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Shelegia, Sandro, and Joshua Sherman. "Bargaining at Retail Stores: Evidence from Vienna." Management Science 68, no. 1 (January 2022): 27–36. http://dx.doi.org/10.1287/mnsc.2021.4094.
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In the West, where posted prices are the norm, it is uncommon to observe consumers receive discounts below the posted price. Nevertheless, we find that when stores are asked, a discount is granted approximately 40% of the time, with a median discount percentage of 10%. Discounts are more likely to be offered by small-scale firms, for higher-priced products, and for nonsale items. More generally, differences in price delegation behavior across firm types serve as an indicator that monitoring costs and employee skills are important drivers of bargaining behavior. This paper was accepted by Duncan Simester, marketing
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Chen, Yi-Fen, and Ruo-Chi Cheng. "Single Discount or Multiple Discounts?" International Journal of Technology and Human Interaction 15, no. 1 (January 2019): 1–14. http://dx.doi.org/10.4018/ijthi.2019010101.
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The emerging online economy provides consumers with easy access to numerous choices. This article investigates the effects of price promotion framing messages on perceived value and online consumer purchase intention. A 3 (price promotion framing: single discount/multiple discounts- large discount first and small discount last/multiple discounts- small discount first and large discount last) × 2 (price level of product: low/high) experimental design is conducted. The experiment results demonstrated that price framing of single discount has a greater influence on perceived value than multiple discounts. Perceived value has a positive influence on purchase intention. Additionally, price moderates the effects of price promotion framing on consumer purchase intention. This finding offers potential for finding better ways for sellers or managers to present discounts in online shopping. Finally, the conclusion presents implications, limitations, and directions for future research.
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Spriggs, Mark T., and John R. Nevin. "The Legal Status of Trade and Functional Price Discounts." Journal of Public Policy & Marketing 13, no. 1 (March 1994): 61–75. http://dx.doi.org/10.1177/074391569401300105.
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An increasing number of firms have integrated beyond traditional retailer-wholesaler boundaries and now sell the same product through two or more structurally different channel systems. As a result, the historically synonymous definitions for trade and functional price discounts are becoming obsolete. If regulatory agencies continue to use these obsolete definitions, enforcement of the Robinson-Patman Act becomes confused and distributive innovation is inhibited. A price discount's definition determines who is (and is not) entitled to the discount, so the definition is a key starting point for analyzing a discount's competitive effect, which is the primary test under the Robinson-Patman Act. Regulatory agencies should be conscious of the pro-competitive effects of price discounts and follow an enforcement policy that encourages both competition and innovation. The authors clarify trade and functional price discount terminology, discuss the role those discounts play in developing more efficient channel systems, review the existing defenses to price discrimination charges, and conclude with a recommendation for an explicitly recognized availability defense for these types of channel-based price discounts.
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Lee, Jung Eun, and Leslie Stoel. "An unintended consequence of exaggerated maximum-discount tensile price claims." Journal of Product & Brand Management 25, no. 7 (November 21, 2016): 700–709. http://dx.doi.org/10.1108/jpbm-01-2016-1091.
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Purpose Retailers are known to present tensile price claims (TPCs) stating high discounts to entice shoppers. Prior research on TPCs suggests that high TPC discounts increase purchase intentions. However, the current study proposes, first, that the TPC discount shifts expected price discount (EPD) and, second, that the gap between the actual price discount and the EPD influence perceptions of the discount deal. Support for these propositions would suggest that high TPC discounts will only be effective when they closely match the actual price discount. Therefore, the purpose of this paper was to evaluate the effectiveness of exaggerated maximum-discount TPCs. Design/methodology/approach Two experiments were used. Study 1 investigated the effect of exposure to a TPC on EPD. Study 2 examined discount discrepancy as a mediator of the relationship between a TPC and consumer perceptions (i.e. perceived savings and price fairness) and purchase intentions. PROCESS and ANOVA were used for the analysis. Findings This research showed that exposure to a TPC influenced consumers’ EPDs. As TPC discount increased, EPD increased and the discount discrepancy (i.e. actual price discount minus EPD) decreased (and, in some cases, became negative). The discount discrepancy influenced consumer perceptions of savings and fairness, as well as purchase intentions. Consequently, when the actual price discount encountered was not as large as the advertised TPC discount, the results showed a negative, indirect influence of exaggerated maximum-discount TPCs on consumers’ discount perceptions, mediated by the discount discrepancy. Originality/value Previous TPC studies found that the size of the TPC discount positively influences consumers’ discount perceptions, implying that larger discounts are more effective. However, this approach does not take into consideration the notion that larger TPC discounts increase consumer expectations about the size of discount and these expectations are used as a frame to evaluate a discount deal. The findings of the current research show a negative, indirect influence of exaggerated TPC discount on consumer perceptions and purchase intentions through discount discrepancy. Therefore, this study provides a new perspective to explain the influence of TPC discount size on consumer perceptions.
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Scheidegger, Gianluca, Marc Linzmajer, and Thomas Rudolph. "Price discount strategies in times of increasing price transparency: How price consciousness and price comparison moderate the effect of discount strategy on store price image." Die Unternehmung 74, no. 4 (2020): 384–402. http://dx.doi.org/10.5771/0042-059x-2020-4-384.
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This research uses a large set of price promotion field data to better understand the application of price discount strategies by Swiss grocery retailers. Taking the prevalence of these strategies in the Swiss grocery retail market as a basis, we use an online experiment that builds on recent developments in technology usage by consumers and investigate the impact of price comparison on store price image. The results show that Swiss grocery retailers have increased their number of discounts offered over the observation period of two years. In addition, store price image significantly improved with the number of discounted products offered. On the other hand, discount depth had no influence on store price image. These effects, however, are dependent on consumers’ price consciousness and their (non-) usage of a price comparison tool. Lastly, theoretical and practical implications are being provided.
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Ranto, Dwi Wahyu Pril, Endang Hariningsih, Wahyu Eko Prasetyanto, and Debby Mulya Oktafiani. "Price Discounts and Fashion Involvement to Increase Online Impulsive Buying: Study Among Teenagers at Yogyakarta." International Journal of Business, Management and Economics 2, no. 4 (October 28, 2021): 239–50. http://dx.doi.org/10.47747/ijbme.v2i4.408.
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This study aims to examine the relationship between discount prices and fashion involvement with impulse buying. The self-administrated questionnaire was developed from the literature administered to 135 female teenagers in Yogyakarta. Multiple regression analysis was used to examine the relationship between discount prices and fashion involvement in impulse buying. The results showed a significant relationship between discount prices and price involvement with impulse buying among teenagers. This study provides valuable insights into teenage impulse buying behavior in an online setting, especially Shopee marketplace, with integrated price discounts and fashion involvement as the antecedent
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Eun Lee, Jung, and Leslie Stoel. "High versus low online price discounts: effects on customers’ perception of risks." Journal of Product & Brand Management 23, no. 6 (September 9, 2014): 401–12. http://dx.doi.org/10.1108/jpbm-06-2014-0633.
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Purpose – The purpose of this paper is to examine the signaling effects of high versus low price discounts by integrating extant literature on price discounts, perceived risks and purchase intentions for products sold online. The study examines the influence of price discounts on perceived risks, and the subsequent influence of these risk perceptions on online purchase intentions. Design/methodology/approach – This study used an experimental design. The manipulated factor was price discount (10, 30, 50, 70 and 90 per cent). Responses were collected via online surveys. Nonlinear regression analysis with the MEDCURVE macro was used for the analysis. Findings – The results show that the discount size increases customers’ perceived risks, and that these perceived risks mediate the relationship between price discount and purchase intentions. Practical implications – This study provides a better understanding of customers’ risk perceptions for online price discounts, which enables retailers to decide appropriate price discounts to attract customers. Originality/value – Most previous literature focusing on price discounts takes into consideration the presentation effect on consumers’ positive perceptions, while this study investigates the price discount effect on customers’ negative perceptions. In particular, this study examines the mediating effect of perceived risks on the relationship between price discount and purchase intention, which has not been investigated in previous studies.
