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Open Access
Article
Publication date: 10 March 2023

Jyrki Isojärvi and Jaakko Aspara

While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price

2482

Abstract

Purpose

While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price promotions or discounts of organic products. The present study aims to fill this research gap.

Design/methodology/approach

To develop alternative hypotheses about consumers’ behavioural responses to price promotions of organic fast-moving consumer good (FMCG) products, the authors used the researcher-introspection method in a pre-study. To test the hypotheses developed based on the pre-study, the authors conducted a field experiment on online advertising of an FMCG sold in drugstores. In the field experiment, the authors exposed consumers to an online ad featuring either a price promotion (−20%) or the regular price of the product. The ads also varied in terms of whether they contained explicit organic claims or not, and whether they included implicit organic cues or not.

Findings

The price promotion increased the clickthrough rate of the ad both when combined with an explicit organic claim and when combined with the implicit cue of green product pack. The results suggest that consumers do not have significant suspicions about price promotions of organic products, but rather presume that the price promotion of an organic FMCG product is a periodical promotional action, similar to the price promotions for conventional, non-organic products. Also, consumers seem to assume that the regular prices of organic FMCG products are so high that the retailer/manufacturer can well afford periodic price discounts.

Research limitations/implications

The present research shifts the focus of organic marketing research from the premium price levels to the effectiveness of price promotions and discounts. Further, the present results contrast with certain earlier studies that have questioned the effectiveness of price promotions for organic products.

Practical implications

The results have different implications for marketing managers of brands not yet providing organic product versions in the market, of brands producing non-organic products, which cannot easily be rendered organic, and of brands offering organic products in the market.

Originality/value

This is, to the best of the authors’ knowledge, the first empirical study and field experiment on price promotions of organic products, including explicit organic claims.

Open Access
Article
Publication date: 12 April 2022

Emma Beacom, Lynsey Elizabeth Hollywood, Victoria Simms and Alison Wynne

Price promotions are a common tool used by retailers to increase sales. This study aims to investigate the effect of consumer's numerical skills and other demographic…

1066

Abstract

Purpose

Price promotions are a common tool used by retailers to increase sales. This study aims to investigate the effect of consumer's numerical skills and other demographic characteristics on their ability to determine the best deal when conducting a grocery shop (referred to as deal competency).

Design/methodology/approach

A consumer survey (n = 308) was conducted online, collecting information about respondent's demographics and grocery shopping behaviours, numerical literacy using the subjective numeracy scale (SNS), and deal competency (a novel measure). Multiple regression analysis and Pearson's correlations were conducted using SPSSv26.

Findings

Overall, the mean SNS score for the total sample was 31.47 (SD = 8.27), and the mean sample deal competency score was 13.5 (SD = 2.3). Spearman's correlation analysis identified a moderate significant positive relationship between numerical skills and deal competency, rs(303) = 0.360, p < 0.001. Regression analysis found significant positive relationships between numerical skills and being male, and with mathematical achievement; and between deal competency and age, mathematical achievement and educational achievement. Regarding buying behaviour, correlation analyses identified only one significant relationship between numerical skills (SNS score) and deal competency and variables relating to buying behaviour, namely a negative relationship between deal competency and amount spent on promotional food items in top up grocery shops.

Originality/value

This study contributes to the gap in literature regarding consumer ability to work out the best deal on promotions, presents a novel scale for describing consumer deal competency, and considers the comparative usefulness of using objective and subjective scales in similar studies.

Details

British Food Journal, vol. 124 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

Content available
Book part
Publication date: 11 July 2018

Abstract

Details

The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality
Type: Book
ISBN: 978-1-78743-529-2

Open Access
Article
Publication date: 10 August 2021

Krystian Jaworski

The purpose of this study paper is to focus on developing novel ways to monitor an economy in real time during the COVID-19 pandemic. A fully automated framework is proposed for…

5919

Abstract

Purpose

The purpose of this study paper is to focus on developing novel ways to monitor an economy in real time during the COVID-19 pandemic. A fully automated framework is proposed for collecting and analyzing online food prices in Poland. This is important, as the COVID-19 outbreak in Europe in 2020 has led many governments to impose lockdowns that have prevented manual price data collection from food outlets. The study primarily addresses whether food price inflation can be accurately measured during the pandemic using only a laptop and Internet connection, without needing to rely on official statistics.

