price‐matching guarantees.

Details

Journal of Product & Brand Management, vol. 14 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 14 December 2021

Saji Thazhungal Govindan Nair

Research on price extremes and overreactions as potential violations of market efficiency has a long tradition in investment literature. Arguably, very few studies to date…

Abstract

Purpose

Research on price extremes and overreactions as potential violations of market efficiency has a long tradition in investment literature. Arguably, very few studies to date have addressed this issue in cryptocurrencies trading. The purpose of this paper is to consider the extreme value modelling for forecasting COVID-19 effects on cryptocoin markets. Additionally, this paper examines the importance of technical trading indicators in predicting the extreme price behaviour of cryptocurrencies.

Design/methodology/approach

This paper decomposes the daily-time series returns of four cryptocurrency returns into potential maximum gains (PMGs) and potential maximum losses (PMLs) at first and then tests their lead–lag relations under an econometric framework. This paper also investigates the non-random properties of cryptocoins by computing the incremental explanatory power of PML–PMG modelling with technical trading indicators controlled. Besides, this paper executes an event study to identify significant changes caused by COVID-19-related events, which is capable of analysing the cryptocoin market overreactions.

Findings

The findings of this paper produce the evidence of both market overreactions and trend persistence in the potential gains and losses from coins trading. Extreme price behaviour explains volatility and price trends in crypto markets before and after the outbreak of a pandemic that substantiate the non-random walk behaviour of crypto returns. The presence of technical trading indicators as control variables in the extreme value regressions significantly improves the predictive power of models. COVID-19 crisis affects the market efficiency of cryptocurrencies that improves the usefulness of extreme value predictions with technical analysis.

Research limitations/implications

This paper strongly supports for the robustness of technical trading strategies in cryptocurrency markets. However, the “beast is moving quick” and uncertainty as to the new normalcy about the post-COVID-19 world puts constraint on making best predictions.

Practical implications

The paper contributes substantially to our understanding of the pricing efficiency of cryptocurrency markets after the COVID-19 outbreak. The findings of continuing return predictability and price volatility during COVID-19 show that profitable investment opportunities for cryptocoin traders are prevailing in pandemic times.

Originality/value

The paper is unique to understand extreme return reversals behaviour of cryptocurrency markets regarding events related to COVID-19 breakout.

Details

Journal of Financial Economic Policy, vol. 14 no. 4
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 9 November 2015

Hsin-Hui Lin

The purpose of this paper is to investigate the effects of three price-matching guarantee (PMG) variables, including refund depth, refund period and competitive scope, on…

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Abstract

Purpose

The purpose of this paper is to investigate the effects of three price-matching guarantee (PMG) variables, including refund depth, refund period and competitive scope, on consumer response; the moderating role of consumer search costs is also examined.

Design/methodology/approach

This study uses a scenario simulation method with a 2×2×2 factorial design to test the research model and hypotheses.

Findings

The results indicate that refund depth has a significant effect on price perception and purchase intention, while competitive scope has a significant effect on purchase intention. In addition, the effects of both refund depth and competitive scope on price perception are moderated by consumer search costs.

Originality/value

This study is a pioneering effort to explore the effects of PMGs variables on consumer response in the context of online retailing. These findings provide several important theoretical and practical implications for the PMG strategy of online retailing.

Details

Journal of Service Theory and Practice, vol. 25 no. 6
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 1 June 2020

Luke Butcher, Oliver Tucker and Joshua Young

Pervasive mobile games (PMG) expand the game context into the real world, spatially, temporally and socially. The most prominent example to date is Pokémon Go (PGo), which…

Abstract

Purpose

Pervasive mobile games (PMG) expand the game context into the real world, spatially, temporally and socially. The most prominent example to date is Pokémon Go (PGo), which in the first 12 months of its launch achieved over 800 million downloads and huge revenues for Pokémon, its majority owner Nintendo, and its developer Niantic. Like many mobile apps and innovative services, PGo's revenue structure requires continual usage (through in-app purchases and sponsorships) as it is free to download. Thus, as many players discontinued after initial adoption, substantial drops in Nintendo's share price occurred alongside the damage to brand equity. Such a case highlights the need to extend scholarship beyond traditional ‘adoption’ and begin to truly illustrate and explain the consumer behaviour phenomenon of ‘discontinuance’, particularly in the emerging and lucrative domain of PMGs.

Design/methodology/approach

Like many emerging marketing channels before it, large-scale discontinuance of PGo occurred and still remains unexplained in the academic literature. Herein, we address this shortcoming through a consumer case study methodology analysing a variety of data sources pertaining to PGo in Australia.

Findings

The development of the P2D_PMG model provides a new conceptual framework to illustrate the distinct forms discontinuance manifests in, for the first time. Scholarly rigour of the P2D_PMGs is achieved through validating and extending Soliman and Rinta-Kahila's (2020) framework for ‘discontinuance’ through its five forms. These forms are revealed as access and on-boarding (rejection), disconfirmation and hedonic adaptation (regressive discontinuance), technological, social, third parties, and personal issues (quitting), re-occurrences of hedonic adaptation (temporary), and alternatives and iterations (replacement).

