This study empirically analyzes the relationship between customer value and market prices in the washing machines market. The researchers:
1. Used conjoint analysis to assess the customer value of attributes for a sample of 129 washing machine models. This provided a measure of customer value for each model.
2. Compared the customer values from the conjoint analysis to the actual market prices of the 129 models using regression analysis.
3. Found limited alignment between price and customer value, with overpricing and underpricing of products being common. This suggests that value-based pricing is not fully established in practice in this market.
Probabilistic selling is a marketing strategy that multi-item vendors provide to consumers, presenting
discounted options through acceptance of uncertain risks with random selections from sets of multiple distinct
items. However, past studies of this strategy assume a no return policy since returned items shift part of the
mentioned uncertain risk to the retailer. Because returns are a common business practice and an important
coordination tool in supply chains, this research identifies the impacts of a return policy on the efficacy of
probabilistic selling models
Supplier and Buyer Driven Channels in a Two-Stage Supply Chainertekg
Ā
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/supplier-and-buyer-driven-channels-in-a-two-stage-supply-chain/
We explore the impact of power structure on price, sensitivity of market price, and profits in a two-stage supply chain with single product, supplier and buyer, and a price sensitive market. We develop and analyze the case where the supplier has dominant bargaining power and the case where the buyer has dominant bargaining power. We consider a pricing scheme for the buyer that involves both a multiplier and a markup. We show that it is optimal for the buyer to set the markup to zero and use only a multiplier. We also show that the market price and its sensitivity are higher when operational costs (namely distribution and inventory) exist. We observe that the sensitivity of the market price increases non-linearly as the wholesale price increases, and derive a lower bound for it. Through experimental analysis, we show that marginal impact of increasing shipment cost and carrying charge (interest rate) on prices and profits are decreasing in both cases. Finally, we show that there exist problem instances where the buyer may prefer supplier-driven case to markup-only buyer-driven and similarly problem instances where the supplier may prefer markup-only buyer-driven case to supplier-driven.
Probabilistic selling is a marketing strategy that multi-item vendors provide to consumers, presenting
discounted options through acceptance of uncertain risks with random selections from sets of multiple distinct
items. However, past studies of this strategy assume a no return policy since returned items shift part of the
mentioned uncertain risk to the retailer. Because returns are a common business practice and an important
coordination tool in supply chains, this research identifies the impacts of a return policy on the efficacy of
probabilistic selling models
Supplier and Buyer Driven Channels in a Two-Stage Supply Chainertekg
Ā
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/supplier-and-buyer-driven-channels-in-a-two-stage-supply-chain/
We explore the impact of power structure on price, sensitivity of market price, and profits in a two-stage supply chain with single product, supplier and buyer, and a price sensitive market. We develop and analyze the case where the supplier has dominant bargaining power and the case where the buyer has dominant bargaining power. We consider a pricing scheme for the buyer that involves both a multiplier and a markup. We show that it is optimal for the buyer to set the markup to zero and use only a multiplier. We also show that the market price and its sensitivity are higher when operational costs (namely distribution and inventory) exist. We observe that the sensitivity of the market price increases non-linearly as the wholesale price increases, and derive a lower bound for it. Through experimental analysis, we show that marginal impact of increasing shipment cost and carrying charge (interest rate) on prices and profits are decreasing in both cases. Finally, we show that there exist problem instances where the buyer may prefer supplier-driven case to markup-only buyer-driven and similarly problem instances where the supplier may prefer markup-only buyer-driven case to supplier-driven.
The aim of this paper is to measure the influences of location, price and service quality on a
house purchase decisions by measure whether location, price and service quality have significantly influence on
purchase decision. This paper uses SPSS (Statistical Product and Service Solutions)
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/a-taxonomy-of-logistics-innovations/
In this paper we present a taxonomy of supply chain and logistics innovations, which is based on an extensive literature survey. Our primary goal is to provide guidelines for choosing the most appropriate innovations for a company, such that the company can outrun its competitors. We investigate the factors, both internal and external to the company, that determine the applicability and effectiveness of the listed innovations. We support our suggestions with real world cases reported in literature.
The international journal of business and managementPatrick Sweet
Ā
The study mainly determined the effect of customer satisfaction of service quality on customer retention intention of TiGo in the Abokobi-Madina locality. The study specific determined the extent of customer satisfaction of service delivery by TiGo; evaluated customer retention intention of TiGo; and finally related customer satisfaction of service delivery to customer retention intention. The study used quantitative methodology to investigate the effect of customer satisfaction of service quality on retention of Tigo. A structured questionnaire was used to gather data. Customersā satisfaction of service quality delivered by Tigo and their intention to retain the service of Tigo were measured perceptually on Five-point scale. Questionnaires with a high reliability (Cronbachās alpha >0.70) were delivered through personal contact and self-administered by the customers.
Overall, 250 respondent were selected. The study found that: the customers were satisfied with the quality of service delivered by Tigo; the customers could not indicate whether or not they would retain the services of Tigo; of the service quality dimension, tangibility, assurance and reliability had significant positive effect on customer retention intention of Tigo, while responsiveness had significant negative effect on customer retention. The study recommended that maintaining existing customers should be a better option than chasing for new non-existing customers by Tigo and that future study should consider expanding the scope so as to make the findings more dependable.
This study investigates the relationship among customer satisfaction, customer trust, switching cost, and
customer loyalty in mobile telecommunication service market of Pakistan. Built on the review of pertinent
literature a research framework is developed based on the mediation of customer trust and moderation of
switching cost on the relationship of customer satisfaction with customer loyalty. The data were collected
from 515 customers in mobile telecommunication service market of Pakistan through convenience
sampling. Correlation matrix and ordinary least squares regression analyses are used to determine the
relationship among the variables. The findings confirm the framework that customer trust partially
mediates the relationship of customer satisfaction with customer loyalty. Switching cost has no moderating
effect in determining the relationship of customer satisfaction with customer trust and customer loyalty in
mobile telecommunication service market of Pakistan. This study addresses the importance of customer
satisfaction, customer loyalty, customer trust, and switching cost for the mobile telecommunication service
firms. The findings suggest that the firms should enhance customer satisfaction in order to gain customer
trust and customer loyalty. The significant relationships between the variables suggest that the research
framework is applicable to the firms of mobile telecommunication service market of Pakistan. Further, this
is probably among the first studies which look at mobile telecommunication service market of Pakistan in
context of customer satisfaction, customer trust, customer loyalty, and switching cost. The most obvious
finding to emerge from this study is that customer satisfaction and customer trust are the key determinants
in predicting customer loyalty.
Factors Affecting Purchasing Effectiveness in the Public Sugar Sector:A Case ...paperpublications3
Ā
Abstract:In the recent past, procurement performance has been attracting great attention from practitioners, academicians and researchers due to poor performance resulting from non adherence to proper processes and procedures. Many of the studies have devoted their content to financial factors as measures of effectiveness dismally giving consideration to non financial factors. This study aimed at investigating selected non financial factors that influence the effectiveness of purchasing function in the public sugar sector guided by four specific objectives; to find out how purchasing interaction with other departments impacts on its effectiveness, to find out how Purchasing delegated authority impacts on its effectiveness, to find out how Purchasing activity Execution impacts on its effectiveness and to find out how supplier relationship management practices impacts on purchasing function effectiveness. The four variables were found to have an effect on effectiveness of purchasing function in the public sugar sector. The study adopted a descriptive case research design and the study population comprised of 118 management staff Nzoia Sugar Company Ltd. A purposive sampling technique was employed to select a sample size of 57 respondents. Questionnaires were used as the main data collection instruments. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). From the findings, level of task execution explained 43.1% of purchasing departmentās effectiveness, level of supplier relationship explained 20.9% and interaction level explained 2.2% while the level of purchasing delegated authority had a negative relationship with its effectiveness at -4.1% which means that the more autonomous purchasing department becomes the less effective it will be. The study recommends application of supplier collaboration strategies, integration of supply chain management tasks with IT to help speed up decision making process between the SCM partners, signing service level agreements (SLA),purchasing function to increase effectiveness by training and being members of professional bodies such as CIPS and KISM.
