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Article
Publication date: 5 January 2015

Rodrigo Romo Muñoz, Mario Lagos Moya and José M. Gil

Focused on the olive oil sector in Chile which is a non-traditional market (both in production and consumption), the purpose of this paper is to determine the implicit value of…

2568

Abstract

Purpose

Focused on the olive oil sector in Chile which is a non-traditional market (both in production and consumption), the purpose of this paper is to determine the implicit value of the most relevant attributes of olive oil on the final price charged by supermarkets to consumers through the hedonic pricing methodology.

Design/methodology/approach

Field work was carried out between September and October 2012 in 12 supermarkets belonging to the four most important Chilean retail chains. A log-linear price-attribute function was used to estimate the hedonic price function. The sample included 248 observations olive oil prices available to consumers in the leading supermarkets in the city of Chillán (Chile).

Findings

The model estimation results led to the observation that the attributes that most positively influenced final price are oil acidity level, tin can container of imported oil, and origin. On the other hand, the attributes that most negatively influenced final consumer price are retailer house brand and plastic container.

Research limitations/implications

A limitation of this study is associated with the geographic area where it was carried out, that is, the city of Chillán in the Bío-Bío Region, which is the second largest region and accounts for 12 per cent of the total population. Further research should include other cities such as Santiago (capital), Concepción, Curicó and Valparaíso.

Originality/value

This study can be considered as a first approximation of a hedonic pricing model estimation for olive oil in non-traditional markets like Chile, which is considered an emerging market.

Details

British Food Journal, vol. 117 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 15 June 2018

Lala Hu and Andrea Baldin

The purpose of this paper is to analyse the country of origin (COO) effect on wine purchase in China by considering a sample from an e-commerce website. The paper contribute to…

1228

Abstract

Purpose

The purpose of this paper is to analyse the country of origin (COO) effect on wine purchase in China by considering a sample from an e-commerce website. The paper contribute to the literature on hedonic pricing by applying this model to the Chinese market and including COO as product attribute.

Design/methodology/approach

A hedonic price model is adopted to measure the effect of search attributes on wine sales in China. A reduced form of the classical hedonic analysis is used as in Nerlove (1995), given the assumption that prices and attributes are taken as exogenous to consumers.

Findings

Results show that the COO represents the attribute that most influences wine sales in China. Protected indicators of origin, which denote wine with recognised certificates, are also significant, reinforcing the importance of the production area. Vintage attribute does not impact sales, suggesting a low level of consumer experience with wine.

Research limitations/implications

The study suffers from the limitations of results’ generalisability, given the size and characteristics of the sample. In the future research, the model should be tested on a larger sample. Moreover, it can be applied on other products, in which COO represents an information and quality cue.

Practical implications

Firms operating in sectors where COO implies specific characteristics of quality should enhance this attribute in their marketing strategies to increase their competitive advantage. Also policy implications with respect to the governmental actions to support wine producers are discussed.

Originality/value

Hedonic price analysis represents a well-established model; however, to the best of the authors’ knowledge it has never been used in China before. This study also highlights the primary role of COO as search attribute in wine purchase.

Details

British Food Journal, vol. 120 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 5 March 2020

Hanna Lee, Lori Rothenberg and Yingjiao Xu

The purpose of this paper is to explore and examine the relative impact of product and channel attributes on luxury product shopping in the multi-channel environment.

3922

Abstract

Purpose

The purpose of this paper is to explore and examine the relative impact of product and channel attributes on luxury product shopping in the multi-channel environment.

Design/methodology/approach

A D-optimal discrete choice conjoint design was used. The data were analysed using a multinomial logit model and desirability indices.

Findings

Findings indicate that low price was the most important factor that influenced young consumers' preferences. After price, young luxury consumers placed a greater importance on channel attributes such as human-assisted service and virtual fitting rooms.

Research limitations/implications

The sample consisted of young consumers in their 20s and 30s, who utilise both online and offline channels. Hence, the income level was relatively low. Also, the results cannot be generalised to all luxury consumers.

Practical implications

Providing preferable channel attributes is more crucial to young luxury fashion shoppers than focusing on improving product attributes, with the exception of price.

