Explaining the price-volume relationship: The difference between price changes and changing prices

Trading on the stock market increases when there are large changes in price levels, and falls when these changes are small. An experimental test revealed strong support for the hypothesis that large price changes cause heavy trading. Trading patterns, profit data, and memory measures revealed that the vast majority of the subjects employed a tracking strategy; that is, they bought when the price fell and sold when it rose. To test whether the use of this strategy was due to a selective application of the representativeness heuristic on the price stimuli, a second experiment was conducted in which subjects were presented either with only price information or with only price change information. Results supported the representativeness hypothesis, with subjects in the price change condition tracking poorly and earning less profit. The results are discussed with regard to their implications for the stock market and the psychology of prediction.     

Consumer price limits and the brand effect

The effect of brand name present/absent condition on consumer price limits was examined in an experimental setting. The findings of this study have important implications for pricing managers. The results support the past findings that brand name affects price perception. Branded products are perceived to be higher priced than unbranded products (higher acceptable price). That is, branded products seem to command a price premium as compared to unbranded products. The findings suggest that the well-known brand name should be positioned in the upper acceptable price range and the not so well-known brand names in the lower acceptable price range. This brand positioning strategy, in turn, will determine the product's position in the product line, the marketplace, its competition, and its use patterns. Price is very much a part of the product and branding policy.     

传统媒体上强势品牌广告竞争溢出效应的作用机制及分布规律

由于产品之间存在相互关联性, 一个企业的广告不仅会对本企业产品的市场需求产生促进作用, 而且对其它企业产品的市场需求也会产生一定影响, 这种影响被称为广告的溢出效应。以往研究发现, 强势品牌广告竞争对弱势品牌具有溢出效应, 但该研究仅验证了溢出效应存在, 并未对其作用机制进行深入挖掘。通过实验方法探讨强势品牌广告竞争对弱势品牌的溢出效应的作用机制及边界条件是当务之急, 实验一探讨强势品牌广告竞争对弱势品牌溢出效应的作用机制, 主要包括探讨中介变量和调节变量两个方面的问题。中介变量包括消费者对强势品牌的涉入度、感知产品质量、行业市场份额变化三个变量, 调节变量包括消费者广告态度、消费者任务导向、产品生命周期、产品同质性四个变量。实验二探讨强势品牌广告竞争对弱势品牌的溢出效应的整体分布规律, 包括产品成长期和成熟期两个时期的溢出效应分布规律。研究将揭示强势品牌广告竞争的作用机制和整体分布规律, 有利于丰富溢出效应理论和广告效果理论。     

Waiting for the Other Shoe to Drop: Help for the Job-Insecure Employee

Although the U.S. economy is flourishing, a segment of the workforce still faces job insecurity as a salient feature of employment. As companies focus on competition and profit margins, workers are confronted with threats to their identities based on real or anticipated job loss. This article focuses on features of job insecurity that affect threatened workers, those who remain, and the organizations in which they work. Recommendations are given regarding assisting job-insecure employees using career counselors, consultants, or outplacement specialists.     

The Effect of Correlation between Price and Quality on Consumer Choice

According to the price-expectancy model of consumer choice, consumers evaluate products by comparing the actual price with a reference or expected price determined from (a) product's quality and (b) the price-quality correlation of the product category. Choices between hypothetical products of beer are used to test the model against a model without a reference price. Consistent with the price-expectancy model, product preferences varied with the subjective correlation between price and quality: the relative preference for higher priced/higher quality products over lower priced/lower quality products increased as the subjective correlation increased. For some pairs, the correlation between price and quality created a preference reversal across contexts: the higher priced/higher quality product was chosen over the lower priced/lower quality product in the higher correlational context, but the lower priced/lower quality product was chosen over the higher priced/higher quality product in the lower correlational context. An additional study provided evidence that the price—quality correlation affects reference price, rather than reference quality, formation.     