Keywords:Assessment, delegated authority, effectiveness, efficiency, inventory, non financial measures, purchasing interaction.
Income and price elasticity of demand quantify the responsiveness of markets to changes in income and in prices, respectively. Under the assumptions of utility maximization and preference independence (additive preferences), mathematical relationships between income elasticity values and the uncompensated own and cross price elasticity of demand are here derived using the differential approach to demand analysis. Key parameters are: the elasticity of the marginal utility of income, and the average budget share. The proposed method can be used to forecast the direct and indirect impact of price changes and of financial instruments of policy using available estimates of the income elasticity of demand.
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0151390
Long term effects of service adaptations made under pandemic conditions conve...JobyJohn63
Ā
This paper aims to propose an approach to examining the long-term impact of the COVID-19 pandemic on business, which presents a unique opportunity to study a hitherto-unavailable business scenario.
This study pursued to investigate the effects of supply chain management practices on organizational
performance in the food complex industries in Asella town. A cross-sectional survey research design was
employed in this study. The population of interest comprised of all suppliers, employees, customers, retailers
were involved and multistage sampling was employed and 158 sample
Factors affecting the use of Public Procurement and Disposal Act of 2005 in P...paperpublications3
Ā
Abstract: Kenya is undertaking public procurement reforms, by enacting the Public Procurement and Disposal Act (PPDA) of 2005 which became operational in 2007. This research considered the factors which affect the implementation of PPDA in public secondary schools by considering four factors; procurement skills, enforcement, organizational procurement culture and familiarity with procurement regulations. The researcher adopted purposive sampling and questionnaires were administered to the respondents, who included the members of the tender and procurement committees. Data collected was analyzed by use of SPSS and presented in percentages, frequency tables, and inferential statistics. The study showed that there is a significant relationships between; procurement skills, enforcement of PPDA, organizational procurement culture and familiarity with the regulations and the implementation of the PPDA. 80% of the respondents agree that lack of familiarity with the procurement regulations, inhibited the implementation of the PPDA. 85% of schools in Trans- Nzoia County have not engaged procurement professionals. 53% of the respondents agree that lack of training has hindered the implementation of PPDA. 80% agree that lack of enforcement has somehow hindered its implementation. It is recommended that the procurement officers in public secondary schools to read, understand and implement the Public Procurement and Disposal Act 2005 and that the school management should train their procurement officers to gain procurement skills, which will enhance the effective implementation of the PPDA.
Keywords: Compliance, Enforcement, Organization culture, Professionalism, Public procurement, School management, Value for money.
Effects of Government Procurement on Prompt Tendering and Supply of Goods: A...inventionjournals
Ā
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
The aim of this paper is to measure the influences of location, price and service quality on a
house purchase decisions by measure whether location, price and service quality have significantly influence on
purchase decision. This paper uses SPSS (Statistical Product and Service Solutions)
Download Link > https://ertekprojects.com/gurdal-ertek-publications/blog/a-taxonomy-of-logistics-innovations/
In this paper we present a taxonomy of supply chain and logistics innovations, which is based on an extensive literature survey. Our primary goal is to provide guidelines for choosing the most appropriate innovations for a company, such that the company can outrun its competitors. We investigate the factors, both internal and external to the company, that determine the applicability and effectiveness of the listed innovations. We support our suggestions with real world cases reported in literature.
The international journal of business and managementPatrick Sweet
Ā
The study mainly determined the effect of customer satisfaction of service quality on customer retention intention of TiGo in the Abokobi-Madina locality. The study specific determined the extent of customer satisfaction of service delivery by TiGo; evaluated customer retention intention of TiGo; and finally related customer satisfaction of service delivery to customer retention intention. The study used quantitative methodology to investigate the effect of customer satisfaction of service quality on retention of Tigo. A structured questionnaire was used to gather data. Customersā satisfaction of service quality delivered by Tigo and their intention to retain the service of Tigo were measured perceptually on Five-point scale. Questionnaires with a high reliability (Cronbachās alpha >0.70) were delivered through personal contact and self-administered by the customers.
Overall, 250 respondent were selected. The study found that: the customers were satisfied with the quality of service delivered by Tigo; the customers could not indicate whether or not they would retain the services of Tigo; of the service quality dimension, tangibility, assurance and reliability had significant positive effect on customer retention intention of Tigo, while responsiveness had significant negative effect on customer retention. The study recommended that maintaining existing customers should be a better option than chasing for new non-existing customers by Tigo and that future study should consider expanding the scope so as to make the findings more dependable.
This study investigates the relationship among customer satisfaction, customer trust, switching cost, and
customer loyalty in mobile telecommunication service market of Pakistan. Built on the review of pertinent
literature a research framework is developed based on the mediation of customer trust and moderation of
switching cost on the relationship of customer satisfaction with customer loyalty. The data were collected
from 515 customers in mobile telecommunication service market of Pakistan through convenience
sampling. Correlation matrix and ordinary least squares regression analyses are used to determine the
relationship among the variables. The findings confirm the framework that customer trust partially
mediates the relationship of customer satisfaction with customer loyalty. Switching cost has no moderating
effect in determining the relationship of customer satisfaction with customer trust and customer loyalty in
mobile telecommunication service market of Pakistan. This study addresses the importance of customer
satisfaction, customer loyalty, customer trust, and switching cost for the mobile telecommunication service
firms. The findings suggest that the firms should enhance customer satisfaction in order to gain customer
trust and customer loyalty. The significant relationships between the variables suggest that the research
framework is applicable to the firms of mobile telecommunication service market of Pakistan. Further, this
is probably among the first studies which look at mobile telecommunication service market of Pakistan in
context of customer satisfaction, customer trust, customer loyalty, and switching cost. The most obvious
finding to emerge from this study is that customer satisfaction and customer trust are the key determinants
in predicting customer loyalty.
Factors Affecting Purchasing Effectiveness in the Public Sugar Sector:A Case ...paperpublications3
Ā
Abstract:In the recent past, procurement performance has been attracting great attention from practitioners, academicians and researchers due to poor performance resulting from non adherence to proper processes and procedures. Many of the studies have devoted their content to financial factors as measures of effectiveness dismally giving consideration to non financial factors. This study aimed at investigating selected non financial factors that influence the effectiveness of purchasing function in the public sugar sector guided by four specific objectives; to find out how purchasing interaction with other departments impacts on its effectiveness, to find out how Purchasing delegated authority impacts on its effectiveness, to find out how Purchasing activity Execution impacts on its effectiveness and to find out how supplier relationship management practices impacts on purchasing function effectiveness. The four variables were found to have an effect on effectiveness of purchasing function in the public sugar sector. The study adopted a descriptive case research design and the study population comprised of 118 management staff Nzoia Sugar Company Ltd. A purposive sampling technique was employed to select a sample size of 57 respondents. Questionnaires were used as the main data collection instruments. Descriptive statistics data analysis method was applied to analyze numerical data gathered using closed ended questions aided by Statistical Package for Social Sciences (SPSS). From the findings, level of task execution explained 43.1% of purchasing departmentās effectiveness, level of supplier relationship explained 20.9% and interaction level explained 2.2% while the level of purchasing delegated authority had a negative relationship with its effectiveness at -4.1% which means that the more autonomous purchasing department becomes the less effective it will be. The study recommends application of supplier collaboration strategies, integration of supply chain management tasks with IT to help speed up decision making process between the SCM partners, signing service level agreements (SLA),purchasing function to increase effectiveness by training and being members of professional bodies such as CIPS and KISM.
Keywords:Assessment, delegated authority, effectiveness, efficiency, inventory, non financial measures, purchasing interaction.
