In differentiated product markets where consumer preferences are characterized by brand loyalty, an important role for advertising may be to overcome brand loyalty by encouraging consumers to switch to less familiar brands. Using a scanner panel dataset of breakfast-cereal purchases, I find evidence consistent with the hypothesis that advertising counteracts the tendencies of brand loyalty towa...

Consumers' attempts to control their unwanted consumption impulses influence many everyday purchases with broad implications for marketers' pricing policies. Addressing theoreticians and practitioners alike, this paper uses multiple empirical methods to show that consumers voluntarily and strategically ration their purchase quantities of goods that are likely to be consumed on impulse and that ...

The general perception that laboratory markets yield efficient competitive outcomes seems to contradict the emphasis on market imperfections that pervades much of the theoretical work in industrial organization. This apparent contradiction is resolved by considering the effects of trading institutions: Competitive outcomes are indeed typical in laboratory markets where trading follows the "doub...

Selling organizations often offer quantity discounts schedules, but do not provide the underlying Quantity Discount Price Functions (QDPF). In literature an analysis on how QDPF could be derived from discount schedules is lacking. This is remarkable as QDPF contain useful information for buying organizations. QDPF give more insight into the fixed and variable costs of selling organizations and ...

Purpose This article examines whether deviations from fundamental value or closed-end country fund's discounts premiums forecast future share price returns net asset returns. Design/methodology/approach The main empirical (econometric) tool is a vector autoregressive (VAR) model. authors model and as function of their lagged values, the premiums, control variable for local market also conduct D...

Group purchasing sites have recently gained tremendous popularity on the Internet. Besides the collective buying model, the leading website, Groupon.com, also introduces a tipping point mechanism to the U.S. e-market. The current study creates a theoretical model that integrates the theory of mind with models from e-commerce research to further study the buyer’s decision making influenced by a ...

This study uses the 2004 ACNielsen Homescan panel data to estimate the price premiums and discounts associated with fresh tomatoes among regional markets, focusing on the organic attribute. The results suggest that consumers paid $0.25/lb more for organic fresh tomatoes in the New York–Philadelphia market. The organic premiums are estimated to be $0.14/lb in the Chicago–Baltimore/Washington and...

I find evidence consistent with managers manipulating real activities to avoid reporting annual losses. Specifically, I find evidence suggesting price discounts to temporarily increase sales, overproduction to report lower cost of goods sold, and reduction of discretionary expenditures to improve reported margins. Cross-sectional analysis reveals that these activities are less prevalent in the ...

This paper allows the backorder rate as a control variable to widen applications of a continuous review inventory model. Moreover, we also consider the backorder rate that is proposed by combining Ouyang and Chuang 2001 or Lee 2005 with Pan and Hsiao 2001 to present a new form. Thus, the backorder rate is dependent on the amount of shortages and backorder price discounts. Besides, we also treat...

Estimates from a structural model of consumer behavior and firm conduct are used to decompose the extent to which quantity discounts for paper towels are consistent with second degree price discrimination as opposed to cost differences across sizes. Counterfactual exercises assuming that firms offer only one package size or charge uniform prices across sizes indicate that competition in the mul...