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Open Access
Article
Publication date: 13 July 2021

A. Celil Cakici and Sena Tekeli

This study aims to reveal the impact of consumers’ price sensitivity on their purchase intention within the scope of supermarkets. Besides, the study aims to examine the…

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Abstract

Purpose

This study aims to reveal the impact of consumers’ price sensitivity on their purchase intention within the scope of supermarkets. Besides, the study aims to examine the impact of consumers’ price sensitivity on their price perception level and emotions and the impact of consumers’ price level perception and emotions toward supermarkets on their purchase intention. It also aims to detect the mediating effects of consumers’ price level perception and emotions toward supermarkets between their price sensitivity and purchase intention.

Design/methodology/approach

The quota sampling method was used to form the study sample. The population was 20–69-year-old consumers. The study sample included 513 consumers, 276 of whom were men, and 237 of whom were women. Data were collected via a questionnaire by the researchers in Mersin’s (Turkey) five central counties. Explanatory and confirmatory factor analyses and structural equation models were used to analyze data.

Findings

Consumers’ price sensitivity, perception of cheapness, perception of expensiveness and positive emotions toward supermarkets affect their purchase intention. Besides, price sensitivity affects their perception of cheapness while it does not affect their perception of expensiveness. It influences negative emotions, but not on positive emotions. Consumers’ perception of cheapness and perception of expensiveness have impacts on positive emotions toward supermarkets. It was additionally discovered that perception of cheapness and perception of expensiveness affected negative emotions toward supermarkets. A contributed finding was that perception of cheapness had a partial mediating role between price sensitivity and purchase intention.

Practical implications

The study provides managerial implications in terms of understanding consumers’ behavioral changes, developing effective pricing strategies and achieving competitive advantages over the other retailing companies.

Originality/value

The study illustrates that consumer behavior can be explained by a theoretical construct considering the price perception levels and emotions toward supermarkets in examining the effect of consumers’ price sensitivity on their purchase intention. Therefore, it contributes to explain consumers’ behavior by bringing the stimulus–organism–response (SOR) model into a theoretical construct.

研究目的

本研究旨在揭示在超級市場的研究範疇內,消費者的價格敏感度對其購買意圖的影響。此外,本研究亦擬探討消費者的價格敏感度對其價格水平感知及情緒的影響,以及消費者的價格水平感知及對超級市場的情感對其購買意圖的影響。本研究亦旨在檢測在消費者的價格敏感度與購買意圖之間,其價格水平感知及對超級市場的情感兩者的仲介效果。

研究的設計/方法/理念

本研究用了配額抽樣法來建立研究樣本。研究的對象為20嵗至69嵗的消費者。研究樣本包括513名消費者,其中276人為男性,237人為女性。數據由研究人員透過一項問卷調查在梅爾辛省 (土耳其) 的五個中心縣取得。使用探索性因素分析,驗證性因素分析及結構方程模型來分析數據。

研究結果

研究結果顯示,消費者的價格敏感度,廉價感,對昂貴的看法及對超級市場的正面情緒,均影響其購買意圖。此外,消費者的價格敏感度會影響其廉價感,唯其對昂貴的看法則不受影響。價格敏感度對負面情緒帶來影響,但正面情緒則不受影響。消費者對廉價的看法及對昂貴的看法均影響他們對超級市場的正面情緒。研究亦發現,廉價感及對昂貴的看法均影響消費者對超級市場的負面情緒。貢獻的發現是:廉價感於價格敏感度與購買意圖之間扮演部分仲介角色。

實際的意義

本研究對管理有其作用。研究結果幫助管理人員更了解消費者行為的改變,發展有效的定價策略,以及比其它零售公司更能發展競爭優勢。

研究的原創性/價值

本研究闡明消費者行為是可以利用一個理論構建來說明的,而這個理論構建是透過考慮價格水平感知及對超級市場的情感來探討消費者的價格敏感度對其購買意圖的影響。因此,本研究透過把「刺激 – 機制 – 反應」模型變成為一個理論構建來說明消費者的行為, 在這方面,本研究是有其貢獻的.

Details

European Journal of Management and Business Economics, vol. 31 no. 1
Type: Research Article
ISSN: 2444-8451

Keywords

Article
Publication date: 30 May 2008

Juha Munnukka

The purpose of this paper is to investigate customers' intentions to purchase mobile communications services and how these intentions are affected by the customers' price

12446

Abstract

Purpose

The purpose of this paper is to investigate customers' intentions to purchase mobile communications services and how these intentions are affected by the customers' price perceptions in two customer segments – a mobile segment and a combined segment. A further aim was to gain insight into the formation of price perceptions, and customer characteristics that underlie the differences between purchase intentions and price perceptions.