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Yunita, Ai Nining, Ghina Faadhilah, and Nurjanah Dea Saputra. "PENGARUH ONLINE SHOPPING BESERTA PROGRAM POTONGAN HARGA DALAM ONLIE SHOP TERHADAP PERILAKU KONSUMEN." Transekonomika: Akuntansi, Bisnis dan Keuangan 2, no. 4 (June 8, 2022): 87–94. http://dx.doi.org/10.55047/transekonomika.v2i4.145.
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This study aims to determine how much influence online shopping and discount programs have on the behavior of consumers who have accessed e-commerce. The data analysis technique used in this research is causal quantitative with descriptive statistical analysis method. Research subjects determined in this study are consumers who have accessed online shopping. The number of samples is 10 respondents. The independent variables in this study are online shopping, discounted prices consisting of quantity discounts, discounts and cash discounts, while the seasonal variable depends on consumer behavior. The study's findings revealed that the use of discounts can influence the behavior of online purchasing customers. Consumers are drawn to discounts when they are available. Discounts are enticing in and of themselves. At the same time, incentives entice customers to shop there for apparel. Consumer behavior is positively influenced by the quantity of clothes purchases for low price indicators and discount variables, as well as clothing purchase indicators.
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Sahay, Arvind, Sumitava Mukherjee, and Prem Prakash Dewani. "Price discount framings on product bundles with shipping surcharges in the Indian market." Journal of Indian Business Research 7, no. 1 (March 16, 2015): 4–20. http://dx.doi.org/10.1108/jibr-05-2014-0026.
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Purpose – The purpose of this paper is to study how consumers process price frames of product bundles (product plus surcharge) and discount offers to weigh contentious positions between the weighted-additive and the reference-dependent models. Further, some research suggests bundling, while others suggest partitioning to be a more effective pricing strategy. This research evaluated the relative influences of different price frames to examine which model is supported and what are the boundary conditions for price framing. Design/methodology/approach – Two online studies were conducted on Indian adults who had prior experiences of online purchases. They were asked to judge attractiveness of bundles (product along with shipping surcharge). Discounts were shown on the product, the surcharge or on the overall bundle either as partitioned prices or as a bundle. Findings – Across two studies on low- and high-priced products, discounts on shipping surcharge increased attractiveness of the bundle compared to a similar discount on the product or on the overall bundle, supporting the reference-dependent model. Further, for a low-priced product, bundling increased attractiveness, while for a high-priced product, partitioning was more attractive. Research limitations/implications – More research is needed to examine whether these results translate to other kinds of products, surcharges or discount promotions and in different populations. Originality/value – This research makes important contributions to theoretical and practical aspects of bundling and partitioned pricing research. It also adds much needed data about evaluation of product bundles with shipping surcharges among Indian customers.
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Wilcox, James B., Roy D. Howell, Paul Kuzdrall, and Robert Britney. "Price Quantity Discounts: Some Implications for Buyers and Sellers." Journal of Marketing 51, no. 3 (July 1987): 60–70. http://dx.doi.org/10.1177/002224298705100304.
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Price quantity discount schedules are shown to present opportunities to buyers beyond those explicit in the discount schedule itself. The authors propose a taxonomy of price quantity discount schedules, and within that taxonomy examine the implications of price quantity discounts for the ordering behavior of buyers and the formation of alternative channels of distribution.
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Tang, Xuyang, Mary Ann Honors, Angela R. Fertig, Simone A. French, Jean Abraham, and Lisa Harnack. "Preliminary evaluation of the Healthy Savings Program: a novel health insurance-based wellness programme to encourage healthy food purchases." Public Health Nutrition 21, no. 15 (July 6, 2018): 2875–83. http://dx.doi.org/10.1017/s1368980018001659.
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AbstractObjectiveTo examine level of participation and satisfaction with the Healthy Savings Program (HSP), a programme that provides price discounts on healthier foods.DesignFor Study 1, a survey was distributed to a random sample of adults who were invited to participate in a version of the HSP that provided a discount for the purchase of fresh produce and discounts on other healthier foods. In Study 2, interviews were conducted with a convenience sample of adults invited to participate in a version of the HSP that provided price discounts on specific products only (no fresh produce discount).SettingThe HSP is provided to all employer-based insurance plan members of a large health plan. Employers can choose to enhance the version of the HSP that their employees receive by paying for a weekly discount on fresh produce.SubjectsEmployees in employer groups that received the enhanced HSP (Study 1) and employees in an employer group (Study 2) that received the standard HSP.ResultsAmong survey respondents in Study 1, 69·3 % reported using the HSP card. Most were satisfied with the fresh produce discount and ease of use of the HSP card. Satisfaction was lower for selection of participating stores, amounts of discounts and selection of discounted products. In Study 2, barriers to the use of the HSP card cited included the limited number of participating stores and the limited selection of discounted products.ConclusionsSatisfaction with some elements of the HSP was high while other elements may need improvement to increase programme use.
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Xia, Lan, and Nada Nasr Bechwati. "The impact of price promotions on checkout donations." Journal of Product & Brand Management 26, no. 7 (November 20, 2017): 734–49. http://dx.doi.org/10.1108/jpbm-11-2016-1359.
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Purpose This paper aims to present a model linking price promotions to checkout donations. It is argued that price promotions evoke two perceptions/emotions, namely, feelings of gratitude and perceived sacrifice of purchase, which consequently, influence the likelihood to donate. Feelings of gratitude dominate when the discount is high, while feelings of sacrifice dominate when the discount is low. Compared to no-discount situations, high discounts enhance consumers’ intention to donate while low discounts reduce this intention. Design/methodology/approach A total of four studies using shopping scenarios are conducted. Study 1 examines the main effect and the mediating factors. Study 2 replicates the findings in different product categories and at different unit-price levels. Studies 3 and 4 test the moderating effects of customer effort and discount framing. Findings Findings of the four studies provide support for the proposed model. Compared to no-discount situations, high discounts enhance consumers’ intention to donate, while low discounts reduce this intention. The effects are mediated by feelings of gratitude and sacrifice and moderated by effort obtaining the discount and format of the discount. Research limitations/implications Theoretically, this research advances the understanding of consumers’ interpretations of price promotions. All studies are conducted in an online context. Practical implications This research informs retailers and charity institutions on the best timing for soliciting checkout donations and indicates specific tactics to enhance consumers’ donations. Originality/value This is the first study linking price discounts to the growing phenomenon of checkout donations. The research is different from cause marketing where the donation is included in the price of a specific product. The work also differs from studies examining the spillover effect where additional purchases benefit the consumers instead of a cause.
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Zhang, Nian, and Bin Li. "Study on Supply Chain considering Anticipated Regret under Price Discount." Complexity 2020 (October 10, 2020): 1–12. http://dx.doi.org/10.1155/2020/1574716.
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The aim of this study is to research the impact of consumer regrets on the supply chain caused by the company’s “discount promotion.” This paper introduces the theory of anticipated regret and price discount into the supply chain. By quoting the negative utility formula of consumers’ anticipated regret under price discount, it quantitatively describes the demand function of the original product and the discount product. The model under centralized and decentralized decision making is constructed, and revenue-sharing contract is adopted to coordinate the supply chain. The conclusions are as follows. (1) Affected by the anticipated regret under the price discount, the price of the product increases first and then decreases with the regret sensitivity coefficient and consumer heterogeneity sensitivity increases. In addition, the price under the leadership structure of the manufacturer is the highest. (2) Price discounts enhance consumers’ perception of anticipated regret. Under the stimulation of price discounts, the price of products increases first and then decreases. (3) The revenue-sharing contract could not coordinate the supply chain, and the introduction of a profit-sharing mechanism is achieved the Pareto improvement of the supply chain.
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Park, Kikyoung, Gangseog Ryu, and Youngjee Han. "How the perceptual fluency of price discounts and promotional cues affect consumer responses." Social Behavior and Personality: an international journal 45, no. 5 (June 6, 2017): 757–72. http://dx.doi.org/10.2224/sbp.6305.