Originality/value

The paper proposes the optimal combination of key product and channel attributes that is most preferable to young luxury fashion consumers in the multi-channel environment.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 14 August 2017

Kushagra Kulshreshtha, Vikas Tripathi, Naval Bajpai and Prince Dubey

This paper aims to explore surprising facets of consumer delight behavior. The study is the empirical juncture of three studies based on consumer survey on the Indian television…

1121

Abstract

Purpose

This paper aims to explore surprising facets of consumer delight behavior. The study is the empirical juncture of three studies based on consumer survey on the Indian television market. Study 1 traces the existence of greenies in India among brownies prevailing around the globe by using the surprise-delight model. Study 2 is a pre-intervention research design confirming greenies preferences to television attributes such as screen technology, annual energy cost saving, screen resolution, screen size and free gifts. Study 3 signifies a price intervention design by allowing customers to include their preference by replacing the annual energy cost saving with price.

Design/methodology/approach

This paper is a harvest of studies based on discriminant analysis for identifying green and brown customers and a two-level conjoint analysis for identifying attributes contributing to green behavior.

Findings

The empirical generalization of a study comes out with unique findings of the greenies and brownies and their preference and attitude toward green attribution and substitution. A “preferential green shift” appeared as a vital output owing to knowledge–attitude–practice from these consecutive studies. This gap exists because of the price factor. The authors suggest the measures for improvement in product offering by targeting and positioning green products from the findings and the preferential green shift.

Research limitations/implications

Future research may focus on other segments of products such as automobiles, i.e. cars. Despite the availability of the non-probabilistic sampling technique, the probabilistic sampling technique can be used. Finally, a larger sample size could have given a better generalization of results.

Originality/value

The gap in knowledge–attitude–practice was evident. This gap was caused by the presence of “price” concern. The study revealed that heavy consumer durable buyers are aware of the benefit of green, but the reality of price cannot be ignored and finally make a purchasing decision on the basis of price criteria. Hence price is recommended as another criterion to be considered in the technology acceptance models.

Details

foresight, vol. 19 no. 4
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 12 March 2018

Elyse Shane, MD Wahid Murad and Susan Freeman

The purpose of this paper is to determine and analyse that factors that could potentially influence price premiums of Australian wine in the UK market. The authors integrated the…

1103

Abstract

Purpose

The purpose of this paper is to determine and analyse that factors that could potentially influence price premiums of Australian wine in the UK market. The authors integrated the economic-based hedonic pricing theory and marketing export pricing literature. The authors demonstrate a potential solution to limitations in knowledge of market-level data and industry wide competition, currently lacking in export pricing studies.

Design/methodology/approach

Using data extracted from wine-searcher.com and using multiple regression as the main analytical technique, the authors examined the relationships between actual retail prices UK consumers pay for Australian wine and product attributes. The authors compared the moderating influence of distribution channel (retail choice) on these relationships.

Findings

The results provide insights in export pricing literature, and the authors support better theoretical explanations for hedonic pricing studies in export marketing. The authors found two types of wine attributes – “brand” and “region of origin” – that attract price premiums. While relationships between variety and retail price, as well as age and retail price are less clear, the authors provide some support.

Research limitations/implications

One limitation of this hedonic pricing study is the inability to explain why certain relationships between product attributes and price premiums exist. Studies such as these could be improved by utilising both consumer- and firm-level data.

Practical implications

Whilst final prices paid by consumers are beyond the control of producers, understanding the relationships between retail prices, retail choices and product attributes are of strategic importance. Understanding the role consumer preferences play in determining prices they ultimately pay is of great value when determining export/retail pricing strategies.

Social implications

Consumers and firm managers are jointly able to provide comprehensive explanations on why certain attributes attract price premiums. The integration of economic and consumer-based theories provides a holistic understanding of the influence of retail choices and product attributes on retail prices.

Originality/value

The authors drew on the hedonic pricing theory linking product attributes with retail prices, which is vital for understanding market share and brand image. The authors identified which product attributes and which distribution channels (retail choices) are valuable to consumers. Deeper understanding of these issues is important for producers.

