scholarly journals The Relationship between Pricing and Consumers Switching Costs: Comparisons between the Myopic and Perfect-foresight Equilibria

2017 ◽  
Vol 10 (3) ◽  
pp. 221
Author(s):  
Omar A. Abdelrahman
Keyword(s):  
Market Share ◽  
Brand Loyalty ◽  
Switching Costs ◽  
Monopoly Power ◽  
Perfect Foresight ◽  
Market Shares ◽  
Ex Ante ◽  
The Future ◽  
The Relationship

In many markets, consumers face costs of switching to a competitor’s brand that is ex ante undifferentiated even when the two firms’ brands are functionally identical. This study examines the relationship between pricing and consumers witching costs or “brand loyalty”. Moreover, it suggests that in the presence of switching costs, firms will charge lower prices in the first period to gain market share that will be valuable to them in the future and therefore charge higher prices later utilizing the market shares they have gained in the first period. This will give firms a degree of monopoly power over their existing customers, leading to higher prices and profits in the future. This will happen if firms have perfect foresight, and it may lead to either higher or lower equilibrium profits than if firms behave myopically.

Forecasting the Imminent Market Shares Pertinent to HTC Corporation Domestically

2012 ◽  
Vol 3 (1) ◽  
pp. 1-7
Author(s):  
Yi-Fen Chen ◽  
Chang-Lung Hsieh ◽  
Chia-Wen Tsai ◽  
Wen-Yu Chen ◽  
Wei-Hung Lin
Keyword(s):  
Market Share ◽  
Residual Error ◽  
High Tech ◽  
Envelope Analysis ◽  
Meaningful Information ◽  
Market Shares ◽  
The Future ◽  
New Strategy ◽  
Average Residual

The development of the smartphone will intensify in the future. Recently, many Taiwan’s manufacturers are investing in the smartphone market. The present research used the grey envelope analysis to forecast the smartphone industry market share of High Tech Computer Corporation (HTC) in Taiwan. The average residual error of up and down envelope is 6.1825% from 2003 to 2007, and the predicted market share in 2012 is 3.334%. The forecasting results showed that the market share of HTC will decrease in the future. The founding of research offers meaningful information for HTC to decide the new strategy. For government, the result could also help to implement adequate policies to support the development of smartphone industry in the future.

What If the Future Never Comes?

2016 ◽  
pp. 15-40
Keyword(s):  
Brand Loyalty ◽  
Consumer Perception ◽  
Research Subjects ◽  
Complex Concept ◽  
Brand Association ◽  
Long Run ◽  
The Future ◽  
Ethical Norms ◽  
The Relationship

In Chapter 1, we have established the importance of adhering to ethical norms in research, especially when dealing with children both as research subjects and consumers, since we do not want them to be exploited. In this chapter and the next, we will shift gear to comprehend consumer perception on future anticipation. This is essential in order to develop a better understanding about customer's potential needs and wants in the future, thus enabling marketers to stay ahead of competitors. Specifically, this chapter will attempt to present the relationship between brand association and future anticipation to develop brand loyalty. Since future anticipation is a complex concept, this chapter will use adults as research subjects. However, the findings should still be relevant to comprehend children's future anticipation and develop brand loyalty in the long run as they grow up and get exposed to a lot of different advertorial messages.

scholarly journals Consumer-Brand Identification and Brand Loyalty: Analysis on Customer Satisfaction and Brand Trust as Mediators

2021 ◽  
Vol 10 (3) ◽  
pp. 283
Author(s):  
Dwike Natalia ◽  
Honey Wahyuni Sugiharto Elgeka ◽  
Anton Johannes Tjahjoanggoro
Keyword(s):  
Data Analysis ◽  
Customer Satisfaction ◽  
Brand Loyalty ◽  
Process Model ◽  
Sampling Technique ◽  
Brand Trust ◽  
Brand Identification ◽  
The Future ◽  
The Relationship

Consumers who have used Apple-branded smartphones have greater probability that they will continue to buy iPhones in the future. This is because customers feel satisfied and have identified the product before making a purchase, creating loyalty for the Apple brand. The purpose of this study is to examine the role of customer satisfaction and brand trust as mediators in the relationship between consumer-brand identification and brand loyalty. Participants in this study consisted of 155 consumers and obtained by using accidental sampling technique. Data analysis used the Hayes Process model 4, which explains that customer satisfaction can act as a mediator in the relationship between consumer-brand identification and brand loyalty, while brand trust cannot act as a mediator. Brand loyalty is not sufficiently formed when consumers can identify the brand well or there is satisfaction with the brand, but rather by the essential emotional bond that makes consumers rely on the brand. However, this has not been fulfilled by the iPhone to make consumers have brand loyalty.

