...Budapesti Corvinus Egyetem Gazdálkodástudományi Kar Marketing és Média Intézet Marketing Tanszék Tárgyfelelős: Dr. Gyulavári Tamás Szakcikk összefoglalás * Marlene Jensen, Ronald Drozdenko: The changing price of brand loyalty under perceived time pressure * Herman Diller: Price fairness Készítette: Pordán Tamás Budapest, 2010-12-15 Marlene Jensen, Ronald Drozdenko: The changing price of brand loyalty under perceived time pressure A tanulmány célja A szerzők azt vizsgálták, hogy a prémium márkák körében a fogyasztók mennyivel lennének hajlandóak többet fizetni a preferált márkákért Módszertan 385 fogyasztót kérdeztek meg 10 különböző termék kategória (gabonapehely; dezodor; HDTV; MP3 lejátszó; ing; cipő; gumiabroncs; fogkrém; vitaminok; óra) áráról. A válaszadókat két csoportra bontották: 1. Fogyasztók, akik márkahűnek vallották magukat 2. Fogyasztók, akik nem vallották magukat márkahűnek A csoportokon belül különböző kérdésekre keresték a választ: 1. Márkahűek: Mennyit lennének hajlandóak maximum fizetni egy termékért normál esetben, illetve mennyit akkor, ha valamilyen okból kifolyólag azonnal kellene megvásárolni azt 2. Nem márkahűek: A legolcsóbb elérhető márkát vásárolnák meg, vagy egy olyat (a legolcsóbbak közül), amit ismernek. Márkaérték A szerzők rámutatnak arra, hogy a fogyasztók az ismert (jól bevált) márkákat preferálják, szemben azokkal, amiket nem ismernek. Ennek több oka van: ...
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...relationship between self-congruity and brand loyalty, and stating the moderating effect of consumers’ price consciousness: The literature review Yulia Yushchik, 10292004 Assignment: Literature review Number of words: 2498 Brand Communication Dr. Peeter Verlegh The University of Amsterdam March 30, 2012 Introduction When the popularity of the relationship marketing is growing widely, consumer-based determinants of brand loyalty are interesting and useful field to study. Brand loyalty is realized by having strategic importance for a business. The figures provided by Bain&Co indicate that a 5% increase in customer retention varies for a company’s profit by 40 to 95%. An increase in customer loyalty of 1% is the equivalent of a 10% cost reduction (Reichheld & Teal, 2001). Gounaris and Stathakopoulos (2004) also mention that loyal customers are less expensive because they reduce marketing costs. For example, several researches found that brand loyalty is positively related to word-of-mouth (De Matos & Rossi, 2008). The relevance of consumer-oriented policy has increased at the time of economic recession. Retaining brand loyalty in a difficult economic climate is a challenging task. Practitioners propose to work harder on getting to know the customers in order to better serve their needs (Slim, 2010, February 3). This allows companies to personalized loyalty programs, which is considered to be the right solution for preserving people’s loyalty to a brand. In the academic world loyalty...
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...SETTING RETAIL PRICES Customer Price Sensitivity and Cost As the Price of a product increases, the sale of the product will decrease, because fewer and fewer customer feels the product is a good value. The price sensitivity of the customer determine how many units will be sold at different price level Price Elasticity- a commonly used measure of price sensitivity or the percentage in quantity sold divided by the percentage change in price: ELASTICITY= Percentage change in quantity sold Percentage change in Price Competition- is the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion. Collecting and Using Competitive Price Data Most retailers routinely collect price data about their competitors to see if they need to adjust their price to remain competitive. Competitive price data are typically collected using store personnel, but pricing also are available from business service providers. Reducing Price Competition Retailers attempt to reduce rice competition by utilizing some branding strategies. Legal and Ethical Pricing Issues * Price Discrimination- occurs when a retailer charges different prices for identical products and or/ services sold to different customer. Price Discrimination between retailers and their customer are legal. * Predatory Pricing- arises when a dominant retailer sets prices below its costs...
