This paper studies the consequence of an imprecise recall of the price by the consumers in the Bertrand price competition model for a homogeneous good. It is shown that firms can exploit this weakness and charge prices above the competitive price. This markup increases for rougher recall of the...

The financial services sector has internationalized over the last few decades.Important differences and similarities in financial behavior can be anticipated between both consumers within a particular country and those living in different countries.For companies in this market, the appropriate...

Whereas previous research has shown that either tree or spatial representations of dissimilarity judgments may be appropriate, focussing on the comparative fit at the aggregate level, we investigate whether there is heterogeneity among subjects in the extent to which their dissimilarity...

This paper develops a theoretical model of optimal effort in consumer choice.The model extends previous consumer choice models in that the consumer not only chooses a product, but also decides how much effort to apply to a given choice problem.The model yields a unique optimal level of effort,...

In this paper, we demonstrate that single-purpose multiple store shopping is not only driven by opportunistic, promotion-based motivations, but may also be part of a longer term shopping planning process based on stable store characteristics.Starting from a utility-maximizing shopping behavior...

How consumers’ waiting times affect their retrospective evaluations of Internet Web Sites is investigated in four computer-based experiments. Results show that waiting can but does not always negatively affect evaluations of Web Sites. Results also show that the potential negative effects of...

Several researchers have decomposed sales promotion elasticities based on household scanner panel data.A key result is that the majority of the sales promotion elasticity, about 74 percent on average, is attributed to secondary demand effects (brand switching) and the remainder to primary demand...

We propose Adaptive Multidimensional Scaling (AMDS) for simultaneously deriving a brand map and market segments using consumer data on cognitive decision sets and brand dissimilarities.In AMDS, the judgment task is adapted to the individual respondent: dissimilarity judgments are collected only...

Measures derived from eye-movement data reveal that during brand choice consumers adapt to time pressure by accelerating the visual scanning sequence, by filtering information and by changing their scanning strategy. In addition, consumers with high task motivation filter brand information less...