Income and price elasticity of demand quantify the responsiveness of markets to changes in income and in prices, respectively. Under the assumptions of utility maximization and preference independence (additive preferences), mathematical relationships between income elasticity values and the uncompensated own and cross price elasticity of demand are here derived using the differential approach to demand analysis. Key parameters are: the elasticity of the marginal utility of income, and the average budget share. The proposed method can be used to forecast the direct and indirect impact of price changes and of financial instruments of policy using available estimates of the income elasticity of demand.
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0151390
Long term effects of service adaptations made under pandemic conditions conve...JobyJohn63
Ā
This paper aims to propose an approach to examining the long-term impact of the COVID-19 pandemic on business, which presents a unique opportunity to study a hitherto-unavailable business scenario.
This study pursued to investigate the effects of supply chain management practices on organizational
performance in the food complex industries in Asella town. A cross-sectional survey research design was
employed in this study. The population of interest comprised of all suppliers, employees, customers, retailers
were involved and multistage sampling was employed and 158 sample
Factors affecting the use of Public Procurement and Disposal Act of 2005 in P...paperpublications3
Ā
Abstract: Kenya is undertaking public procurement reforms, by enacting the Public Procurement and Disposal Act (PPDA) of 2005 which became operational in 2007. This research considered the factors which affect the implementation of PPDA in public secondary schools by considering four factors; procurement skills, enforcement, organizational procurement culture and familiarity with procurement regulations. The researcher adopted purposive sampling and questionnaires were administered to the respondents, who included the members of the tender and procurement committees. Data collected was analyzed by use of SPSS and presented in percentages, frequency tables, and inferential statistics. The study showed that there is a significant relationships between; procurement skills, enforcement of PPDA, organizational procurement culture and familiarity with the regulations and the implementation of the PPDA. 80% of the respondents agree that lack of familiarity with the procurement regulations, inhibited the implementation of the PPDA. 85% of schools in Trans- Nzoia County have not engaged procurement professionals. 53% of the respondents agree that lack of training has hindered the implementation of PPDA. 80% agree that lack of enforcement has somehow hindered its implementation. It is recommended that the procurement officers in public secondary schools to read, understand and implement the Public Procurement and Disposal Act 2005 and that the school management should train their procurement officers to gain procurement skills, which will enhance the effective implementation of the PPDA.
Keywords: Compliance, Enforcement, Organization culture, Professionalism, Public procurement, School management, Value for money.
Effects of Government Procurement on Prompt Tendering and Supply of Goods: A...inventionjournals
Ā
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Original Marketing Campaign - Case Competitionkremerica2016
Ā
This was the presentation I helped create for the Leeds Case Competition in Boulder, CO. We were challenged by Ball Corporation to increase recycling rates across the country in an cost effective manner. We placed in the top three (out of 65 entries) with the following presentation and idea. We had 15 minutes to give the presentation so only the high level details are included, although we have the minute details figure out.
International Journal of Business and Management Invention (IJBMI)inventionjournals
Ā
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
This document reviews best practice in pricing processes to provide a reference against which current practices and proposals can be tested. Our objectives have been: to research the attributes of world-class pricing through publications and academic sources; to investigate how these attributes are applied in practice to products and services; to assess pricing processes in successful businesses.
In recent years a new attitude toward pricing has emerged. Deregulation and international free trade agreements have increased competition. Price promotion has eroded the power of brand loyalty. Pricing has assumed greater importance to most businesses.
As markets increasingly assume a global dimension, customers can more easily compare prices between one region or country and another, using the internet or a fax machine. They can often locate the same product, or an
acceptable substitute, from another source. Customers are more demanding and fickle, and their expectations increasingly difficult to fulfil.
Price inflation in western economies is now at its lowest for decades. Price increases are no longer accepted without protest from customers, if at all.
The Chairman of General Electric has predicted the onset of the āValue Decadeā. Global price competition will strengthen because of: reduced product differentiation; global over-capacity for production; significantly diminished trade barriers; efficient information and distribution systems; providing customers with easy access to the prices of suppliers; a growing lack of customersā loyalty to individual suppliers. Choice will be increasingly driven by price.
This is a challenging scenario that reinforces the need for an integrated strategy and concerted managerial action on pricing.
Pricing processes have lagged behind developments in the market place. They are often characterised by internal conflict between accountants wishing to maximise profit per unit and marketing specialists who seek to maximise
throughput. They are also affected by the potential for strained relations with good customers.
Some companies have downsized their operations to a level where diminishing returns cause them to question the benefits of continuing to focus upon reducing costs. As they switch their attention from cost cutting to adding
value, pricing naturally assumes increased weight in the marketing mix.
We have found many companies reluctant to discuss their own processes.
Some may wish to avoid betraying a lack of sophistication.
The study of the effects of the pricing policies on an organizations profit: ...EECJOURNAL
Ā
The main purpose of this research is to examine the influence of pricing policies on organizationsā profit. The researcher applied a quantitative method to analyze the data in this study, the researcher prepared questionnaire and distributed in the different organizations located in Erbil. The survey was divided into two sections; the first section was demographic analysis which started with respondentās age, gender, and level of education. The second section of survey consisted of 32 questions concerning pricing policies and its impact on organization profit. 89 participants were involved in the current study; however the researcher used SPSS software in order to analyze the gathered data. Moreover, the researcher aimed to develop the main research hypothesis which stated that there is a positive and significant impact of pricing policies on organization profit. The result of a simple regression analysis demonstrates that the value B for pricing policy is .712 which is greater than .0001 this proves that the main research hypothesis is supported which stated that the there is a positive and significant impact of pricing policy on organization profit.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Ā
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.š¤Æ
We will dig deeper into:
1. How to capture video testimonials that convert from your audience š„
2. How to leverage your testimonials to boost your sales š²
3. How you can capture more CRM data to understand your audience better through video testimonials. š
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
Ā
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Ā
Discover the innovative and creative projects that highlight my journey throughĀ Full Sail University. Below, youāll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Ā
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Memorandum Of Association Constitution of Company.pptseri bangash
Ā
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Ā
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Ā
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Ā
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
š¢ Email Access
š¢ Bank Added
š¢ Card Verified
š¢ Full SSN Provided
š¢ Phone Number Access
š¢ Driving License Copy
š¢ Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1āŖ(218) 203-5951ā¬
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
Ā
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujaratās DholeraAvirahi City Dholera
Ā
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isnāt just any project; itās a potential game changer for Indiaās chipmaking aspirations and a boon for investors seeking promisingĀ residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujaratās Dholera
Ā
The relationship between customer value and pricing strategies
1. Pricing strategy & practice
The relationship between customer value and
pricing strategies: an empirical test
Anna Codini
University of Brescia, Brescia, Italy, and
Nicola Saccani and Alessandro Sicco
Department of Industrial and Mechanical Engineering, Supply Chain and Service Management Research Centre,
University of Brescia, Brescia, Italy
Abstract
Purpose ā The paper seeks to ļ¬ll a research gap that concerns empirical studies on value-based pricing in durable consumer goods. It aims to analyse
the relationship between value for the customer and market prices in the washing machines market.
Design/methodology/approach ā The customer value of a sample of 129 washing machine models is assessed through the conjoint analysis
technique. It is then compared through a regression analysis to the market prices of the products.
Findings ā The regression analysis reveals that the alignment between price and value for the customer is limited (only one of the two subsamples
presents a positive dependence among the variables).
Research limitations/implications ā The study lacks explanatory power about the reasons for the misalignment between price and customer value
in the investigated sector. The results, moreover, refer to a speciļ¬c product category and a speciļ¬c national market, although their representativeness as
a mature durable in a mature market suggests a broader relevance of the implications. The size of the samples of the empirical research is also limited.
Practical implications ā The paper provides an example and guidelines to practitioners on how to implement a customer value assessment. It
provides practitioners a deeper understanding of the consequences of misaligned pricing, and of the potential of understanding the actual value
sources for the customers.