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...which brand to choose. At this scene we show them our laundry display board to help them make decisions. And we record their process of making decisions and analysis the attributes they value most. This is the Laundry Detergent Display Board. | Brand A | Brand B | Brand C | Brand D | Price | 11.99 | 11.99 | 17.99 | 11.99 | Scent | Clean Breeze | Lavenders | Clean Breeze | Lavenders | Liquid/Powder | Liquid | Powder | Liquid | Powder | Inclusion of Fabric-Softener | Yes | No | Yes | No | Part 2 Responses and interpretations At this part, each of our 4 group members interprets the 6 responses and we recorded their order to uncover the information. Can’s interpretation of 6 responses Response 1: Male The most important attribute: Scent- Clean Breeze: Brand A C The next important attribute: Liquid- Brand A Interpretation: Scent is the most important attribute to him, and after he optimize with “Clean Breeze”, he looks for the information of whether detergent of two remaining brands is liquid or not. After seeing Brand A is liquid, he chooses A. Which shows Liquid is the next most important attribute to him, and he just need to optimize with the Liquid. Response 2: Female The most important attribute: Scent- Lavenders: Brand B D The next important attribute: Liquid- Brand D Interpretation: Scent is the most important attribute to her, and after she optimize with “Lavenders”, she looks for the information of whether detergent of two remaining brands is...
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...PRODUCT AND BRAND MANAGEMENT PROJECT PHASE 2 Brand Equity | DOVE Product and Brand Management Project- Phase 2 Part 2: Brand Equity Measurement EXECUTIVE SUMMARY The objective of this phase of the project is to measure the Brand Equity for the brand “Dove”. Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. In a market where products are similar, branding can have a large effect on the price that customers will pay. Brands therefore add value to a basic product or service by enabling the product or service to command a higher price, or higher market share than an unbranded equivalent. Its value may be a monetary value (which may be discounted to a net present value), an increase in a rate of return or any number of softer market research measures such as awareness or consideration. There are at least two perspectives from which to view brand equity: • Financial or pricing based approach: One way to measure brand equity is to determine the price premium that a brand commands over a generic product. Consumer based: A strong brand increases the consumer’s attitude strength toward the product associated with the brand. • In this part of the project we have used a combination of three techniques to measure the brand equity of the brand Dove: 1) Price Premium at Indifference ( Price Based Method of calculating Brand Equity) 2)...
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...The influence of product price and brand on Economics students’ of IIUM spending behavior Nurul Faezah binti Md.Azizan International Islamic University Malaysia Abstract Consumers’ decision making on purchase is a type of analytical process and frequently they undergo a similar psychological process in deciding what products and brand to buy. Product price and brand are several factors that affect customer’s spending behavior in satisfying their needs and hence, it is important for manufacturer and retailers to know what factors that encourage customers to buy a product. The purpose of the present paper therefore, is to investigate the influence of product price and brand among students who represent adolescents, on their spending behavior. Questionnaires were distributed among students from Kuliyyah Economics and Management Sciences of International Islamic University Malaysia (IIUM) to view their judgment about this issue. The results then propose that most of the students valued product price more than brand name of products in selecting things to purchase. Table of content Page Introduction 4 Literature Review 7 Methodology 10 Findings/Discussion 12 Conclusion 17 References 19 Appendix A 21 Introduction Background...
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...Association for Consumer Research, Pages: 617-622. Advances in Consumer Research Volume 11, 1984 ENTRY/EXIT DEMAND ANALYSIS Peter R. Dickson, The Ohio State University Alan G. Sawyer, The Ohio State University ABSTRACT Past methods of measuring consumer response to the price of a branded good are reviewed and critiqued. A new approach- Entry/Exit Demand Analysis--is described. The method borrows from and improves past methods. Some initial evidence about the technique's test-retest reliability is presented. INTRODUCTION One of the most troublesome problems that confronts management is estimating the responsiveness of demand to changes in price. In the past, experienced managers may have been able to intuitively assess price elasticity based on a history of strategic price increases and decreases. However, over the last decade, many of the street-wise managers may have lost their touch because consumer demand has become much more volatile. Inflation, recession and cultural trends are three factors that have made the tracking of demand curves and price elasticity an even more elusive exercise. Inflation has changed the real purchasing power of the dollar and consequently required consumers to frequently change their reactions to price. Consumers have to adjust to both changes in the value of the dollar and changes in income. Inflation's effect on real income has varied drastically across consumers. Consequently, some consumers, because of changes in their real income and/or their awareness...