Design/methodology/approach

The study was conducted in the Finnish mobile services market. The sample data were collected through a postal survey (n=3,000) sent to customers of a Finnish teleoperator. In analyzing empirical data the explanatory factor analyses, linear regression analyses, and analysis of variance were applied.

Findings

The results indicated that a significant and positive relationship exists between customers' price perceptions and their purchase intentions, and that the formation of price perceptions is significantly influenced by satisfaction with pricing and services. Price transparency was found to be negatively associated with customers' price perceptions. Gender, age, and experience of service use were found to explain the differences in customers' perceptions.

Practical implications

By segmenting customers according to the research results and targeting pricing schemes specific to these segments would potentially improve customers' price perceptions and their intentions to purchase mobile services. The study also supported the use of multi‐dimensional pricing schemes as it was found to positively influence customers' price perceptions.

Originality/value

This paper provides new practical and theoretical insights into the relationship between purchase intentions and price perception, and into the formation of the price perceptions of mobile services customers.

Details

Journal of Product & Brand Management, vol. 17 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 June 1997

Ronald E. Goldsmith and Stephen J. Newell

Presents a simple and concise survey method for measuring price sensitivity and illustrates its use by examining the relationship between innovativeness and price

6369

Abstract

Presents a simple and concise survey method for measuring price sensitivity and illustrates its use by examining the relationship between innovativeness and price sensitivity within a specific product category. The results of a survey of 457 students revealed a negative relationship between fashion innovativeness and fashion price sensitivity, thereby confirming previous studies. Additional analyses showed that the individual scale items and the short summed scales operationalizing the constructs possessed discriminant validity, enhancing the credibility of the findings. Discusses applications of this self‐report method for measuring price sensitivity to other pricing issues.

Details

Journal of Product & Brand Management, vol. 6 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 January 2005

Juha Munnukka

Price sensitivity is one of the key factors affecting to companies pricing choices. Yet in mobile services sector business practitioners are facing problems in pricing

5890

Abstract

Purpose

Price sensitivity is one of the key factors affecting to companies pricing choices. Yet in mobile services sector business practitioners are facing problems in pricing decisions as they are short of knowledge on their customers’ price sensitivity levels and dynamics. Therefore this study aims to focus on this unexplored field in order to provide more accurate tools for mobile service providers to price their services more effectively.

Design/methodology/approach

This study is conducted on Finnish mobile services markets. The focus is on examining how customers’ price sensitivity differs between different customer segments and which factors affect to the price sensitivity levels. The sample data is collected through a quantitative postal survey in which 3,000 questionnaires was sent to mobile service customers of a Finnish teleoperator. In analyzing the empirical data the explanatory factor analysis and multiple regression analysis was applied.

Findings

It was discovered that mobile service customers differ significantly in their price sensitivity levels; customers with moderate usage of mobile services are least price sensitive, while intensive and low‐end users are most sensitive to price changes. Important was also the notion that customers’ price perceptions and innovativeness levels were accurate indicators of their price sensitivity.

Research limitations/implications

This paper has concentrated only on Finnish mobile services markets. In order to construct a robust set of indicators for international use, cross‐cultural study on testing the factors of this study should be conducted.

Practical implications

For business practitioners, the most distinctive finding of this paper are a new set of factors through which segmenting of their customers can be made more accurately.

Originality/value

With the findings of this paper a mobile service provider is able to increase efficiency of pricing of mobile services.

Details

Journal of Product & Brand Management, vol. 14 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Open Access
Article
Publication date: 10 September 2019

Sérgio Dominique-Ferreira and Cristina Antunes

The purpose of this paper is to investigate and identify the price sensitivity of consumers of three- and five-star hotels and to determine the impact of bundling…

6795

Abstract

Purpose

The purpose of this paper is to investigate and identify the price sensitivity of consumers of three- and five-star hotels and to determine the impact of bundling strategies on consumers’ price sensitivity.

Design/methodology/approach

To calculate price sensitivity, authors apply the van Westendorp’s price sensitivity meter (PSM). To understand the impact of bundling strategies, univariate and bivariate techniques are applied.

Findings

PSM results reveal the optimal prices and the range of acceptable prices for three- and five-star hotel. The bundling strategy results reveal that five-star customers are less sensitive to mixed-leader bundling. Regarding mixed-joint bundling, managers could improve sales through bundling strategies if they selected an attractive service (e.g. restaurants).

Practical implications

Findings assist hotel managers to understand the different price sensitivities, according to the hotel typology. Managers can manage prices without the risk of losing market share or revenue. The results help managers in deciding which bundling strategies they can create, as well as the services to be included to achieve highest profitability.