Originality/value ā The study empirically assesses the relationship between value for the customer and market prices of a category of mature durable
goods. The results support the claim that value-based pricing, although believed to be superior to other pricing policies, is still not established as a
prominent practice. Moreover, the ļ¬ndings contribute to the discussion on the value of environment-related attributes and their lifecycle monetary
impact on the customers. It also identiļ¬es another possible obstacle to the adoption of value-based pricing, i.e. the structure of the market, to be added
to the ones reviewed in the literature.
Keywords Pricing, Value for the customer, Conjoint analysis, Durable consumer goods, Washing machines, Regression analysis, Pricing,
Electrical goods, Italy
Paper type Research paper
1. Introduction
the main being the actual value assessment of products for the
customer (Ingenbleek, 2007; Hinterhuber, 2008).
This paper aims to contribute in ļ¬lling a gap concerning
empirical studies on value-based pricing in durable consumer
goods. An analysis is carried out on the relationship between
value for the customer and market prices in the washing
machines market.
The study is based on the application of the conjoint
analysis methodology to assess the importance of different
washing machine attributes. The results allow to assign a
Recent studies (Hinterhuber, 2008) report of successful
adoption of value based-pricing strategies in diverse
businesses such as pharmaceutical, information technology,
wireless internet service provision, airlines, automotive and
biotech. However, although the beneļ¬ts of value-based
pricing have been widely acknowledged (Monroe, 2003), its
application seems to be limited yet, due to practical obstacles,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
This paper has been inspired by the activity of the ASAP Service
Management Forum, an Italian-based community where scholars and
practitioners from ļ¬ve Italian universities, and more than 50 leading
manufacturing companies and service providers collaborate in developing
research and dissemination in the product-services management ļ¬eld. For
more information see www.asapsmf.org/
Journal of Product & Brand Management
21/7 (2012) 538ā 546
q Emerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610421211276321]
538
2. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
value for the customer to a sample of 129 washing machines
sold on the Italian market. The value for the customer is then
compared to the actual market prices: the empirical study
shows a limited alignment between prices and value for the
customer, revealing that overpricing and underpricing of
products are common phenomena.
The paper is structured as follows. Section 2 provides a
background on the customer-value based approach to pricing
and on the washing machines industry. The research
methodology is described in section 3, as well as the
research sample. Section 4 illustrates the results of the
empirical study. The conclusions emerging from the study
and future research directions are discussed in section 5.
decisions, while limited emphasis was given to customersā
demands and needs. Carricano et al. (2010), based on 28
interviews with pricing managers in large companies in
France found that, even if āvalueā orientation in pricing is
highly diffused, it is still difļ¬cult to have it practically
implemented at the company level.
Value-based pricing requires the evaluation of the value that
customers attach to a product or a service through formal
market research. A company-wide marketing orientation may
facilitate such a pricing process: however, some of the cited
studies point out a very limited role of the marketing function
in pricing decisions.
Other studies concern the perceived price and price fairness
in particular (Campbell, 1999, 2007; Haws and Bearden,
2006; Diller, 2008). For instance, in their study in the DVD
market, Cockrill and Goode (2010) examined the perceived
price fairness, actual pricing and price decay in a short-life
cycle market. The comparison among the prices of six UK
retailers for a range of movies released over eight months and
the perceived perception of fair price of 500 UK adults
revealed a considerable gap between actual prices and
perceived fair prices of DVDs, especially for older items.
Some studies about price fairness, instead, test the
acceptability of price changes, analyzing the effects of price
changes on consumersā perception of a fair price. Such studies
conclude that price increases in line with cost increases are
perceived as fair, while price increases not justiļ¬ed by costs
are perceived as unfair (Dickson and Kalapuraka, 1994;
Huang et al., 2005; Bolton and Alba, 2006; Choi and Mattila,
2009).
However, despite the attention devoted by the literature to
value-based pricing policies, few empirical studies provide
guidelines on how to adopt this approach, and empirical
comparisons between the market prices and the actual value
for the customer.
In order to contribute to ļ¬ll this gap, this paper reports a
ļ¬eld research in the washing machine sector, aimed to assess
the alignment between value for the customer and market
prices: this is done on a large database of products actually
sold on the market. The paper also provides an example of
customer value measurement, through the adoption of the
conjoint analysis technique.
2. Customer value-based approach to pricing
2.1 Customer value-based pricing
The customer value-based approach sets the price of an
offering based on the value assigned by the customer, rather
than based on costs or on competition (Busacca et al., 2004).
So, value-based pricing is deļ¬ned as the extent to which a
ļ¬rm, in the process of price determination, uses information
on the perceived relative advantages that it offers and on how
customers will trade off these advantages against price
(Ingenbleek, 2007).
According to several studies (Cannon and Morgan, 1990;
Monroe, 2003; Ingenbleek et al., 2003, Docters et al., 2004),
customer value-based pricing is preferable to other pricing
strategies. The increasing endorsement of customer valuebased strategies among academics and practitioners is based
on the general recognition that sustained proļ¬tability lies in
understanding the sources of value for the customers, by
designing products, services and solutions that meet
customersā needs, by setting prices as a function of value
and implementing consistent pricing policies (Hinterhuber,
2008). Measuring or developing an understanding of
customer value is important to ļ¬rms. First, because it
informs on customersā willingness to pay: ļ¬rms that engage in
value-based pricing will not charge lower prices than
necessary. Second, ļ¬rms that adopt value-based pricing are
able to match perceived beneļ¬ts (by customers) with
productsā price, so they can increase purchase intentions
(Grewal et al., 1998). Therefore, understanding and including
in the price deļ¬nition the value perceived by the customer
may lead to both higher sales and higher proļ¬t margins. As
suggested by Piercy et al. (2010), designing a value-based
pricing strategy is pivotal in developing new business models.
Moreover, Stamer and Diller (2006) suggest that price
management should be concerned with price segment
structures in order to increase the effectiveness and the
efļ¬ciency of consumer targeting. Finally, Ingenbleek et al.
(2010), using a structural equations model, show that valueinformed pricing has a strong effect on new product
performance.
Despite the beneļ¬ts of customer-based approaches to
pricing, however, these methods still play a relatively minor
role in business strategies. For instance, Avlonitis and
Indounas (2006) analyzed the pricing methods in six
different services sectors in Greece: costs and competitorsā
prices were found the two main elements that trigger pricing
2.2 The washing machine industry: pricing and value
for the customer
Major domestic appliances (washing machines, refrigerators,
dishwashers, etc.) are an integral part of householdsā everyday
life, and represent one among the most relevant durable
consumer goods industries. They constitute a long-term and
relatively important investment for families due to its
relatively high cost and low purchase frequency. The
industry relies on a responsive supply chain (Fisher, 1997),
pursuing at the same time the minimization of manufacturing
and logistics costs and the maximization of logistic service
(Perona et al., 2001), However, manufacturersā strategies can
be considered product-oriented (Saccani et al., 2006): they
are very active in innovating products and in promoting
responsible usage of environmental resources. Production of
washing machines of classes lower than A (the most efļ¬cient
one) has dramatically reduced since the end of the 1990s, and
539
3. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
energy-efļ¬cient appliances dominate sales in most western
markets.
A number of studies related to washing machines pricing
issues can be found in literature. Jung (1958) analyzed the
price variations of washing machines in Chicago among
different retailers. Foxall (1972), through an empirical
analysis on electrical appliances, argued against the costplus pricing theory, observing that ļ¬rms are ārather more
marketing- and consumer-orientedā than expected. Bayus
(1992) found that customersā loyalty to washing machines
brands is positively inļ¬uenced by the replacement age. Also,
marketing campaigns have a role in inļ¬uencing customer
loyalty. Martinez and Polo (1996) suggested that the speed of
acceptance of innovations for washing machines may be
considered higher than for other durable consumer products.
