Search results
1 – 10 of over 106000Lisa M. Wood and Barry J. Pierson
The research outlined in this paper seeks to establish whether or not there are discernible differences in the positioning attributes of Aldi and Sainsbury's. Particular emphasis…
Abstract
Purpose
The research outlined in this paper seeks to establish whether or not there are discernible differences in the positioning attributes of Aldi and Sainsbury's. Particular emphasis is given to price positioning and to what extent this can be explained by product quality differences.
Design/methodology/approach
Price differences are assessed using the shopping basket technique and product quality differences are evaluated using perceptual discrimination tests conducted blind of brand. Where differences between products are discernible, product preference is identified.
Findings
The study identified discernible differences in the pricing strategies of Sainsbury's and Aldi particularly amongst the higher added value products. Although differences in product quality were evident in some product categories, there was no statistically significant preference for one brand over the other.
Research limitations/implications
Owing to the resource intensive nature of perceptual discrimination tests, this research was conducted on a relatively small number of products and cannot be extrapolated to the full range of products available from either retailer, though it may indicate comparable quality.
Originality/value
This paper evaluates the brand description of two UK‐based retailers, Sainsbury's and Aldi. In market positioning, they are at different ends of the retailing spectrum, with Sainsbury's a high added value retailer with an ABC1 consumer profile, and Aldi a hard discounter with a largely C2D consumer base. However, this study is based on a retail site that has the two brands located directly opposite each other in a conspicuously AB suburb of a major UK city. This location deviates from the holistic profile of the Aldi brand and as such provides a special research site.
Details
Keywords
Research has shown that there are different dimensions of price knowledge. But it is still not clear what consumers can remember upon price exposure and what can be retrieved…
Abstract
Purpose
Research has shown that there are different dimensions of price knowledge. But it is still not clear what consumers can remember upon price exposure and what can be retrieved later and why. This research aims to focus on the influence of encoding conditions as well as price characteristics on later price recall or evaluation.
Design/methodology/approach
Two controlled experiments using student subjects were conducted. Participants' encoding objectives and relative price difference between paired products were manipulated and their influence on price recall and evaluation examined.
Findings
The research showed that there is usually a memory distortion of the original product price information upon retrieval. The degree of distortion is influenced by the characteristics of the prices as well as the focus of attention at encoding and the direction of distortion was influenced by consumers' beliefs of pricing norms.
Research limitations/implications
In this research, price difference instead of individual price was manipulated so the interpretation of individual price recall accuracy is constrained. Future research should also examine under what conditions consumers apply a certain type of encoding objective and the effects of memory distortions on consumer choice behaviors.
Practical implications
Results suggest that, for marketers to clearly communicate the price information to consumers and ensure that consumers remember and use the price information as the marketers intended, it is important to examine the compatibility between price exposure environment and form of price information that consumers are likely to retrieve from memory.
Originality/value
The results shed further lights on understanding of consumer price information processing and retrieval.
A study of the price discounts granted by Morton Salt Company and other producers of table salt in the U.S. on their sales of table salt to grocery wholesalers and retailers. The…
Abstract
A study of the price discounts granted by Morton Salt Company and other producers of table salt in the U.S. on their sales of table salt to grocery wholesalers and retailers. The discounts were found to be illegal under the Robinson-Patman Act by the Federal Trade Commission and the Supreme Court. The Commission and the Court believed that the discounts were unjustified price concessions granted to “large” buyers, consistent with the concerns of the Robinson-Patman Act. However, the evidence indicates that the most common discount – the “carload discount” – was received by virtually all buyers, regardless of the buyer’s size; the other discounts – “annual volume” discounts – though received primarily by “large” buyers, were likely cost based. The history of the discounts and likely reasons why they were granted are explored in detail.
Wanqi Liang, Deyi Zhou, Muhammad Rizwan and Samir Huseynov
By conducting an online experiment, this paper proposes and tests a conceptual model about the impact of price labeling strategy on consumers' perceived price difference and…
Abstract
Purpose
By conducting an online experiment, this paper proposes and tests a conceptual model about the impact of price labeling strategy on consumers' perceived price difference and purchase intention. The authors also analyze differential influences of shopping channels and price levels on documented effects. The paper provides strategic suggestions for online grocery store managers to adopt profit-maximizing labeling decisions.
Design/methodology/approach
In a between-subject experiment, the authors simulated a shopping task with eight scenarios by exogenously manipulating price labeling strategies (unit price/retail price), sales channels (online/offline) and price levels (higher/lower than the average price). Participants are randomly assigned to one of the eight scenarios and asked to report their perceived price difference between the stimuli product and the average market price and their purchase intention on the stimuli product.