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We investigated the combined effect on consumers of the perceptual fluency of price discounts and the two promotional cues of discount duration and frequency. We proposed that consumers' initial responses to price discounts would be maintained or modified depending on the processing fluency of discount information. Results from 2 experiments showed that when a promotional cue implied a short discount duration or low discount frequency and the discount information was difficult to process, participants perceived the duration as longer or the frequency as higher, and they evaluated the product less favorably if the discount information was difficult to process compared to if it was easy to process. On the contrary, when a cue implied a long discount duration or a high discount frequency, participants perceived the duration as shorter or the frequency as lower and evaluated the product more favorably if the discount information was difficult to process compared to if it was easy to process. We show conditions in which processing disfluency can be beneficial.
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Luong, Alexandra, and David Slegh. "Hedonic product discounts: When is the price right?" Nankai Business Review International 5, no. 4 (October 28, 2014): 356–64. http://dx.doi.org/10.1108/nbri-03-2014-0018.
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Purpose – The purpose of this study was to examine the effects of price discounts on products perceived to provide hedonic value vs those perceived to evoke displeasure. Also examined were the effects of various discount levels on consumer intentions to purchase. Design/methodology/approach – The study design was a 2 (emotion-evoked) × 2 (price) × 3 (level of discount) mixed-factorial design. In this study, 182 participants were presented with several products and indicated whether they would shop with a competitor offering various price discounts on pleasure- vs displeasure-evoking products. Findings – ANOVA results indicated a significant main effect of price discounts on intention to purchase and a significant interaction between price discount and type/price of product. Discounts mattered more between certain levels (10 and 50 per cent) than others (50 versus 70 per cent). Discounts mattered more for hedonic products (pleasure-evoking) than those that evoked displeasure; however, price trumped all factors such that discounts mattered most when price of product is high. Research limitations/implications – Limitations include age range of participants and that intentions to shop were measured. Future research should examine price effects on other socio-demographic groups and actual behavior. Practical implications – Retailers would benefit from using price discounts as a competitive strategy, with attention given to the “percentage-off” levels that are perceived to be steeper. Discounts are more effective when the product offers hedonic value or when price is high. Originality/value – To our knowledge, this is the first study to examine the relationship between “percentage-off” price discounts on hedonic products. This study contributes to the literature on pricing affect.
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Zheng, Xiaojing. "The Coordination of Multi-Stage Discounts in a Dual Channel Fresh Agricultural Produce Supply Chain: Minimizing the Loss of Quantity and Quality." Sustainability 14, no. 4 (February 14, 2022): 2174. http://dx.doi.org/10.3390/su14042174.
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This paper explores the coordination of the agricultural cooperative to supermarket or E-commerce supply chain, under the condition of quantity loss with a mixed decay function of exponential and logistical distribution. The nature of this process is analyzed, and the corresponding demand and supply functions with single- and multi-stage discount strategies are constructed, respectively, to create a working model. The optimal discount ratios for supermarkets and agricultural cooperatives in decentralized and centralized decision-making modes coupled with single- and multi-stage discounts are calculated, respectively. Finally, a universal optimal strategy is designed, which can be applied to various quantity decay scenarios and makes the discount strategy more generalized. The results show that discounts can coordinate supply chains more effectively; not only would fresh agricultural produce be sold out before it starts to rot, but also the benefit conflicts arising from both supermarkets vs. cooperatives and traditional vs. E-commerce channels could be equilibrated. Further, multi-stage discounts are more difficult to coordinate than single-stage ones, the corresponding optimal discount ratios rely on the initial quantity of fresh agricultural produce in the supply chain, its market share in the traditional distribution channel, the potential market size, retail price, the price sensitivity coefficient of the channel, the cross-elasticity coefficient of prices between different channels, and the properties of the quantity loss. It is concluded that, regardless of what kind of quantity and quality loss occurs, whether decentralized or centralized decision making is selected, or whether the supermarket’s or agricultural cooperative’s discount ratio is considered, a universal price discount consisting of a fixed term and a drift term could both maximize supply chain profit and coordinate this dual-channel supply chain.
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Chen, Yi-Fen, Ching-Hsiu Chen, and Jing-Sian Lai. "Influence of Promotional Formats on Online Consumer Purchase Intention." International Journal of Innovation in the Digital Economy 13, no. 1 (January 2022): 1–21. http://dx.doi.org/10.4018/ijide.292495.
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The rising popularity of online shopping, scholars to investigate how different promotional formats motivates online purchasing intention, and decisions. This study adopts the extant literature to investigate the effects of consumer value perceptions, product type, and brand familiarity on online purchasing intention through two experimental designs. Experiment Ⅰ manipulates 2(promotional formats: bonus pack/price discount)×2(consumer value perceptions: utilitarian value/hedonic value). Experiment Ⅱ manipulates 2(promotional formats: bonus pack/price discount)×2(product type: search product/experience product). Experiment Ⅲ manipulates the influence of 2(promotional formats: bonus pack/price discount) × 2(brand familiarity: high/low) on the purchasing intention. This study found that utilitarian consumer prefers price discounts, while hedonic consumer prefers a bonus pack. Further, the search for products with price discounts increases the purchase intention. This study offers promotion strategies for firms to stimulate online consumer purchase intention.
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Jha, Subhash, Sujay Dutta, and Ahmet Koksal. "Effectiveness of monetary discounts: comparing quantity scarcity and time restriction." Journal of Consumer Marketing 36, no. 7 (November 11, 2019): 901–10. http://dx.doi.org/10.1108/jcm-07-2018-2763.
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Purpose This study aims to examine whether adding a quantity scarcity message to a monetary discount helps to improve consumers’ offer-related perceptions and intentions, and how the effectiveness of that message compares with adding time restriction to the offer. Design/methodology/approach Two experiments, where participants evaluated retail ads and responded to relevant measures, were conducted in two country markets. Findings Adding either a quantity scarcity message or time restriction to a monetary discount increases the potency of a retail offer. Further, when an offer ad emphasizes product and price-related cues in a balanced manner, time restriction results in more favorable consumer perceptions than scarcity. However, this difference in the messages’ efficacy disappears when the offer strongly emphasizes price-related cues. Research limitations/implications The US market sample is more homogeneous than the Indian one. Discounts were presented in terms of advertised reference prices; further research with other discount formats is desirable. Practical implications Understanding the relative efficacy of quantity scarcity message and time restriction in discounted retail offers can give managers flexibility in the use of these tools. Originality/value This paper addresses scholars’ call for theory-grounded research that provides guidance to retailers on the use of sales promotional tools.
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Lv, Junjie, Zichen Wang, Yuqing Huang, Tong Wang, and Yuanzhuo Wang. "How Can E-Commerce Businesses Implement Discount Strategies through Social Media?" Sustainability 12, no. 18 (September 10, 2020): 7459. http://dx.doi.org/10.3390/su12187459.
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In the context of the global economic downturn caused by COVID-19, e-commerce has become the first choice for people to shop. Many merchants choose to launch promotion activities through some social media platforms. Price discounts can dramatically increase sales volume in social e-commerce due to the interaction of online consumers. It is urgent for e-commerce merchants to learn rules about discount information dissemination in social media, so as to formulate reasonable discount strategies and achieve sustainable business. This paper constructs an evolutionary game model for e-commerce platforms and merchants when they implement promotion strategies through social media, investigates discount information dissemination among consumers under multiple situations by introducing price discount parameters, and further discusses the influence mechanism of discount size and platform reputation on consumers’ purchase behavior. Results show that in low-reputation e-commerce platforms, the price discount is the main motivation to purchase. Consumers’ preference for the high discount is weakened by the increase in platforms’ reputation. Discounts should be set according to the different reputations. Businesses in a high-reputation environment are relatively more profitable. E-commerce businesses should work together, apply reasonable pricing, and improve their quality to create a green and healthy shopping environment, in order to get benefits and sustainable development.
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Mola, Simona, and Tim Loughran. "Discounting and Clustering in Seasoned Equity Offering Prices." Journal of Financial and Quantitative Analysis 39, no. 1 (March 2004): 1–23. http://dx.doi.org/10.1017/s0022109000003860.