This ļ¬nding is supported by the work of Mukherjee and
Hoyer (2001): their empirical study shows that the
introduction of novel attributes in low-complexity product
categories (such as washing machines as compared to more
technology-endowed consumer products) improve the
evaluation of new products, since customersā understanding
and usage of new features entails low learning costs.
Stamer and Diller (2006) analyzed the relation between
price and customer segment for washing machines (together
with other durables), identifying ļ¬ve segments, namely:
ābrand conscious buyersā (who have high quality expectations
and are reluctant to search for low price), ādiscount buyersā
(who aim at simplifying the choice process, targeting discount
shops), āoptimizersā(who are prepared to invest time and
effort for price rewards), āhigh price shoppersā (with high
quality and brand preferences, and for which price has an
important signaling role) and āprice seekersā (who consider
price as the prominent decision criterion).
According to Tellis and Wernerfelt (1987) high quality is
more likely to imply higher prices for high cost, long-life
durables than other consumer products, because customers
are more likely to perform search activities for these products.
The empirical analysis by Tellis (1989) in the major appliance
industry supports this view, but shows that it explains only a
short percentage (6 percent in the studied sample) of price
variation, while the impact of corporate aspects (size, strategy
and, indirectly, brand) was found to be the most relevant.
Barbiroli and Focacci (2003) analyzed the nature of the
correspondence between the commercial value (price) and the
objective quality of durables among which washing machines.
Quality was assessed through a technical performance index
function of energy consumption, water consumption,
capacity, maximum spin speed, and length of the washing
cycle. Their empirical analysis over a sample of 62 product
models showed that for a companyās range of products, there
is no exact correspondence between the variation in technical
characteristics and the variation in price although, on the
overall sample, a linear regression model was generally valid.
The value of environmental attributes, in particular energy
consumption, was addressed by recent studies. Sammer and
Wustenhagen (2006) with a survey-based conjoint analysis
explored consumersā stated choices for washing machines in
Switzerland. They found that eco-labeling coupled with life
cycle cost information disclosure affects consumersā
purchasing decisions, and that environmental preservation
has a value per se for surveyed customers beyond its life cycle
cost effects. Mills and Scleich (2010) analyze the role of
labeling, customer information and purchase propensity for
household appliances in the German market. Washing
machines owners showed a higher level of knowledge of
appliance energy class than the other appliances investigated
(freezers, refrigerators and dishwashers), as well as the highest
level of class-A appliance owners (65 percent). Finally,
Deutsch (2010) found that life cycle cost disclosure guides
consumers toward choosing products with lower energy and
water consumption, but only to a little degree.
None of the studies reviewed above, however, analyses the
relationship between market prices and value for the customer
in the washing machine sector.
3. Research methodology
3.1 Empirical research framework
The paper takes an empirical approach on the assessment of
value for the customer (VFC) and its relationship with pricing
policies. The empirical application was carried out in the
washing machines sector. The methodology is based on three
steps.
Step 1. Assessment of the VFC of product attributes
The measure of the value for the customer was carried out
through a conjoint analysis. The conjoint analysis is among
the most popular techniques for measuring customer value
and considered to guarantee valid and affordable results
(Green and Srinivasan, 1978, 1990). According to Green and
Srinivasan (1978), the term conjoint analysis can be broadly
referred to āany decompositional method that estimates the
structure of a consumer preferences given his/her overall
evaluations of a set of alternatives that are pre-speciļ¬ed in
terms of levels of different attributesā.
The objective of Step 1 is to achieve a quantitative measure
of customer value of product attributes and product proļ¬les.
The customer value corresponds to the global utility deriving
from the sum of the single utility levels assigned to the speciļ¬c
attributes of each product proļ¬le. Product proļ¬les consist of
combinations of speciļ¬c attributes, with the levels of these
attributes being systematically varied within the set of
offerings. Respondents are asked to provide their purchase
preference ranking for each of the product proļ¬les. Statistical
analysis is then used to identify the value that respondents
place on each attribute.
The conjoint analysis method allows the researcher to
measure the relative values of attributes that have been
considered jointly by the respondents.
Step 2. Assessment of the VFC of the washing machine sample
This step consisted of applying the results of the conjoint
analysis to a sample of 129 washing machines, described in
the following section. According to the level of each attribute
for each product, a VFC is assigned to each washing machine
model.
Step 3. Assessment of the relation between prices and VFC
The relationship between price and customer value of the
sample products was investigated through a regression
analysis. The VFC assigned to each product proļ¬le was
compared to its actual sales price.
540
4. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
3.2 The study sample: preliminary analysis
An initial database contained 450 washing machines sold in
Italy by a leading retailer, including 17 different brands. Data
collected were: price, energy consumption, water
consumption and spin-dryer speed. The availability of a
database with real data allowed to set realistic values for the
conjoint analysis. From the initial database we selected the
models with loading capacity ranging from 5 kg to 6 kg (the
most common on the market), produced by the four most
diffused brands. We obtained a study sample of 129 product
models. Descriptive statistics for the relevant variables in this
study (price, energy consumption, water consumption and
spin dryer speed) are shown in Table I.
Before performing the VFC study and assessing its
relationship with the product prices, a preliminary analysis
on the relationship between price and the product technical
characteristics was carried out. We considered two
subsamples according to the loading capacity since this
feature has a strong inļ¬uence on the relationship between
price and the other variables, as discussed in the Appendix.
In each of the two subsamples (one with loading capacity
5 kg, the other with loading capacity of 5.5 or 6 kg), the
relation between price and three technical characteristics
(energy consumption, water consumption and spin dryer
speed) was tested through a multiple regression model. The
analysis showed a signiļ¬cant positive relationship between the
spin dryer speed and the price, for both subsamples, while
there was no statistically signiļ¬cant relationship between price
and energy and water consumption.
of the preliminary analysis mentioned in 3.1 and illustrated in
the Appendix. The energy class was also not considered, since
the market is made almost exclusively of class A washing
machines (in 2009, 96 percent of washing machines sold in
Italy were of class A): instead, the actual energy consumption
(KwH/cycle) was included. As well, the actual water
consumption (l/cycle) was considered instead of the washing
class. Moreover, the conļ¬guration (top versus front loading)
was discarded since more than 90 percent of the European
market is made by front-loading washing machines, testifying
an explicit preference for this conļ¬guration by customers.
The choice of the attributes was supported by a preliminary
research on a random sample of 25 customers, who were
asked in an open-ended question to state the main selection
criteria for a new washing machine. The most cited attributes
were: energy consumption, price, spin dryer speed and quality
in general. This preliminary research suggested also not
considering the availability of particular washing programs,
which emerged as not being a priority for customers.
Along with the identiļ¬cation of the attributes, another
important decision refers to the deļ¬nition of the levels for
each attribute. The four brands selected are the most sold by
a leading Italian retailer, and the ones included in the washing
machines sample described in section 3.2. As for the other
attributes, the levels cover the range of values found in the
product sample. The selected attributes and their levels are
listed in Table II. Although the brand names are not disclosed
here for conļ¬dentiality reasons, they were openly shared with
participants during the empirical research.
4. Empirical ļ¬ndings
ii) Conļ¬guration of virtual product proļ¬les
After the identiļ¬cation of the attributes and their levels, these
were combined to conļ¬gure the virtual product proļ¬les using
the software SPSS (orthogonal design technique). We
adopted the full proļ¬le method, which utilizes the complete
set of factors, thus providing a more realistic description of
stimuli (Green and Srinivasan, 1978).
