scholarly journals Competition for Context-Sensitive Consumers

2020 ◽  
Author(s):  
Arno Apffelstaedt ◽  
Lydia Mechtenberg
Keyword(s):  
Production Cost ◽  
Product Line ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Context Sensitive ◽  
Consumption Choices ◽  
Consumer Attention ◽  
Decoy Effects ◽  
Lower Production ◽  
Choice Set

When preferences are sensitive to context, firms may influence purchase decisions by designing the environment of consumption choices. This paper studies how competitive retailers optimally design their product line if preferences at the store depend on whether the choice set draws consumer attention to the quality or price of a product. Before making a purchase decision, a consumer chooses among retailers without (fully) anticipating that her preferences at the store are malleable. We show that this setup can align evidence on retailer marketing practices and the existence of loss leaders with the experimental literature on decoy effects: in equilibrium, retailers use loss leaders to attract the consumer to the store and decoy products to draw consumer attention at the store to more profitable alternatives featuring a higher price (inducing a profitable upsell) or lower production cost (inducing a profitable downsell). We embed and compare the predictions of three recent specifications of choice-set dependent attention—namely, Salience, Focusing, and Relative Thinking. All three specifications predict that firms construct choice environments that utilize decoy effects to up- or downsell the consumer. Because they differ in how attention can be directed using the product line, however, they differ in their predictions of how the decoy will be positioned in the price-quality space. This paper was accepted by Yan Chen, decision analysis.

FACTORS INFLUENCING HOME BUYERS’ PURCHASE DECISIONS IN KLANG VALLEY, MALAYSIA

2020 ◽  
Vol 7 (2) ◽  
pp. 77
Author(s):  
JieSheng Mang ◽  
Rozlin Zainal ◽  
Indera Syahrul Mat Radzuan
Keyword(s):  
Purchase Decision ◽  
Purchase Decisions ◽  
Structure Space ◽  
Factors Influencing ◽  
Klang Valley ◽  
Housing Industry ◽  
House Structure ◽  
Research Studies

Focusing on Klang Valley, this research studies the outcome of house purchase factors in Malaysia. This research identifies the house purchase factors that affect home buyers’ purchase decisions. The researcher collected data using SurveyMonkey by using a questionnaire to elicit the opinions of Klang Valley residents on housing purchase factors and purchase decision. The factors were evaluated and studied to identify their influence on home buyers’ purchase decision. Findings show that home buyers’ purchase decision are influenced by house structure, space, finance, location, and neighbourhood factors. The findings have laid a foundation for the housing industry to improve.

scholarly journals The Effect of Performance, Price Perception, Brand Image, and Brand Association on Purchase Decision of Honda CBR150R in Surabaya

2021 ◽  
Vol 4 (1) ◽  
pp. 97-107
Author(s):  
Ponta Dewa Saktiawan ◽  
Soni Harsono
Keyword(s):  
Automotive Industry ◽  
Brand Image ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Inclusion Criteria ◽  
Price Perception ◽  
Brand Association ◽  
Negative Effect ◽  
Correlational Data ◽  
Positive Effect

 In the automotive industry, the consumer purchase decision is the most important aspect of the company's life cycle because it can affect profitability, especially for Honda CBR 150R. This study aims to analyze the effect of performance, price perception, brand image, and brand association on the purchase decision of Honda CBR 150R in Surabaya. The research design is descriptive-correlational. Data were collected by distributing 113 questionnaires to the respondents who met the inclusion criteria. The data were analyzed using multiple regression analysis. This research shows that performance and price perception have a negative effect on purchase decisions, but not significantly. The brand image has a positive effect on the purchase decision, but not significantly. On the other hand, the brand association has a positive and significant effect on a purchase decision. It can be concluded that brand association is the most important aspect in Honda CBR 150R purchase decision.

scholarly journals PEMILIHAN PROSES PENGADAAN BAHAN BAKU JAHE MERAH KERING DALAM MEMPRODUKSI BANDREK INSTAN DALAM KEMASAN; THE USE OF DRIED RED GINGER AS RAW MATERIAL IN PRODUCINGINSTANT BANDREK

OPTIMA ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 1 ◽  
Author(s):  
Levina Maharani ◽  
Endah Djuwendah
Keyword(s):  
Production Cost ◽  
International Market ◽  
Raw Material ◽  
Limited Resources ◽  
Qualitative Descriptive ◽  
C Value ◽  
Equal Income ◽  
Red Ginger ◽  
Descriptive Method ◽  
Lower Production