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AbstractAn analysis of 4,814 SEOs during 1986–1999 indicates that the average offering ofnew shares is priced at a discount of 3% from the closing price on the day before the issue. Discounts have risen steadily over time, sharply increasing the indirect costs of issuing seasoned equity. There is evidence of increased clustering of offer prices at integers, and of greater importance in the analyst coverage provided by underwriters. Adjusting for other factors, we find that issues with integer offer prices, and underwriters with highly regarded analysts, are increasingly associated with larger discounts. The rise in discounts is consistent with an increased ability of investment bankers to extract rents from issuing firms.
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Matthews, Gilbert E. "Why Pre-IPO Studies Are Unsound in Concept and in Practice." Business Valuation Review 40, no. 3 (November 1, 2021): 97–103. http://dx.doi.org/10.5791/21-00005.
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This article explains why pre–initial public offering (IPO) studies are not a valid basis for determining marketability discounts. They are unsound in concept because the pre-IPO transactions and the subsequent IPO are priced at materially different dates and because the IPO price is not knowable at the earlier date. They are unsound in practice for several reasons, such as selectivity—the data include only companies that subsequently become publicly traded—and the fact that any pre-IPO discount includes not only a marketability discount but also a second discount for the risk that the IPO may not take place.
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Kuo, Hsiao-Ching, and Chinintorn Nakhata. "Price promotions and products with low consumer ratings." Journal of Consumer Marketing 33, no. 7 (November 14, 2016): 517–27. http://dx.doi.org/10.1108/jcm-04-2016-1767.
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Purpose Previous research indicates the aversive effect of low consumer ratings on consumers’ purchasing decisions. This paper aims to apply decision justifiability theory to investigate how price promotions – price discount and price bundling – can reduce this effect. Design/methodology/approach Two scenario-based experiments were administered among college students (Experiment 1) and online consumer panels (Experiment 2) to test the research hypotheses. Findings When time-to-purchase is long (vs short), a large discount is more effective in alleviating consumers’ negative responses toward products with low consumer ratings. However, when a price discount is presented as a bundle rather than a separate deal, a small discount size becomes as attractive as a large discount size for consumers with a longer time-to-purchase. Practical implications This paper identifies two controllable factors, price discounts and price bundling, that could help to alleviate the negative impact of low consumer ratings. Marketing managers can apply the findings of this paper as guidelines to deal with the aversive effect of low consumer ratings. Originality/value This paper makes an initial attempt to examine situations where consumers would be less averse to products with low consumer ratings. It identifies the roles of two price promotions (i.e. price discount size and price bundling) and an important contextual factor (i.e. time-to-purchase) that influence consumers’ decision justifiability and, subsequently, alter consumers’ online purchase decisions for such products.
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Ivanovski, Zoran, Zoran Narasanov, and Nadica Ivanovska. "Performance Evaluation of Stocks’ Valuation Models at MSE." Economic and Regional Studies / Studia Ekonomiczne i Regionalne 11, no. 2 (June 1, 2018): 7–23. http://dx.doi.org/10.2478/ers-2018-0011.
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Abstract Subject and purpose of work: The main task of this paper is to examine the proximity of valuations generated by different valuation models to stock prices in order to investigate their reliability at Macedonian Stock Exchange (MSE) and to present alternative “scenario” methodology for discounted free cash flow to firm valuation. Materials and methods: By using publicly available data from MSE we are calculating stock prices with three stock valuation models: Discounted Free Cash Flow, Dividend Discount and Relative Valuation. Results: The evaluation of performance of three stock valuation models at the MSE identified that model of Price Multiplies (P/E and other profitability ratios) offer reliable stock values determination and lower level of price errors compared with the average stocks market prices. Conclusions: The Discounted Free Cash Flow (DCF) model provides values close to average market prices, while Dividend Discount (DDM) valuation model generally mispriced stocks at MSE. We suggest the use of DCF model combined with relative valuation models for accurate stocks’ values calculation at MSE.
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Sherlin, Intan, Indra Budaya, and Edwin Bustami. "PRICE DISCOUNT, BONUS PACK, AND HEDONIC VALUE TOWARDS ONLINE SHOP IMPULSE BUYING." Journal of Business Studies and Mangement Review 5, no. 2 (July 8, 2022): 242–47. http://dx.doi.org/10.22437/jbsmr.v5i2.17292.
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We study online shop impulse buying behaviour of college students in some private universities at Sungai Penuh city and formulate problems as follows: (1) how could price discount affect their impulse buying behaviour? (2) How could bonus packs affect their impulse buying behaviour? (3) How could hedonic value affect their impulse buying behaviour? (4) How could price discount, bonus pack, and hedonic value altogether affect their impulse buying behavior? We spread questionners among 60 students of private universities in Sungai Penuh city and use descriptive quantitative techniques for data analysis. Results of the study shows that there is a significant influence of price discounts and bonus packs, partially, on impulse buying behaviour of these college students. While the hedonic value has a little to no significant effect on their impulse buying behaviour. For price discounts, bonus packs, and hedonic values altogether, there is a significant effect on impulse buying behaviour simultaneously. The influence of price discount, bonus pack, and hedonic value on impulse buying behaviour is 16.9%, with 83.1% are from another influences that need to be further studied for future research.
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Huang, Wen-Hsien, and Chun-Ming Yang. "Buy four get 30% off: how consumers respond to missing a quantity discount." European Journal of Marketing 49, no. 7/8 (July 13, 2015): 1326–42. http://dx.doi.org/10.1108/ejm-08-2014-0525.
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Purpose – This paper aims to examine how consumers evaluate and respond after failing to receive the promotional price for a quantity discount because the minimum purchase requirement (MinPR) is out of reach. Although quantity discounts are effective in terms of increasing sales volume, the outcome of using them is not always positive. Design/methodology/approach – Two 2 × 2 experiments are carried out to test the research hypotheses in the context of apparel shopping. Findings – The results of Experiment 1 demonstrate that offering quantity discounts with a high MinPR (e.g. “4 for 30 per cent off”) can result in greater willingness to buy (WTB) a single product at the full price than offering promotions with a low MinPR (e.g. “2 for 30 per cent off”) in the wake of a missed quantity discount. In other words, the purchase quantity has a positive effect on the consumers’ WTB even when they are not able to take advantage of the discount. However, this relationship weakens when the selection of discounted items is limited (i.e. the scope of the promotion is narrow). The results of Experiment 2 reveal that when the missed quantity discount is based on dollars rather than on the number of pieces (e.g. “Buy $100, get 30 per cent off” vs “Buy four pieces, get 30 per cent off”), the effect of purchase quantity on WTB is enhanced. Finally, perceived closeness of purchase outcome to the MinPR mediates the effect of purchase quantity on WTB. Research limitations/implications – To maximize internal validity, hypothetical scenarios were used as stimuli rather than an actual consumption experience, and the setting involved only a single product category (clothing). Future work including other types of merchandise and a more natural setting is needed to generalize our findings. Practical implications – The purchase quantity or MinPR serves as a reference point that influences consumers’ purchase decisions, even those who do not buy enough to qualify for the price reduction. Our findings suggest that retailers should specify a relatively high MinPR for quantity discounts. In addition, proper selection of the promotional scope and discount base will significantly improve consumers’ behavioral reactions when they are not able to take advantage of a quantity discount. Originality/value – The primary contribution of this article to the marketing literature is that it provides empirical results that shed some light on the situational influences that missing a quantity discount has on the consumer’s WTB a single product at the regular price, and what the mechanisms for the purchase quantity effect might be.
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Kim, Sungju, and Jong Hyuk Lee. "Price-Cutting Trends in New Drugs after Listing in South Korea: The Effect of the Reimbursement Review Pathway on Price Reduction." Healthcare 8, no. 3 (July 26, 2020): 233. http://dx.doi.org/10.3390/healthcare8030233.
