Following the Customers: Dynamic Competitive Repositioning

2021 ◽  
Author(s):  
Z. Eddie Ning ◽  
J. Miguel Villas-Boas
Keyword(s):  
Discount Rate ◽  
Consumer Preferences ◽  
Market Competition ◽  
Market Equilibrium ◽  
Competitive Interaction ◽  
Original Position ◽  
Market Dynamics ◽  
Middle Ground ◽  
Dynamic Effects

We consider dynamic repositioning when competing firms try to follow the evolution of consumer preferences while taking into account the competitive interaction, both in terms of static market competition and the dynamic effects of different firm positionings. We fully characterize the dynamic market equilibrium, which includes the timing of the firms’ repositionings depending on consumer preferences. As consumer preferences evolve away from where both firms are located, one firm first moves to follow consumer preferences, with the second firm only moving if the consumer preferences continue evolving away from that firm. The model predicts rich market dynamics, where firms stay for some period in different positionings if consumer preferences are in a relatively middle ground or where a firm repositions to follow consumer preferences but then repositions back to the original position if consumer preferences return. We find that, when the variability of the consumer preferences or the discount rate is greater or when the importance of the repositioning attribute is smaller, firms are less likely to follow consumer preferences. Firms are more heterogeneous in their responses, which leads to longer periods of differentiation when the variability of the consumer preferences, the discount rate, or the importance of the repositioning attribute increases. We also find that competing firms reposition less frequently than what is socially optimal and what collusion would imply, and we find more differentiation under collusion than under competition. This paper was accepted by Matthew Shum, marketing.

scholarly journals Open competition or balkanized coexistence? The effects of market segments on Toronto private schools

2017 ◽  
Vol 25 ◽  
pp. 39
Author(s):  
Roger Pizarro Milian ◽  
Scott Davies
Keyword(s):  
School Choice ◽  
Private Schools ◽  
Consumer Preferences ◽  
Market Competition ◽  
Economic Behavior ◽  
Public Governance ◽  
Market Effects ◽  
Community Ties ◽  
Using Data ◽  
Organizational Features

For over 25 years, school choice advocates have argued that market competition drives educational organizations to become more differentiated and technically-oriented. However, empirical research has only partially supported this view, observing such outcomes only under certain conditions. To better understand the contingent nature of market effects within education, we draw on sociological and organizational theories that emphasize the ‘embeddedness’ of economic behavior. We test this idea using data from all private schools in Toronto, Canada, a strategic setting that approximates a ‘pure’ market by being mostly free of public governance. We find that, net of factors like school size and age, market segment is associated with the presence of a variety of organizational features. In conclusion, we ponder ways that institutional norms and community ties not only buffer schools from market forces, but also, infuse consumer preferences.

Cross-Cultural Variations in Consumer Behavior

2015 ◽  
pp. 133-158
Keyword(s):  
Marketing Strategy ◽  
Consumer Preferences ◽  
Market Competition ◽  
Marketing Strategies ◽  
Cross Cultural ◽  
Cultural Backgrounds ◽  
Global Marketplace ◽  
Cultural Variations ◽  
The Cross ◽  
Cultural Interventions

The global marketplace is getting congested with inter-market segmentation comprising consumers of various ethnic groups. Such attributes of markets have posed uphill challenges to the companies to develop marketing strategies that caters to the consumer preferences of varied cultural backgrounds. The cross-cultural variations often build discontentment among consumers as their preferences are not meticulously attended by the companies. This chapter defines culture and describes the cross-cultural drivers with a focus on cultural diversity, gender, society, and personality perspectives. The discussions in the chapter argue that the cultural interventions have become very subtle with the increasing market competition, and uniform marketing strategy does not cater to the cross-cultural consumer segments.

scholarly journals Exhaustible Resource Allocation, Intergenerational Equity, and Sustainability

1996 ◽  
Vol 25 (1) ◽  
pp. 60-67
Author(s):  
Keith C. Knapp
Keyword(s):  
Discount Rate ◽  
Market Equilibrium ◽  
Exhaustible Resources ◽  
Elasticity Of Substitution ◽  
Future Generations ◽  
Olg Model ◽  
Exhaustible Resource ◽  
Parameter Values ◽  
Social Optimality ◽  
Over Time

An OLG model with exhaustible resources and solar energy is developed, and equilibrium time paths are characterized numerically using recursive methods. For the parameter values considered, resource prices increase over time, and extractions, output, and utility decline over time until a steady-state is reached. Decreasing the intertemporal elasticity of substitution or raising consumers' subjective discount rate hastens exhaustion of the resource stock. Market equilibrium can result in much quicker use of the stock than social optimality under a constant discount rate, with consequent higher utility for early generations and lower utility for future generations in contrast to social optimality.