Price‐Matching Guarantees and Consumer Evaluations of Price Information

In 3 experiments, we show that price‐matching guarantees affect the process through which consumers translate price information into subjective judgments. In Experiment 1, we find that price‐matching guarantees appear to change the standard used in price evaluation by raising consumers’ estimates of the lowest and average prices in the market. This leads consumers to perceive products and stores that offer price‐matching guarantees as less expensive. In Experiment 2, we show that evaluations of product price information are affected by the presence of a price‐matching guarantee only when consumers do not know the range of market prices. In Experiment 3, we extend these findings to show that consumer evaluations of the cost of products in a store, inferred on the basis of store characteristics, are also influenced by the presence of a price‐matching guarantee.     

How Do Institutional Actors in the Financial Market Assess Companies’ Product Design? The Quasi-rational Evaluative Schemes

While various strategic business issues related to product design have been explored by academicians and practitioners, one issue has largely been ignored: how do financial markets assess and evaluate companies’ product design? The purpose of this article is to examine this issue, especially when it comes to the assessments and evaluations made by the most essential actors of contemporary financial markets: investment analysts and institutional investors. I develop propositions concerning the product design-related evaluative schemes and heuristics used by the financial market actors in evaluating companies as investment opportunities. I illustrate my propositions with examples from, e.g., the mobile phone industry as well as with interview excerpts from interviews with investment analysts and institutional investors. Propositions are provided both for assessments of companies’ individual end products (‘design as the end product’ perspective) and for assessments of companies’ design capabilities (‘design as a capability’ perspective). In essence, the propositions highlight that the evaluative schemes used by financial market actors are partly rational, yet involve biases and are likely to lead to overvaluation and undervaluation of certain kinds of product designs by certain kinds of companies. Thus, even from the perspective of profit-maximization, many of the evaluative schemes of the financial market actors are, at most, quasi-rational. Moreover, the evaluative schemes of the financial market actors may motivate company managers to pursue certain kinds of product design rather than others—and may even lead to self-reinforcing (vicious or virtuous) circles of certain kinds of product designs being advocated.     

移动购物更快吗?决策场景与思维模式的相容性

既有文献对消费者延迟选择影响因素的研究, 主要集中于决策复杂度、决策者特质或情绪, 少有对决策场景进行深入探讨。互联网购物时代, PC端与手机端已成为重要的消费场景。针对手机端是否会加快消费者决策过程的问题目前也存在不一致的结论。本文引入决策双系统理论, 力图解释以往看似冲突的结论。消费者的购买决策模式, 不仅会受到决策任务(产品价格)的影响, 还会受到决策场景(购买终端)影响。当场景与决策任务使消费者启动的思维模式相一致时, 会提升决策流畅度, 降低延迟选择。本文发现, 移动端(PC端)与低(高)价格产品更容易激发相容的经验性(理性)思维, 降低延迟选择倾向。反之, 则会同时启动两种相左的决策思维, 增加延迟选择倾向。本文从场景启动与价格启动视角, 将以往消费者单一的决策思维模式, 拓展到多因素启动的思维模式相容性问题; 同时本文通过探究延迟选择问题, 对价格策略与场景化营销带来启示。     

品牌形象系统的因素结构

采用问卷法以446名大学生为被试,运用探索性因素分析探讨了不同产品类别（牙膏、运动鞋和随身听）的品牌形象的构成因素,然后以整体分配法确定了各因素的权重。结果表明:(1)品牌形象是由若干因素构成的有组织、有序的系统,这些因素分别属于功能成分和意义成分。(2)不同产品类别的品牌形象构成有共性,也有个性。(3)低外显产品的功能成分比高外显产品的功能成分重要。     

产品销量和推荐数对网络消费决策的影响:价格的调节效应

基于目标感染理论,探究了产品销量和产品推荐数对大学生网络消费决策的影响,并进一步探究了产品价格在大学生网络消费决策中的调节作用。两项研究均表明,产品销量和推荐数均会促进大学生做出消费决策。其中,产品价格调节了两者对网络消费决策的影响,具体表现为在选购低价格产品时,大学生更加看重产品销量,倾向选购高销量产品;而在选购中高价格产品时,大学生更加看重产品推荐数,选购高推荐数的产品。本研究为网络电商平台如何针对不同价位产品制定产品展示方案提供了理论支持和实践指导。     

Implicit communication of food product healthfulness through package design: A content analysis

How do food companies use package design to communicate healthfulness? The present study addresses this question by investigating the most typical implicit package design elements used by food companies for their health‐positioned food products. Using a content analysis on the packaging design of 12 food product categories across two countries (Denmark and the United States), our findings indicate that (a) implicit package design elements (colors, imagery, material, and shape) differ between health‐positioned and regular products, and (b) these differences are product category specific rather than universal. Our results contribute to knowledge on how package design is used as a health communication tool.     

