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convert free users to paying ones. Price promotions (or “sales”) are often used in freemium to induce the conversion. However …, the causal effect of exposing consumers to such inter-temporal price variation is unclear. While sales can generate …, where the base version is sold for free, so that sales form extreme price cuts on the overall product combination. We work …
Persistent link: https://www.econbiz.de/10012065236
Price promotions increase sales, at least in the short term, but the effect of price promotions on consumers' product … evaluations is not well understood. We focus on the market for mobile apps, a category where price variation, including … discounting to a zero price is common. We ask how price promotions affect the evaluations measured by star ratings posted …
Persistent link: https://www.econbiz.de/10012845797
-cyclical pricing, drawing on the category-expansion effects of price promotions. Our study emphasizes the seasonal fluctuation in … promotion frequency rather than the change in aggregate mean price across seasons, which motivates most existing studies. We … propose a rationale for the counter-cyclical price promotions: consumers are more likely to increase category demand in …
Persistent link: https://www.econbiz.de/10012925174
To analyze consumers' purchase behavior and a firm's subsidy decision and profit under a trade-in program with a limited promotion period, this work builds a baseline model assuming that consumers are myopic, followed by a two-stage model for strategic consumers as an extension. Finally, this...
Persistent link: https://www.econbiz.de/10012955987
In retailing markets of storable goods, consumer behavior is typically characterized by stockpiling. While existing research has developed rich models for such strategic consumer behavior, little is known about how sellers should ideally respond to it. In this paper, we provide insights into how...
Persistent link: https://www.econbiz.de/10012948188
The current study aims to research the promotional strategies targeted to the consumer of a single-product category. Primarily, it focuses on the study of the influence made by the promotional strategies of Manufacturer brands (MB) in the sales of the whole category in general and, in the...
Persistent link: https://www.econbiz.de/10013001922
In retailing markets of storable goods, consumer behavior is typically characterized by stockpiling. While existing research has developed rich models for such strategic consumer behavior, little is known about how sellers should ideally respond to it. In this paper, we provide insights into how...
Persistent link: https://www.econbiz.de/10011716175
The extant literature on price promotions typically assumes that consumers loyal to a brand never switch to a competing … different properties. First, the strong brand has a higher price range and a higher regular price. Second, the strong brand has …
Persistent link: https://www.econbiz.de/10014062049
This paper deals with sales promotions in the form of consumer price discounts in fast-moving consumer goods. First, we … show analytically that suboptimality is to be expected with respect to the size of the consumer price discount. This is due … these is a proportional discount sharing arrangement, in which each party contributes to the consumer price discount in …
Persistent link: https://www.econbiz.de/10014092506
(sales promotions paradox). We model sales promotions as deviations of the promoted price with respect to the regular price …
Persistent link: https://www.econbiz.de/10013138938