State-Building as Market-Building in China

2006 ◽  
Vol 47 (2) ◽  
pp. 209-240 ◽  
Author(s):  
Junmin Wang
Keyword(s):  
Local Governments ◽  
Tobacco Industry ◽  
Central Government ◽  
Market Competition ◽  
Industrial Sector ◽  
State Building ◽  
Market Dynamics ◽  
Reform Era ◽  
History Of ◽  
Economic Transitions

By examining the history of the development of the tobacco industry, a key state industrial sector in China's reform era, this article shows how market-building processes and state-building processes have produced and reproduced each other in economic transitions from planned toward market economies. First, the market competition between state-owned tobacco firms and non-state tobacco firms in the early 1980s resulted in the establishment of a vertical bureaucracy, through a statemonopoly institution. Second, new market dynamics resulted in the transfer of monopoly power from the central government to the local governments. During this process the horizontal bureaucracies governing the tobacco industry in localities were driven into market competitors, while the vertical bureaucracy was greatly undermined. The evidence from the Chinese tobacco industry shows that the project of market-building for postcommunist countries is not a unilateral process. To obtain a complete understanding of transitional economies of postcommunist countries, I suggest that the key is the interaction between state-building and market-building, with a focus on how the specific market dynamics have rebuilt the state structures.

scholarly journals STRATEGIE WZAJEMNEGO ODDZIAŁYWANIA KONKURENCYJNEGO STRUKTUR BIZNESOWYCH WE WSPÓŁCZESNYCH WARUNKACH RYNKOWYCH

World Science ◽  
2018 ◽  
Vol 2 (10(38)) ◽  
pp. 48-53
Author(s):  
Natalia Mychalczyszyn ◽  
Iryna Skrebets
Keyword(s):  
Consumer Demand ◽  
Market Competition ◽  
Competitive Interaction ◽  
Competitive Strategies ◽  
Capacity Market ◽  
Competitive Behaviour ◽  
Market Niche ◽  
Business Structures

The article analyses firms’ behaviour in the market in conditions of competitive interaction. The competitive strategies and conditions for their implementation are explored. The authors show that strategies used by business structures can be friendly or hostile in view of market niche capacity, market profitability and consumer needs volatility. The authors deny the impossibility of one competitor domination in the market, since the desire to maximize profits and competitive behaviour harmonization can lead to the elimination and prevention of market competition. The conditions under which an enterprise will seek to leave a niche and create a new one, in which there will be no competition as such, are determined. Based on the interrelation of "disadvantages-motives-needs- demand", the authors establish the interconnection between consumer demand and company’s tasks creation, which have to be performed to consolidate the position in the occupied market niche.

Consumers and Intermediate Producers in the Phase-out of Agricultural and Industrial Ozone-Depleting Substances

2017 ◽  
Author(s):  
Alexander Ovodenko
Keyword(s):  
Methyl Bromide ◽  
Consumer Preferences ◽  
Market Competition ◽  
Montreal Protocol ◽  
Environmental Regime ◽  
Consumer Markets ◽  
Confounding Variables ◽  
Ozone Depleting Substances ◽  
Phase Out ◽  
The Impact

The chapter analyzes the impact of downstream consumer markets on environmental regime design by explaining why wealthy countries have successfully phased out industrial ozone-depleting substances (ODS) but not an agricultural pesticide known as methyl bromide under the Montreal Protocol, despite the 2005 phase-out deadline for that pesticide. Since the analysis focuses on the regulation of different sectors under the same treaty, it isolates the impact of markets without the threat of major confounding variables interfering with the conclusions. It emphasizes competitive pressures and the structure of intermediate producers in the industrial and agricultural markets employing ODS to explain why methyl bromide has been handled differently from industrial refrigerants. The findings illustrate the impacts of consumer preferences and market competition on the investments of fluoro-product companies and, in turn, on the policies of wealthy countries and rules in the ozone regime.