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...BRAND SWITCHING INTRODUCTION Sometimes known as brand jumping, brand switching is the process of choosing to switch from routine use of one product or brand to steady usage of a different but similar product. Much of the advertising process is aimed at encouraging brand switching among consumers, thus helping to grow market share for a given brand or set of brands. Brand loyalty is when consumers become committed to your brand and make repeat purchases over time. It is a result of consumer behavior and is affected by a person's preferences. Loyal customers will consistently purchase products from their preferred brands, regardless of convenience or price. Companies will often use different marketing strategies to cultivate loyal customers, be it is through loyalty programs (i.e. rewards programs) or trials and incentives (ex. samples and free gifts). | | Convincing consumers to switch brands is sometimes a difficult task. It is not unusual for customers to build up a great deal of brand loyalty due to such factors as quality, price, and availability. To encourage switching brands, advertisers will often target these three areas as part of the strategy of encouraging brand switching.Price is often an important factor to consumers who are tight budgets. For this reason, advertisers will often use a price comparison model to entice long time users of one brand to try a new one. The idea is to convince the end user that it is possible to purchase the same amount of product...
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... Q2: Select the model you are going to keep for each brand and explain WHY. Report the corresponding output in an appendix attached to your report (hence, 1 output per brand) We use Adjusted R Squared to compare the Linear or Semilog Regression. R^2 is a statistic that will give some information about the goodness of fit of a model. In regression, the Adjusted R^2 coefficient of determination is a statistical measure of how well the regression line approximates the real data points. An R2 of 1 indicates that the regression line perfectly fits the data. Brand1: Linear Regression R^2 | 0.594 | SemiLog Regression R^2 | 0.563 | We use the Linear Regression Model since R-squared is higher. Brand 2: Linear Regression R^2 | 0.758 | SemiLog Regression R^2 | 0.588 | We use the Linear Regression Model since R-squared is higher Brand 3: Linear Regression R^2 | 0.352 | SemiLog Regression R^2 | 0.571 | We use the Semilog Regression Model since R-squared is higher Brand 4: Linear Regression R^2 | 0.864 | SemiLog Regression R^2 | 0.603 | We use the Linear Regression Model since R-squared is higher Q3: Here we compute the cross-price elasticity. Depending on whether we use linear or semi-log model, Linear Model Linear Model Semi-Log Model Semi-Log Model ` | Brand 1 | Brand 2 | Brand 3 | Brand 4 | Mean Price | 1.117 | 1.006 | 0.963 | 0.838 | Mean Sales | 541...
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...are using China brands such as GW… but some others are plainly fake products such as Baby GAP, NEXT, Crocodile, Burberry, and others. These products even though are fake, gain their popularity because of their cheap price and also … Using the Managerial Economics theories such as Demand, Inferior Good We are going to analyze why this economic phenomenon happened. Theories and Analysis Demand function analysis Demand is the amount of good or service consumers are willing and able to purchase during a given period of time. Six variables influence quantity demanded: 1. Price of the good, 2. Income of consumers, 3. Price of related good, 4. Consumer’s tastes, 5. Expected future price of the good, 6. Number of consumers in the market. According to the Law of Demand, price and quantity demanded are conversely related. Quantity demanded increase (decrease) when price falls (rises) and other things held constant, so Consumers will purchase more of a good at lower prices and less of a good at higher prices. Income of consumers Consumer income is a key determinant of consumer demand. The relationship between income and demand can be both direct and inverse. Considering that fake brands are Inferior goods, income and demand are inversely related, which means in developing countries an increase in income leads to a decrease in a fake brand products and a decrease in income leads to an increase of fake brand products. Price of goods The price of fake brands in developing countries...
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...RESEARCH PROPOSAL IS IT PRICE A KEY FACTOR THAT DETERMINED BY CUSTOMERS IN BUYING CAR? A CASE STUDY: KOTA BHARU, KELANTAN. PREPARED BY: NOR HAZIRAH JAYA MARA (2009870852) PREPARED TO: ASSOCIATE PROF DR. HJ NIK MUHAMMAD NAZIMAN ABD. RAHMAN IS IT PRICE A KEY FACTOR THAT DETERMINED BY CUSTOMERS IN BUYING CAR? A CASE STUDY: KOTA BHARU, KELANTAN. Nor Hazirah Jaya Mara Faculty of Business Management, Universiti Teknologi MARA Kelantan 1.0 THE INTRODUCTION OF THE STUDY 1.1Background A consumer is the ultimate user of a product or service. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a vast number of goods available for purchase, but consumers tend to attribute this volume to the industrial world's massive production capacity. Rather, the giant known as the marketing profession is responsible for the variety of goods on the market. The science of evaluating and influencing consumer behavior is foremost in determining which marketing efforts will be used and when. Consumers adjust purchasing behavior based on their individual needs and interpersonal factors. In order to understand these influences, the previous researchers try to ascertain what happens inside consumers' minds and to identify physical and social exterior influences on purchase decisions...
