scholarly journals Identification of Consumer Behavior Based on Price Elasticity: A Case Study of the Prague Market of Accommodation Services

2020 ◽  
Vol 12 (22) ◽  
pp. 9452
Author(s):  
Martin Petricek ◽  
Stepan Chalupa ◽  
Karel Chadt
Keyword(s):  
Price Elasticity ◽  
Customer Behavior ◽  
Price Sensitivity ◽  
Tourist Behavior ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Daily Rate ◽  
High Season

The article deals with customer behavior in the market of accommodation services. The main purpose of this article is to identify tourist behavior using their sensitivity to changes in the price, based on the data from 2011 to 2018. The results can help to understand the booking behaviors of tourists in the long term period, identify specific situations, and to improve the application of revenue management. Using simple log-log regression analysis, the daily performance data of 103 Prague hotels were analyzed, and the coefficient of price elasticity of demand was identified for various timeframes: low and high seasons, summer months, weekends and weekdays, and individual years. The results show that the coefficient of price elasticity of demand is decreasing. In the low season, the low price sensitivity is caused mainly by the high proportion of the non-yieldable leisure group segment, where fixed rates are created for tour operators more than a year in advance. In the high season, Giffen’s paradox was identified in 2016 and shows the situation of customers expecting further growth of room rates. The Giffen paradox was identified only on specific dates of the year and was confirmed by year-to-year growth of the Average Daily Rate.

scholarly journals AN EMPIRICAL ANALYSIS OF CONSUMPTION EXPENDITURE IN CHINA:A CASE STUDY OF CHANGCHUN CITY

2017 ◽  
Vol 16 (3) ◽  
Author(s):  
Wenliang Lu ◽  
Sim-Yee Lau
Keyword(s):  
Empirical Analysis ◽  
Price Elasticity ◽  
Data Set ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Expenditure Share ◽  
Cross Price Elasticity ◽  
Education Culture ◽  
Income Elasticity Of Demand

This paper conducted a case study on Changchun—a city with 7.6 million populations located in the northeastern part of China—that analyzes consumer behavior in China. The empirical analysis is based on the AIDS model propounded by Deaton and Muellbauer (1980). The data used in this econometric analysis is a time series cross sectional panel data from 300-household survey responses collected from January 2009 to December 2011. The empirical results show that “food” and “education, culture and recreation” are necessity goods for the people in Changchun. These two items cover 44% of total expenditure share in the data set. At the same time, these two items are Giffen goods because their expenditure share increases even with rise in their prices. The findings suggest that “housing” is a luxury good but it is also a Giffen good. From this point, it is plausible to argue that the growth of real income across China in general and in Changchun in particular has been lagging behind the rise in prices of “housing”. Additionally the estimated own-price elasticity of demand in “education, culture and recreation” suggests that people in Changchun will spend more on these items in order to acquire a higher quality of education despite price increases. The estimated compensated cross-price elasticity of demand of various pairs of goods like “food and housing,” “food and education, culture and recreation,” “clothing and housing,” “clothing and medical” and others indicate that the theoretical assumption of a diminishing MRS does not hold for our data set. The analytical results show that people’s demand in “medical” is not being influenced by its price and people’s disposable income.Keywords: AIDS; Income Elasticity Of Demand; Cross-Price Elasticity Of Demand; Compensated Cross-Price Elasticity Of Demand; Net Substitute Goods; Net Complement Goods.

scholarly journals Methodology for planning a successful store flyer campaign based on a case study from a Czech retail market

2018 ◽  
Vol 9 (4) ◽  
pp. 755-779 ◽  
Author(s):  
Vladimíra Kučerová ◽  
Jaroslav Zeman
Keyword(s):  
Price Elasticity ◽  
Value Added ◽  
Sales Promotion ◽  
Marketing Practice ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Food Market ◽  
Rate Of Success ◽  
Retail Food

Research background: An essential part of marketing practice in contemporary food retail is the store flyer campaign, in which goods are offered at discounted prices. Even if it is not a new innovation in the field of sales promotion, its popularity does not decrease, and what’s more, in many countries it is still one of the most successful forms of promotion and communication with customers. Purpose of the article: This article brings an answer to the question of how to plan a successful store flyer campaign. The goal is to design the process of planning such campaign based on the knowledge of price elasticity of demand. The rate of success is represented by the level of fulfillment of goals set by the merchant. Methods: The area of the research is the Czech retail food market . The knowledge of the price elasticity of demand is based on the analysis of real terms of prices, sales volumes and margins, and the typology of goals we want to achieve. The proposed method of planning determines the evaluation rules for products in terms of their suitability for inclusion in a store flyer. The calculated values of price elasticity of demand and their changes during the time phases of the campaign are used as a knowledge base for a planning of consumers’ responses to the store flyer. The principle of planning is demonstrated in a case study. Findings & Value added:  The practical output of the proposed process is the answer to the question of which goods should be included in the store flayer to achieve the goals set for the campaign. This study gives the method of identifying the groups of products which are suitable for inclusion in the store flyer and recommends the rules for the planning of the campaign.

The Arkansas State University Parking Garage

2011 ◽  
Vol 4 (7) ◽  
pp. 17
Author(s):  
Daniel R. Marburger
Keyword(s):  
Price Elasticity ◽  
Consumer Choice ◽  
Choice Theory ◽  
Case Analysis ◽  
Sunk Costs ◽  
State University ◽  
Parking Garage ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand

This paper presents a case study based on a regional universitys decision to resolve a longstanding parking problem by constructing a parking garage. Although the garage was expected to generate an annual profit, usage of the garage and, accordingly, its revenues, fell well below expectations. The case analysis incorporates discussions of sunk costs, consumer choice theory, relevant revenues and costs, price elasticity of demand, market entry, and the use of the pricing mechanism to allocate scarce supply.

Illicit Drugs: Price Elasticity of Demand and Supply

2002 ◽  
Author(s):  
William Rhodes ◽  
Patrick Johnston ◽  
Song Han ◽  
Quentin McMullen ◽  
Lynne Hozik
Keyword(s):  
Price Elasticity ◽  
Illicit Drugs ◽  
Demand And Supply ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand
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