Changing consumers’ minds at the point of sale: price discounts vs. in-store advertising

2020 ◽  
Vol 31 (1) ◽  
pp. 49-71 ◽  
Author(s):  
Marius Johnen ◽  
Oliver Schnittka
Keyword(s):  
Sale Price ◽  
Point Of Sale ◽  
Price Discounts

Point-of-sale cigarette pricing strategies and young adult smokers’ intention to purchase cigarettes: an online experiment

2021 ◽  
pp. tobaccocontrol-2020-056004
Author(s):  
Kelvin Choi ◽  
Kurt Kreuger ◽  
Timothy S McNeel ◽  
Nathaniel Osgood
Keyword(s):  
Young Adult ◽  
College Education ◽  
Discrete Choice Experiments ◽  
Cigarette Price ◽  
Point Of Sale ◽  
Tobacco Marketing ◽  
Price Discounts ◽  
Intention To Purchase ◽  
Price Tiers ◽  
Cigarette Packs

BackgroundPoint-of-sale tobacco marketing has been shown to be related to tobacco use behaviours; however, specific influences of cigarette price discounts, price tiers and pack/carton availability on cigarette purchasing intention are less understood by the tobacco control community.MethodsWe conducted discrete choice experiments among an online sample of US young adult smokers (aged 18–30 years; n=1823). Participants were presented scenarios depicting their presence at a tobacco retail outlet with varying availability of cigarette price discounts, price tiers and pack/carton. At each scenario, participants were asked whether they would purchase cigarettes. Generalised linear regression models were used to examine the associations between of cigarette price discounts, price tiers and pack/carton with intention to purchase cigarettes overall and stratified by educational attainment.ResultsParticipants chose to purchase cigarettes in 70.9% of the scenarios. Offering price discounts were associated with higher odds of choosing to purchase cigarettes. Reducing the number of cigarette price tiers available in the store was associated with lower odds of choosing to purchase cigarettes. Stratified analysis showed that offering discounts on high-tier cigarette packs increased odds of choosing to purchase cigarettes among young adult smokers with at least some college education, while offering discounts on medium-tier cigarette packs increased odds of choosing to purchase cigarettes among those with some college education or less (eg, with a 10% discount, adjusted odds ratio [AOR]some college=1.62, 95% confidence interval [CI] 1.21 to 2.16; AOR≤high school=1.44, 95% CI 1.08 to 1.93).ConclusionsAvailability of cigarette price discounts, price tiers and pack/carton could potentially influence cigarette purchasing behaviours among young adult smokers. Regulating these marketing strategies may, therefore, reduce education-related smoking disparities.

scholarly journals Neighbourhood exposure to point-of-sale price promotions for cigarettes is associated with financial stress among smokers: results from a population-based study

2017 ◽  
Vol 26 (6) ◽  
pp. 703-708 ◽  
Author(s):  
Mohammad Siahpush ◽  
Melissa Tibbits ◽  
Ghada A Soliman ◽  
Brandon Grimm ◽  
Raees A Shaikh ◽  
...  
Keyword(s):  
Financial Stress ◽  
Population Based ◽  
Sale Price ◽  
Price Promotions ◽  
Population Based Study ◽  
Point Of Sale

‘Friends with benefits’: how tobacco companies influence sales through the provision of incentives and benefits to retailers

2020 ◽  
pp. tobaccocontrol-2019-055383 ◽  
Author(s):  
Christina Watts ◽  
Suzan Burton ◽  
Becky Freeman ◽  
Fiona Phillips ◽  
Kelly Kennington ◽  
...  
Keyword(s):  
Response Rate ◽  
Telephone Survey ◽  
Product Knowledge ◽  
Tobacco Company ◽  
Point Of Sale ◽  
Friends With Benefits ◽  
Product Range ◽  
Price List ◽  
Price Discounts ◽  
Current Tobacco

BackgroundIn countries banning advertising and display of tobacco at point-of-sale, little is known about tobacco companies’ continuing promotion of products through incentives and benefits to retailers.MethodA telephone survey of 4527 randomly selected Australian retailers was conducted in August 2018, and identified 800 current tobacco retailers (response rate: 72.4%) who were asked a series of questions about benefits offered to them by tobacco companies and what retailers agreed to in return.Results41.1% of retailers reported being provided with a tobacco cabinet and 38.3% reported having a price list supplied by a tobacco company. One-third (33.3%) reported being offered at least one benefit from a tobacco company for doing something in return. Price discounts were the most frequently reported benefit (19.0%), followed by rebates (8.4%) and gifts (3.0%). Retailers also reported offers of prizes and incentives for increasing sales or demonstrating product knowledge. In return, retailers reported giving companies benefits such as prominence on the price list and/or in the tobacco cabinet and/or influence over the product range and stock levels.ConclusionTobacco companies are continuing to market tobacco and influence sales through provision of incentives and benefits to retailers. Laws that ban the supply of benefits to consumers should be extended to also prohibit the provision of benefits to tobacco retailers.