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This study aims to analyze the trends of post-listing price changes for new drugs listed from 2007, when the health technology assessment (HTA) was introduced in South Korea, until 2017. We analyzed 135 products that have undergone price cuts. These products were analyzed by their respective review pathways, namely, pharmaco-economic study (PE), weighted average price (WAP), and the without a cost-effectiveness (CE) pathway. Prices were discounted faster in PE than in WAP (p = 0.002 in a comparison between PE and WAP). In addition, the median discount rate of the first price cut was 5.0% (range: 0.1–20.0) for PE, 3.0% (range: <0.1–30.0) for WAP, and 5.0% (range: 0.6–10.9) without a CE pathway. The median cumulative discount rate of PE and WAP showed that the PE pathway products’ discount rates were higher: 10.4% for PE and 6.0% for WAP (p = 0.025 for comparison between PE and WAP). It is necessary to discuss the practical effects of the price-cutting system from a myriad of perspectives, including insurance finance, the value of new drugs, and the accessibility of new drugs to patients.
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Setiawan, I. Komang, and I. Gusti Agung Ketut Sri Ardani. "The Role of Positive Emotions to Increase the Effect of Store Atmosphere and Discount on Impulse Buying." European Journal of Business and Management Research 7, no. 1 (February 13, 2022): 219–23. http://dx.doi.org/10.24018/ejbmr.2022.7.1.1236.
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This study aims to analyze the effect of store atmosphere and price discounts on impulse buying with positive emotions as a mediator for consumers at Coco Mart in Denpasar with 85 respondents. Data was collected by distributing questionnaires, then the data was processed using path analysis with the help of SPSS software. Based on the results, the store atmosphere has a positive and significant effect on impulse buying. Store Atmosphere has a positive and significant effect on positive emotions. Price discount has a positive and significant effect on impulse buying. Price discount has a positive and significant effect on positive emotions. Positive emotions have a positive and significant impact on impulse buying. Positive emotions can mediate the effect of store atmosphere and price discounts on impulse buying.
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Mateus, Cesario, Jorge Farinha, and Nuno Soares. "Price discounts in rights issues: why do managers insist on what investors hate?" European Business Review 29, no. 4 (June 12, 2017): 457–75. http://dx.doi.org/10.1108/ebr-02-2016-0036.
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Purpose This paper aims to analyse the causes and impact of the significant mean price discounts (25 per cent for financial and 29 per cent for non-financial firms) in rights issues in the UK using a sample of 268 observations for the period of 1994 to 2012. It is observed that for non-financial companies, the issue terms announcement returns are negatively affected by the discount size, while firm size, growth prospects and good previous stock performance have a positive impact. It is also investigated which factors seem to influence managers to engage in deeper discounts when these are so disliked by investors. Evidence is provided that firms with more leverage, larger bid-ask spreads or suffering losses tend to choose deeper discounts. The authors conclude that managers balance the expected negative reaction of the market to a price discount with the risks of a costly issue failure, with these being higher when the firm experiences losses, has a higher volatility and also when the stock market climate is more adverse. Design/methodology/approach The analysis is divided in two stages. In a first step (thereafter pre-announcement), the authors evaluate the firm’s and market conditions that determine the price discount. In a second stage (post-announcement), the authors measure the market reaction to the rights issues announcement by calculating the abnormal announcement returns by cumulating the difference between daily returns (R) and expected market returns (ER) for the period of −2 to 2 relative to the announcement day. Findings The authors document that price discounts in right issues for non-financial and financial firms are determined by a set of firm-characteristics and market sentiment. They also bring evidence that price discounts are not arbitrarily determined by firm managers. Originality/value The results are consistent with the idea that despite the negative signal to investors conveyed by a significant price discount in the new shares, managers of non-financial companies still engage in substantially price-cutting.
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Isabella, Giuliana, Alexandre Ierulo Pozzani, Vinicios Anlee Chen, and Murillo Buissa Perfi Gomes. "Influence of discount price announcements on consumer's behavior." Revista de Administração de Empresas 52, no. 6 (December 2012): 657–71. http://dx.doi.org/10.1590/s0034-75902012000600007.
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The theoretical framework that underpins this research study is based on the Prospect Theory formulated by Kahneman and Tversky, and Thaler's Mental Accounting Theory. The research aims to evaluate the consumers' behavior when different patterns of discount are offered (in percentage and absolute value and for larger and smaller discounts). Two experiments were conducted to explore these patterns of behavior and the results that were obtained supported the view that the framing effect was a common occurrence. The patterns of choice of individuals in a sample were found to be different due to changes in the ways discounts were offered. This can be explained by the various ways of presenting discount rates that had an impact on the influence of purchase intentions, recommendations and quality perception.
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Xie, Hong, Yongkun Li, and John C. S. Lui. "Optimizing Discount and Reputation Trade-Offs in E-Commerce Systems: Characterization and Online Learning." Proceedings of the AAAI Conference on Artificial Intelligence 33 (July 17, 2019): 7992–99. http://dx.doi.org/10.1609/aaai.v33i01.33017992.
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Feedback-based reputation systems are widely deployed in E-commerce systems. Evidences showed that earning a reputable label (for sellers of such systems) may take a substantial amount of time and this implies a reduction of profit. We propose to enhance sellers’ reputation via price discounts. However, the challenges are: (1) The demands from buyers depend on both the discount and reputation; (2) The demands are unknown to the seller. To address these challenges, we first formulate a profit maximization problem via a semiMarkov decision process (SMDP) to explore the optimal trade-offs in selecting price discounts. We prove the monotonicity of the optimal profit and optimal discount. Based on the monotonicity, we design a QLFP (Q-learning with forward projection) algorithm, which infers the optimal discount from historical transaction data. We conduct experiments on a dataset from to show that our QLFP algorithm improves the profit by as high as 50% over both the classical Q-learning and speedy Q-learning algorithm. Our QLFP algorithm also improves the profit by as high as four times over the case of not providing any price discount.
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Sethuraman, Raj. "A Model of how Discounting High-Priced Brands Affects the Sales of Low-Priced Brands." Journal of Marketing Research 33, no. 4 (November 1996): 399–409. http://dx.doi.org/10.1177/002224379603300402.
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Drawing on a consumer preference distribution structure postulated in analytical modeling research, the author develops a Separate Effects Model that separates the total discount effect of a competing high-priced brand on the sales of the focal low-priced brand into discount effect in the region where price of the competing brand is (1) above the price of the focal brand, (2) equal to the price of the focal brand, and (3) below the price of the focal brand. The author applies the model to store-level data on fabric softener and illustrates the steps involved in the estimation and usefulness of model results. In particular, he shows that the Separate Effects Model can (1) identify the source of the discount effect observed in the conventional model, (2) uncover discount effects not detected in the conventional model, and (3) guide managers’ decisions related to discount sizes and provide some insights about brand strength. An interesting substantive finding from the empirical analysis is that the leading national brand can draw sales from competing brands without reducing its price below the price of the other brands.
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Noon, Kathleen, Christopher Painter, and Stephen Montgomery. "OP20 When Are Nationally Available Discounts Introduced In NICE Appraisals." International Journal of Technology Assessment in Health Care 34, S1 (2018): 9. http://dx.doi.org/10.1017/s0266462318000843.
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Introduction:Offering a nationally available discount has become common to increase the chance of being recommended by the National Institute of Health and Care Excellence (NICE). This study reviewed all NICE technology appraisals (TAs) since October 2007 to determine whether a national available discount was submitted, and explore when these discounts were introduced.Methods:All TAs between October 2007 and August 2017 were reviewed. The timing of the nationally available discount submission was allocated into one of four categories: initially submitted; initially submitted but changed; introduced after submission; or, other discount. An analysis was conducted to examine whether there was a temporal pattern in the introduction of nationally available discounts before or after January 2014, when the current Pharmaceutical Price Regulation Scheme (PPRS) came into effect.Results:Before 1 January 2014, a nationally available discount was only used in the minority of cases across recommended (22 percent of cases) and not recommended (19 percent) technologies. In the period since 1 January 2014, use of a nationally available discount increased overall, but to a greater degree in technologies ultimately receiving a positive recommendation from NICE (not recommended: 19 percent to 39 percent; recommended: 22 percent to 59 percent). In the period since 1 January 2014, the proportion of technologies with a positive recommendation where implicit price flexibility during the appraisal was revealed increased (from 20/186) to 40/182.Conclusions:With the current PPRS, the majority of technologies have offered a nationally available discount, most commonly at the time of submission; however, there is increasing evidence of implicit price flexibility during the appraisal process to achieve a positive recommendation.