4.1 Step 1: value for the customer of product attributes
In Step 1 (see the framework described in section 3.1) we
measured customer value through a conjoint analysis,
following the ļ¬ve steps reported below (Molteni, 1993).
i) Identiļ¬cation of the attributes and of the related levels
Green and Srinivasan (1990) recommend including no more
than six attributes in the deļ¬nition of product proļ¬les, and to
limit the number of levels for each attribute. Based on our
preliminary analyses on the sample and on previous studies on
washing machines discussed in section 2.2 (Barbiroli and
Focacci, 2003; Sammer and Wustenhagen, 2006; Deutsch,
2010; Mills and Scleich, 2010), we considered ļ¬ve attributes:
brand, energy consumption, water consumption, spin dryer
speed and price. Other possible attributes were taken into
consideration, but eventually discarded from the ļ¬nal set of
attributes. The loading capacity was not included as a result
Table II The relative importance of the ļ¬ve attributes
%
Price
Energy consumption
Spin dryer speed
Brand
Water consumption
35.48
28.39
17.08
16.93
2.13
Table I Characteristics of the product sample
Sample
(n 5 129)
Mean
Std dev.
Price (e)
Energy consumption (KwH/cycle)
Water consumption (l/cycle)
Spin dryer speed (turns/minute)
Brand A
(n 5 35)
Mean
Std dev.
Brand B
(n 5 21)
Mean
Std dev.
380.63
0.96
52.12
953.49
387.97
1.00
55.57
948.57
400.17
0.95
46.67
857.14
103.77
0.10
6.97
209.93
100.39
0.09
6.54
229.28
541
115.94
0.06
115.94
180.48
Brand C
(n 5 35)
Mean
Std dev.
412.09
0.95
48.89
1,000.00
99.48
0.11
99.48
187.87
Brand D
(n 5 38)
Mean
Std dev.
334.08
0.95
54.92
968.42
90.55
0.10
90.55
215.74
5. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
iii) Submission of product proļ¬les to a sample of customers
Thus, the 16 full product proļ¬les were submitted to a random
sample of 97 owners or users of washing machines. The
sample is made by 54 percent of men and 46 percent of
women, while the age distribution is the following: 36 percent
are 20-39 years old, 42 percent are 40-59 and 22 percent over
60 years old. According to their employment, the interviewed
persons can be described as factory workers (17 percent),
housewives (14 percent), ofļ¬ce workers (12 percent), students
(12 percent), retired people (12 percent), company managers
(8 percent), people working in education (8 percent) and
other (17 percent).
Respondents were washing machine owners and users and
have purchased washing machines in the past. They are also
prospective customers since they are going to make
purchasing decisions in the future. However they were not
going to purchase a new washing machine in the very period
in which they were surveyed (next three months).
The survey was administered through personal interviews.
The interviewed users were asked to express a likelihood of
purchase for each proļ¬le rating on a scale going from 1 (very
unlikely) to 9 (very likely). The questionnaire used for the
interviews reported all the proļ¬les in a single page. Similar to
other works concerning household appliances (Sammer and
Wustenhagen, 2006; Deutsch, 2010; Ward et al., 2011), the
study follows the stated preference approach ā rather than
observing the actual customer decisions (revealed preference
approach).
Table III Attributes, levels and utility estimates
Attributes and levels
IRj Ā¼ Pk
iĀ¼1
Ć°MaxĀ½UjWji Å 2 MinĀ½UjWji Å Ć
Standard error
Brand
B
D
C
A
2 0.183
0.263
0.039
2 0.119
0.190
0.190
0.190
0.190
Spin dryer speed
Low 600-800
Medium 900-1,100
High 1,200-1,600
2 0.215
2 0.038
0.253
0.146
0.171
0.171
Energy consumption
0.6
1.1
1.6
2 0.374
2 0.748
2 1.122
0.132
0.264
0.397
Water consumption
40
70
2 0.057
2 0.113
0.219
0.439
Price (euro)
149
299
499
949
(Constant)
2 0.312
2 0.624
2 0.936
2 1.247
7.204
0.098
0.196
0.294
0.392
0.485
Price is the most important attribute for purchasing decisions,
with a relative importance higher than 35 percent, followed by
the energy consumption, that is conļ¬rmed as an important
factor in customer choices. The spin dryer speed and brand
assume a moderate importance, while water consumption has
a very low importance.
iv) Utility estimate and relative importance of the attributes
The results of the interviews were elaborated using PASW
conjoint 18 of SPSS to obtain the utility coefļ¬cients for each
attribute, reported in Table III along with the standard error.
The utility coefļ¬cients allow to calculate the relative
importance of each attribute.
Results of correlation tests using R of Pearson and Tau of
Kendall, (Pearsonās R Ā¼ 0:878, with p-value 0.000; Kendallās
Tau Ā¼ 0:650, with p-value 0.000) point out the existence of
signiļ¬cant correlation among the estimate and the observed
preferences.
The utility estimates provided in Table III express the value
assigned by the interviewed sample to the speciļ¬c levels of
each attribute. Based on that, we can compute the importance
of each attribute, expressed as its āpart-worthā, that is the
percentage of the total decision ascribed to that attribute. In
other words, the gaps emerging from the different utilities give
a measure of the value perceived by the customer moving
from one level to another of the same attribute. The relative
importance of each attribute is calculated by equation
(Molteni, 1993) (1):
MaxĀ½UjWji Å 2 MinĀ½UjWji Å
Utility estimate
4.2 Step 2: value for the customer of the washing
machine sample
Given the utility estimates computed in Step 1, we calculated
the value assigned to the actual products available on the
market, i.e. the 129 washing machine models in our sample.
We substituted to the actual levels of the different
attributes, except price, the utility values in order to
calculate the value assigned to the real product proļ¬les. The
computation is made thanks to equation (2) (Molteni,
P
1993):VFC* i Ā¼ b0 Ć¾ k UjWji
jĀ¼1
VFC* Ā¼ b0 Ć¾
i
k
X
U j W ji
Ć°2Ć
jĀ¼1
where VFC *i is the global utility of the washing machine i in
the sample, b0 is the constant; k is the total number of the
offeringās attributes (4, since price is excluded), Wij is the
level of the ājā attribute of the āiā product proļ¬le and UjWij
represents the utility level associated to the speciļ¬c attribute
assumed by the speciļ¬c product proļ¬le. In our case the value
for the customer of product i is given by the sum of the Brand
utility, Energy consumption utility, Water consumption utility
and Spin dryer speed utility. Our global utility indicator does
not include the price utility, therefore it can be compared with
the actual market price of the products.
Ć°1Ć
where IRj is the relative importance of the j attribute; k is the
number of the attributes included in the analysis; Max
[UjWji ] is the maximum utility value associated to the Wji
level of the ājā attribute of the āiā product proļ¬le; Min
[UjWji ] is the minimum utility value associated to the Wji
level of the ājā attribute of the āiā product proļ¬le. The IRj
calculated as in (1) are reported in Table II.
542
6. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
4.3. Step 3: exploring the relationship between price and
value for the customer
In order to test whether the price of washing machines is
consistent with the value for the customers, we performed a
regression analysis of the price versus VFC * for the 129
washing machine models in the sample. We carried out the
analysis separately on two subsamples according to the
loading capacity (5 kg and 5.5-6 kg), to avoid any possible bias
in the results, as explained in the Appendix. Table IV shows
the results of the regression analysis.
Table IV suggests that a positive linear relationship between
price and VFC * (value for the customer considering all the
attributes except price) exists in one subsample (loading
capacity equal to 5 kg), where the level of p and adjusted R2
support a statistical signiļ¬cance of the results, but not in the
other (low value of p and adjusted R2).