Bandrek Hanjuang merupakan minuman kemasan khas dari Jawa Barat yang sudah dipasarkan baik di dalam negeri maupun internasional. Perubahan manajemen pada perusahaan ini berdampak pada peningkatan penjualan produk yang dihasilkannya. Disisi lain, keterbatasan lahan yang dimiliki membuat perusahaan belum mampu memastikan ketersediaan bahan baku seiring dengan meningkatnya kebutuhan terhadap bahan baku tersebut. Tujuan penelitian ini untuk menganalisis kelayakan usaha produksi bandrek menggunakan dua alternatif pengadaan bahan baku jahe merah yaitu memproduksi sendiri atau membeli dari luar menggunakan analisis R-C Rasio. Penelitian dilakukan di CV. Cihanjuang Inti Teknik dari bulan Maret-September 2015. Metode yang digunakan adalah metode deskriptif kualitatif, yaitu penelitian yang diarahkan untuk memberikan informasi secara sistematis dan akurat mengenai objek penelitian serta menganalisis berdasarkan data yang diperoleh. Hasil penelitian menunjukan bahwa dengan jumlah pendapatan yang sama, proses produksi dengan alternatif pengadaan jahe merah dengan memproduksi sendiri memiliki nilai R/C yang lebih tinggi dibandingkan dengan membeli dari luar. Hal ini menunjukkan bahwa proses produksi dengan alternatif pengadaan jahe merah dengan memproduksi sendiri memiliki biaya produksi yang lebih rendah sehingga memiliki keuntungan yang lebih besar. Oleh karena itu, proses produksi dengan alternatif pengadaan jahe merah dengan memproduksi sendiri dinilai lebih layak untuk direalisasikan. Kata kunci : bandrek, jahe merah, kelayakan usaha, pengadaan bahan baku, R/C rasio Bandrek Hanjuang is a special instant drink from West Java which has been in the national and international market. However, due to the increase of demand, the company was not be able to provide the dried red ginger as raw material, due to the limited resources. The aim of this research is to analyze the properness of bandrek production using two ways of making; self-producing or buying from other party using analysis ratio R-C. This research was conducted in CV. Cihanjuang Inti Teknik from March to September 2015. The method used in this research is qualitative descriptive method; that is; a research which is conducted to give systematic information concerning the object of the research and to analyze from the obtained data. The finding of this research showed that with equal income, self-producing of dried red ginger had higher R/C value compared to buying from other party. This illustrates that the self-producing required lower production cost, therefore the company is able to get higher income. In conclusion, self-producing of dried red ginger is likely more preferable to be conducted. Keywords : bandrek, red ginger, properness, raw material making, R/C ratio

scholarly journals The Effect of Electronic Word-of-Mouth in Social Media toward Consumer Purchase Decision with Brand Image as Moderating Variable

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
ANINDYA PRAMESTIARA ◽  
RAHAB RAHAB
Keyword(s):  
Social Media ◽  
Research Method ◽  
Word Of Mouth ◽  
Brand Image ◽  
Purchase Decision ◽  
Sampling Techniques ◽  
Purchase Decisions ◽  
Electronic Word Of Mouth ◽  
Exchange Information

Social media has made it possible for users to exchange information and discuss theiropinions and experiences about products or services through online on their social mediaplatform with their peers. This kind of communication is called as electronic word-of-mouth(e-WOM) where the information can be spread faster and has the potential for greaterimpact on consumers purchase decision. Therefore, the aim of this research is to know theeffect of e-WOM (including quality and quantity of e-WOM as well as sender’s expertise) insocial media on consumers’ purchase decisions moderated by brand image. The researchmethodology used for this study is a case study with survey research method. Conveniencesampling technique derived from non-probability sampling techniques are used for sampleselection. The sample of this research is 175, from people who have purchased and usedEtude House product. Statistical software SPSS and AMOS is used to analyze the data. Thefindings in this area will help Etude House and other marketers to reach out its potentialcustomers and align their marketing effort in efficient way by pay attention on the marketingpolicies about eWOM. The limitations of the research is some respondents not read andanswer the question clearly and made it not represent their exact perception.