Relationship Between Products Unit Sold and Price Changes with Market Share: The Case of Skin Care Products

2015 ◽  
Vol 21 (4) ◽  
pp. 843-846
Author(s):  
Erlangga Ramadian ◽  
Togar Alam Napitupulu
Keyword(s):  
Market Share ◽  
Estimation Method ◽  
High Volume ◽  
Skin Care ◽  
Least Square ◽  
Ordinary Least Square ◽  
Market Shares ◽  
Relationship Of ◽  
The Relationship ◽  
Skin Care Products

In industries such as Fast-Moving Consumers Good (FMCG), where the products are usually transferred in high volume with low value, comparing value market share is important. The paper will further research on the relationship of the total unit sold and the changes in price with the market share of a specific company in the industry in hope that this research may help company to decide on product strategy based on whether the existing products’ contribution to the market shares is necessary or should the product need to be discontinued and replaced. The report will measure the relationship between the total products sold and the changes in price with the market share, which is derived from the proportion of values compared to the total market value of the skin care market. A Multiple Regression analysis was used to formulate the relationship using Ordinary Least Square (OLS) estimation method. It can be concluded that, number of unit sold of each product does have relationship to the market share regression model regardless its contribution’s significance. While prices changes do not significantly impacting the changes in the market shares, this can be caused by the loyalty of the customer towards the brand. In other word, these loyal customers will buy the product no matter how much the price has changed.

scholarly journals Is too much competition bad for the industry? A Taiwanese banking case

2016 ◽  
Vol 13 (2) ◽  
pp. 128-140
Author(s):  
Paul M.S. Choi ◽  
Seth H. Huang
Keyword(s):  
Market Share ◽  
Negative Impact ◽  
Bank Lending ◽  
Market Shares ◽  
Net Interest Margin ◽  
Interest Margins ◽  
Pricing Power ◽  
The Relationship ◽  
Second Period ◽  
Regulation Changes

The authors examine the relationship between net interest margin, a measure of banks’ pricing power, and lending market shares in the environment of regulation changes in Taiwan from 1991 to 2009. Specifically, the effect on net interest margins from mandatory industry consolidation is studied in depth. The authors find that firm market shares in the first period have positive and highly significant impacts on the bank profitability, but for the second period, the authors find increased non-performing loans. During the second period, the credit lending market share became a main profit component but with a negative impact on profitability. Additionally, the focus of lending type shifted from collateralized to credit lending, a type of lending that has much higher profitability, but such lending has negative and significant effects on banks’ profitability. The results suggest a mandatory industry-wide consolidation affected the bank lending types, with banks focusing more on increasing short-term market share through credit lending than on profitability

Unlatching or latching a door to the competitor

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wooje Cho ◽  
Woojung Chang ◽  
Dongryul Lee
Keyword(s):  
Market Share ◽  
Switching Costs ◽  
Customer Relationship ◽  
Optimal Decision ◽  
Theoretic Model ◽  
Technological Advancement ◽  
Strategic Choices ◽  
Content Type ◽  
Market Shares ◽  
Optimal Decision Making

PurposeIn responding to competitors' strategic choices, firms must choose whether to allocate their customer relationship management (CRM) resources primarily to retaining existing customers or to acquiring new customers. To address this critical but understudied question, the authors examine the strategic choices of two competing firms between retention- and acquisition-focused strategies in consideration of switching costs, technological advancement level, and market share.Design/methodology/approachThe authors develop and analyze a game-theoretic model to investigate the strategic choices of two competing firms between retention- and acquisition-focused strategies.FindingsWhen switching costs are high, findings show that when the degree of technological advancement is high (low), both firms should employ acquisition-focused (retention-focused) strategies to maximize their profits. When switching costs are low and there are a low degree of technological advancement and asymmetric market shares, the firms choose retention-focused strategies in equilibrium, but only the firm with the higher market share can maximize its profit. When switching costs are low, technological advancement levels are high, and the market shares are asymmetric, the firm with the higher market share chooses a retention-focused CRM strategy, while the rival with lower market share adopts an acquisition-focused strategy in equilibrium. However, neither firm can maximize its profits.Originality/valuePrior research focused on a single firm's price discrimination decision without considering a competitor's strategic choice. To address this research gap, the authors examine where firms should assign their CRM resources (retention vs. acquisition) in response to a competitor's CRM strategy. This study provides guidance for optimal decision-making regarding a firm's CRM resource allocation in a duopoly market.

