AN ANALYSIS OF EQUILIBRIUM RELATIONSHIP BETWEEN PRICE ELASTICITY AND EXPENDITURE LEVEL: A CASE STUDY OF KOREAN MOBILE MARKET DATA

In most developing countries, telecommunications industry has been grown fast and still has more growth potential than in the developed countries. Clearly the telecommunications industry contributes to foster economic developments and also to narrow the communication gaps among countries. Among many components relating to the success of quick developments of telecommunication services, an appropriate and optimal pricing strategies is the most vital element. In this view point, this paper examines the optimal price discrimination strategy for firms in a monopolistically competitive market. The primary interest is the theoretical relationship between price elasticity and the average expenditure level of consumers. Our equilibrium analysis shows that the relationship can go either way (positive or negative) depending on the prevailing price level of the product in concern. As an empirical example, using a hierarchical Bayes model we find that heavy user of mobile service are substantially more elastic to the price of calls in Korea. A discussion of the optimal pricing scheme and market structure is in order.Price Discrimination, Price Elasticity, Price Sensitivity, Mobile Telecommunications, Hierarchical Bayes Model

Mapping and analysis of the current self- and co- regulatory framework of commercial communication aimed at minors

As the advertising sector has been very active in self-regulating commercial communication aimed at children, a patchwork of different rules and instruments exist, drafted by different self-regulatory organisations at international, European and national level. In order to determine the scope and contents of these rules, and hence, the actual level of protection of children, a structured mapping of these rules is needed. As such, this report aims to provide an overview of different categories of Alternative Regulatory Instruments(ARIs,such as self- and co-regulation regarding (new) advertising formats aimed at children. This report complements the first legal AdLit research report, which provided an overview of the legislative provisions in this domain.status: publishe

Effect of retail service quality on switching intentions among hypermarket customers

Retail service quality is a vital driver in determining customer satisfaction, which in turn promotes customer loyalty and reduces switching intentions. Based on disconfirmation theory, the difference between expectations and delivered service quality, determines the level of a customer satisfaction. Service quality is a solution to build customer satisfaction which could lead to customer loyalty hence reducing switching intentions. The concept of switching intentions has received significant attention in the field of marketing, however, little is known about the application of this concept in the context of retail business. Consumer research has neither verified the relationships among constructs like retail service quality, customer satisfaction, customer loyalty and switching intentions, in a single framework, nor explored the possible influence of store ethnicity and price discounts on customer satisfaction and customer loyalty to switching intention. The current study has investigated the interrelationship among service quality, customer satisfaction, customer loyalty with switching intentions, and the moderating role of price discounts and store ethnicity, in a single framework. Random sampling was used by administering standardized questionnaires personally to 450 hypermarket customers located in the Eastern Province of Saudi Arabia. The quantitative data was analyzed by the structural equation modeling technique using AMOS 20 software. The study extended the existing body of knowledge by introducing new moderators of price discounts and ethnic store on the relationships between satisfaction and switching intentions, and loyalty and switching intentions. The results confirmed that retail service quality has significant positive influence on customer satisfaction, and the positive effect of customer satisfaction on customer loyalty. Besides that, the study verified in marketing literature that store ethnicity and price discounts acted as moderating mechanism for explaining the switching intentions of satisfied and loyal customers. The results of the study may serve as a guideline for top managers of the hypermarkets to design appropriate policies and strategies in terms of retail service quality, price discounts and needs of ethnic groups in a particular region. This will help to enhance customer satisfaction and customer loyalty hence reducing switching intentions of customers

Revisiting the Use of Customer Information for CRM

For the past decade, customer relationship management (CRM) has been one of the priorities in marketing research and practice. However, many of the CRM systems did not perform as the companies expected. As such shortcoming could be due to inappropriate data input, this study provides a comprehensive overview of the empirical CRM literature. Along the phases of the CRM process, the authors show which kind of data has successfully proven to achieve the CRM objectives. The study provides researchers with a review of the empirical research on CRM and allows practitioners insights on the usability of customer data for CRM. --Customer Relationship Management (CRM),Customer Data