Signaling can increase consumers' willingness to pay for green products. Theoretical model and experimental evidence

Many green products are costlier than their nongreen counterparts, for a variety of reasons. This “green premium” is a key challenge marketers face when targeting consumers with these green products. A potential solution to this issue is provided by signaling theory. According to the theory, green products can have a signaling benefit. This benefit acts as an incentive for consumers to pay a premium for environmentally friendly products that can even out their price disadvantage (the green signaling hypothesis). Previous studies have tested the green signaling hypothesis with hypothetical buying decisions. The research at hand tests the green signaling hypothesis with incentive‐compatible purchase decisions in a laboratory setting with student subjects. As predicted, subjects exhibit a higher willingness to pay for green products when the product choice (a nongreen product vs. a costlier green counterpart) is public rather than private. The results also suggest that green signalers are treated more favorably in social interactions. The main result is that a signaling benefit can even out moderate green premiums. One implication of this is the idea that marketers should design green products that are costlier than their nongreen counterparts in a way that renders them clearly recognizable as green. At the same time, marketers should avoid marketing everyday green products with a high green premium.     

医药代表现象与药品价格政策的改革

探讨医药代表所引出的药品价格政策等问题,通过分析医药代表发生阶段性错位的原因,引出对药品价格改革的思考。我国的药品价格虚高是导致医疗市场失控的根本原因,医药代表的错位只是一种表现。根除这种错位必须首先解决药品价格虚高的问题。     

Failing to Suspect Collusion in Price‐Matching Guarantees: Consumer Limitations in Game‐Theoretic Reasoning

Marketers often commit to matching competitors’ prices by offering price‐matching guarantees (PMGs). Theory, however, shows that PMGs can either foster price competition and lower market prices or facilitate price collusion and raise market prices. In 3 experiments, we tested if consumers suspect collusion in such tactics and if this suspicion in turn affects their preferences for PMGs. Experiment 1 showed that consumers prefer markets where sellers offer PMGs over those that do not, suggesting little or no suspicion of collusion. Experiment 2 replicated these findings and extended them by showing that although most consumers prefer PMG markets, consumers higher in need for cognition (NFC) do, consistent with the greater suspicion hypothesized, prefer PMG markets more weakly. However, this weakened preference emerged from concerns over lower product quality in PMG markets more so than expectations of unduly high prices. Experiment 3 then tested the collusive potential of PMGs by placing participants in the role of a government regulator charged with finding collusion in various markets. Regardless of explicit primes and NFC, participants perceived PMGs as competitive devices that reduce prices rather than collusive devices that raise them. In contrast to the assumptions underlying game‐theoretic models, consumers often lack the strategic sophistication necessary to detect the collusive potential of PMGs, a limitation that implicates legislation to moderate the use of such devices.     

Psychophysical methods in study of consumers' perceived price change for food products

When adjusting product prices, marketers wish information concerning consumers' price perceptions. The present study aimed to develop an optimal pricing framework for food products by applying Weber's Law and Stevens' Power Law in psychophysics. The first phase attempted to measure the differential thresholds when magnitudes of prices were raised and lowered. The second phase was conducted to establish the psychophysical function representing perceived changes. Analysis showed consumers' differential thresholds were positively correlated with the initial price, consistent with Weber's Law. Further, participants' perceived change differed for increased and decreased prices. Products were perceived as cheaper only when medium-and low-priced products dropped dramatically in price. However, small reductions for the high-priced products were perceived as cheaper. Regardless of price changes, participants perceived products were more expensive when prices dropped by a small     