scholarly journals Joint Pricing and Inventory Policies for Perishable Items with Price Discount based on Freshness Index

2021 ◽  
Vol 12 (11) ◽  
pp. 1954-1963
Author(s):  
Hardik N. Soni, Et. al.
Keyword(s):  
Optimal Solution ◽  
Simple Algorithm ◽  
Model Solution ◽  
Selling Price ◽  
Sale Price ◽  
Ideal Model ◽  
Inventory Policies ◽  
Perishable Items ◽  
Price Discounts ◽  
Joint Pricing

It is generally observed that the products losses its freshness with the course of time that stimulates depression in demand of the product. In these circumstances, price discounts are necessary to raise the market. This is why, when the product's the index of freshness reaches a certain level, we created an inventory model wherein price reductions are provided at a sale price. The main goal is to figure out what the best selling price and cycle time are in order to maximise profit. The meaning and uniqueness of an ideal model solution are incorporated into the circumstances. The next move is to use a simple algorithm to find an optimal solution. Finally, a numerical example is presented, followed by a sensitivity analysis.

Using watermark visibility measurements to select an optimized pair of spot colors for use in a binary watermark

2020 ◽  
Vol 2020 (15) ◽  
pp. 197-1-197-7
Author(s):  
Alastair Reed ◽  
Vlado Kitanovski ◽  
Kristyn Falkenstern ◽  
Marius Pedersen
Keyword(s):  
Food Packaging ◽  
Red Light ◽  
Human Observer ◽  
Viewing Distance ◽  
Point Of Sale ◽  
Complementary Color ◽  
Low Visibility ◽  
Packaging Industry ◽  
Spot Color ◽  
Selection Of

Spot colors are widely used in the food packaging industry. We wish to add a watermark signal within a spot color that is readable by a Point Of Sale (POS) barcode scanner which typically has red illumination. Some spot colors such as blue, black and green reflect very little red light and are difficult to modulate with a watermark at low visibility to a human observer. The visibility measurements that have been made with the Digimarc watermark enables the selection of a complementary color to the base color which can be detected by a POS barcode scanner but is imperceptible at normal viewing distance.

RATIONALE FOR ESTABLISHING A FLOATING PRICE DISCOUNT ON ENTERPRISE PRODUCTS

2017 ◽  
Author(s):  
Andriy Kolomiyets ◽  
Keyword(s):  
Cost Savings ◽  
Sales Managers ◽  
Price Discount ◽  
Advertising Appeals ◽  
Price List ◽  
Price Discounts ◽  
Additional Costs ◽  
Product Sales ◽  
And Storage ◽  
Form Effect

The article presents an overview of methods for determining the effectiveness of advertising appeals of the enterprise in conditions of competition. It is shown that the sale of goods in large batches leads to a reduction in sales costs associated with the organization of sales, transportation and storage. Therefore, when providing a quantitative discount, their value should not exceed the amount of cost savings of the seller, which is caused by the sale of goods in large batches. Similar to the effects of real responses to advertising appeals, the effects of the price of the enterprise's products are distinguished: the current effect, the form effect, the competition effect and the transition effect. The process of modeling the effects of the promotion price and the control price is considered, and of interest is the temporary price for the buyer with a discount, which is actually provided by sales managers at the enterprise. Then there will be an effect of discounts on temporary base prices. The price discount is considered as a part of the price of the goods which can be introduced by the enterprises-manufacturers for the purpose of stimulation and interest of the enterprises-sellers to sell production. In the study of product sales, a problem was found related to sales of products in the area of the price discount offered by the price list, which represents the constant prices of the company for a certain period of time. The promotion price is defined as the discount on the products of the enterprise price according to the price list. It is determined that buyers, focusing on the system of discounts, avoid buying hardware in the approach to the transition of prices and increase the volume of purchases after the transition discount. A comparison of retail and base prices, and base and wholesale prices for hardware. It is proved that the company when approaching the price discount loses the profit that could be obtained, and this problem causes losses to both parties and the seller and buyer. It is shown that the policy of promoting price discounts of Metal-Holding encourages consumers to buy more hardware, which is not beneficial to the buyer, because it causes additional costs for storage of the balance. It is concluded that the problem at some weight interval when approaching the existing price discount on the left and right requires the establishment of a floating price discount on the company's products.

Sign in / Sign up

Export Citation Format

Share Document