scholarly journals Salary-Quality Beliefs: Products Made by Well-Paid Employees are Expected and Perceived to be of Higher Quality

2021 ◽  
Author(s):  
Ignazio Ziano ◽  
Birga Mareen Schumpe
Keyword(s):  
Willingness To Pay ◽  
Market Competition ◽  
Profit Maximization ◽  
Consumer Psychology ◽  
Applied Psychology ◽  
Lay Theory ◽  
Value Perceptions ◽  
Quality Signals ◽  
Costly Product ◽  
Fair Market

Determinants of quality and value perceptions are a central issue for marketers and consumer psychologists alike. Seven experiments (six preregistered; N = 3453, with U.S. American, British, and French participants) show that consumers expect and perceive products made by well-paid workers to be of higher quality. This increases consumers’ choice likelihood and willingness-to-pay for products made by well-paid workers. We suggest that consumers interpret workers’ salaries and satisfaction as costly product quality signals from the firm. Therefore, consumers’ lay theory benefits firms who pay their workers higher salaries. This effect is driven by the consumers’ belief that well-paid workers are more satisfied, and that more satisfied workers exert more effort, resulting in them producing higher-quality products. This suggests that consumers subscribe to a happiness lay theory to determine value. The present work contributes to the theoretical advancement of scholarly literature in marketing, consumer psychology, and applied psychology. We make several practical suggestions for marketing managers, workers’ unions, and policymakers on how to use, communicate, and regulate worker salary and satisfaction information, taking into account worker welfare and fair market competition as well as revenue and profit maximization.

scholarly journals Local and Global Dynamics of a Constraint Profit Maximization for Bischi–Naimzada Competition Duopoly Game

Mathematics ◽  
2020 ◽  
Vol 8 (9) ◽  
pp. 1458 ◽  
Author(s):  
Sameh S Askar ◽  
Abdulrahman Al-Khedhairi
Keyword(s):  
Complex Dynamics ◽  
Market Competition ◽  
Equilibrium Points ◽  
Profit Maximization ◽  
Stable Complex ◽  
Global Dynamics ◽  
Limited Information ◽  
Critical Curves ◽  
Local And Global Dynamics ◽  
Realistic Situation

The Bischi–Naimzada game is a market competition between two firms with the objective of maximizing profits under limited information. In this article, we study a more generalized and realistic situation that takes into account the sales constraints. we generalize the economic model suggested by Bischi–Naimzada by introducing and studying the maximization of profits based on sales constraints. Our motivation in this paper is the studying of profit and sales constraints maximization and their influences on the game’s dynamics. The local stability of the equilibrium points of the proposed model is discussed. It examines how the dynamics of the proposed two-dimensional competition game model focusing on changes in both the speed of the adjustment and the sales constraint parameters. The map describing the game is proven to be noninvertible and yields many multi-stable, complex dynamics and the coexistence chaotic attractors may arise. The global behavior of the map is achieved by studying the critical curves. The numerical simulations demonstrate the coexistence of two attractors and complex structures of the attraction basins. Several examples are discussed in order to confirm all the analytical results obtained.

scholarly journals ANALISIS PENGARUH PSIKOLOGI KONSUMEN DAN ETNOSENTRISME TERHADAP MINAT BELI KONSUMEN SEPATU DI CIBADUYUT BANDUNG (STUDI KASUS KONSUMEN DIANA SHOES BANDUNG)

2019 ◽  
Vol 3 (2) ◽  
pp. 247
Author(s):  
Keni Kaniawati
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Market Competition ◽  
Correlation Coefficients ◽  
Analytical Techniques ◽  
Consumer Psychology ◽  
Survey Method ◽  
Psychological Influence ◽  
The City ◽  
Regression Tests

 Penelitian ini dilatarbelakangi adanya penurunan minat beli konsumen yang disebabkan karenan adanya persaingan pasar yang sangat ketat,  masuknya sepatu impor dengan harga yang murah, matinya inovasi dari para  pengrajin sepatu . Munculnya fenomena ini diakibatkan adanya penurunan minat beli konsumen yang diakibatkan oleh adanya pengaruh  psikologi konsumen dan etnosentrisme. Peneitian ini dilakukan pada konsumen sepatu di Kota Bandung. Penelitian ini bertujuan untuk mengetahui analisis pengaruh psikologis konsumen dan etnosentrisme terhadap minat beli  pelanggan sepatu di kawasan cibaduyut. Metode yang digunakan dalam penelitian ini deskriptif dan verifikatif dengan menggunakan metode survei eksplanation. Tehnik analisis yang digunakan adalah asumsi klasik, koofesien korelasi dan uji regesi linear berganda. Hasil penelitian secara deskriptif menunjukkan bahwa psikologi konsumen, etnosentrisme bergerak mulai dari cukup sampai dengan baik. Sedangkan secara verifikatif bahwa psikologis konsumen dan etnosentrisme berpengaruh positif dan signifikan baik secara  parsial. Hasil penelitian secara parsial menunjukkan bahwa psikologi konsumen berpengaruh terhadap minat beli pelanggan sepatu , sedangkan Etnosentrisme  berpengaruh terhadap minat beli sepatu. This research is motivated by a decrease in consumer buying interest due to the existence of very fierce market competition, the entry of imported shoes at low prices, the death of innovations from the shoe craftsmen. The emergence of this phenomenon is caused by a decrease in consumer buying interest caused by the influence of consumer psychology and ethnocentrism. This research was conducted on shoe consumers in the city of Bandung. This study aims to determine the analysis of the psychological influence of consumers and ethnocentrism on buying interest in shoes customers in Cibaduyut. The method used in this research is descriptive and verification using the explanatory survey method. The analytical techniques used are classical assumptions, correlation coefficients and multiple linear regression tests. The results of the study descriptively indicate that consumer psychology, ethnocentrism moves from sufficient to good. While verifying that consumer psychology and ethnocentrism have positive and significant effects both partially. The results of the research partially indicate that consumer psychology influences the buying interest of shoe customers, whereas ethnocentrism influences the buying interest of shoes.