Details

International Journal of Wine Business Research, vol. 30 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 February 2001

Beata Kupiec and Brian Revell

Many on‐farm‐processed products frequently command a premium price, characterised as they are by unique sensory properties and image. Examines the nature of consumer judgements…

4104

Abstract

Many on‐farm‐processed products frequently command a premium price, characterised as they are by unique sensory properties and image. Examines the nature of consumer judgements about product quality for farmhouse Cheddar cheeses based on utilities derived from the product attributes, and the trade‐off against price. Determines key Cheddar cheese attributes through in‐depth interviews with specialist cheese consumers and employs conjoint analysis to estimate the utilities associated with these attributes based on a wider choice‐experiment survey of farmhouse Cheddar consumers. A “price sensitivity meter” technique was used to establish acceptable price ranges as perceived by the latter group. Results from market simulations suggest that the consumer price sensitivity for farmhouse cheese is likely to be low. The analysis also revealed that those attributes associated with the traditional characteristics of farmhouse Cheddar have the highest utilities and that any characteristics similar to industrial Cheddar were largely unattractive to the consumers of farmhouse cheese.

Details

British Food Journal, vol. 103 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 25 January 2021

Tiancheng Shang, Kaiti Shang, Peihong Liu, Xiaotong Sun and Xinxin Li

The purpose of this paper is to analyze the implicit prices of hotel attributes in different time periods and different markets.

Abstract

Purpose

The purpose of this paper is to analyze the implicit prices of hotel attributes in different time periods and different markets.

Design/methodology/approach

With data from the travel meta-search engine, this paper chose 3- to 5-star hotels in Beijing’s central business district and use hedonic price models.

Findings

The results suggest that the attributes with significant implicit prices differ in different time periods; the same attributes with different implicit prices in different time periods; the same attributes with different implicit prices in different market segments.

Originality/value

This study may help to explain the different findings on the relationship between the attributes and room rates of Chinese star-rated hotels in different time periods, and will be useful in both revenue optimization efforts and the design of new hotels projects.

Details

International Journal of Culture, Tourism and Hospitality Research, vol. 15 no. 1
Type: Research Article
ISSN: 1750-6182

Keywords

Article
Publication date: 7 March 2019

Gunjan Sharma, Naval Bajpai, Kushagra Kulshreshtha, Vikas Tripathi and Prince Dubey

The online shopping behavior is the outcome of the variety of attribution from product/ service offering to internet experience. The present study attempts to develop a complete…

3491

Abstract

Purpose

The online shopping behavior is the outcome of the variety of attribution from product/ service offering to internet experience. The present study attempts to develop a complete product/service offering by exploring and examining the different combinations of online shopping attributes to provide the customized experience. Therefore, this study aims to fill the gap of customer desired experience and present scenario in online shopping behavior.

Design/methodology/approach

The exploration of attributes pertaining to online shopping behavior was done by seeking theoretical support from different technology adoption theories/models and the Delphi technique, exercised with active participants of online and offline shopping. The theoretical and experience shared attributes were devised and social desirability scale (SDS) was used for eliminating the social desirability bias. Further, the questionnaire was administered online and offline during mall intercept. The Conjoint analysis was used to investigate the relative importance and utilities of the attributes and its levels individually and compositely at different levels.

Findings

In the context, brand loyalty, online reputation management and Web interactivity were found most relavant followed by e-WOM, perceived risk and price. The specific levels of attributes such as taking consumer advice, search engine optimization (SEO), perception-based interactivity, consumer message boards, product risk and discount pricing were the crucial in motivating the customers for online shopping. This research affords the avenue for the marketers to motivate and delight consumers to retribalize by the way of “e-tribalizing.”

Research limitations/implications

The current study was conducted in confined geographical locations and limited in sample size; thus, the issue of generalization may prevail, but forthcoming researchers may exercise the techniques with better probabilistic sampling technique. The mass customization of the website features by comparing attribute orientation of customers around websites was recommended with the third-party certification to reduce the consumers’ perceived risk during online shopping. Finally, the different levels, such as Facebook fan page in ORM and Everyday Low Price (EDLP) in pricing may be considered for the future research work.