Originality/value

Conceptual contributions are made in developing a model to explain what drives PMG discontinuance and when it occurs. This is particularly crucial for products with revenue structures built on continual usage, instead of initial adoption. In deriving data from actual players and aggregate user behaviour over an extended time period, the innovative case study methodology validates new discontinuance research in a manner other methods cannot. Managerial implications highlight the importance of CX, alpha/beta testing, promotion and research, gameplay design and collaboration/community engagement.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 33 no. 2
Type: Research Article
ISSN: 1355-5855

Keywords

Book part
Publication date: 23 October 2017

Mariangela Bonasia and Rosaria Rita Canale

The aim of this chapter is to show the limits of the European policy model and to support the existence, through straightforward empirical analysis, of an inverse…

Abstract

The aim of this chapter is to show the limits of the European policy model and to support the existence, through straightforward empirical analysis, of an inverse relationship both in the short run and in the long run between trust in institutions and unemployment. The empirical methodology relies on dynamic panel data techniques allowing measuring in a single equation both the long-run relationship and the short-run speed of adjustment among variables. This connection appears to be valid both in the Eurozone considered as a whole and in particular in peripheral countries, where the macroeconomic dynamics have been, under this respect, much more divergent from the average. This outcome allows proofing that to consolidate the European process of integration in the long run, institutions should have as main objective not only inflation but especially unemployment.

Details

Economic Imbalances and Institutional Changes to the Euro and the European Union
Type: Book
ISBN: 978-1-78714-510-8

Keywords

Article
Publication date: 1 October 2005

Pierre Desmet and Emmanuelle Le Nagard

Seeks to study the effect of a low‐price guarantee (PG) on store price image and store patronage intention. Two kinds of low‐price guarantee are studied: a price‐matching…

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Abstract

Purpose

Seeks to study the effect of a low‐price guarantee (PG) on store price image and store patronage intention. Two kinds of low‐price guarantee are studied: a price‐matching guarantee (PMG) where the price difference is refunded and a price‐beating guarantee (PBG) where a retailer offers an additional compensation.

Design/methodology/approach

A questionnaire is used to collect information on 180 non‐student respondents in an experimental framework where low‐price guarantee dimension is manipulated through three advertisements for printers.

Findings

Findings are: first, that PG indeed lowers store price image, increases the confidence that the store has lower prices and increases patronage intention; second, that, compared with a PMG whose effects are positive but rather small, a PBG further lowers the store price image on the low prices dimension without increasing the intention to search for lower price, this intention being already rather high in the PMG condition; third, that a larger effect is observed for non‐regular customers.

Research limitations/implications

Research limitations are associated with the data collection. For greater reality the study uses an existing retail chain, so specific effects coming from this chain could influence the results but this bias cannot be evaluated as the experiment involves one retailer only.

Practical implications

Practical implications are that price image can be manipulated without any change in pricing policy by a low‐price guarantee and that the interest to adopt a price‐beating guarantee is real.

Originality/value

The contribution of this study lies in its focus on a large PBG level that retailers already apply and in demonstrating that a PG depends on the relationship between the consumer and the retailer with a stronger effect on non‐regular customers.

Details

Journal of Product & Brand Management, vol. 14 no. 6
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 31 July 2018

Oyakhilome Wallace Ibhagui

The purpose of this paper is to empirically analyse how different exchange rate regimes affect the links between monetary fundamentals and exchange rates in Sub-Saharan Africa.

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Abstract

Purpose

The purpose of this paper is to empirically analyse how different exchange rate regimes affect the links between monetary fundamentals and exchange rates in Sub-Saharan Africa.

Design/methodology/approach

Using the Pedroni method for panel cointegration, mean group and pooled mean group and the panel vector autoregressive technique, this study empirically investigates whether monetary fundamentals impact exchange rates similarly in both regimes. Thus, the author acquires needed and credible empirical data.

Findings

The result suggests that the impact is dissimilar. In the floating regime, an increase in relative money supply and relative real output depreciates and appreciates the nominal exchange rate in the long run whereas in the non-floating regime, the evidence is mixed. Thus, exchange rates bear a theoretically consistent relationship with monetary fundamentals across SSA countries with floating regimes but fails under non-floating regimes. This provides evidence that regime choice is important if the relationship between monetary fundamentals and exchange rates in SSA are to be theoretically consistent.

Originality/value

This study empirically incorporates the dissimilarities in exchange rate regimes in a panel framework and study the links between exchange rates and monetary fundamentals. The focus on how exchange rate regimes might alter the equilibrium relationships between exchange rates and monetary fundamentals in SSA is a pioneering experiment.