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Fitriani, Ainun, and Muhajirin. "ANALISIS PENGARUH IN STORE DISPLAY DAN PRICE DISCOUNT TERHADAP KEPUTUSAN IMPULSE BUYING PADA ALFAMART TENTE." Jurnal Publikasi Manajemen Informatika 1, no. 3 (July 28, 2022): 23–34. http://dx.doi.org/10.55606/jupumi.v1i2.474.
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Business people must have an understanding of changing consumer behavior in order to win business competition and the most important thing is how companies can attract and attract consumers to make impulse purchases by considering in-store displays and price discounts. This study aims to determine and analyze the effect of in-store display and discount price on impulsive buying decisions at Alfamart Tente. This type of research is associative with quantitative data types from primary data sources. The research instrument used was a Likert scale questionnaire. The population in this study were all consumers who made purchases at Alfamart Tente with a total sample of 50 respondents. The sampling technique used in this study is non-probability sampling. The method of determining the sample in this study is accidental sampling. Data collection techniques using observation, questionnaires and literature study. The data analysis technique uses validity test, reliability test, classical assumption test, multiple linear regression analysis, multiple correlation coefficient, determination test, t test and f test. The results showed that in-store display had a significant effect on impulse buying decisions at Alfamart Tente, while price discounts had no significant effect on impulse buying decisions at Alfamart Tente, f test results showed that in-store displays and price discounts together had a significant effect. on impulse buying decisions at Alfamart Tente.
Keywords: In-Store Display, Price Discount, Impulsif Buying Decisions
Abstrak
Para pelaku bisnis harus memiliki pemahaman tentang perilaku konsumen yang terus berubah agar bisa memenangkan persaingan bisnis dan yang paling penting adalah bagaimana cara perusahaan agar memiliki daya tarik dan menarik minat konsumen untuk melakukan pembelian impulsif dengan mempertimbangkan in-store display dan price discount. Penelitian ini bertujuan untuk mengetahui dan menganalisis pengaruh in-store display dan discount price terhadap keputusan impulsif buying pada Alfamart Tente. Jenis penelitian ini assositif dengan jenis data kuantitatif dari sumber data primer. Instrument penelitian yang digunakan yaitu kuesioner berskala likert. Populasi dalam penelitian ini adalah seluruh konsumen yang melakukan pembelian di Alfamart Tente dengan jumlah sampel sebanyak 50 orang responden. Teknik penentuan sampel yang digunakan dalam penelitian ini adalah non probability sampling. Metode penentuan sampel pada penelitian ini yaitu accidental sampling. Teknik pengumpulan data menggunakan observasi, kuesioner dan studi pustaka. Teknik analisa data menggunakan uji validitas, uji reliabilitas, uji asumsi klasik, analisis regresi linear berganda, koefisien korelasi berganda, uji determinasi, ujit dan uji f. Hasil penelitian menunjukan bahwa in-store display berpengaruh signifikan terhadap keputusan impulse buying pada Alfamart Tente, sementara price discount tidak berpengaruh signifikan terhadap keputusan impulse buying pada Alfamart Tente, hasil uji f menunjukan bahwa in-store display dan price discount secara bersama-sama berpengaruh signifikan terhadap keputusan impulse buying pada Alfamart Tente.
Kata Kunci: In-Store Display, Price Discount, Keputusan Impulsif Buying
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Prawita, Dika, Ambar Lukitaningsih, and Henny Welsa. "ANALISIS PRICE DISCOUNT DAN PERCEIVED USEFULNESS TERHADAP MINAT PEMBELIAN ULANG MENGGUNAKAN FINTECH MELALUI INTERVENING CUSTOMERS SATISFACTION (Studi Kasus Pada Pengguna Aplikasi Gopay di Kota Yogyakarta)." UPAJIWA DEWANTARA 4, no. 2 (January 14, 2021): 147–60. http://dx.doi.org/10.26460/mmud.v4i2.8796.
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At present digital payment systems or electronic money have been widely used in Indonesia. Market share that is still wide open makes many fintech companies competing to provide discounts and various benefits of convenience when using the applications provided, one of which is GoPay. The purpose of this study is to analyze the effect of price discounts and perceived usefulness on repurchase interest using the GoPay application which is mediated by customer satisfaction variables. The data used in this study are primary data sourced from questionnaires, with a total sample of 84 respondents. The results of this study indicate that the price discount has a positive but not significant effect on customer satisfaction. Perceived usefulness have a positive and significant effect on customer satisfaction. Price discounts and perceived usefulness have a positive but not significant effect on repurchase intention. Customers satisfaction has a positive and significant effect on repurchase intention.Keywords : price discount, perceived usefulness, customers satisfaction, repurchase intention
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SHAH, BHAVIN J., NITA H. SHAH, and Y. K. SHAH. "EOQ MODEL FOR TIME-DEPENDENT DETERIORATION RATE WITH A TEMPORARY PRICE DISCOUNT." Asia-Pacific Journal of Operational Research 22, no. 04 (December 2005): 479–85. http://dx.doi.org/10.1142/s0217595905000649.
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Deterioration is defined as decay, damage, spoilage, evaporation, obsolescence, pilferage, and loss of utility or loss of marginal value of a commodity that reduces usefulness from original ones. Blood, fish, fruits and vegetables, alcohol, gasoline, radioactive chemicals, medicines, etc., lose their utility with respect to time. In this case, a discount price policy is implemented by the suppliers of these products to promote sales. In this study, a mathematical model is developed for an inventory system that considers a temporary price discount when commodities in an inventory system are subject to deterioration with respect to time. Our goal in this article is to maximize the difference between two costs (gain) — taking advantage of price discount by ordering a large quantity, which in turn increases inventory holding cost as well deterioration cost and by not ordering a large quantity at a discounted price. An attempt is made to find bounds on the beneficial discount rate. The model is supported with a numerical example.
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Slamet, Slamet, Bagus Putro Wahyu Prasetyo, and Ilya Azmala. "The Impact of Electronic Word of Mouth and Brand Image on Online Purchase Decisions Moderated by Price Discount." European Journal of Business and Management Research 7, no. 2 (March 25, 2022): 139–48. http://dx.doi.org/10.24018/ejbmr.2022.7.2.1340.
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This study aims to analyze the impact of electronic word of mouth and brand image on online purchasing decisions moderated by price discounts. This study uses a quantitative research paradigm with an explanatory approach. The research instrument is a questionnaire designed to measure electronic word of mouth, brand image, price discount, and online purchase decisions. Data were collected from primary sources through surveys. The survey, as a data collection technique, was carried out in Malang City. Partial distribution of the questionnaire used google form and distributed directly to respondents. The research object is the Shopee platform, while the research subjects are millennials who have used the Shopee platform in the past year. The total number of respondents involved in this study was 100. Data analysis used two approaches namely categorization index analysis and multivariate regression. Study results show that electronic word of mouth is in a reasonably low category. The brand image has a high category, while the price discount has a reasonably high category. Hypothetically tested, electronic word mouth has no impact on purchasing decisions. However, when moderated by a price discount, it has an impact on purchasing decisions. Meanwhile, whether moderated by price discounts or not, the brand image variable had an impact on online purchasing decisions on the Shopee platform.
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Huang, Rongbing, and Donghang Zhang. "Managing Underwriters and the Marketing of Seasoned Equity Offerings." Journal of Financial and Quantitative Analysis 46, no. 1 (November 10, 2010): 141–70. http://dx.doi.org/10.1017/s0022109010000712.
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AbstractUsing a sample of 2,281 seasoned equity offerings (SEOs) from 1995 to 2004, we show that the marketing of securities is important to issuers. The number of managing underwriters for an SEO is negatively related to the offer price discount, especially when the relative offer size is large and the stock return volatility is high. Larger investor networks of comanaging underwriters also lower offer price discounts. We argue that the evidence is supportive of the marketing hypothesis: The underwriters’ marketing efforts can lower the offer price discount by shifting up and flattening the demand curve of an SEO.