scholarly journals The Off-Patent Biological Market in Belgium: Is the Health System Creating a Hurdle to Fair Market Competition?

2021 ◽  
Vol 14 (4) ◽  
pp. 352
Author(s):  
Philippe Van Wilder
Keyword(s):  
Health System ◽  
Market Competition ◽  
Short Term ◽  
Effective Policy ◽  
Policy Measures ◽  
Fair Market ◽  
Biological Market

We investigated the off-patent biological market in Belgium from a policy maker’s perspective, in light of the Belgian pharmaceutical health system. The main barriers relate to a short-term budgetary focus, to the overwhelming innovator’s reach and to a concertation model with assessment and appraisal being mixed which results in poorly effective policy measures.

scholarly journals Corrupt Environment, Marketization Level and Growth of Five-star Hotel Industry

2019 ◽  
Vol 5 (2) ◽  
pp. 55
Author(s):  
Tingting Zhou ◽  
Jing Yu ◽  
Junnuo Shi
Keyword(s):  
Negative Impact ◽  
Market Competition ◽  
Hotel Industry ◽  
Sustainable Growth ◽  
Development Model ◽  
Government Officials ◽  
Industry Practice ◽  
Fair Market ◽  
Control Of Corruption ◽  
Positive Effect

Under the situation of frequent corruption behaviors of government officials and strict requests on cracking down on corruption, using the panel data of provincial five-star hotels, this paper investigates the existence and continuity of development model of “Corruption Economy” in five-star hotel industry, and detects the way for sustainable development of five-star hotel industry on the background of anti-corruption from the perspective of marketization. The results show that degree of state corruption represented by Control of Corruption has a positive effect on the growth of five-star hotel industry. Anti-corruption policies in litigation system, the efforts of implementing these policies to combat corruption, and public’s perceived corruption and anti-corruption all verify a negative impact on five-star hotel industry. Practice shows that anti-corruption breaks the false prosperity of “corruption economy” model. Only with a perfect market system as well as fair market competition order, the five-star hotel industry can realize a sustainable growth.

scholarly journals Competition and Entry in Agricultural Markets: Experimental Evidence from Kenya

2020 ◽  
Vol 110 (12) ◽  
pp. 3705-3747
Author(s):  
Lauren Falcao Bergquist ◽  
Michael Dinerstein
Keyword(s):  
Market Structure ◽  
Experimental Evidence ◽  
Imperfect Competition ◽  
Structural Model ◽  
Market Competition ◽  
Profit Maximization ◽  
Food Prices ◽  
Agricultural Markets ◽  
Fixed Costs ◽  
Total Surplus

African agricultural markets are characterized by low farmer revenues and high consumer food prices. Many have worried that this wedge is partially driven by imperfect competition among intermediaries. This paper provides experimental evidence from Kenya on intermediary market structure. Randomized cost shocks and demand subsidies are used to identify a structural model of market competition. Estimates reveal that traders act consistently with joint profit maximization and earn median markups of 39 percent. Exogenously induced firm entry has negligible effects on prices, and low take-up of subsidized entry offers implies large fixed costs. We estimate that traders capture 82 percent of total surplus. (JEL L13, O13, Q11, Q12, Q13)

scholarly journals Marketing Automation: Marketing Utopia or Marketing Dystopia?

2021 ◽  
Vol 13 (1) ◽  
pp. 18-23
Author(s):  
Klaus Wertenbroch
Keyword(s):  
Machine Learning ◽  
Willingness To Pay ◽  
Personal Data ◽  
Consumer Psychology ◽  
Psychological Consequences ◽  
Best Interest ◽  
Short Term ◽  
Market Participants ◽  
Consumer Concerns ◽  
The Cost

Abstract Automated and personalized interactions may increase the relevance of marketing offers, but they also have less positive economic and psychological consequences for consumers. Machine learning-based prediction algorithms can approximate individuals’ preferences and their willingness to pay at ever greater levels of precision, and companies can use this knowledge to charge higher individual prices. Typically, consumers freely hand over all the information necessary to reveal their preferences and it seems that they underestimate the value of their personal data. And there is another discomforting aspect of giving away personal data. It means giving up privacy and as a result loosing autonomy. Preventing negative outcomes is typically a task for regulators but finding solutions can be difficult. Therefore, companies need to address consumer concerns in their policies as well. To avoid dystopia, managers need to take consumer psychology into account and resist the temptation to maximize short-term profits at the cost of consumers. Avoiding marketing dystopia is in the best interest of all market participants – at least with a longer-term perspective.

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