Search results

1 – 10 of over 90000
To view the access options for this content please click here
Article
Publication date: 23 October 2020

Ying-Feng Kuo, Cheng-Han Lin and Jian-Ren Hou

Crowdfunding allows enterprises or individuals to collect funds from numerous other individuals. This study applies the anchoring effect and range theory in reward-based…

Abstract

Purpose

Crowdfunding allows enterprises or individuals to collect funds from numerous other individuals. This study applies the anchoring effect and range theory in reward-based crowdfunding to explore how different pledge option designs affect the backers' final pledge amount. Moreover, this study examines whether showing the current average amount pledged in the fundraising process has an anchoring effect on the subsequent backers' pledge amount.

Design/methodology/approach

Online experiments were conducted, and data were analyzed using the Kruskal–Wallis test and Spearman rank correlation analysis.

Findings

Results show that among the three pledge option designs, employing the “bolstering range offer” has the highest backing amount. However, presenting the current average amount pledged in the fundraising process has a reversed anchoring effect on subsequent backers' pledge amount only in the case of a crowdfunding project in the physical goods category with a “point offer.”

Originality/value

To the best of authors’ knowledge, no reward-based crowdfunding platform has yet provided the pledge option design of a “bolstering range offer.” This study reveals that the “bolstering range offer” can significantly increase the amount pledged. This study extends the crowdfunding research area to crowdfunding success and suggests a novel way to set up pledges.

Details

Internet Research, vol. 31 no. 2
Type: Research Article
ISSN: 1066-2243

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 1990

Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton

To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in…

Abstract

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

Details

Management Decision, vol. 28 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

To view the access options for this content please click here
Article
Publication date: 5 February 2018

Nicolas Gonçalves Pontes

Literature in brand extensions has relied greatly on categorization theory and on prototypical models of categorization to explain the affect transfer from a parent brand…

Abstract

Purpose

Literature in brand extensions has relied greatly on categorization theory and on prototypical models of categorization to explain the affect transfer from a parent brand to its extensions. Drawing on the range theory exemplar models of categorization, this paper aims to show the effects of parent brand endpoint prices on consumer judgments of vertical line extensions.

Design/methodology/approach

Three experiments have been conducted. Experiment 1 tests the hypothesis that consumers rely on the parent brand price range when making judgments of an upscale extension. Experiment 2 tests the hypothesis that the effect of price range on extension evaluation is mediated by perceived risks for upscale extensions but not downscale extensions. The final experiment shows a boundary condition to the product line range effect on upscale extensions.

Findings

This research shows that upscale extensions are judged more favorably in the context of a wide versus a narrow product line even when the highest endpoints in both product lines are equally close to the extension and that this effect is mediated by perceived consistency and perceived risk. The range effect disappears, however, when consumers have a broad focus in which attention shifts to category endpoint prices, making parent brand prices less diagnostic of upscale extension judgments.

Practical implications

Managers may display a wider range of products and/or reduce prices of low-end models to expand product line price width. In consequence, low-end products become more competitive in terms of price and at the same time improve favorability ratings of the new upscale product.

Originality/value

Vertical line extensions and product line pricing are important topics to both academics and practitioners. Nonetheless, this is the first research to demonstrate how product line price width can influence consumer perceptions of vertical line extensions.

Details

European Journal of Marketing, vol. 52 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

To view the access options for this content please click here
Article
Publication date: 1 January 1982

Martha E. Williams

The connect hour prices for use of 320 online databases up on seven major biblio‐graphic systems in February 1981 in the U.S. and Canada were analyzed. A distribution was…

Abstract

The connect hour prices for use of 320 online databases up on seven major biblio‐graphic systems in February 1981 in the U.S. and Canada were analyzed. A distribution was run and all databases fell into five ranges with 65% in the medium‐low ($25–49) and medium ($50–74) ranges. Government databases were analyzed as a subset of the total, and National Library of Medicine databases were analyzed in more detail as a subset of govern‐ment online databases. Further analyses of database prices were done in terms of four new measures: (1) price per connect‐hour per record accessible online; (2) price per connect‐hour per record searchable online; (3) number of records accessible per dollar per connect‐hour; and (4) number of records searchable per dollar per connect‐hour. Data are given in both real and constant dollars. Using these four measures, one can see that database size correlates extremely well with price. Reasons for increasing the price per connect hour for MEDLINE are given. They relate to the numerical analyses and to the responsibilities government database producers have to not‐for‐profit database producers.