Digital Loyalty Programmes: Pull Strategies in B2B Channel Marketing

Digital loyalty programmes are an increasingly common tool for business-to-business marketers hoping to increase repeat sales through deeper customer engagement. In consumer markets, such programmes do little to influence behavioural loyalty and disproportionately attract the firm's existing heavy buyers. Industrial buying, however, relies on direct sales channels and features negotiation and reciprocity. Loyalty effects may therefore differ in B2B, and although no clear picture yet exists, such knowledge is important as B2C digital loyalty programmes grow in popularity. Here, the authors describe programme membership's evolving characteristics over in a B2B scheme that was launched in the US metal-cutting tools manufacturer customer base. Findings are consistent with the idea that the scheme recruited the heaviest buyers earliest and had an insignificant effect on total revenue. The authors discuss managerial implications, particularly about (1) managing the rollout of similar schemes and (2) refocussing on the programme objectives to maintain sales from the lightest rather than the heaviest buyers

Pro-tobacco marketing and anti-tobacco campaigns aimed at vulnerable populations: A review of the literature.

INTRODUCTION:We reviewed research literature on pro-tobacco marketing and anti-tobacco campaigns targeting eight vulnerable populations to determine key findings and research gaps. Results can inform tobacco policy and control efforts and the design of public education campaigns for these groups. METHODS:Five journal databases in medicine, communication, and science, were used to identify 8875 peer-reviewed, original articles in English, published in the period 2004-2018. There were 144 articles that met inclusion criteria on pro-tobacco marketing or anti-tobacco campaigns aimed at eight US groups: women of reproductive age, racial/ethnic minority groups (African American, Hispanic/Latino, Asian/Pacific Islander and American Indian/Alaska Native), Lesbian/Gay/Bisexual/Transgender (LGBT) populations, groups with low socioeconomic status, rural/inner city residents, military/veterans, and people with mental health or medical co-morbidities. We summarized the number of articles for each population, type of tobacco, and pro-tobacco or anti-tobacco focus. Narrative summaries were organized by population and by pro-tobacco or anti-tobacco focus, with key strategies and gaps by group. RESULTS:There were more studies on pro-tobacco marketing rather than anti-tobacco campaigns, and on cigarettes rather than other tobacco products. Major gaps included studies on Asian Americans, American Indian/Alaska Natives, pregnant women, LGBT populations, and those with mental health or medical co-morbidities. Gaps related to tobacco products were found for hookah, snus, and pipe/roll-your-own tobacco in the pro-tobacco studies, and for all products except cigarettes in anti-tobacco studies. Common tobacco industry methods used were tailoring of product and package design and messages that were used to reach and appeal to different sociodemographic groups. Studies varied by research design making it difficult to compare results. CONCLUSIONS:We found major research gaps for specific groups and tobacco products. Public education campaigns need a stronger foundation in empirical studies focused on these populations. Research and practice would benefit from studies that permit comparisons across studies

The Effects Of Discount Pricing And Bundling On The Sales Of Game As A Service: An Empirical Investigation

Although many prior studies have discussed the effect of discount pricing and product bundling on sales, few investigated the effect on Game as a Service (GaaS) applications, which has been rapidly growing in the IT industry. We investigate the effect by adopting large empirical market data, including 112,858 observations of 5,570 GaaS applications in the theoretical perspective of perceived value, price fairness, expected utility, and competitive intensity. We found that both discount pricing and bundling have positive effects on the daily sales of the applications. Specifically, discount rate and the amount of discounted price (i.e., reduced price) have positive relationships with the sales increase, while the effect of discount pricing decreases as more discount deals are available in the market. However, we did not find a significant interaction effect of bundling on the relationship between discount rate and the sales increase