Commercialism and Universities: An Ethical Analysis

This paper questions the ethicality of commercial relationships between universities and external donors. By examining cases such as technology transfer and the outside funding of research interests, we identify possible conflicts of interest between the external provider of financial support and academic institutions. The reality today is that university administrators, who have significant decision-making powers, proactively seek large corporate sources of funding that may compromise academic values including academic freedom and the ability to make institutional decisions without the influence of commercial interests. For example, Coca-Cola and Pepsi-Cola have provided extensive funding to universities in return for exclusivity rights to market their product on campuses even though such products may not be healthy alternatives to other soft drinks. Pharmaceutical and biotechnology companies may have opposing interests to faculty and universities if the results of research do not meet the expectations of the sponsors. Curricula issues may be slanted to promote the interests of a corporation or other provider of outside funding. Corporate partnerships between universities and companies such as Nike raise ethical questions when students or other members of the campus community object to the acceptance of financial support from a company that allegedly practices anti-social labor practices in developing countries. On the other hand, corporate funding can be used to supplement diminishing financial resources available to academic institutions, especially for public universities. One benefit of external funding is that it supports pharmaceutical and technology-oriented research and development into new products and processes that have the potential to serve the public good. One cost of such funding arrangements is that the acceptance of financial support from commercial interests solely to market their products on campus restricts the choices available to students that should exist in a free market economy such as in the U.S. The ethicality of the relationship between universities and commercial interests is a matter of concern because of the potential influence of providers of external funds to universities that can compromise academic freedom and objective decision making.     

Profiling desired state type problem recognizers

Style of recognizing consumer problems has been identified in past research as a unique variable for effectively segmenting a market based upon potential purchase behavior. However, only one product category has been examined in previous studies thereby limiting the generalizability of the results. The present study examined shopping orientation and demographic characteristics of problem recognizers for six different product categories, with special attention devoted to Desired State Type Problem Recognizers. Profiles developed for these Desired State Type consumers were significantly different from Actual State Types for each of the six products. Some limited commonality was found for Desired State Types across five of the six product categories.     

应用层次析分法和模糊综合评判研究保健品消费心理

将层次分析方法与模糊综合评判理论相结合,以营养成分、包装情况、价格因素、广告宣传、售后服务为一级评判指标,以保健品专卖店、大型超市、小型超市、杂货店、厂家邮购五种销售渠道为二级评价指标,给出一种模糊判断的权重计算方法,建立了保健品消费心理的层次模糊决策模型。应用该模型对长春地区消费者的保健品消费心理进行了测试,结果表明：测试结果与实际销售情况相符。说明应用该方法建立起来的模型在了解消费者对保健品的消费心理方面是可行的,同时也为新型保健品的开发和市场推广提供了一定的依据。     

A Bayesian Multi-Level Factor Analytic Model of Consumer Price Sensitivities Across Categories

Identifying price sensitive consumers is an important problem in marketing. We develop a Bayesian multi-level factor analytic model of the covariation among household-level price sensitivities across product categories that are substitutes. Based on a multivariate probit model of category incidence, this framework also allows the researcher to model overall price sensitivity (i.e., indicated by higher-order factor scores) as a function of household-level covariates. All model parameters are estimated simultaneously to circumvent the downward bias resulting from two-stage estimation. The modeling framework is illustrated using scanner panel data from multiple categories of instant coffee.     

Low‐price guarantees as advertisement strategy and compensation policy: The more,the better?

Companies sometimes employ a “lowest price or more than the difference back” policy (i.e., a price‐beating guarantee). We investigated whether such a policy is more effective to attract and retain customers than when the exact price difference is promised (i.e., a price‐matching guarantee). The first study revealed that about 60% of the marketers and shop owners in our sample thought that beating price differences is a more effective strategy than matching price differences. However, the four subsequent studies challenged this assumption. Specifically, the advertisement as well as the provision of price‐beating refunds did not have an incremental positive effect on customers' general attitudes in terms of trust, brand perception, loyalty, and shopping intentions beyond the level that was already reached by price‐matching refunds. Moreover, our mediation analyses revealed that the null effect of price‐matching versus price‐beating was mediated by fairness perceptions. From a theoretical perspective, these results are in line with a fairness account, which holds that people do not only evaluate the economic value of an outcome, but also take equality considerations into account. Because price‐beating is literally more expensive than price‐matching, from a practical point of view, companies should be informed that the employment of a price‐beating guarantee is a cost‐ineffective advertisement strategy and compensation policy.