Design/methodology/approach

The big data approach was adopted to track food price inflation in Poland. Using the web-scraping technique, daily price information about individual food and non-alcoholic beverage products sold in online stores was gathered.

Findings

Based on raw online data, reliable estimates of monthly and annual food inflation were provided about 30 days before final official indexes were published.

Originality/value

This is the first paper to focus on measuring inflation in real time during the COVID-19 pandemic. Monthly and annual food price inflation are estimated in real time and updated daily, thereby improving previous forecasting solutions with weekly or monthly indicators. Using daily frequency price data deepens understanding of price developments and enables more timely detection of inflation trends, both of which are useful for policymakers and market participants. This study also provides a review of crucial issues regarding inflation that emerged during the COVID-19 pandemic.

Details

British Food Journal, vol. 123 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 10 August 2023

Helen Inseng Duh and Oliver Pwaka

Despite competition and supply-chain disruptions during Covid-19 pandemic (2019–2021), one grocery retailer consistently thrived and was ranked top. The sources of the sustained…

3751

Abstract

Purpose

Despite competition and supply-chain disruptions during Covid-19 pandemic (2019–2021), one grocery retailer consistently thrived and was ranked top. The sources of the sustained performances needed examination. Guided by self-congruity theory and integrating three models, the authors examined how much the retailer's brand performances (brand loyalty, equity, preference and repurchase intentions) were emanating from brand personalities and marketing offerings. The mediating roles of brand loyalty and equity were tested.

Design/methodology/approach

Cross-sectional data was collected from 480 frequent customers using an online questionnaire posted on the researchers' social media pages. Factor analysis was conducted to identify the dimension that best describes the grocery retailer. Partial least square–structural equation modelling (PLS-SEM) was used to test a conceptual model.

Findings

Factor analysis results show that brand sincerity (28.582% variance-explained; M = 4.1) was top (factor 1), followed by excitement (20.336% variance-explained; M = 3.9) and then trustworthiness (18.854% variance-explained; M = 3.87). PLS-SEM results revealed that two brand personalities (brand excitement and trustworthiness) and marketing offerings (price, place, product, promotion) impacted loyalty found to be a strong driver of brand equity. Repurchase intention and brand preference were influenced by brand equity. Brand loyalty mediated most of the relationships between brand personality dimensions, marketing offerings and brand equity. Brand equity also significantly mediated the relationships between brand loyalty, preference and repurchase intentions. The integrated model produced high explanatory powers with brand equity (67.8%), brand preference (71.7%), brand loyalty (63.2%) and repurchase intentions (54.2%).

Originality/value

The study extends a brand personality-loyalty model through integrating two other models that provided marketing offerings and brand equity outcomes. It demonstrates that a stream of profitable customers' responses awaits a retailer who holds both brand and customer mindsets by building admired brand personalities while providing desired marketing offerings.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 13
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 10 January 2019

Hojin Jung, Kyoung-min Kwon and Gun Jea Yu

Using panel data on gasoline and grocery transactions in Korea, the purpose of this paper is to empirically explore the effect of a retail chain store’s establishment of on-site…

7166

Abstract

Purpose

Using panel data on gasoline and grocery transactions in Korea, the purpose of this paper is to empirically explore the effect of a retail chain store’s establishment of on-site fuel sales. The empirical analyses present strong empirical evidence that the sale of fuel had statistically and economically significant effect on retail store traffic and revenue in the short run. However, the effect did not remain significant in the longer run. To explain the dramatic decrease in the effect of the fuel sale, the authors consider the enhanced competition in the local gasoline retail industry and examine cross-sectional price variations at the station level. The results suggest that the increased competition led to the reduction in the price dispersion across stations and thereby to an increase in consumer welfare.