Details

Online Review, vol. 6 no. 1
Type: Research Article
ISSN: 0309-314X

To view the access options for this content please click here
Article
Publication date: 18 July 2008

Devon DelVecchio and Adam W. Craig

This research aims to integrate two theories of reference price formation and to test the resulting exemplar‐prototype hybrid (EPH) model's predictions. Study 1 tests the…

Abstract

Purpose

This research aims to integrate two theories of reference price formation and to test the resulting exemplar‐prototype hybrid (EPH) model's predictions. Study 1 tests the predictions of the EPH model regarding price attractiveness ratings. Study 2 helps to document the process by which the EPH model operates.

Design/methodology/approach

The investigation consists of a pair of laboratory experiments that manipulate the skew (positive, negative) of historic price data, and the frequency of the modal price (high, low) in the price history.

Findings

Both the skew of prices to which consumers are exposed and the frequency with which the modal price occurs affect recall of the modal price and evaluations of the attractiveness of subsequent prices.

Research limitations/implications

Consumers rely on information about both the price range and individual price points to form reference prices. Common models of reference price effects may be improved by including a non‐linear estimate of the effect of modal price frequency.

Practical implications

Managers are advised to offer a consistent regular price from which occasional discounts of varying value are offered to create a strong memory trace in consumers' minds for the higher “regular” price and avoid such a trace for any one discounted price.

Originality/value

Prior studies detail aspects of the relationship between reference prices and the attractiveness of market prices. This is the first attempt to integrate, rather than contrast, the two predominant types of theories (range‐based, price‐point based) of reference price formation.

Details

Journal of Product & Brand Management, vol. 17 no. 4
Type: Research Article
ISSN: 1061-0421

Keywords

To view the access options for this content please click here
Article
Publication date: 1 March 1983

P.N. Kirthisingha

Since the adoption in 1976 of the Integrated Programme for Commodities, only four international commodity agreements have been concluded, of which only one, the…

Abstract

Since the adoption in 1976 of the Integrated Programme for Commodities, only four international commodity agreements have been concluded, of which only one, the International Natural Rubber Agreement (1979), was new. The others are the International Sugar Agreement (1978), the International Cocoa Agreement (1980) and the International Tin Agreement (1981). In view of the broad political support for international commodity agreements, the progress towards concluding such agreements is slow. Moreover, in some of them universality is lacking. Several countries which account for a substantial proportion of world production and consumption of, and trade in, the commodity subject to an international agreement, have not ratified or acceded to the relevant agreements. The duration of the negotiations has been exceedingly long in comparison with experience on negotiations of the previous agreements. This outcome, several years after the adoption of the Integrated Programme for Commodities, is disappointing and unexpected, especially since the basic purpose of that Programme and the setting up of the Common Fund in accordance with it was “to act as a catalyst for international commodity agreements”. The purpose of this article is to examine the reasons for this outcome.

Details

International Journal of Social Economics, vol. 10 no. 3
Type: Research Article
ISSN: 0306-8293

To view the access options for this content please click here
Article
Publication date: 4 September 2019

Gordhan K. Saini, Arvind Sahay and Gurumurthy Kalyanaram

This paper aims to examine three important questions: What would be the effects of pricing at the lower end of a wide vs narrow latitude of price acceptance (LPA) on…

Abstract

Purpose

This paper aims to examine three important questions: What would be the effects of pricing at the lower end of a wide vs narrow latitude of price acceptance (LPA) on consumer choice of the bundle? How would the nature of a bundle frame (i.e. discount on bundle vs discount on components) and discount frame (i.e. discount as absolute off vs discount as percentage off) influence the preference given to a price level that is at the wide or narrow end of the LPA? Would the effect be significantly different if the bundle components were complementary vs if they were non-complementary?

Design/methodology/approach

The authors carried out two studies using between-subject experimental design. In Study 1, the authors used 2 (LPA: wide/narrow) × 2 (complementarity: yes/no) × 2 (bundle frame: together/separate) design, and in Study 2, the authors replaced bundle frame with discount frame (i.e. absolute off/percentage off).

Findings

The authors find that the LPA effect is likely to outweigh the complementarity effect; however, a combined effect of complementarity and bundle frame is stronger than the LPA effect. Also, for a wide (narrow) LPA product bundle, absolute off (percentage off) discount frame is more attractive.