The results reported in this section suggest that the
alignment between price and value for the customer in the
empirical sample is unclear, or at least partial: this seems in
line with the limited adoption of value based pricing pointed
out in the literature review section.
out in Table II. Besides price, customers give a high
importance to the energy consumption, showing an increased
awareness about both the environmental and ļ¬nancial lifecycle
impact of durable goods: energy-efļ¬cient washing machines,
indeed, will consume less environmental resources and
generate lower usage costs during their lifecycle compared to
less efļ¬cient ones. Although speciļ¬c of one kind of product,
our ļ¬ndings contribute to the discussion about the role of
environmental attributes in customer choices and their relation
with pricing policies. In line with other studies (Sammer and
Wustenhagen, 2006; Mills and Scleich, 2010; Deutsch, 2010,
Ward et al., 2011) our work shows that customers attach value
to environmental factors when purchasing durables and this
should be taken into consideration when adopting value-based
pricing policies. Moreover, customers trade-off the
environmental impact of product attributes with their
economic impact over the lifecycle. On the latter aspect
results from previous research are contradictory (do customers
value attributes such as energy efļ¬ciency less or more than the
monetary savings achievable during the product lifecycle?, see
e.g. Ward et al., 2011; Deutsch, 2010). Interpreting the results
of this study we can raise an observation about the relation of
environmental attributes with the perceived product quality.
Customers give a very different importance to energy and
water consumption of washing machines: they seem to attach
both environmental and ļ¬nancial savings (with no impact on
product quality) to reduced energy consumption. On the other
hand, they do not attach monetary savings to lower water
consumption (due to the low cost of water) and trade-off the
environmental savings with a perceived reduction in product
quality: in fact, 46 percentof the customer sample attached a
lower value to lower water consumption. This point leads to
another issue: the role of information/communication in
inļ¬uencing the customersā perceived value (Ward et al.,
2011) and thus perceived price fairness (Cockrill and Goode,
2010). Increasing customer awareness on e.g. the impact on
product quality of lower water consumption, or the energy
label or consumption knowledge and its cost saving effects
(Mills and Scleich, 2010), may inļ¬uence the value for the
customer of such attributes.
Finally, interpreting the ļ¬ndings from this study, we can
suggest an additional obstacle to value-based pricing to the
ones evidenced by the literature. The misalignment between
prices and value for the customer could derive from a limited
market sensing ability, but also from the very market
structure. In an industry characterized by intermediation
(retail chains sell to ļ¬nal customers washing machines made
by manufacturers) and concentration at both the
manufacturing and retail level, price pressures are induced
and price promotions at the retail level are very common.
These factors inļ¬uence substantially the actual market prices,
5. Conclusion
Although the literature points out the beneļ¬ts of value-based
pricing policies (Cannon and Morgan, 1990; Monroe, 2003;
Ingenbleek et al., 2003; Docters et al., 2004), their diffusion is
still limited in business practice: as well, very few empirical
studies in durable consumer goods are reported in the
literature assessing value for the customer and pricing
policies. We aim to contribute in ļ¬lling this gap and add to
the body of research on value based pricing in durable
consumer goods with an empirical study in the washing
machines market.
To our knowledge, this study is among the ļ¬rst attempts to
assess the alignment between the value for the customer and
the actual market prices on a large sample of durable
consumer products. Our methodology is based on an
estimation of the value for the customer, through the
conjoint analysis technique, of attributes other than price
(brand, energy consumption, water consumption, spin dryer
speed) and on a regression analysis to assess the relationship
between actual prices and value for the customer.
The empirical results show some alignment in one
subsample (5 kg loading capacity), that is not conļ¬rmed in
the other subsample (6 kg). This constitutes additional
evidence supporting the claim that the customer-value based
approach, despite the beneļ¬ts acknowledged, is still not
established as a prominent practice in durable goods markets
(Hinterhuber, 2008; Carricano et al., 2010).
Moreover, our study sheds some light on the sources of value
for the customer in the product category studied, as pointed
Table IV Results of the regression analysis
5 kg capacity sub-sample
(n 5 66)
b1
p
Price vs VFC *
R2
0.441
0.26
,0.0001
Adjusted R2
5.5-6 kg capacity sub-sample
(n 5 63)
b1
p
R2
Adjusted R2
0.22
0.444
0.11
543
0.0011
0.16
7. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
even in presence of a declared āvalue pricing orientationā by
manufacturers.
This study also has some managerial implications. First, as
remarked in section 2.1, one of the main obstacles to the
implementation of value-based pricing policies is given by
value assessment. Conjoint analysis, a rigorous technique to
assess value for the customer, has a relatively low diffusion,
due to its complexity, the perceived difļ¬culty in administering
the survey and the limited market orientation of companies.
This study provides an example and guidelines to
practitioners on how to implement a customer value
assessment and check the alignment of their companiesā
pricing policies to customersā value perceptions.
Moreover, our ļ¬ndings give to practitioners in the studied
industry a picture of the alignment of prices with customer
value, providing them a deeper understanding of the
consequences of misaligned pricing. In fact, setting prices
without considering the customer value, could bring either to
lost sales (effect of overpriced products) or to lost margins
(underpriced products): understanding the value attached to
the different product attributes allow āvalue for moneyā to be
given to the customers, better exploiting the proļ¬t potential of
the products and eventually increasing customer satisfaction
and market shares.
Besides its merits, this paper presents some important
limitations, too. First of all, the results of the study refer to a
speciļ¬c product category and a speciļ¬c national market,
although their representativeness as a mature durable in a
mature market suggests a broader value of the ļ¬ndings.
Moreover, both the conjoint analysis and the regression
analysis are based on limited samples, that prevent the
discerning of a statistical basis if the different brands adopt
different approaches to pricing, as suggested by our analyses.
Finally, it is important to notice that our empirical research
lacks explanatory power about the reasons of the
misalignment between price and value for the customer in
the investigated sector. Some interpretations of results in this
sense are provided, but they are based on the knowledge of
the industry by the authors and their personal judgment.
These research limitations clearly indicate some directions
for future research: to increase the sample sizes, the product
categories and geographical markets investigated, to involve
company managers in qualitative research to investigate the
pricing policies and processes they adopt. Moreover, the
research implications reported above also pave the way for
future research on the perceived value of product attributes in
durables, with particular emphasis on their environmental and
life-cycle cost impacts.
Baron, R.M. and Kenny, D.A. (1986), āThe moderatormediator variable distinction in social psychological
research:
conceptual,
strategic
and
statistical
considerationsā, Journal of Personality and Social
Psychology, Vol. 51, pp. 1173-82.
Bayus, B.L. (1992), āBrand loyalty and marketing strategy: an
application to home appliancesā, Marketing Science, Vol. 11
No. 1, pp. 21-38.
Bolton, L.E. and Alba, J.W. (2006), āPrice fairness: good and
service differences and the role of vendor costsā, Journal of
Consumer Research, Vol. 33 No. 2, pp. 258-65.
Busacca, B., Costabile, M. and Ancarani, F. (2004), Prezzo e
valore per il cliente: tecniche di misurazione e applicazioni
manageriali, Etas, Milano.
Campbell, M.C. (1999), āPerceptions of price unfairness:
antecedents and consequencesā, Journal of Marketing
Research, Vol. 8 No. 2, pp. 145-52.
Campbell, M.C. (2007), āSays who?! How the source of price
information and affect inļ¬uence perceived price
(un)fairnessā, Journal of Marketing Research, Vol. 44 No. 2,
pp. 261-71.
Cannon, H.M. and Morgan, F.W. (1990), āA strategic pricing
frameworkā, The Journal of Services Marketing, Vol. 4 No. 2,
p. 19.
Carricano, M., Trinquecoste, J.F. and Mondejar, J.A. (2010),
āThe rise of the pricing function: origins and perspectivesā,
Journal of Product & Brand Management, Vol. 7, pp. 468-76.
Choi, S. and Mattila, A. (2009), āPerceived fairness of price
differences across channels: the moderating role of price
frame and norm perceptionsā, Journal of Marketing Theory
and Practice, Vol. 17 No. 1, pp. 37-47.
Cockrill, A. and Goode, M.M.H. (2010), āPerceived price
fairness and price decay in the DVD marketā, Journal of
Product & Brand Management, Vol. 19 No. 5, pp. 367-74.
Deutsch, M. (2010), āLife-cycle cost disclosure, consumer
behavior, and business implicationsā, Journal of Industrial
Ecology, Vol. 14 No. 1, pp. 103-20.