Findings
Experimental results show that compared to the unit price, the retail price increases the perceived price difference. It shows that the unit price increases consumers' purchase intention when the product price is higher than the average market price. However, these effects only exist in the online shopping context.
Originality/value
This paper extends the study of price labeling strategy to an online shopping context and examines the mediation effect of the perceived price difference.
Details
Keywords
Adam Nguyen and Juan (Gloria) Meng
This research aims to examine how source of funds (paying with company’s funds versus personal funds) affects buyer’s judgments of price fairness and via these judgments, buyer’s…
Abstract
Purpose
This research aims to examine how source of funds (paying with company’s funds versus personal funds) affects buyer’s judgments of price fairness and via these judgments, buyer’s response to prices.
Design/methodology/approach
A scenario-based experiment is used (N = 200). To test the hypotheses, the authors run moderated mediation regression analyses with the help of the PROCESS macro.
Findings
Drawing on fairness heuristics theory, the authors hypothesize and find that relative to when paying with personal funds, when paying with company’s funds, the perceived price difference plays a less significant role, whereas the perceived social acceptability of the pricing practice underlying the price difference plays a more important role in shaping price fairness judgments and, via these judgments, buyer’s response to prices.
Practical implications
The findings generate advice for companies that serve both the business and personal segments (e.g. airlines and hotels). Buyers in the personal segment typically pay with their own money. To persuade these buyers that a price is fair, it is crucial to show that the price represents a good deal for them. Buyers in the business segment often pay with company’s fund. Companies have more flexibility in charging different prices, but they should make sure that the reasons for the price difference are socially acceptable.
Originality/value
This research shows how the relative role of price difference versus social acceptability in price fairness judgments varies as a function of source of funds and how an inconsistency between price difference and its economic impact affects price fairness judgments.
Details
Keywords
The purpose of this paper is to study the effects of short‐sale constraints and differences of opinions on the price premium of dual listed Chinese A‐H shares.
Abstract
Purpose
The purpose of this paper is to study the effects of short‐sale constraints and differences of opinions on the price premium of dual listed Chinese A‐H shares.
Design/methodology/approach
The analysis mainly follows the Miller's model, which indicates that the relaxation of stringent short‐sale constraint could reduce the upward bias in stock prices. Following the literature, the paper uses the idiosyncratic return volatility and monthly turnover rate as two main proxies of differences of opinions.
Findings
This study shows that the high level of A‐share differences of opinions will lead to the high price premium of A‐share portfolio with the short‐sale constraint in the A‐share market. However, the high level of H‐share differences of opinions has no effect on the price premium of H‐share portfolio and has also positively contributed to the A‐share price premium. The price premium of shorted A‐share portfolio is declined more significantly than those of non‐shorted ones after the relaxation of short‐sale constraint in the A‐share market.
Research limitations/implications
The findings in this study provide further evidence that dual listed Chinese A‐shares with high level of differences of opinions and short‐sale constraints tend to be overvalued.
Practical implications
This study supports Miller's hypothesis that with the control of short‐sale constraint, the high level of differences of opinions could lead to the high degree of overvaluation of A‐share portfolio. The market capitalization and book‐to‐market ratio of A‐shares also generate significant positive effect to the A‐share price premium. Finally, the introduction of short‐sale mechanism in A‐share market could partially eliminate the mispricing of dual‐listed A‐shares and improve the price efficiency of A‐share market.
Originality/value
This study is mainly focused on the joint effects of differences of opinions and short‐sale constraints on the A‐share price premium. The new short‐sale policy in A‐share market in March 2010 provides us an opportunity to study the effect of relaxation of stringent short‐sale constraint on the A‐share price premium. In the literatures so far, all studies assumed A‐shares are strictly prohibited to be sold short.
Details
Keywords
Yongfu He, Harmen Oppewal, Yuho Chung and Ling Peng
This paper aims to study how price and sales level information influence consumer product perceptions and choices in online settings. It, in particular, tests whether displaying…
Abstract
Purpose
This paper aims to study how price and sales level information influence consumer product perceptions and choices in online settings. It, in particular, tests whether displaying sales level information increases consumer price sensitivity, which is a potential strategic risk to retailers.
Design/methodology/approach
Study 1 uses eBay data to investigate whether the interaction effects between price and sales level can be observed in an existing market. Study 2 involves online experiments across three product categories. Participants choose from product pairs that are shown with either the same or different prices and with no, the same or different sales levels.