Details

China Finance Review International, vol. 9 no. 2
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 1 January 2014

Enrique Manzur, Sergio Olavarrieta, Pedro Hidalgo‐Campos and Pablo Farías

The purpose of this paper is to examine two popular price promotion strategies – price matching guarantees (PMGs) and everyday low prices (EDLP) – and their effects on…

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Abstract

Purpose

The purpose of this paper is to examine two popular price promotion strategies – price matching guarantees (PMGs) and everyday low prices (EDLP) – and their effects on Chilean consumer behavior in terms of consumer perceptions of low prices, search behavior and purchase intention.

Design/methodology/approach

A quasi experiment with three scenarios was conducted to test price promotion effects. Subjects were instructed to respond a questionnaire that included the dependent variables.

Findings

Results show that EDLP and PMG strategies increase perceptions of low prices and affect purchase intentions. These effects are significantly higher for stores offering EDLP than PMG. However, when consumers are exposed to two or more price promotion strategies (rather than one) they reduce their purchase intentions for a specific store and increase their search intentions.

Research limitations/implications

This is an initial study exploring the effects of price promotion strategies on consumers. Future research could test the hypotheses advanced in the study across different samples and contexts (supermarkets, department stores, convenience stores, and other retailers) and might privilege external validity, using experiments mimicking decisions with real consequences.

Practical implications

Retailers and marketers in Latin America – particularly those companies stressing price or value as their differential advantage – should consider the use of price promotions when designing marketing strategies. On the other hand, retailers should be aware that an intensive use of these of promotions could lead to increases in consumer search behavior.

Originality/value

While findings from the USA suggest that price promotion strategies can be effective in several contexts, there has been a limited number of studies addressing whether such strategies are effective in other countries, particularly in Latin America and emerging nations.

Details

Academia Revista Latinoamericana de Administración, vol. 26 no. 3
Type: Research Article
ISSN: 1012-8255

Keywords

Case study
Publication date: 1 January 2011

Rupert A. Brandmeier, Sebastian Hain and Florian Rupp

Entry of a service sector company based in Europe into the Middle East market with focus on Saudi Arabia.

Abstract

Subject area

Entry of a service sector company based in Europe into the Middle East market with focus on Saudi Arabia.

Study level/applicability

The students should have some familiarity with case studies and should be able to successfully solve easy cases. This case can be used in all courses of general economics and management. It is best suited for courses on market entries, risk management in international business, intercultural management or developing and emerging markets.

Case overview

Two market entry options are discussed: joint venture set-up with partner and independent direct investment without local partner. A tangible real life experience of the Middle East market will enhance the theoretical presentation and help students to gain practical solutions.

Expected learning outcomes

The students should be aware of risks and opportunities in the Middle East and Saudi Arabian markets for western companies from the service sector. He/She should be able to prioritize relevant economic data and simultaneously discuss several different options by dealing with complex situations.

Supplementary materials

Teaching note.

Details

Emerald Emerging Markets Case Studies, vol. 1 no. 1
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 11 October 2022

Eleni Zafeiriou, Muhammad Azam and Alexandros Garefalakis

Within an effort of European Union (EU) policy to achieve carbon-neutral agriculture, the present study intends to explore the impact of carbon emissions generated by…

Abstract

Purpose

Within an effort of European Union (EU) policy to achieve carbon-neutral agriculture, the present study intends to explore the impact of carbon emissions generated by different sources related to agriculture namely energy used in farming, by enteric fermentation and by fertilizers on agricultural income in 25 countries from EU.

Design/methodology/approach

In order to evaluate the environmental – economic performance linkage for EU agriculture, we employ a couple of different widely used panel unit root tests explicitly Levin, Li and Chu, Im, Pesaran and Shin, ADF and PP Fisher Chi-square test cointegration test (Pedroni and Kao cointegration tests) and model estimation methodologies namely the FMOLS and DOLS and ARDL – PMG models.

Findings

All the cointegration techniques employed namely Pedroni, Kao test and Johansen Pesaran cointegration tests validate the existence of long run relationships. The most significant finding is the model estimation based on three different methodologies namely FMOLS, DOLS and ARDL/PMG models. No convergence in the results was found by different estimation models. For the short term coefficients and more specifically for the case of carbon emissions generated by energy the impact on agricultural income seems to be decreasing with a decreasing trend, a result that validates the little effort made by farmers to limit carbon emissions along with the limited efficacy of the implementing policy. The same findings are valid for the first two estimation models while for the case of the third model the reversed relationship is validated. For the carbon emissions generated by enteric fermentation, the inverted-U pattern is validated with DOLS and ARDL/PMG model while for the case of fertilizers only the third model confirms the validity of inverted-U- pattern.

Practical implications

Based on the obtained empirical results, a list of policy implications is unveiled with multiple impacts on the strategy and practices adopted by farmers in order for the objective of eco efficieny to be achieved.

Originality/value

The conducted research is focusing on the environmental – economic performance linkages for EU agriculture and examines the role of agri – environmental policy in the evolution of the particular relationship for different sources of environmental pollution in agricultural activity.

Details

Management of Environmental Quality: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1477-7835

Keywords

1 – 10 of 298