Pierre Desmet

Estimation of Product Category Sales Responsiveness to Allocated Shelf-Space

A retail chain manager must draw on experience based on data available from his points of sale to diagnose space misallocations in stores and to make recommendations. This paper presents an empirical estimate of shelf space elasticities from a variety store chain database at product category level with a share of space vs. share of sales econometric model. It suggests that external influences could explain space elasticity differences. Results show that space elasticities increase with the impulse buying rate of the product category and do not depend on the type of store.

Differential effects of price‐beating versus price‐matching guarantee on retailers' price image

Purpose – Seeks to study the effect of a low‐price guarantee (PG) on store price image and store patronage intention. Two kinds of low‐price guarantee are studied: a price‐matching guarantee (PMG) where the price difference is refunded and a price‐beating guarantee (PBG) where a retailer offers an additional compensation.Design/methodology/approach – A questionnaire is used to collect information on 180 non‐student respondents in an experimental framework where low‐price guarantee dimension is manipulated through three advertisements for printers.Findings – Findings are: first, that PG indeed lowers store price image, increases the confidence that the store has lower prices and increases patronage intention; second, that, compared with a PMG whose effects are positive but rather small, a PBG further lowers the store price image on the low prices dimension without increasing the intention to search for lower price, this intention being already rather high in the PMG condition; third, that a larger effect i...

A study of the potential effects of the conversion to euro

Early research work confirms that the use of the new European currency, the euro, could create an effect of money illusion: expressed in euros, perceived prices seem lower and price elasticity diminished. But it also concludes on the complexity of the relationship between prices, currency unit and behavior as the money illusion effect can either increase or decrease demand for specific brands. Tests the assumption that the size of the money illusion could vary by country and is positively related to the level of the conversion rate. Applies the Gabor and Granger method to the price of an item of domestic equipment in two countries, one with a big conversion rate (Spain), and one with a small conversion rate (Germany). Observes a money illusion effect with an increase in intention to buy when the prices are expressed in euros in Germany but, as this effect is not observed in Spain, concludes that a positive relationship between money illusion and conversion rate cannot be accepted and proposes alternative hypotheses, such as the difficulty of the conversion.

Differences in purchasing behaviour between physical and virtual laboratory stores

In operational terms (cost, implementation), a virtual 3D laboratory store offers an attractive alternative to a physical laboratory store for testing in-store marketing initiatives (packaging, price or other). Comparing controlled samples, this study shows that declared attitudes to the product are the same but observes significant differences for in-store shopping behaviour and attention to price. These differences are moderated when the subject is a regular buyer of the brand.

Does the crowdfunding platform matter? Risks of negative attitudes in two-sided markets

Purpose Crowdfunding offers a popular means to raise donations online from many contributors. Open calls for contributions involve another actor too, namely, the internet platform that maintains the two-sided market. This paper aims to examine the effect of this intermediary on contributors’ willingness to participate in crowdfunding projects. Design/methodology/approach An online survey measures the relative effect of contributors’ attitudes towards the crowdfunding platform on two key behaviours: willingness to share word-of-mouth and willingness to participate in a project. Findings Using the theoretical framework of a two-sided market, the empirical study reveals that attitudes towards a crowdfunding platform moderate contributors’ willingness to participate due to several risk factors that affect the platform’s perceived usefulness and ease of use. These factors have negative influences on attitude towards the platform, which reduces support for the project. The effects are stronger for willingness to participate than for word-of-mouth intentions. Research limitations/implications Declarative measures and a focus on the utilitarian dimensions of contributor participation limit the external validity of the findings. Practical implications With the results of this study, internet platforms can find ways to improve the attitudes of potential contributors. Project creators can use the findings to adapt their communication campaigns and reduce inhibitions that keep contributors from using platforms. Originality/value This study advances marketing and crowdfunding literature by highlighting the potential dark side of a platform that functions as an intermediary in a two-sided market.

Challenges and pitfalls for direct mail across borders: The European example

Mail order companies continue their development in Europe, often operating simultaneously in different countries. Both globalization efforts and liberalization from public monopolies can be observed. Logistics and cross-border organizations play a key role, as does consideration of market specifics for each country.

Différences de comportement d’achat entre des magasins laboratoires réels et virtuels

Résumé Pour tester des initiatives marketing en magasin (packaging, prix, etc.), un magasin laboratoire virtuel (3D) offre une alternative attractive au magasin laboratoire réel sur le plan opérationnel. Par une comparaison sur des échantillons contrôlés, cette recherche montre que les mesures attitudinales sont identiques, mais aussi qu’il existe des différences significatives sur les comportements en magasin et sur l’attention au prix et que celles-ci dépendent de l’achat habituel de la marque.

When and Where to Prompt for an Online Promotional Code to Avoid Cart Abandonment

Several recent studies in the field of digital marketing (Kukar-Kinney and Close, 2010; Oliver and Shor, 2003) highlight the significance of cart abandonment: 25% of online purchases are abandoned before the payment. One cause identified by Oliver and Shor (2003, 2006) is the act of prompting for a promotional code during the buying process. This interpretation is confirmed by a recent study, the “8th Annual Merchant Survey” conducted by an e-tailing group (www.emarketer.com, April 2009), where more than 60% of U.S. online retailers face a dropout rate in excess of 20% of all carts. A study commissioned by Paypal and Comscore (www.paypal-media.com, May 2009), found that one of the major reasons for shopping-cart abandonment is promotional codes (cited by 27% of the respondents). Mullins (2000) studied the impact of prompting for a promotional code on customers who did not have a code and observed an effect on cart abandonment. Oliver and Shor (2003, 2006) explain this reaction as a consequence of the perceived unfairness resulting from the assumption that other customers are paying a lower price.

Motivations for Participation and e-WOM Among Supporters of Crowdfunding Campaigns

In the crowdfunding model, a campaign succeeds by collecting the funds required over a predefined duration. This study examines the motivations that encourage supporter participation. The results of an empirical study validate the effect of economic, philanthropic, networking, and social utility motivations on the campaign’s success. However, economic sensitivity and gender are important moderators of participation. The results also show that the feeling of social utility encourages electronic word of mouth (e-WOM) and helps develop the social capital of the project creators.

Effectiveness of measures assessing response to price information

Purpose Questionnaire measures of consumers’ willingness to pay (WTP) and price sensitivity are biased, yet these declarative methods can aid managerial decision-making. Additional choices involve which question formats to use (open-ended or discrete choice) and how many questions (unique versus multiple). This paper aims to inform such choices for online data collection with an empirical evaluation of the size of the bias induced by four methods (price acceptability, price judgements, multiple discrete choices and single discrete choices) in a realistic choice context. Design/methodology/approach An experimental framework collects online data about a staple product whose price should be well known. Price sensitivity, WTP and their confidence intervals are derived from a logistic binary model of acceptability, then ranked to evaluate the size of the bias of each method, relative to an indirect benchmark. Findings Online data collections with self-administrated questionnaires lower respondents’ involvement and create substantial bias; hypothetical methods overestimate WTP and underestimate price sensitivity, especially with methods using unique questions (both discrete choice and price acceptability). Multiple questions (price judgements and repeated random discrete choices) increase attention to price information and reduce the bias. The round price effect also is notable in data collected by open-ended methods. Practical implications To measure declarative WTP and price sensitivity with online data collections, researchers should use a random discrete choices method. Price acceptability questions and split tests are not recommended. Price judgements provide reliable information about consumer reactions to prices, but the strong round price bias is problematic. Originality/value This study adds to marketing and economic literature by comparing actual measurement methods used by firms, rather than hypothetical versions, and offers strong external validity.