Never too rich to care about prices: Effects of price endings on customer perceptions of luxury

2020 ◽  
Vol 35 (3) ◽  
pp. 7-28
Author(s):  
Annalisa Fraccaro ◽  
Sandrine Macé
Keyword(s):  
Consumer Goods ◽  
Luxury Goods ◽  
Customer Perceptions ◽  
Round Number ◽  
Fast Moving Consumer Goods ◽  
Round Numbers ◽  
Price Endings ◽  
Price Ending ◽  
The Impact ◽  
The Relationship

In this article, we build on the existing literature on price endings in the fast-moving consumer goods and luxury pricing to highlight the potential paradox of adopting odd pricing (i.e. setting prices just below the round number) for luxury goods, which should mostly use even pricing (i.e. round numbers). In a first experiment concerning luxury handbags, we test the impact of three types of price endings (–90, –00, and “other”) on luxury image and its sub-facets. We propose four mediators of the relationship between price endings and overall luxury image, that is, quality, prestige, uniqueness, and expensiveness. In a second experiment, we find that price endings have connotations specific to the luxury sector and to different segments of consumers. We conclude with recommendations to help pricing managers strategically adjust their price-ending practice to target different consumer segments.

scholarly journals Understanding Consumer Characteristics in an Online Tourism Community in India

2016 ◽  
Vol 11 (2) ◽  
pp. 2673-2686
Author(s):  
Nidhi Phutela ◽  
Hirak Dasgupta
Keyword(s):  
Online Shopping ◽  
Positive Impact ◽  
Consumer Trust ◽  
Satisfaction Level ◽  
Customer Perceptions ◽  
General Data ◽  
Online Stores ◽  
The Impact ◽  
Tourism Community ◽  
The Relationship

Analysing customer perceptions is an important requirement not only for offline stores, but for online stores as well. Study of customer perceptions helps the company in understanding the requirements and expectations of the customers in a better way. This study is an extension of the researcher’s previous study of identifying antecedents of consumer trust for e-tourism companies in India. This study tries to explore the relationship between factors that build trust of the consumers on the online companies and their satisfaction level. Apart from studying the preferences and expectations of the consumers from e-tourism companies in India, the researcher has also tried to study the customer perceptions in context of online shopping in general. Data was collected by the researcher from 367 tourists (customers) who plan their tours online in Delhi NCR. Hypothesis testing has been done by using ANOVA and t-test. Findings of the study revealed that that amongst seven Consumer Trust dimensions, only “Promotional deals” and “Price Competitiveness” have a significant positive impact on “Customer Satisfaction”, whereas the impact of other five variables are not significant.

scholarly journals The role of leadership in shaping organisational climate: An example from the fast moving consumer goods industry

2014 ◽  
Vol 40 (1) ◽  
Author(s):  
Angela Eustace ◽  
Nico Martins
Keyword(s):  
South Africa ◽  
Consumer Goods ◽  
Fast Moving ◽  
Structural Equation ◽  
The Body ◽  
Sub Saharan Africa ◽  
Organisational Climate ◽  
Fast Moving Consumer Goods ◽  
The Relationship

Orientation: The 21st century has presented challenges and opportunities to organisations. Although South Africa is the most competitive economy in sub-Saharan Africa, the country needs to focus on these opportunities to improve competitiveness. Although there is research on leadership and organisational climate, a debate continues about the contribution of organisational climate and the role of leadership to creating the desired organisational climate.Research purpose: The aim was to explore the relationship between leadership and organisational climate in a South African fast moving consumer goods (FMCG) organisation.Motivation for the study: Few studies focus on leadership and organisational climate in South Africa. This study builds on the knowledge that exists. An understanding of the effect of leadership on organisational climate in South Africa allows for customised solutions to the problems of leadership, organisational climate and business performance.Research design, approach and method: Using a descriptive, cross-sectional field survey approach, 896 participants (all of whom worked in one organisation) participated in the survey.Main findings: An exploratory factor analysis (EFA) and structural equation modelling (SEM) multivariate analyses revealed a new set of organisational dimensions, confirmed the relationship between leadership and organisational climate as well as the relationship between organisational climate and its various dimensions.Practical/managerial implications: The findings emphasised the importance of certain generic and specific leadership practices for creating the desired organisational climate in South Africa and in the FMCG environment.Contribution/value-add: This study contributes to the body of knowledge about the relationship between leadership and organisational climate in South Africa.

scholarly journals Compromise pricing in luxury

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Béatrice Parguel ◽  
Annalisa Fraccaro ◽  
Sandrine Macé
Keyword(s):  
Design Methodology ◽  
Profit Margin ◽  
Slight Reduction ◽  
Content Type ◽  
Round Number ◽  
Luxury Industry ◽  
Price Ending ◽  
The Impact