scholarly journals Pengaruh Kualitas Produk, Promosi, dan Citra Merek terhadap Keputusan Pembelian Kopi Merek Moola Pedawa

2021 ◽  
Vol 7 (1) ◽  
pp. 56
Author(s):  
Vika Ervina ◽  
Made Ary Meitriana
Keyword(s):  
Data Analysis ◽  
Linear Regression ◽  
Product Quality ◽  
Brand Image ◽  
Sampling Technique ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Collection Method ◽  
Analysis Technique ◽  
Quality Promotion

The purpose of this study was to discover the effect of product quality, promotion and brand image on the purchase decision of Moola Pedawa Coffee. This type of research is associative with a quantitative approach. The population was customers who have bought and consumed Moola Pedawa Coffee for 384 respondents, collected by the purposive sampling technique. The data collection method was using questionnaires. The data analysis technique was using multiple linear regression. Hypothesis tests were conducted using the t test and f test. The results showed that partially and simultaneously product quality, promotion, and brand image have a positively effect on purchase decisions

Engineering Social Learning: Information Design of Time-Locked Sales Campaigns for Online Platforms

2021 ◽  
Author(s):  
Can Küçükgül ◽  
Özalp Özer ◽  
Shouqiang Wang
Keyword(s):  
Information Design ◽  
Information Policy ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Short Term ◽  
Online Platforms ◽  
Fixed Prices ◽  
Cumulative Difference ◽  
Heuristic Policy

Many online platforms offer time-locked sales campaigns, whereby products are sold at fixed prices for prespecified lengths of time. Platforms often display some information about previous customers’ purchase decisions during campaigns. Using a dynamic Bayesian persuasion framework, we study how a revenue-maximizing platform should optimize its information policy for such a setting. We reformulate the platform’s problem equivalently by reducing the dimensionality of its message space and proprietary history. Specifically, three messages suffice: a neutral recommendation that induces a customer to make her purchase decision according to her private signal about the product and a positive (respectively (resp.), negative) recommendation that induces her to purchase (resp., not purchase) by ignoring her signal. The platform’s proprietary history can be represented by the net purchase position, a single-dimensional summary statistic that computes the cumulative difference between purchases and nonpurchases made by customers having received the neutral recommendation. Subsequently, we establish structural properties of the optimal policy and uncover the platform’s fundamental trade-off: long-term information (and revenue) generation versus short-term revenue extraction. Further, we propose and optimize over a class of heuristic policies. The optimal heuristic policy provides only neutral recommendations up to a cutoff customer and provides only positive or negative recommendations afterward, with the recommendation being positive if and only if the net purchase position after the cutoff customer exceeds a threshold. This policy is easy to implement and numerically shown to perform well. Finally, we demonstrate the generality of our methodology and the robustness of our findings by relaxing some informational assumptions. This paper was accepted by Gabriel Weintraub, revenue management and market analytics.

Tourist Social Media Engagement

2022 ◽  
pp. 192-212
Author(s):  
Rayane Ruas ◽  
Belem Barbosa
Keyword(s):  
Social Media ◽  
Literature Review ◽  
Decision Process ◽  
Secondary Data ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Four Dimensions ◽  
Tourist Destinations ◽  
Search For Information ◽  
Method Approach

Social media are transforming relationships with customers for all sectors, including tourism. Since the search for information is a critical aspect of tourist purchase decision process, the importance of social media for tourism is evident. However, the presence of tourism brands in social media is not enough to have an impact on tourist purchase decisions: it is necessary to generate engagement. This chapter aims to conceptualize tourist engagement on social media and identify tourist engagement indicators. Tourist engagement was conceptualized through a literature review that identified four dimensions of engagement: popularity, commitment, virality, and post engagement. A set of indicators is proposed to measure tourist engagement in each of these dimensions. The proposed TSM engagement framework was validated through a mixed-method approach, using secondary data and interviews carried out with Brazilian tourist destinations.