Findings
Study 1 shows strong effects of a product’s displayed sales and price level on its daily sales but finds no interaction effect. Study 2 shows strong effects of price and sales levels on product choice but similarly finds no evidence that sales level information influences consumer price sensitivity, although it reveals an effect on quality perceptions. The results show how perceptions of quality, sacrifice and popularity mediate the effects of price and sales level information on product choice.
Research limitations/implications
Study 1 has limited control over prices and sales levels. Study 2 involves only hypothetical choices.
Practical implications
These findings indicate that businesses can use sales level information to manage consumer product quality perceptions and choices without having to be concerned that this will make consumers more price-sensitive.
Originality/value
To the best of the authors’ knowledge, this paper is the first to investigate how sales level information affects consumer responses to price differences in online contexts.
Details
Keywords
Stanley McGreal, Louise Brown and Alastair Adair
The purpose of this paper is to explore how the difference between the sale price and list price of houses varies across the market cycle.
Abstract
Purpose
The purpose of this paper is to explore how the difference between the sale price and list price of houses varies across the market cycle.
Design/methodology/approach
The paper utilises quarterly transaction‐based information on house prices from the Belfast Metropolitan Area. The information is structured on a time series basis from 2002 to 2008. The analysis is concerned with the mean differences between list price and sale price, the standard deviation of the differences, the skewness and kurtosis of the distributions.
Findings
The results show that under normal market conditions the mean deviation between list price and sale price is small circa 1 per cent. However, the departure between list price and sale price becomes substantial on both the up‐ and down‐cycles of the market. The analysis shows that the highest mean positive deviation of 12.1 per cent occurred in the first quarter of 2007 and two quarters before sale prices peaked, suggesting that buyer bidding behaviour was changing prior to the market peak. The extent of market change is highlighted by the mean negative deviation of 8.6 per cent for the fourth quarter of 2008. The results demonstrate that volatility increases over the cycle and distributions of price differences are lower and flatter.
Originality/value
This paper breaks new ground through the analysis of differences between list and sale price in a period of high volatility in the housing market. The analysis shows how list price lags sale price on the up‐cycle but leads on the down‐cycle.
Details
Keywords
Following the cultural distance and the acquisition cultural risk propositions, I study the impact of organizational culture differences among merging companies on their…
Abstract
Following the cultural distance and the acquisition cultural risk propositions, I study the impact of organizational culture differences among merging companies on their short-term stock performance following merger announcement. I assume that on announcement the market cannot access companies’ organizational culture detailed information, that it focuses on its exposure risk, and that it is inefficient. Using public information available prior to merger announcement, I construct proxies of organizational culture differences among the merging companies and a proxy of a factor mitigating the acquisition cultural risk. Analyzing 6,742 merger announcements released by publicly traded U.S. companies between 1984 and 2005, I show that following merger announcement the market prices a factor mitigating the acquisition cultural risk rather than the magnitude of specific organizational culture differences. Moreover, the market prices stocks of companies involved in high-risk mergers lower than of companies in low-risk mergers. Results are robust to size and period controls.
Details
Keywords
Abstract
Purpose
Coal and power generation are related upstream and downstream industries. Coal price marketization and electricity price regulation have caused the price of coal to be sensitive to the benefits of generators. The paper aims to discuss these issues.
Design/methodology/approach
As a financial tool, contracts for differences can both help balance interests and reduce risks caused by spot price fluctuation. This thesis regards coal demand as a triangular fuzzy stochastic variable while directing a levelling consideration towards risk returns for coal and power enterprises that are involved in coal generation contracts for differences. Risk and benefit measurement models were established between coal suppliers and power generators, and risk and benefit balance optimization models for contract negotiation were constructed.
Findings
A numerical example showed that the above models can be effectively used to avoid the risks of coal-electricity parties.
Originality/value
This thesis regards coal demand as a triangular fuzzy random variable while directing a levelling consideration towards the risk return to coal and power enterprises that are involved with coal generation contracts for differences. The features of this thesis are the following: demand information is regarded as a fuzzy random variable instead of a random variable. With historical data, sales experience and increasingly clear macro-economic conditions, coal and power enterprises are able to make a fuzzy decision – to a certain extent – when the transaction approaches. Accurate market information enables the supply chain system to satisfy the clients’ needs better, improve the profit level or avoid severe financial damages; by developing a feasible set of contracts for different parameters, it is possible to estimate whether the price difference enables supply chain coordination, requires changes or gives accounts to all involved parties of the supply chain; and without the assumption that the traditional M-V rule is unfavourable to decision makers, this thesis proposes the prospect M-V rule, which involves decision makers’ projections of future coal generation prices and enables wide applicability of the response method to contracts for differences.
Details