scholarly journals How consumer-based brand equity relates to market share of global and local brands in developed and emerging countries

2020 ◽  
Vol 37 (2) ◽  
pp. 345-375
Author(s):  
Lia Zarantonello ◽  
Silvia Grappi ◽  
Marcello Formisano ◽  
Josko Brakus
Keyword(s):  
Market Share ◽  
Brand Equity ◽  
Developed Countries ◽  
Emerging Countries ◽  
Large Set ◽  
Brand Associations ◽  
Content Type ◽  
Market Shares ◽  
Global And Local ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between consumer-based brand equity (CBBE) – conceptualized as consisting of brand awareness, perceived quality, brand associations, perceived value and brand loyalty – and market share for different brand types (global versus local) in different country groups (developed versus emerging).Design/methodology/approachThis paper combines consumer–survey-based data, experts' coding and retail panel data of fast-moving consumer goods (FMCG) brands in 29 countries.FindingsIn developed countries, the relationship between each CBBE component (except for brand associations) with market share is stronger for local than global brands. In emerging countries, the relationship between each CBBE component with market share is stronger for global than local brands.Research limitations/implicationsThis paper contributes to better understanding the relationships between CBBE and market share by showing how CBBE components relate to market share for different brand types (global and local) in different country groups (developed and emerging). Limitations arise from constraints related to existing datasets (e.g. limited number of variables and type of product categories considered).Practical implicationsThis paper offers insights to managers working in multinational FMCG companies, as it suggests which CBBE components relate more strongly to the global or local brands' market shares in different countries.Originality/valueThis paper analyzes the relationship between CBBE and market share by focusing on different brand types (global versus local) in different country groups (developed versus emerging). It does so by using a company dataset and showing correspondence with conceptualizations and measures of brand equity from the academic literature. It also considers a large set of 29 countries, extending research beyond national boundaries.

A Meta-Analysis of Interviews and Cognitive Ability

2013 ◽  
Vol 12 (4) ◽  
pp. 157-169 ◽  
Author(s):  
Philip L. Roth ◽  
Allen I. Huffcutt
Keyword(s):  
Cognitive Ability ◽  
Meta Analysis ◽  
Incremental Validity ◽  
Employment Interviews ◽  
Moderator Analysis ◽  
The Future ◽  
Research Questions ◽  
Meta Analyses ◽  
The Relationship

The topic of what interviews measure has received a great deal of attention over the years. One line of research has investigated the relationship between interviews and the construct of cognitive ability. A previous meta-analysis reported an overall corrected correlation of .40 ( Huffcutt, Roth, & McDaniel, 1996 ). A more recent meta-analysis reported a noticeably lower corrected correlation of .27 ( Berry, Sackett, & Landers, 2007 ). After reviewing both meta-analyses, it appears that the two studies posed different research questions. Further, there were a number of coding judgments in Berry et al. that merit review, and there was no moderator analysis for educational versus employment interviews. As a result, we reanalyzed the work by Berry et al. and found a corrected correlation of .42 for employment interviews (.15 higher than Berry et al., a 56% increase). Further, educational interviews were associated with a corrected correlation of .21, supporting their influence as a moderator. We suggest a better estimate of the correlation between employment interviews and cognitive ability is .42, and this takes us “back to the future” in that the better overall estimate of the employment interviews – cognitive ability relationship is roughly .40. This difference has implications for what is being measured by interviews and their incremental validity.

Using the alveograph in developing requirements for the quality of flour for wafer sheet production

2020 ◽  
Vol 29 (12) ◽  
pp. 52-58
Author(s):  
E.P. Meleshkina ◽  
◽  
S.N. Kolomiets ◽  
A.S. Cheskidova ◽  
◽  
...  
Keyword(s):  
Rheological Properties ◽  
Quality Indicators ◽  
Wheat Flour ◽  
Mathematical Statistics ◽  
Intended Purpose ◽  
The Future ◽  
Relationship Of ◽  
The Relationship

Objectively and reliably determined indicators of rheological properties of the dough were identified using the alveograph device to create a system of classifications of wheat and flour from it for the intended purpose in the future. The analysis of the relationship of standardized quality indicators, as well as newly developed indicators for identifying them, differentiating the quality of wheat flour for the intended purpose, i.e. for finished products. To do this, we use mathematical statistics methods.

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