Design/methodology/approach

Using a linear specification that has traditionally been used to model retail chain data, the authors developed a series of difference-in-differences models. This technique is ideal for estimating the effect of a treatment in the presence of possible selection bias and has been widely employed in many social-science studies on policy intervention.

Findings

In a certain environment, introducing fuel sales did not increase retail chain store traffic or revenue in the long run, despite having statistically and economically significant effects in the short run. The results document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run.

Research limitations/implications

The span of data and sample size were limited to meet the company’s data protection policy.

Practical implications

Considering that many of developed countries are characterized by a gasoline retail environment similar to that which is investigated in this paper, the authors believe that the implications of the results are particularly valid for practitioners and policy makers.

Social implications

The findings document empirical evidence of myopic management in a common marketing practice, which often leads to a negative impact on the firm value in the long run. Marketing researchers should make efforts in establishing metrics to help identify myopic management decision.

Originality/value

This paper addresses an interesting and practical issue related to the effects of the introduction of gasoline sales by a supercenter store on its store traffic.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 31 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Open Access
Article
Publication date: 5 December 2016

Hye Kyung Park, Bong-Sup Shin and Jong-Ho Huh

This paper aims to examine how the temporal distance can influence the effect of the scarcity message. To demonstrate this effect, the authors use the limited-quantity flash sales…

4061

Abstract

Purpose

This paper aims to examine how the temporal distance can influence the effect of the scarcity message. To demonstrate this effect, the authors use the limited-quantity flash sales and compare two types of mixed promotion method comprising discount rate and limited quantity.

Design/methodology/approach

The results of the experiment reveal that consumers in the temporally distant condition have a relatively high-level construal of the limited-quantity flash sales and are more likely to value desirability (discount rate) over feasibility (limited quantity).

Findings

When the expected value is identical, consumers prefer limited-quantity flash sales with smaller limited quantity but higher discount rates. However, consumers in the temporally near condition have a relatively low-level construal of the limited-quantity flash sales and are more likely to value feasibility (limited quantity) over desirability (discount rate).

Originality/value

When the expected value is identical, consumers prefer limited-quantity flash sales with lower discount rates but larger limited quantity.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 10 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Content available
Article
Publication date: 23 November 2018

Chin-Shan Lu, Ho Yee Poon and Hsiang-Kai Weng

This study aims to propose a safety marketing stimuli-response model to explain passengers’ safety behavior in the ferry services context.

5355

Abstract

Purpose

This study aims to propose a safety marketing stimuli-response model to explain passengers’ safety behavior in the ferry services context.

Design/methodology/approach

Structural equation modeling was conducted to examine the impact of safety marketing stimuli on passengers’ safety awareness and behavior by using data obtained from a survey of 316 ferry passengers in Hong Kong.

Findings

The authors found that passengers’ perceptions of ferry safety marketing stimuli positively affected their safety awareness and safety awareness positively affected passengers’ safety behaviors. Specifically, they found that safety awareness played a mediating role in the relationship between ferry safety marketing stimuli and passengers’ safety behaviors.

Practical/implications

The empirically validated scales can be adapted to practices of safety marketing, while providing helpful information for ferry operators to evaluate their efforts of safety marketing and implications for improvement.

Originality/value

According to the authors' knowledge, this study is one of the first attempts to fill this research gap by empirically validating and theoretically conceptualizing measures of safety marketing stimuli based on the marketing stimulus-response model.

Details

Maritime Business Review, vol. 3 no. 4
Type: Research Article
ISSN: 2397-3757

Keywords

Content available
62

Abstract

Details

Journal of Product & Brand Management, vol. 24 no. 4
Type: Research Article
ISSN: 1061-0421

Content available
Article
Publication date: 1 November 2011

Sarah M. Maxwell

723

Abstract

Details

Journal of Product & Brand Management, vol. 20 no. 7
Type: Research Article
ISSN: 1061-0421

1 – 10 of over 2000