Estimation of market equilibrium values for apple attributes

2018 ◽  
Vol 10 (1) ◽  
pp. 135-151 ◽  
Author(s):  
Jong Woo Choi ◽  
Chengyan Yue ◽  
James Luby ◽  
Shuoli Zhao ◽  
Karina Gallardo ◽  
...  
Keyword(s):  
Consumer Preferences ◽  
Supply And Demand ◽  
Mixed Logit ◽  
Market Equilibrium ◽  
Breeding Programs ◽  
Content Type ◽  
Mixed Logit Models ◽  
Equilibrium Prices ◽  
Demand Curves ◽  
Social Surplus

Purpose Development of new cultivars requires extensive genetic knowledge, trained personnel, and significant financial resources, so it is crucial for breeders to focus on the attributes most preferred by the key supply chain stakeholders such as consumers and producers. The purpose of this paper is to identify which attributes generate the highest total revenue or social surplus, information that breeders can take into account as they allocate resources to focus on attributes in their breeding programs. Design/methodology/approach This study used mail-in and online surveys to collect consumer and producer choice experiment data, and then employed mixed logit models to analyze and simulate individual producer and consumer willingness to pay (WTP) for the apple attributes. Findings Based on the simulation results, this study derived the supply and demand curves and the market equilibrium prices and quantities for each apple attribute. Based on the WTP analysis for both consumer and producer, this paper found the highest equilibrium price and welfare for apples come from crispness, followed by flavor. Originality/value The authors propose a framework to estimate the equilibrium prices and quantities of a product based on the results of choice experiments. The framework can be easily adapted to understand any countries’ producer and consumer preferences for certain products.

scholarly journals Strategies for Sustainability of Environmental & Resources Efficiency

2016 ◽  
Vol 2 (12) ◽  
pp. 1
Author(s):  
Joshua Ioji Konov
Keyword(s):  
Environmental Protection ◽  
Market Competition ◽  
Market Equilibrium ◽  
Fiscal Stimulus ◽  
Demand And Supply ◽  
Economic Agents ◽  
Fair Market ◽  
Medium Businesses ◽  
Consumption Demand ◽  
Alternative Energies

The best global model for expanding Alternative Energies and Environmental Protection is through using market equilibrium, whereas governmental subsidies and fiscal stimulus to be just supplementary. Accelerated Globalization and rising Productivity’ Market equilibrium depends on matching consumption demand and supply through price deleveraging. Hence is achievable in a more fair market competition only by changing market (i.e. economic) agents: from presently used trickle-down economics that stimulate big business and big investors to a more market related economics (Marketism) that would stimulate Small & Medium Businesses and Investors (SME&I) boost business activities and related employment, fiscal reserves and over all market utilized consumption.

scholarly journals Consumers Choice and Preference for Chicken Meat in Sulaymaniyah

2021 ◽  
Vol 910 (1) ◽  
pp. 012028
Author(s):  
Hemin A. Neima ◽  
Kawan Sirwan ◽  
Khansa Hameed
Keyword(s):  
Value Chain ◽  
Consumer Preferences ◽  
Market Competition ◽  
Consumer Preference ◽  
Global Market ◽  
Chicken Meat ◽  
External Factors ◽  
Poultry Production ◽  
Sustainable Food ◽  
Wet Market

Abstract Chicken meat consumption and demand have significantly increased in the Kurdistan Region of Iraq (KRI) after 2003, which has led to the growth of poultry production and risen import from abroad. Consumer preferences study can be a determinant factor for poultry production development strategies to fill local demand gaps and global market competition. This study aimed to identify the consumer preference of chicken meat regarding the type, size, parts, marketplace, and other vital aspects considered by consumers when buying chicken meat, and the internal and external factors that affect consumer preference in the chicken meat purchasing choice. A descriptive study was conducted in Sulaymaniyah city, and the data were collected through a structured questionnaire form. This study indicated that 47.7% of the respondents prefer local Kurdish chicken (Mrishki Kurdi). 50% of the consumers in the Sulaymaniyah city prefer to buy whole chicken weighed between (2-3 Kg), 35.4% at the nearest or trusted meat shop, 38.5% at the wet markets, and 69.3% alive chicken slaughtered at the wet market at the time of purchase. Additionally, the internal factors (sensory features and perceptual features) were more dominant (sum total=4.084) than External factors (information, social environment, and physical environment) (sum total=3.599). Conclusions derived from the results suggest that the current study can contribute to a better understanding of consumers and improve the agribusiness value chain in KRI. The results from this study are recommended to examine consumer behavior and preference for agri-foods to build an integrated sustainable food production system based on consumers' needs and demands in the KRI and compete with the imported products.

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