Search results

1 – 2 of 2
Click here to view access options
Article
Publication date: 3 September 2018

Wen Zheng, Senarath Dharmasena, Oral Capps Jr and Ramkumar Janakiraman

The purpose of this paper is to investigate the factors affecting consumer demand for and the effects on tax on sparkling and non-sparkling bottled water in the USA.

Abstract

Purpose

The purpose of this paper is to investigate the factors affecting consumer demand for and the effects on tax on sparkling and non-sparkling bottled water in the USA.

Design/methodology/approach

Using nationally representative data from 62,092 households and tobit econometric procedure, conditional and unconditional factors affecting the demand for sparkling and non-sparkling bottled water were estimated.

Findings

The own-price elasticity of demand for sparkling and non-sparkling bottled water is −0.664 and −0.229, respectively. Coffee, fruit drinks, whole milk and tea are substitutes for non-sparking bottled water. Non-sparking bottled water, coffee, fruit drinks and whole milk are substitutes for sparking bottled water. Household income, race, region and presence of children significantly affect the demand for bottled water. A 10 percent increase in price due to a tax on bottled water decreased plastic use by 50 grams per household per year. This is equivalent to saving 9.5m pounds of plastic annually.

Research limitations/implications

Data used in this analysis only captured at-home consumption of bottled water by US households. While tax on bottled water may reduce the consumption of bottled water, it may increase the consumption of competitive beverages such as carbonated soft drinks or fruit drinks. Although the use of plastic with regards to water bottles may go down as a result of the tax, the plastic consumption could go up with regards to consumers’ increased purchase of other beverages. This might contribute net increase plastic bottle consumption, undermining the effects of a bottled water tax.

Originality/value

To the best of the authors’ knowledge, this study is the first to look at demand and tax aspects with regards to disaggregated bottled water products.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Click here to view access options
Article
Publication date: 14 October 2013

Andrew Rohm, Velitchka D. Kaltcheva and George R. Milne

Online social media are dramatically changing the ways in which firms and their consumers interact. The purpose of this paper is to analyze the role of social media…

Downloads
10016

Abstract

Purpose

Online social media are dramatically changing the ways in which firms and their consumers interact. The purpose of this paper is to analyze the role of social media platforms such as Facebook and Twitter among younger consumers (“digital natives”) in their interactions with brands. To investigate this, the authors conduct a mixed-method study including latent class analysis (LCA) to examine the role of social media among younger consumers (referred to as “digital natives”) in their interactions with brands.

Design/methodology/approach

A mixed-method approach including both qualitative analysis and LCA was used to analyze daily interactions between consumers and specific brands across two primary social media platforms (Facebook and Twitter). Data were collected by means of a social media platforms (Facebook and Twitter). Data were collected by means of a social media diary collected over a one-week period.

Findings

The findings from this study suggest that brand-consumer interactions driven by social media can be characterized by five primary motivations or themes: entertainment, brand engagement (specifically identification with or connection to the brand), timeliness of information and service responses, product information, and incentives and promotions. The authors also identify relationships among these themes related to respondents' age, gender, and social media use.

Research limitations/implications

Although social media have become a widespread form of communication and interaction between brands and consumers, research regarding the nature of social media-driven brand-consumer interactions is only now developing. Drawing on the perspectives of consumer online engagement and uses and gratifications theory, the results from this study are important to guiding future brand-customer interaction research. These findings help extend previous research by identifying consumer motivations that underlie social media usage in brand engagement.

Practical implications

These results highlight the role of social media in helping brands to be proactive in their consumer communications and interactions, in areas such as communicating product information, addressing customer service issues, engaging consumers with content relevant to the brand, providing timely information regarding promotions and new product launches, and fostering consumer-generated comments. Managers should also recognize that younger digital natives interact with brands via social media differently (e.g. for pure entertainment) than older individuals.

Originality/value

This study provides new insights to the nature of brand-consumer interactions, engagement, and outcomes driven by social media.

Details

Journal of Research in Interactive Marketing, vol. 7 no. 4
Type: Research Article
ISSN: 2040-7122

Keywords

1 – 2 of 2