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...Rational for introducing a new brand in Pricing benefit segment Business objectiveVolume growth in PS&D divisionRationale * Consumer behavior factors: * Depressed state of economy leading to price sensitivity. * 46% of heavy LDL users are under $15000 yearly income (exhibit 8). These users being heavy users require more ounces of fluid which is more than a 32oz bottle per month consumption. (15 sink full washes per week; 0.6oz per sink; 2.04$ avg. retail price) * 63% of heavy LDL users are unemployed (exhibit 8) again indicating price sensitivity * 53% of the consumers who did not report ADW usage in past 7 days are in the “No name/Plain label” (exhibit 8) brands which is highest in the price benefit segment. This indicates this segment is still not penetrated by ADW. * As per the company research, top attributes of LDL are orienting towards performance and price (exhibit 2) * Performance – Cuts grease, makes long lasting suds, does a good job on pots and pans, don’t have to use much * Price – Is economical to use * Market and competitors assessment * 3 major players taking ~72% of the market share and significantly into performance and mildness segment. Market is consolidated in performance and mildness segments. Only one new premium brand is introduced every 2.5 years indicating that the market is saturated in these segments. Both lever and Palmolive only introduced only 1 new brand in past 10 years. * Pricing...
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...Maaninen-Olsson Supervisor: Magnus Linderströmd Title: Factors influence consumer purchase decisions of Private Label Food Products Keywords: Private Label Brand, consumer attitudes, intention, perceptions, ICA Basic Abbreviations PLB: Private Label Brand, WOM: word of mouth Research questions: Which factors influence consumers buying decisions of low-price PLBs food products? How consumers perceive low-price PLB food product? Case study of ICA Basic Research purpose: The purpose of this study is to identify and analyze factors that influence consumer purchasing decision of private label food products. Method: In this case study, both secondary data and primary were utilized. Secondary data was obtained from relevant literatures, online journals, articles, blogs, and other electronic sources. The primary data was collected by the combination of quantitative and qualitative approaches. Qualitative data was carried out through interviews with store manager of ICA Skrapan, Västerås and with ICA PLB manager; quantitative data were collected through online survey, designed on the platform providing by the commercial website surveymonkey.com Conclusions: The research identified five factors that influence consumers' purchase decision of low-price private label brands are brand, brand related activities (advertisement & word of mouth),...
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...3 The Effects of Marketing Mix Elements on Brand Equity* Edo Rajh** Abstract The structural model of the effects of marketing mix elements on brand equity is defined in line with the existing theoretical findings. Research hypotheses are defined according to the identified structural model. In order to test the defined structural model and research hypotheses empirical research was conducted on the sample of undergraduate students of the Faculty of Economics and Business in Zagreb. Research results indicate that the structural model has an acceptable level of fit to the empirical data. The estimated structural coefficients and indirect effect coefficients indicate the direction and intensity of effects of each analysed element of marketing mix on brand equity. Finally, implications of research results for the theory and practice of brand management are analysed and discussed. Keywords: brand equity, brand, strategic brand management, marketing mix JEL classification: M31 * This paper was originally published in Privredna kretanja i eknomska politika (Economic Trends and Economic Policy) No. 102, 2005, pp. 30-59. ** Edo Rajh, Research Associate, The Institute of Economics, Zagreb. Croatian Economic Survey 2005 53 1 Introduction The concept of brand equity was first introduced in marketing literature in the 1980’s. During the 90’s this topic received significant attention from both scientists and marketing practice, which resulted in a large number of articles and books...
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...companies mark up their prices and stay in business? Research Question: In our world today a stigma exists between brand name products and the upper class and a common association between high prices and brand name items exists. Everyday marketers price products based off of researched consumer behavior, they price products at an excessive price compared to the cost to produce it, yet still sell their products and stay in business. Typically, the consumer is aware that brand names cost more money and consumer behavior has shown that the consumers are willing to pay high prices for these specific products and certain brands. Why is it that marketer’s mark up their products and that consumers are willing to purchase products and brands regardless of the price? Do marketers know the consumers will purchase their products regardless of price and take advantage by pricing them high? Is an underlying ethical issue present in the way companies are marketing their products? An interesting relationship occurs between consumers and brand name products and studies have shown consumers will spend any amount for a product they have justified they need or want. Furthermore, studies have shown that consumers purchase regular and brand name products based off of psychological driven needs. As a result of consumer’s physiological buying habits, marketers have based their pricing tactics off of it, resulting in excessively high mark ups. Although companies need to price their product in order...
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