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ELLIOTT, ROBERT J., and AHMED S. HAMADA. "OPTION PRICING USING A REGIME SWITCHING STOCHASTIC DISCOUNT FACTOR." International Journal of Theoretical and Applied Finance 17, no. 03 (May 2014): 1450020. http://dx.doi.org/10.1142/s0219024914500204.
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The paper discusses the pricing of derivatives using a stochastic discount factor modeled as a regime switching geometric Brownian motion. The regime switching is driven by a continuous time hidden Markov chain representing changes in the economy. The stochastic discount factor enables to define a risk neutral measure. We model the stock price as discounted future dividends driven by the same continuous time Markov chain. The stochastic discount factor is used to price European style options under the historical probability measure. The introduction of occupation times of the Markov chain and the corresponding conditional characteristic function allows the evaluation of the expected value of European type claims. The option price is given as a semi-analytical form using the Fourier transform.
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Han, KwangSeok. "The Effect of T-Commerce Scarcity Messages and Price Policies on Attitudes and Purchase Intention." Restaurant Business 118, no. 1 (January 16, 2019): 42–47. http://dx.doi.org/10.26643/rb.v118i1.7257.
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Background/Objectives: This study investigated differences in the attitude of users according to type of scarcity message and price discount conditions to compose T-commerce sales messages and search for effective strategic plans.
Methods/Statistical analysis: This study empirically verifies the difference in promotion attitude and purchase intention between the type of T-Commerce scarcity message (quantity limit message / time limit message) and the price discount policy (price discount / non-discount) message. For this purpose, 2 (scarcity type: limited quantity, limited time) X 2 (with or without price discount: price discount, no price discount) factor design between subjects was used.
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Han, KwangSeok. "The Effect of T-Commerce Scarcity Messages and Price Policies on Attitudes and Purchase Intention." Restaurant Business 118, no. 8 (August 2, 2019): 315–22. http://dx.doi.org/10.26643/rb.v118i8.7707.
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Background/Objectives: This study investigated differences in the attitude of users according to type of scarcity message and price discount conditions to compose T-commerce sales messages and search for effective strategic plans.
Methods/Statistical analysis: This study empirically verifies the difference in promotion attitude and purchase intention between the type of T-Commerce scarcity message (quantity limit message / time limit message) and the price discount policy (price discount / non-discount) message. For this purpose, 2 (scarcity type: limited quantity, limited time) X 2 (with or without price discount: price discount, no price discount) factor design between subjects was used.
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Guo, Hongtao. "After-Tax Discounting: A Research Edge." Journal of Accounting, Business and Management (JABM) 27, no. 1 (May 1, 2020): 86. http://dx.doi.org/10.31966/jabminternational.v27i1.565.
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This research note addresses after-tax discounting for pricing assets. Specifically, it analyzes the appropriate way to discount after-tax payoffs from assets that trade in capital markets in which both taxable and tax-free investors can buy and sell both taxable and tax-free instruments. The effect of the tax status of the investor and the tax status of the financing tool that an investor uses on price of an asset are discussed. Secondly, it derives the proper after-tax discount rate to use in the risk neutral valuation method for pricing assets that have state-contingent payments, typically structured in a lease based transaction. Dynamic state-contingent payoffs and cash flow processes are developed. Pre-tax discounted price, after-tax discounted payoffs are considered, then after-tax discount rate is derived. Included in this analysis of state-contingent discounting is the effect of depreciation expense, the only expense associated with the use of the asset, on after-tax discount rates.
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Guo, Hongtao. "After-Tax Discounting: A Research Edge." Journal of Accounting, Business and Management (JABM) 27, no. 2 (October 23, 2020): 86. http://dx.doi.org/10.31966/jabminternational.v27i2.694.
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This research note addresses after-tax discounting for pricing assets. Specifically, it analyzes the appropriate way to discount after-tax payoffs from assets that trade in capital markets in which both taxable and tax-free investors can buy and sell both taxable and tax-free instruments. The effect of the tax status of the investor and the tax status of the financing tool that an investor uses on price of an asset are discussed. Secondly, it derives the proper after-tax discount rate to use in the risk neutral valuation method for pricing assets that have state-contingent payments, typically structured in a lease based transaction. Dynamic state-contingent payoffs and cash flow processes are developed. Pre-tax discounted price, after-tax discounted payoffs are considered, then after-tax discount rate is derived. Included in this analysis of state-contingent discounting is the effect of depreciation expense, the only expense associated with the use of the asset, on after-tax discount rates
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Zheng, Shi, and Wen Zheng. "Optimal Sales Discount Decision Model with Fixed Ordered Quantities." Journal of Systems Science and Information 2, no. 4 (August 25, 2014): 345–57. http://dx.doi.org/10.1515/jssi-2014-0345.
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AbstractThe purpose of this paper is to study sales pricing and discount strategy for sellers. Here, the suppliers require fixed order quantities to the sellers. Therefore, to incorporate the concept of sellers’ maximum profit and sales discount into the model, the author classifies the multi-category goods into backlog, flat and profitable one. Then the model to determine the optimal sales price strategy for a sales discount decision system with fixed order quantities is analyzed. As most of the non-linear model can be linearization, a mathematical model for sales discount decision system is developed when demand rate is a liner function of the sales price. By analyzing the total profit function, the authors developed some useful results to characterize the optimal solution and provided a method to find the sales discount for holdovers. By developing a solution algorithm, the optimal retail price and sales discount for holdovers are provided. Case scenarios are presented to validate the proposed model. Through case scenarios analyses, it is observed that optimal sales discount can help the sellers earn maximum profit with constraints of fixed order quantities. Most of the research articles available in the literature assumed that the sellers are always in optimal situation. In fact, sellers’ decisions rely on suppliers’ decisions in most cases. In this paper, determination of sales discounts can be seen as sellers compromise to suppliers by seeking the optimal strategy with downstream customers. In view of this fact, a mathematical model is developed considering sales price dependent linear demand and sellers’ profit. Very few researchers have investigated optimal sales discount decision system with fixed order quantities; although it is a real situation the sellers should be faced.
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Saini, Gordhan K., Arvind Sahay, and Gurumurthy Kalyanaram. "How do complementarity and discount choices interact with latitude of price acceptance in price bundling?" Journal of Consumer Marketing 36, no. 7 (November 11, 2019): 962–76. http://dx.doi.org/10.1108/jcm-07-2018-2789.
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Purpose This paper aims to examine three important questions: What would be the effects of pricing at the lower end of a wide vs narrow latitude of price acceptance (LPA) on consumer choice of the bundle? How would the nature of a bundle frame (i.e. discount on bundle vs discount on components) and discount frame (i.e. discount as absolute off vs discount as percentage off) influence the preference given to a price level that is at the wide or narrow end of the LPA? Would the effect be significantly different if the bundle components were complementary vs if they were non-complementary? Design/methodology/approach The authors carried out two studies using between-subject experimental design. In Study 1, the authors used 2 (LPA: wide/narrow) × 2 (complementarity: yes/no) × 2 (bundle frame: together/separate) design, and in Study 2, the authors replaced bundle frame with discount frame (i.e. absolute off/percentage off). Findings The authors find that the LPA effect is likely to outweigh the complementarity effect; however, a combined effect of complementarity and bundle frame is stronger than the LPA effect. Also, for a wide (narrow) LPA product bundle, absolute off (percentage off) discount frame is more attractive. Practical implications Managers should use bundling strategy with complementary products having wider LPA. In case of wide LPA and complementary products, both together and separate frame could be the best bundling strategy while in case of narrow LPA and complementary products, together frame could be the best bundling strategy. Originality/value The main contribution relates to the role LPA plays in consumer evaluation of a bundle offer and its interaction with complementarity and discount frame. The authors apply the range hypothesis principles (i.e. price-attractiveness judgments are based on a comparison of market prices to the endpoints of a range of evoked prices) in the bundling context and extend the earlier work in the area of complementarity and discount frame.
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Dewi, Meutia. "FAKTOR-FAKTOR YANG MEMPENGARUHI PERILAKU IMPULSE BUYING KONSUMEN PRODUK ORIFLAME DI KOTA LANGSA." Niagawan 10, no. 3 (November 2, 2021): 260. http://dx.doi.org/10.24114/niaga.v10i3.28488.
