An Empirical Analysis of Latitude of Price Acceptance in Consumer Package Goods.
Scanner panel data analyses for sweetened and unsweetened drink categories (with four brands in each) support the presence of a region of price insensitivity around a reference price. The analyses also suggest that consumers with higher average reference price have a wider latitude of price acceptance. Consumers with a higher frequency of purchase (i.e., shorter average interpurchase time interval) are found to have a narrower latitude of price acceptance, because they are more aware of the range of price distributions. Finally, consumers with a higher average brand loyalty have a wider latitude of price acceptance, demonstrating greater tolerance of price fluctuations. Copyright 1994 by the University of Chicago.
Year of publication: |
1994
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Authors: | Kalyanaram, Gurumurthy ; Little, John D C |
Published in: |
Journal of Consumer Research. - University of Chicago Press. - Vol. 21.1994, 3, p. 408-18
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Publisher: |
University of Chicago Press |
Saved in:
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