Originality/value

No research to date to the best of the authors’ knowledge has attempted to understand and compare the role of bundling strategies in three- and five-stars hotels. Moreover, no research has attempted to measure and compare customers’ price sensitivity of three- and five-stars hotels.

Details

European Journal of Management and Business Economics, vol. 29 no. 2
Type: Research Article
ISSN: 2444-8494

Keywords

Article
Publication date: 17 January 2020

Ngoc Minh Nguyen and Huyen Thi Nguyen

The aim of this paper is to incorporate the theoretically and practically appropriate affecting factors of customers’ price acceptance to develop an integrated model…

408

Abstract

Purpose

The aim of this paper is to incorporate the theoretically and practically appropriate affecting factors of customers’ price acceptance to develop an integrated model explaining customers’ price acceptance on the mobile phone market in Vietnam.

Design/methodology/approach

This current research applied the cross-sectional design. Data was collected via questionnaires and 605 responses were left after refining. The exploratory factor analysis, confirmatory factor analysis and structural equation modeling methods were applied to analyze the collected data.

Findings

Prestige sensitivity and product involvement positively affect product knowledge and price mavenism. In turn, these two latter factors together with prestige sensitivity positively affect price acceptance. Besides, product knowledge and price mavenism mediated the effects of product involvement and prestige sensitivity on price acceptance in the context of complex products, rapid product innovation, social setting of using mobile phones, highly competitive market, the low purchasing power of customers and the typical cultural values of Vietnam.

Practical implications

The high product involvement and high prestige sensitivity customers could make up attractive market segments, especially important in the case of launching new products; concentrating marketing efforts on building product knowledge and price knowledge for these market segments may enhance price acceptance, speed up market penetration as well as improve price communication.

Originality/value

This is one of the first studies explaining price acceptance on the mobile phone market in Vietnam and clarifying the mediating effects of knowledge (product knowledge and price mavenism) on the causal relationships between product involvement/prestige sensitivity and price acceptance.

Details

Journal of Asia Business Studies, vol. 14 no. 3
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 1 December 2021

Qinyi Zhang, Wen Cao and Zhichao Zhang

With the rapid growth of the economy, people have increasingly higher living standards, and although people simply pursued material wealth in the past, they now pay more…

Abstract

Purpose

With the rapid growth of the economy, people have increasingly higher living standards, and although people simply pursued material wealth in the past, they now pay more attention to material quality and safety and environmental protection. This paper discusses the lack of motivation for investing in fresh-keeping technology for agricultural products by individual members of an agricultural supply chain composed of a supplier and a retailer by means of mathematical models and data simulations and discuss the optimal price-invest strategies under different sales models.

Design/methodology/approach

First, based on the model of no investment by both sides (NN), this paper considers three models: supplier only (MN), retailer only (NR) and cooperative investment (MR). Then, the authors analyze the influence of consumer price sensitivity and freshness sensitivity on the investment motivation of agricultural products under four models. Subsequently, the paper makes a sensitivity analysis of the optimal strategies under several models, and makes a game analysis of the suppliers and retailers of agricultural products. Finally, we conduct an empirical analysis through specific values.

Findings

The results show that (a) when the two sides cooperate, the amount of investment is largest, the freshness of the agricultural products is highest, and the sales volume is greatest; however, when both sides do not invest, the freshness of agricultural products and sales volume are lowest. (b) The price and freshness sensitivity of the consumer have an impact on investment decisions. Greater freshness sensitivity corresponds to a higher investment, higher agricultural product price, greater sales volume, and greater supply chain member income and overall income; however, greater price sensitivity corresponds to a lower investment, lower agricultural product price, lower sales volume, fewer supply chain members and lower overall income. (c) The investment game between the supplier and retailer is not only related to the sensitivity to price and freshness but also to the coordination coefficients of interest. At the same time, the market position of agricultural products should be considered when making decisions. The market share of agricultural products will affect the final game equilibrium and then affect the final benefit of the supply chain and individual members.

Practical implications

These results provide managerial insights for enterprises preparing to invest in agricultural products preservation technology.

Originality/value

At present, the main problem is that member enterprises of agricultural supply chains operate based on their own benefits and are resistant to investing alone to improve the freshness of agricultural products. Instead, they would prefer that other members invest so that they may reap the benefits at no cost. Therefore, the enterprises in each node of the agricultural product supply chain are not motivated enough to invest, and competition and game states are observed among them, and such behavior is definitely not conducive to improving the freshness of agricultural products. However, the current research on agricultural products is more about price, quality and greenness, etc., and there are few studies on agricultural investment. Through the establishment of the model, this paper is expected to provide theoretical suggestions for the supply chain enterprises that plan to invest in agricultural products preservation technology.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 July 2012

Jeffrey E. Danes and Joan Lindsey‐Mullikin

This paper presents a model relating Nagle and Holden's factors of price sensitivity to expected price and willingness to pay. This work presents various perspectives on…

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Abstract

Purpose

This paper presents a model relating Nagle and Holden's factors of price sensitivity to expected price and willingness to pay. This work presents various perspectives on price elasticity/sensitivity, empirically tests aspects of the influence of perception of the offer (product/service) on expected price, and illustrates how the pricing methods developed within provide quantitative precision to the practice of price setting by capturing perceptions important to consumers.