Originality/value

The research studies on online shopping behavior with Web interactivity, e-WOM, perceived risk, brand loyalty, ORM and price using a decompositional technique are scant. This study persuades the customers to go for online shopping by putting them in the almost real-time purchasing scenario. The study confirmed the need of people to retribalize through e-tribalization by the way of customization for the masses in the context of online shopping.

Details

foresight, vol. 21 no. 2
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 7 December 2015

Natalia Maehle, Nina Iversen, Leif Hem and Cele Otnes

The purpose of this paper is to identify the relative importance of four main attributes of food products for consumer’s choice. These are price, taste, environmental friendliness…

7227

Abstract

Purpose

The purpose of this paper is to identify the relative importance of four main attributes of food products for consumer’s choice. These are price, taste, environmental friendliness and healthfulness, tested across hedonic and utilitarian food products (milk and ice-cream). The weighting of attributes involved in food choices is a complex phenomenon, as consumers must consider contradictory requirements when making their choices. Consumers’ decision-making processes might also be influenced by food category. Some food products are mostly consumed for pleasure, whereas others are consumed because of their nutritional value.

Design/methodology/approach

The study employs a choice-based conjoint technique, which addresses how consumers make trade-offs across a set of product attributes.

Findings

The results indicate that price and taste attributes are rated as the most important for both hedonic and utilitarian food products. However, when the authors group consumers according to their product preferences, the relative importance of product attributes changes. Specifically, the importance of environmental friendliness and healthfulness is much higher among the health-conscious and environmentally conscious segments than for other segments.

Originality/value

To the knowledge, this is the first study comparing the importance of this combination of product attributes (price, taste, calorie content and eco-label) across hedonic and utilitarian foods in a choice-based conjoint setting. Moreover, a new way of grouping consumers according to their ethical-value profiles enables the authors to create a psychographic description of these segments, and to relate it to their food attribute preferences.

Details

British Food Journal, vol. 117 no. 12
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 17 July 2020

Arya Sohrabi, Mir Saman Pishvaee, Ashkan Hafezalkotob and Shahrooz Bamdad

Prepaid mobile Internet is one of the most profitable services that are composed of multiple attributes. The overall utility of Internet service can be broken down into the sum of…

Abstract

Purpose

Prepaid mobile Internet is one of the most profitable services that are composed of multiple attributes. The overall utility of Internet service can be broken down into the sum of the utility of individual attribute levels. Based on the multi-attribute theory, rational consumers choose the service that yields the highest utility from a number of possible alternatives. Determining the optimal attribute levels that satisfy consumers' preferences and maximize the total revenue of the firm is a challenging multi-attribute decision problem for any mobile operator. When designing mobile Internet services, adopting a robust composition of services against different realizations of competitors' strategies can bring advantages for network operators. The purpose of this study is to determine the optimal attribute levels of prepaid mobile Internet packages with the aim of maximizing the total revenue of the firm by considering the paradigms of multi-attribute utility theory about consumer choices and the issue of uncertainty in counterpart services offered by the competitors.

Design/methodology/approach

This paper formulates the problem of multi-attribute pricing and design of mobile Internet plans in a competitive environment by developing deterministic and robust scenario-based mathematical models and considering the paradigms of multi-attribute utility theory about consumer choices. The proposed robust scenario-based models are based on three different paradigms, including maximizing expected revenue, minimizing the negative deviation from expected revenue and minimizing the maximum regret. A comprehensive numerical analysis is conducted to evaluate and compare the efficiency of the proposed models.

Findings

The evaluations reveal that deploying recourse policy can result in higher revenue for the firm when facing uncertainty. By doing sensitivity analysis, this paper shows that consumer preferences for brand attribute and consumers' purchase frequency can influence the revenue of network operators.

Originality/value

This paper develops a novel deterministic multi-attribute product line design (PLD) model to address the problem of determining the price and composition of prepaid mobile Internet plans. Furthermore, the issue of uncertainty in counterpart services offered by the competitors is studied for the first time in the PLD literature.

Details

Journal of Enterprise Information Management, vol. 33 no. 5
Type: Research Article
ISSN: 1741-0398

Keywords

1 – 10 of over 64000