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The purpose of this study was to determine the effect of personal selling, price discount, and bonus packs on the impulse buying of Oriflame consumers in Langsa City. The sample in this study amounted to 97 respondents. The sampling technique used in this study is non-probability sampling. The data analysis method used in this research is multiple linear regression analysis, t test, F test and coefficient of determination. The regression equation in this study is: Y = 4.239 + 0.300x1+ 0.124x2 + 0.339x3. The constant 4.239 shows the value of impulse buying if personal selling, price discounts and bonus packs are fixed. The coefficients of personal selling variables, price discounts and bonus packs have a positive effect on impulse buying of consumers of Oriflame products in Langsa City. Based on partial and simultaneous hypothesis testing, personal selling, price discount and bonus pack variables have a significant effect on impulse buying. The value of the coefficient of determination of 0.604 or 60.4% can be concluded that impulse buying can be explained by personal selling, price discounts, and bonus packs, while the remaining 39.6% can be explained by factors not included in the study.
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Cherednichenko, Dar`ya. "PRICE DISCRIMINATION IN A FORM OF DISCOUNTS: CATEGORIZATION AND IMPACT ON COMPETITION." Modern Management Review 26, no. 4 (December 26, 2021): 25–35. http://dx.doi.org/10.7862/rz.2021.mmr.22.
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This paper is aimed to clarify the definition and categorization of discounts as well as pro- and anticompetitive effects of discounts. The author applied qualitative methods to the research. The modern literature review unfolds the gap of proper discounts definition, which is proposed to be covered by five-dimensions approach to discounts categorization. Based on such aspects of discount scheme as time, product, threshold, distribution level and customer, the approach provides comprehensive and uniform characteristics of discount. It allows assessing effects of competition, which are classified in two groups. Pro-competitive effects include stimulation of demand, decreasing cost due to economy of scale, solving coordination problems within a supply chain. Anti-competitive effects encompass predation scheme, raising rival’s cost, exclusive dealing, leverage and exclusionary bundling. The importance of correct assessment of the discounts by antitrust authorities is high as an overenforcement in this sphere may lead to adverse effect on total welfare.
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Kleriawan, Erren Bustami, and Ilman Mufid Dwiyono. "The Fair Price of Company Shares with Dividend Discount Model Method." AFRE (Accounting and Financial Review) 4, no. 1 (August 17, 2021): 38–44. http://dx.doi.org/10.26905/afr.v4i1.5960.
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This study aims to analyze the fair price of company shares in the LQ45 index with the dividend discount model (DDM) method during the 2014-2018 period. The analysis methodology using is a descriptive qualitative with data obtained from the Indonesia Stock Exchange with a case study approach, namely the 2014-2018 LQ45 Stock Price through LQ45 Stock Price Assessment analysis with the using Dividend Discounted Model (DDM) Method. The results of this study indicate that the fundamental analysis using the Dividend Discount Model (DDM) can be done after the intrinsic value of the stock is known then compared to its fair price so that it can be determined whether the stock is undervalued, fairvalued or overvalued.Penelitian ini bertujuan menganalisa harga wajar saham perusahaan yang berada pada indeks LQ45 dengan metode dividend discount model (DDM) selama periode 2014-2018.Metodologi penelitian yang digunakan adalah metode deskriptif kualitatif dengan data series dan cross section dengan pendekatan studi kasus (case study) yakni pada Harga Saham LQ45 Tahun 2014-2018 melalui analisis Penilaian Harga Saham LQ45 dengan Dividend Discounted Model (DDM). Hasil dari penelitian ini menunjukkan bahwa secara analisis fundamental dengan menggunakan metode Dividend Discount Model (DDM) dengan metode Constant Growth Model dapat dilakukan setelah nilai intrinsik saham sudah diketahui kemudian dibandingkan dengan harga wajarnya sehingga dapat ditentukan apakah saham berada dalam kondisi undervalued, fairvalued atau overvaluedDOI: https://doi.org/10.26905/afr.v4i1.5960
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Kockaya, Guvenc, Kagan Atikeler, Esin Tuna, Pelin Kılıc, Pelin Tanyeri, Nurcan Umman, İsmail Mert Vural, et al. "Results of reference pricing and reimbursement discount rate schemes of Turkey." Farmeconomia. Health economics and therapeutic pathways 14, no. 2 (March 22, 2013): 99–103. http://dx.doi.org/10.7175/fe.v14i2.473.
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OBJECTIVES: General Directorate of Pharmaceuticals and Pharmacy (IEGM) is responsible for setting all prices for human medicinal products. The reference pricing system is used for setting these prices. Reference countries are reviewed annually and may be subject to certain alterations. There were 5 reference countries in 2009: Spain, Italy, Germany, France and Greece. The aim of this study is to show the distribution of reference countries which were used for reference pricing.METHODS: The price list of pharmaceuticals which was published by IEGM on 15.04.2011 was used for analysis. Distribution of reference countries and prices were evaluated.RESULTS: Prices of 6,251 generic and 3,703 original products were set according to the price list. 5,283 of generics and 3,306 of originals were in the positive list for reimbursement. Reference pricing was used for 2,352 generics and 2,281 originals. Prices of the remaining were set outside of reference pricing. 32 different countries were used for reference pricing. Italy was the most popular country for reference pricing. Even if it was not a reference country, Germany was used in some of the pharmaceuticals. The average reimbursement discount rate and price were 24.43% and 249 TL, respectively. There were no colerations between price and reimbursement discount rate, or reference country and reimbursement rate.CONCLUSION: It has been shown that Italy has the highest impact on the pricing of all pharmaceuticals in Turkey. Even if it was not a reference country, Germany showed to affect pharmaceuticals more than other countries which were also not used for reference pricing. Even if reimbursement discount rates are stated by the Social Security Institution (SGK), there are different discount rates for pharmaceuticals. The analysis stated that there were correlation between price, country and discount rates. This analysis is first for the literature. Further analysis is necessary in the light of price changes and newly launched pharmaceuticals.
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Nafi'iyah, Nur, and Nur Fahmi Maulidi. "LINEAR REGRESSION FOR DISCOUNTING PRESENTATION RECOMMENDATIONS (Kaggle Dataset)." JURNAL TEKNOLOGI INFORMASI DAN KOMUNIKASI 13, no. 2 (September 1, 2022): 67–73. http://dx.doi.org/10.51903/jtikp.v13i2.326.
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In the business of selling goods, there must be goods that do not sell well and sell well. How to make unsold items sell well by giving customers a discount or discount strategy. The goal is to provide discounted prices to attract customers' attention and increase sales turnover. Prediction to give the right discount presentation is needed in the discount strategy. How to determine discount prediction using linear regression method, looking for line equations by training data taken from Kaggle.com. The data were trained to find the constants and coefficients of the independent variables. The resulting line equation will be tested to determine the discount prediction that will be given and calculate the error value. The data used is painting sales data taken from Kaggle.com, a total dataset of 1525, and a prediction calculation is made with 225 lines of test data. The input variable used is the price of the painting, and the output variable is the discount presentation. The process of evaluating the prediction results by calculating the MAE value, the difference between the actual data and the predicted data, the MAE value from the trial is 0.108.
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Mahito, Okura, and Nozaki Hiroyuki. "An Essay on the Subjective Valuation of an Incentive System in an Insurance Market." Journal of Mathematical Economics and Finance 2, no. 2 (March 31, 2017): 7. http://dx.doi.org/10.14505//jmef.v2.2(3).01.
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This study discusses two discount systems, namely, the insurance pre- mium discount system, where the policyholder’s valuation is objective, and the book price discount system, where the policyholder’s valuation is subjective. The main pur- pose of this study is to compare these discount systems and show the conditions under which each discount system is chosen by an insurance firm.
The main conclusions of this study are as follows. First, the insurance firm chooses the book price discount (insurance premium discount) system if the policyholder’s disutility of loss prevention effort is relatively high (low). Second, the insurance firm chooses the book price discount system when the initial wealth and maximum subjec- tive valuation of the book price discount are large. The insurance firm also chooses the book price discount system when the insurance premium, the amount of damage and effect of the loss prevention effort are small.