Design/methodology/approach

The authors used a within‐subjects design to study four brands in two product categories, automobiles and computers. Model evaluation employs ordinary least squares regression.

Findings

Ten qualitative factors were studied. Overall, the results show four factors predict expected price for the target market, product and brand. The factors are perceived substitutes, quality, fairness, and unique value.

Originality/value

This research makes the following contributions. First, the authors are able to quantify ten factors of price sensitivity relevant to the evaluation of product pricing. Second, they are able to identify the relevant factors of price sensitivity for two product categories specific to a given target market. Third, they provide a data‐driven model that enables translation of pricing variables into quantitative values to arrive at the price of a product. The major theoretical contribution of this paper is to show that Nagle and Holden's ten factors of price sensitivity may act in the following way: the change in product/service perception may influence expected price, and then the change in expected price influences willingness to pay. The empirical focus of the current research is on the first of these two changes.

Details

Journal of Product & Brand Management, vol. 21 no. 4
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 January 2011

Dongmin Kong, Tusheng Xiao and Shasha Liu

The purpose of this paper is to explore the relations of investment and stock prices (Tobin‐Q), the impact of asymmetric information on the investment sensitivity to stock…

3115

Abstract

Purpose

The purpose of this paper is to explore the relations of investment and stock prices (Tobin‐Q), the impact of asymmetric information on the investment sensitivity to stock price, and the impact of asymmetric information on the stock price sensitivity to investment.

Design/methodology/approach

Research was conducted with 313 listed companies and 1,878 firm‐year observations from Chinese stock market. Empirical studies were conducted based on two hypotheses by using R2, information delay and scores of information disclosure as measures of asymmetric information and taking changes in book assets and capital expenditures scaled by book assets as measures of investment.

Findings

The key findings of the paper are: managers are learning from the market when they make investment decisions; the asymmetric information has a significant negative impact on the investment sensitivity to stock price; and the asymmetric information has a significant positive impact on the stock price sensitivity to investment.

Practical implications

The paper has a significant practical implication for regulation policy making in stock market.

Originality/value

The paper fills the research gap in two points. It studies the impact of asymmetric information on the investment sensitivity to stock price, and the impact of asymmetric information on the stock price sensitivity to investment in Chinese stock market for the first time.

Details

China Finance Review International, vol. 1 no. 1
Type: Research Article
ISSN: 2044-1398

Keywords

Article
Publication date: 4 September 2009

Jennifer L. Rice

The purpose of this paper is to estimate whether health maintenance organizations (HMO) physicians are more price sensitive than non‐HMO physicians in their prescribing…

Abstract

Purpose

The purpose of this paper is to estimate whether health maintenance organizations (HMO) physicians are more price sensitive than non‐HMO physicians in their prescribing behavior of brand‐name substitutes.

Design/methodology/approach

The study uses physician level data and a set of 13 drugs for the years 1997‐2000 to estimate the price sensitivity of HMO and non‐HMO physicians. A two‐part model is used to measure the price elasticity of brand‐name prescribing for HMO physicians. The first part uses a logit model to examine the physician's choice to prescribe the same drug to all patients with the same medical condition, or whether physicians alternate prescriptions among brand‐name substitutes. The second part employs OLS to estimate the influence of managed care, i.e. HMOs, on physician price sensitivity.

Findings

The results suggest that HMO physicians are less likely than non‐HMO physicians to prescribe a common drug to all patients with a specific medical condition, but rather HMO physicians exhibit more diversified prescribing behavior. Correspondingly, HMO physicians are more price sensitive in prescribing brand‐name substitutes, than non‐HMO physicians, exhibiting price elasticities of prescribing ranging from −1.707 to −1.823. The analysis suggests that HMOs have a modest influence on encouraging physicians to be more price sensitive in their prescribing of brand‐name substitutes. HMO physicians are more price sensitive in their prescribing behavior than non‐HMO physicians.

Originality/value

This paper provides insight into the effectiveness of HMOs in altering physician prescribing behavior and price sensitivity of pharmaceutical prices. The results provide suggestions on how HMOs can improve the cost‐effectiveness of physician prescribing behavior.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 3 no. 3
Type: Research Article
ISSN: 1750-6123

Keywords

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