Practical implications

Managers should use bundling strategy with complementary products having wider LPA. In case of wide LPA and complementary products, both together and separate frame could be the best bundling strategy while in case of narrow LPA and complementary products, together frame could be the best bundling strategy.

Originality/value

The main contribution relates to the role LPA plays in consumer evaluation of a bundle offer and its interaction with complementarity and discount frame. The authors apply the range hypothesis principles (i.e. price-attractiveness judgments are based on a comparison of market prices to the endpoints of a range of evoked prices) in the bundling context and extend the earlier work in the area of complementarity and discount frame.

Details

Journal of Consumer Marketing, vol. 36 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

To view the access options for this content please click here
Article
Publication date: 26 August 2020

Waqas Mehmood, Rasidah Mohd-Rashid, Norliza Che-Yahya and Chui Zi Ong

This study investigated the effect of pricing mechanism and oversubscription on the heterogeneity of investors' opinions on initial public offering (IPO) valuation.

Abstract

Purpose

This study investigated the effect of pricing mechanism and oversubscription on the heterogeneity of investors' opinions on initial public offering (IPO) valuation.

Design/methodology/approach

Besides the ordinary least square method, this study incorporated robust least square, stepwise least square and quantile regression methods to investigate the aftermarket behaviour of investors using the price range on the first day of trading of 82 IPOs listed on the Pakistan stock exchange.

Findings

The aftermarket behaviour of investors was found to be significantly influenced by the pricing mechanism, oversubscription, financial leverage, political stability and the risk of IPO, whereas control of corruption showed an insignificant impact. Concurrently, the findings showed that pricing mechanism and oversubscription played a crucial role in determining the intensity of investors' heterogeneous opinions at high levels of significance.

Originality/value

Pricing mechanism and oversubscription not only signal the quality of IPOs but also provide an important means for reducing the information asymmetry associated with new listings. Based on the literature review, it was found that both the pricing mechanism and oversubscription have yet to be explored in investigating the aftermarket behaviour of investors using the price range in the Pakistan IPO market. This study suggests that book building pricing mechanism and oversubscription are associated with lower heterogeneity in investors’ opinions at a high level of significance.

Details

Review of Behavioral Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1940-5979

Keywords

To view the access options for this content please click here
Book part
Publication date: 17 December 2003

Jihui Chen and Patrick Scholten

We study how price dispersion varies with product characteristics at a popular online price comparison site – Shopper.com. Our primary finding suggests that price

Abstract

We study how price dispersion varies with product characteristics at a popular online price comparison site – Shopper.com. Our primary finding suggests that price dispersion in online markets varies with product characteristics and firm behavior. We also find evidence that the level of dispersion varies with the percent of firms listing price information in multiple categories. When the percent of firms listing prices in multiple categories is relatively high (low), price dispersion is low (high).

Details

Organizing the New Industrial Economy
Type: Book
ISBN: 978-0-76231-081-4

To view the access options for this content please click here
Article
Publication date: 1 January 2004

Trent Johnson and Johan Bruwer

Wine is widely regarded as a ‘complicated’ product and for the majority of consumers the purchasing of wine in the retail situation evokes considerable risk. Marketers are…

Abstract

Wine is widely regarded as a ‘complicated’ product and for the majority of consumers the purchasing of wine in the retail situation evokes considerable risk. Marketers are therefore constantly and increasingly trying to demystify wine in order to reduce the perceived risk levels of consumers in the purchase situation. Most previous research in the area of perceived risk literature tended to focus on the concept of risk and its measurement rather than on risk‐reduction. This study examined the preferred risk‐reduction strategies (RRS) employed by identified wine‐related lifestyle segments in the Australian wine market and linked these strategies to the wine retail environment. Relying on favourite brands or so‐called ‘safe brand’ buying was found to rank highest as a risk reduction strategy in the commercial (under $15 per bottle) and premium‐to super‐premium ($15‐$25) price ranges while the opportunity to try before buying ranked highest in the ultra‐premium ($25) price range. The results obtained have major implications for retailers and form the foundation for a competitive advantage. It also indicates the direction for future research in this strategically important area of wine consumer behaviour.

Details

International Journal of Wine Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 0954-7541

Keywords

1 – 10 of over 90000