Purpose Going beyond odd and even prices, this paper aims to explore the rationale behind the widespread practice of setting prices ending in “50” or “80” in the luxury industry. The authors argue that when they set such prices, managers agree to reduce their profit margin to limit the anticipated guilt luxury consumers associate with luxury shopping while also protecting their brand luxury. The authors label these prices compromise prices and formally define compromise pricing as the practice of choosing a price’s ending so that the price falls below (but not just below) a round number to boost sales without damaging brand luxury. Design/methodology/approach Following the observation of the overrepresentation of prices ending in “50” and “80” in the luxury clothing category, an experiment explores the impact of compromise prices on anticipated guilt and brand luxury in the luxury watch category. Then, to identify when luxury pricing managers typically favor compromise prices, multinomial regressions investigate prices collected on two online luxury fashion retailers for the luxury clothing and handbag categories. Findings Compromise prices reduce the anticipated guilt luxury consumers associate with luxury shopping compared with even prices while enhancing brand luxury compared with odd prices and interestingly, with even prices also. This finding gives rationale to luxury managers’ preference for compromise prices in the ninth hundred (i.e. €X950, €X980), especially for higher-priced products, i.e. when the potential for price underestimation and/or the risk of damaging brand luxury are more important. Originality/value This research contributes to the field of luxury pricing by providing evidence to an original price-ending practice, coined compromise pricing, which consists in agreeing to a slight reduction in prices and unit margin to protect brand luxury.

scholarly journals Effects of Leadership Style on Employee Performance of Fast Moving Consumer Goods (FMCGS) in South Africa

2019 ◽  
Vol 11 (1(J)) ◽  
pp. 1-10
Author(s):  
Solomon OMONONA, ◽  
Olabanji ONI, ◽  
Joseph OBAMEN
Keyword(s):  
South Africa ◽  
Transactional Leadership ◽  
Leadership Style ◽  
Consumer Goods ◽  
Fast Moving ◽  
Survey Design ◽  
Employee Performance ◽  
Fast Moving Consumer Goods ◽  
Transactional Leadership Style ◽  
The Relationship

Abstract: The study seeks to assess the effects of leadership style on Employee performance (EP) of fast moving consumer goods (FMCGs) companies in South Africa. The specific objectives are: to determine the effects of autocratic leadership style on EP; to evaluate the effect of participative/ democratic leadership style on EP; to ascertain the relationship between laissez faire leadership style and EP; to assess the relationship between transactional leadership style and EP in the FMCGs. Quantitative research survey design was adopted for the study; both primary and secondary sources of data were utilized during the investigation. The sample size of 233 was obtained from the estimated population using Rao soft online calculator at 5% error tolerance and 95% level of confidence. Data was collected via questionnaires and analyzed utilizing Simple Linear Regression (SLR) and Pearson product moment correlation (PPMC). It was discovered that there is a significant relationship between the various leadership styles and the performance of organisations. However, transactional leadership style was found to account for more influence on employee performance than other styles of leadership. Therefore, the study recommends the transactional style of leadership for managers of FMCGs in order to increase employee performance, ensure profitability and sustainability of the organisation.

Impact of Women's Portrayal in Television Commercials on Promoting Fast-Moving Consumer Goods

2021 ◽  
Vol 12 (1) ◽  
pp. 80-92
Author(s):  
Sree Pavani V. ◽  
Ramachandra Aryasri A. ◽  
Sudhir Reddy M.
Keyword(s):  
Statistical Analysis ◽  
Consumer Goods ◽  
Research Work ◽  
Primary Role ◽  
Television Commercials ◽  
The World ◽  
Fast Moving Consumer Goods ◽  
Tv Commercials ◽  
The Impact

In various fields, the role of women has been changing over the years in diverse fields around the world like academics, advertising, politics, etc. Nowadays, women portrayal plays a primary role in TV commercials for marketing the FMCG products at an extreme level. This paper intends to study the women portrayal in TV commercials for the purpose of promoting FMCG. It conducts the study in three different perceptive. The first perspective investigates the relevance between the characteristic/category of the FMCG and the impact of women portrayal. The second and third perspectives include the economy, exploitation, and the growth of the FMCG sectors. The fourth perspective understands the merits, challenges, and bottlenecks faced by the promoters or producers of the FMCG, who exploit the commercials. Accordingly, the research work prepares an extensive questionnaire under these four perspectives to carry out a valuable study. After getting various responses from 21 industries, it carries out the statistical analysis to validate the overall responses. Eventually, it reveals the impact of women portrayal on systematically promoting FMCG products.

