Framing Influence on Fairness Perceptions of Differential Prices

The objective of the research presented in this paper is to examine the effect of two types of framing (attribute and goal) on distributive and procedural price fairness perceptions and on some other variables of consumer behavior. For this purpose, two 2x2 marketing experiments were conducted. The first study evaluated the influence of price framing and seller’s motive on price fairness, price policy fairness, and value perceptions, as well as shopping intentions. The second study assessed the influence of price framing and seller’s motive framing on the same variables as in the first study. An important finding of this paper was that price framing has a direct influence on price fairness perceptions and seller’s motive has a direct influence on policy fairness perceptions. The implications of these results for the firms concern the communication of their pricing messages.distributive fairness, procedural fairness, attribute framing, goal framing, dual entitlement

FUTURES MARKET DEPTH: REVEALED VS. PERCEIVED PRICE ORDER IMBALANCES

In this paper we study futures market depth by examining the price path due to order imbalances thereby allowing us to directly gain insight in the execution costs due to a lack of market depth We propose a two dimensional market depth measure in which the price path due to order imbalances is described by an S-shape function. The proposed market depth measure is applied to transaction specific futures data from Euronext. Subsequently, we examine CBOT traders' perceptions about the price path due to order imbalances and examine the characteristics that are associated with a particular perception. The proposed market depth measure gives guidelines for improving market depth, and can be used to compare competitive futures contracts. It appears that the actual price path due to order imbalances does not match the perceived price path. Traders have various perceptions about the price path due to order imbalances. Dominant perceptions were, S-shape, linear, exponential or zigzag price paths. The differences in traders' perceptions can be traced back to different traders' characteristics among others type of primary futures contract traded, importance of information sources and trading strategy (herd vs. non-herd behavior). The observed disconnect between perceptions and revealed price path due to order imbalances have great implications for market participants who try to minimize execution costs and for the futures exchange management that tries to increase the market depth.Marketing,

Explorations in price (un)fairness.

Consumers may use multiple reference points-including cost of goods, past prices, and competitive prices-to judge price fairness. Across a series of studies we show that consumers are inclined to overestimate profits, often to an extreme extent. We further demonstrate that prices are perceived to be unfair because consumers fail to take into account vendor costs, underestimate the effects of inflation, and attribute competitive price differences to profits. Potential corrective interventions by marketers-such as cueing costs, providing historical price information, and explaining price differences-were insufficient to eliminate unfairness perceptions. In addition, prices for goods were found to be stickier than prices for services and therefore were especially susceptible to these systematic perceptions of unfairness.Prices; Studies; Costs; Effects;

PRICING STRATEGY USED AS A TOOL FOR BUILDING CUSTOMER SATISFACTION IN THE RETAIL SECTOR

The purpose of this article is to highlight the importance of pricing strategy in the retail sector and the power of their influence on consumer behavior. Merchants should consider the price generates perceptions and can influence consumer behavior and buying customers. They must also understand how to participate in the price of consumer satisfaction.Consumer behaviour, price strategy, retail, price satisfaction, price fairness

FREE ADMISSION TO MUSEUMS AND MONUMENTS: AN EXPLORATION OF SOME PERCEPTIONS OF THE AUDIENCES.

This paper considers the theme of the audiences' perceptions of free admission in national French museums and monuments. The results show that, from an individual perspective, perceptions of free admission are linked to perceptions of price, of money and of payment, hence complementing perceptions expressed in a collective perspective (a symbolic, political measure, causing either adhesion or rejection). These perspectives are generally put forward by both advocates and opponents of the measure in their discussions. This different vision of free admission has managerial implications for managers of museums and monuments.Free admission, price, museums and monuments, multiangulation

When Stock Options Fail to Motivate: Attribution and Context Effects on Stock Price Expectancy

This study draws on attribution theory and literature from compensation and strategy to investigate executives’ perceptions about their influence over the firm’s stock price. We define stock price expectancy as the extent to which executives feel that they can influence the firm’s stock price. Results from of a survey of 435 U.S. executives suggest that stock price expectancy is related to both attributional and contextual antecedents. Based on these findings we discuss implications for the extension of expectancy theory and the design and administration of incentive systems

Signaling strategic commitment for organizational transition: how to manage potential M&As through voluntary disclosures

To ‘transit or not’ often depends upon winning over investor opinion to large strategic initiatives. M&A is one such major realignment of an organization and yet once a bid for a company has been announced there is a period of uncertainty when the bid may not be completed. This depends on share price movements determined more by investor perceptions than fundamental values. This paper investigates whether these perceptions may be influenced by ‘voluntary’ corporate communications and so link managerial practices to strategic outcomes. Drawing upon two very large M&A data sets (USA and UK) (57,000 deals; 30,000 communications) we argue managerial practice (signaling strategic commitment) shapes market response and demonstrate communication characteristics, and the use of high-reputation intermediaries, play an important role in determining share price reaction

An Exploratory Study of Sales Promotion Activities in Toilet Soap Category: An Insight into Consumer and Retailer Perceptions

Understanding perceptions of channel members and consumers regarding sales promotion activities enhances the effectiveness of these activities. Widespread usage of sales promotion activities in Fast Moving Consumer Goods (FMCG) sector makes it imperative that manufacturers take into account channel member and consumer perceptions before planning such programmes. In this paper, an attempt has been made to examine the nature of sales promotion activities in toilet soap category in India, study retailer perceptions with respect to these activities and also get an insight into consumer perceptions of these activities. Our findings indicate that with respect to the nature of the schemes, premiums (free gifts) were found to be the most frequently used in both premium and popular toilet soap category, followed by price offs. Retailers perceived price offs to have relatively greater impact compared to any other forms of sales promotion. In line with the retailers perceptions, the findings of consumer perceptions indicated that price offs was the most preferred type of sales promotion. Retailers stated that role of word of mouth and television advertising was very important in providing information inputs to the consumers regarding sales promotion activities. This perception of retailers was supported by the consumer unaided recall of sales promotion schemes which were widely advertised. As the retailer interacts and observes consumers more frequently and closely than the manufacturer, it would be useful for the companies to incorporate perceptions while planning sales promotion strategies.

Testing for linear and quadratic effects between price adaptation and export performance: The impact of values and perceptions

Managerial perceptions are essential in explaining strategic decisions. It is, therefore, surprising that despite the number of studies that have examined the impact of managerial characteristics in exporting, little research has been reported in the export literature that investigates the importance of managers' perceptions on strategic decisions and resultant performance outcomes. To address this gap in the literature, the authors examine the key determinants of managers' psychic distance as well as its influence on international pricing decisions, and this in turn, on the export performance of SMEs. We also examine the quadratic effects of price adaptation on export performance. This is particularly relevant since price adaptation and export performance have been assumed in the literature to have a linear relationship. The results show that managers' perceptions have a significant impact on pricing decisions and resultant performance outcomes. Our findings also indicate that price adaptation has an inverted U-shaped relationship with export performance

An exploratory study of the implications of free admission to museums and monuments : perceptions and effects on visiting behaviors.

What perceptions of free admission to museums and monuments do French visiting and non-visiting audiences have ? What are the consequences of such perceptions on individuals' perceptions, visit-planning and behavior patterns in museums and monuments ? Research conducted between 2002 and 2003 tried to answer these questions by multiangulation applied to data production and analysis. Results show that free admission alter the perceptions of museums and monuments, it is secondary in planning and implementation of visit-planning, and finally it can spark a learning process from the visit that results in the appropriation of a free admission scheme. Conclusions are related to the need to create involvement toward the visit and communicate on free admission at first.Free admission, price, museums and monuments, multiangulation