Economic effects of ambient air pollution on consumer shopping behaviors

In this paper, we address why the lack of research on the indirect economic effect of air pollution arises and explored the desirable features of data that allow such examination. In light of scanner panel data on individual transactions from a region with significant fluctuations in the level of particulate matters, our empirical investigation reveals that the economic effect of air pollution is statistically and economically significant through the disruption on consumption behaviors. Our discussion on the essential features of the data for the systematic analysis on the economic effect of air pollution and empirical evidence based on such data provides ample guidance for the future research.

Retailers’ promotions

Purpose The purpose of this paper is to analyse the overall effect of promotions on consumers’ food purchases in Scotland and to consider the implications of the findings for food and health policy. Design/methodology/approach This is achieved by analysing a representative scanner panel data set for the period 2006-2013. The methodology consists of exploring the impact of promotions on food expenditure and allocation within households’ food purchases, using expenditure regressions and estimations of the linear version the Almost Ideal Demand System. Findings The results indicate that whilst promotions have differentiated effects by category, they have similar results by SIMD. The effect of the promotions on the total expenditure is positive for all the quintiles. However, the effect of promotions on each food category is complex because of the cross-effects between categories. As regards the effect of prices, the results provide a picture that seems to indicate that typical economic measures such as specific taxes applied to substances which, e.g., encourage obesity, might have limited impact on the diet given the inelasticity of the demand to changes in prices. Originality/value A contribution of this paper has been to focus on the effect of promotions on all the food products consumed by Scottish households, instead of analysing promotional influences on a single or reduced number of products within a category.

How brand loyal shoppers respond to three different brand discontinuation scenarios

Purpose Retailers may respond to a manufacturer discontinuing a brand or product range in three ways: not offering an alternative, thus reducing the assortment size; replacing it with a substitute; or introducing a rebranded product by the same manufacturer, if such an option is available. This study aims to evaluate all three scenarios and assess the extent to which total category sales are affected; how these discontinuations affect alternative offerings within the product category; and whether usage levels moderate within category switching behaviour. Shoppers did not have the option of switching stores to acquire the discontinued brand – their preferred brand/product range ceased to exist. Design/methodology/approach All three studies are quasi-experiments using scanner panel data. The product discontinuations examined are real events that took place within the major supermarket chain in New Zealand. Findings In all the three scenarios, average category sales decreased for the three-month period following the discontinuation. In Study 1, where a preferred brand of milk was discontinued with no replacement, overall category sales decreased but competing brands gained sales; introducing a replacement corn chip range (Study 2) successfully captured the spend on the discontinued range, but other brands lost sales; and rebranding a cereal (Study 3) decreased both brand sales and category sales. With the exception of Study 1, near-substitute product offerings did not capture a greater proportion of the spend from the discontinued brand as compared to less similar substitutes. Expectations were that heavy users would have a greater propensity to shift to near alternatives than would medium/light users; however, none of the studies lend support. Originality/value This is the first research effort to use scanner panel data to explore the reactions by brand loyal customers to three different brand discontinuation scenarios initiated by the manufacturer.