Understanding the relationship between green restaurant certification programs and a green restaurant image: the case of TripAdvisor reviews

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eunhye (Olivia) Park ◽  
Woo-Hyuk Kim ◽  
Junehee Kwon
Keyword(s):  
Brand Image ◽  
Online Reviews ◽  
Analysis Of Covariance ◽  
Content Type ◽  
Customer Perceptions ◽  
Certification Programs ◽  
The Impact ◽  
The Relationship ◽  
Green Certification ◽  
Structural Topic Modeling

Purpose The study aims to investigate the adoption of green certification programs by restaurants. More specifically, this study has three objectives: to examine the relationships between green certification program scores and customers’ perceptions, duration of green certification and green brand image and food-focused green practices and green brand image. Design/methodology/approach The authors collected 25,098 TripAdvisor reviews, along with associated patron demographics, for 70 green certified restaurants. To investigate the hypotheses, the authors first used structural topic modeling to discover latent themes relevant to green restaurant practices. Thereafter, the authors used factorial Multivariate analysis of covariance (MANCOVA) to examine the association between formal certification participation and customers’ green perceptions. Findings The results showed that customers were more likely to perceive a green restaurant image after visiting green certified restaurants with higher certification ratings and green certification periods of longer duration. Practical implications The current study contributes to the literature in several ways. First, this study uses post-visit online reviews written by customers of certified green restaurants to understand customers’ natural responses more precisely. Second, the study captures the degree of green commitment by applying information about formal certification programs, where other studies have relied on hypothetical scenarios or survey questions to examine the impact of green attributes on customer perceptions. Originality/value To the best of authors’ knowledge, this is the first study to investigate the adoption of green certification programs by restaurants empirically with data drawn from actual user-generated content (i.e. TripAdvisor).

The Impact of Lifestyle and Attitude Functions on Luxury Goods on Emotional Attachment Towards Luxury Brands

2017 ◽  
Vol 7 (2) ◽  
pp. 21-40
Author(s):  
Mohammad Kashani ◽  
Alireza Aslani ◽  
Mohammad R. Esfidani ◽  
Seyed Reza Seyed Javadin
Keyword(s):  
Social Status ◽  
Age Groups ◽  
Emotional Attachment ◽  
Luxury Brands ◽  
Luxury Goods ◽  
Luxury Brand ◽  
Luxury Products ◽  
The Impact ◽  
The Relationship

The purpose of this article is to investigate the effect of individuals' life on the consumers' emotional attachment to the luxury products. The mediation role of individuals' attitudes has been investigated for the relationship between lifestyle and emotional attachment. First, the respondents have been divided into four categories that relate to their lifestyle - concerning their income and desire for social status. Then, the authors deal with the investigation of lifestyle effect on the emotional attachment to the luxury products. The attitude of different age groups has been investigated by the mediation role of the lifestyle and emotional attachment. Finally, elements have been investigated including the accurate recognition of brand by the aristocratic class, communicative and non-communicative motives in different lifestyles, and the relation between price and brand prominence. The findings show that the individual's lifestyle influences on the emotional attachment to the luxury products, as well as the existing attitudes in different age groups mediate the relation between lifestyle and emotional attachment to the luxury brand. The aristocratic class accurately recognise the signs of luxury brands. Also, the motives of communicative and non-communicative individuals are expressed in a variety of styles. Finally, a connection between price and brand prominence is discussed.

scholarly journals Influence of Pester Power on Parents’ Buying Decision: A Focus on FMCG Products in Pakistan

2020 ◽  
Vol 12 (2) ◽  
pp. 115
Author(s):  
Munir A. Abbasi ◽  
Azlan Amran ◽  
Hadiqa Riaz ◽  
Noor E. Sahar ◽  
Hassan Ahmed
Keyword(s):  
Peer Influence ◽  
Consumer Goods ◽  
Product Placement ◽  
Survey Questionnaire ◽  
Shopping Malls ◽  
Product Packaging ◽  
Fast Moving Consumer Goods ◽  
Store Environment ◽  
The Impact ◽  
Buying Decisions

This study examined the impact of pester power on parent’s buying decisions, considering the peer influence, store environment, product packaging, and advertisement as stimuli of pester power. Data were collected by distributing a survey questionnaire in supermarkets and shopping malls in Pakistan from 200 parents and were analyzed by using PLS-SEM. The results confirmed the Pakistani children’s dominance in parents buying decisions for various Fast-Moving Consumer Goods (FMCG) products. The results significantly indicate that product packaging, peers’ product preferences, and advertisements affects parents buying decision. The findings of this study contribute to the existing literature on the impacts of pester power on the parents buying decisions through peer influence, product packaging, and advertisement. In addition to that, this study is the first attempt in the Pakistan context, especially the FMCG industry. The findings of this study may benefit marketers to increase their market share by developing their strategies and marketing campaign; and store managers to plan product placement in their stores in such a way that cultivates quest in children for products, considering them as influencers on parents buying decisions, in line with the study findings.

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