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Patterns of consumer response to retail price differentials

Oliveira-Castro, Jorge M., Foxall, Gordon Robert ORCID: and Schrezenmaier, Teresa Caroline 2005. Patterns of consumer response to retail price differentials. Service industries journal 25 (3) , pp. 309-335. 10.1080/02642060500050392

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Decomposing price elasticity suggests that the major impact of promotions is on brand switching rather than increased consumption. Consumers may also buy smaller quantities of more expensive brands when compared to cheaper ones (inter-brand elasticity). Using panel data for the purchases of 80 consumers buying nine product categories over a 16-week period, we verified that inter-brand elasticities occur, and report the relative importance of intra- and inter-brand elasticities in determining quantity price elasticity per shopping occasion for the product category. Brands were classified by informational (socially mediated) and utilitarian (product-mediated) benefits. Intra-brand elasticity was higher than utilitarian inter-brand elasticity, which was higher than informational inter-brand elasticity.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Uncontrolled Keywords: Business & Management ; Service Industries
Publisher: Routledge
ISSN: 02642069
Last Modified: 17 Oct 2022 09:18

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