Complicating or simplifying? Investigating the mixed impacts of online product information on consumers’ purchase decisions

2019 ◽  
Vol 30 (1) ◽  
pp. 263-287
Author(s):  
Yan Yu ◽  
Ben Qianqian Liu ◽  
Jin-Xing Hao ◽  
Chuanqi Wang
Keyword(s):  
Decision Making ◽  
Product Information ◽  
Purchase Decisions ◽  
Decision Strategy ◽  
Market Outcomes ◽  
Content Type ◽  
Decision Bias ◽  
Set Size ◽  
Product Presentation ◽  
Choice Set

Purpose Prior literature indicates conflicting effects of online product information, which may complicate or simplify consumer purchase decisions. Therefore, the purpose of this paper is to investigate how different online product information (i.e. the choice set size and the popularity information and its presentation) affect consumers’ decision making and the related market outcomes. Design/methodology/approach This research relies on information-processing theories and social learning theory. By stepwise conducting two 2×2 within-subject factorial design experiments, this research examines the effects of the choice set size, product popularity information and product presentation on consumers’ decision making and the aggregated market outcomes. Findings The results show that product popularity information led consumers to either simplify or complicate their decision strategy, depending on the size of the choice sets. Additionally, presenting products by their popularity in descending order resulted in consumers making decisions with a larger decision bias. The results also show that the presence of product popularity was more likely to forge a “superstar” structure in a large market. Practical implications The research suggests that e-retailers and e-marketplace operators should carefully utilize product popularity information. Multiple mechanisms that shape different shopping environments with different orders are necessary to create a long-tailed market structure. Originality/value This study found the mixed effects of product popularity information when it is presented in different environments (i.e. the large/small choice set and the sorted/randomized product presentation). The overuse of popularity information may induce consumers’ decision bias.

scholarly journals Herd Behavior in the Insurance Market: A Survey

2015 ◽  
Vol 7 (11) ◽  
pp. 154 ◽  
Author(s):  
Fan Liu
Keyword(s):  
Information Sources ◽  
Collective Intelligence ◽  
Insurance Market ◽  
Purchase Decision ◽  
Herd Behavior ◽  
Purchase Decisions ◽  
Decision Making Processes ◽  
Use Of Information Sources ◽  
The Relationship ◽  
Selection Of

We conduct a survey to examine herd behavior in the insurance market. Following prior studies on consumers’ use of information sources in their purchase decision-making processes we develop hypotheses that explore the relationship between selection of information sources and herd behavior among potential insurance buyers in the market. Our results strongly support contentions that insurance buyers are significantly influenced in their choices by recommendations from different information sources and they do use these as herd cues to infer insurance product quality when making their own purchase decisions. In particular, our findings suggest that potential insurance buyers are more likely to be influenced by collective intelligence than by insurance experts.

How children make purchase decisions: behaviour of the cued processors

2016 ◽  
Vol 17 (2) ◽  
pp. 111-126 ◽  
Author(s):  
Gunnar Mau ◽  
Michael Schuhen ◽  
Sascha Steinmann ◽  
Hanna Schramm-Klein
Keyword(s):  
Design Methodology ◽  
Declarative Knowledge ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Content Type ◽  
Point Of Sale ◽  
Number Of Children ◽  
Combination Of Methods ◽  
Simulation Task ◽  
Purchasing Process

Purpose This paper aims to analyse how children behave during a purchasing process in a simulated shop and how they put their goals into effect at the Point of Sale (POS). The focus of this research is children in Germany aged between 8 and 10 years. The results reveal answers to the following questions: which criteria do the children consider important when buying groceries? How efficiently and effectively do children pursue the goals demanded of them at the POS? This knowledge can support parents, teachers and educational organisations in teaching children consumer literacy. Design/methodology/approach Data were collected through interviews and a subsequent observation of the behaviour in a purchase simulation. A total of 436 school children aged 8 to 10 years answered a questionnaire about their behaviour at the POS and perceived demands during the purchasing process as well as their understanding of purchase-relevant concepts. Subsequently, purchase behaviour and decisions in a digitally simulated shopping environment of a supermarket were analysed for a subsample (n = 170). This combination of methods enables the collection of observable decision-making behaviour as well as of the declarative knowledge and the purchasing habits of the children. Findings Children often act differently from the way they themselves intended and expected during the purchase decision at the POS. Only a small number of children behaved purposefully, whereas the vast majority was distracted by the great amount of stimuli in the simulated supermarket. The results reveal factors that helped children cope with the shopping task and shielded them against purchase impulses from the stimuli at the POS. Originality/value To the best of the authors’ knowledge, this is the first study to combine questionnaires about children’s declarative knowledge of the shopping process with observation of the real decision behaviour in a supermarket simulation task.

Sign in / Sign up

Export Citation Format

Share Document