Dickson, P.R. and Kalapuraka, R. (1994), āThe use of
perceived fairness of price-settings rules in the bulk
electricity marketā, Journal of Economic Psychology, Vol. 15,
pp. 427-48.
Diller, H. (2008), āPrice fairnessā, Journal of Product & Brand
Management, Vol. 17 No. 5, pp. 353-5.
Docters, R., Reopel, M., Sun, J. and Tanny, S. (2004),
Winning the Proļ¬t Game ā Smarter Pricing, Smarter
Branding, McGraw-Hill, New York, NY.
Fisher, M.L. (1997), āWhat is the right supply chain for your
product?ā, Harvard Business Review, Vol. 75 No. 2,
pp. 105-16.
Foxall, G. (1972), āA descriptive theory of pricing for
marketingā, European Journal of Marketing, Vol. 6 No. 3,
pp. 190-4.
Green, P.E. and Srinivasan, V. (1978), āConjoint analysis in
consumer research: issues and outlookā, Journal of
Consumer Research, Vol. 5, pp. 103-23.
Green, P.E. and Srinivasan, V. (1990), āConjoint analysis in
marketing: new developments with implications for
research and practiceā, Journal of Marketing, Vol. 54,
pp. 3-19.
References
Avlonitis, G. and Indounas, K. (2006), āHow are prices set?
An exploratory investigation in the Greek services sectorā,
Journal of Product & Brand Management, Vol. 15 No. 3,
pp. 203-13.
Barbiroli, G. and Focacci, A. (2003), āA techno-economic
analysis of the results of product diversiļ¬cation in household
appliance durables ā evaluating concretenessā, International
Journal of Production Economics, Vol. 83, pp. 257-78.
544
8. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
Grewal, D., Monroe, K.B. and Krishnan, R. (1998), āThe
effects of price-comparison advertising on buyersā
perceptions of acquisition value, transaction value, and
behavioral intentionsā, Journal of Marketing, Vol. 62 No. 2,
pp. 46-59.
Haws, K.L. and Bearden, W.O. (2006), āDynamic pricing
and consumer fairness perceptionsā, Journal of Consumer
Research, Vol. 33, pp. 304-11.
Hinterhuber, A. (2008), āCustomer value-based pricing
strategies: why companies resistā, The Journal of Business
Strategy, Vol. 29 No. 4, pp. 41-50.
Huang, J.H., Chang, C.-T. and Chen, C.Y.-H. (2005),
āPerceived fairness of pricing on the internetā, Journal of
Economic Psychology, Vol. 26, pp. 343-61.
Ingenbleek, P. (2007), āValue-informed pricing in its
organizational context: literature review, conceptual
framework, and directions for future researchā,
Agricultural Economics Research, Vol. 7, pp. 441-58.
Ingenbleek, P., Debruyne, M., Frambach, R.T. and Verhallen,
T.M.M. (2003), āSuccessful new product pricing practices:
a contingency approachā, Marketing Letters, Vol. 14 No. 4,
pp. 289-305.
Ingenbleek, P.T.M., Frambach, R.T. and Verhallen, T.M.M.
(2010), āThe role of value-informed pricing in maketoriented product innovation managementā, Journal of
Product Innovation Management, Vol. 27, pp. 1032-46.
Jung, A.F. (1958), āPrice variations on automatic washing
machines in Chicago, Illinois, among different types of retail
outletsā, The Journal of Business, Vol. 31 No. 4, pp. 311-7.
Martinez, E. and Polo, Y. (1996), āAdopter categories in the
acceptance process for consumer durablesā, Journal of
Product & Brand Management, Vol. 5 No. 3, pp. 34-47.
Mills, B. and Scleich, J. (2010), āWhatās driving energy
efļ¬cient appliance label awareness and purchase
propensity?ā, Energy Policy, Vol. 38, pp. 814-25.
Molteni, L. (1993), Lāanalisi multivariata nelle ricerche di
marketing, Egea, Milano.
Monroe, K.B. (2003), Pricing: Making Proļ¬table Decisions,
McGraw-Hill, New York, NY.
Mukherjee, A. and Hoyer, W.D. (2001), āThe effect of novel
attributes on product evaluationā, Journal of Consumer
Research, Vol. 28 No. 3, pp. 462-72.
Perona, M., Cigolini, R., Adani, M., Biondi, R., Guzzetti, S.,
Jenna, R. and Angellara, S. (2001), āThe integrated
management of logistic chains in the white goods
industry: a ļ¬eld research in Italyā, International Journal of
Production Economics, Vol. 69, pp. 227-38.
Piercy, N.F., Cravens, D.W. and Lane, N. (2010), āThinking
strategically about pricing decisionsā, Journal of Business
Strategy, Vol. 31 No. 5, pp. 38-48.
Saccani, N., Songini, L. and Gaiardelli, P. (2006), āThe role
and performance measurement of after-sales in the durable
consumer goods industries: an empirical studyā,
International Journal of Productivity and Performance
Management, Vol. 55 Nos 3/4, pp. 259-83.
Sammer, K. and Wustenhagen, R. (2006), āThe inļ¬uence of
eco-labeling on consumer behavior: results of a discrete
choice analysisā, Business Strategy and the Environment,
Vol. 15 No. 3, pp. 185-99.
Stamer, H.H. and Diller, H. (2006), āPrice segment stability
in consumer goods categoriesā, Journal of Product & Brand
Management, Vol. 15 No. 1, pp. 62-72.
Tellis, G. (1989), āThe impact of corporate size and strategy
on competitive pricingā, Strategic Management Journal,
Vol. 10 No. 6, pp. 569-85.
Tellis, G. and Wernerfelt, J.B. (1987), āCompetitive price and
quality under asymmetric informationā, Marketing Science,
Vol. 6 No. 1, pp. 240-53.
Ward, D., Clark, C., Jensen, K., Yen, S. and Russel, C.
(2011), āFactors inļ¬uencing the willingness-to-pay for the
Energy Star labelā, Energy Policy, Vol. 39, pp. 1450-8.
Further reading
Anderson, J.C. and Narus, J.A. (1999), Business Market
Management: Understanding, Creating and Delivering Value,
Prentice Hall, Upper Saddle River, NJ.
Hinterhuber, A. (2004), āTowards value-based pricing ā an
integrative framework for decision makingā, Industrial
Marketing Management, Vol. 33 No. 8, pp. 765-78.
Kortge, G.D. and Okonkwo, P.A. (1993), āPerceived value
approach to pricingā, Industrial Marketing Management,
Vol. 22 No. 2, pp. 133-40.
Appendix. Preliminary sample analysis
The initial sample concerned 450 washing machines of 17
different brands. As a preliminary analysis, we wanted to
check the inļ¬uence of loading capacity on the appliancesā
price and on the other features, as emerged from results of
previous literature (Barbiroli and Focacci, 2003). To test this
assumption, we used a non-parametric ANOVA on the
subgroups, and we set up a mediation model (Baron and
Kenny, 1986) to test the effect of the capacity on the
dependence between price and the other technical features.
Table AI shows the mean for all the considered features on
the subgroups of models with similar capacity:
The ANOVA tests (not provided here) suggested a
statistically signiļ¬cant difference among the different
capacity classes regarding price, energy consumption, water
consumption and spin dryer speed. Moreover, as reported in
Table AI, the loading capacity acts as a mediator on the
dependence between price and the other technical features.
Table AII reports on the left the results of simple linear
regressions between price and capacity, price and energy
consumption, and on the right the results of a multiple
regression on price vs capacity and energy consumption.
Introducing the capacity variable in the regression, the
dependence between price and energy consumption changes
direction, thus demonstrating the mediation effect.
The analysis in Table AII suggests that the relation between
energy consumption and price is indeed inļ¬uenced by the
loading capacity. When we consider homogeneous capacity
subsamples, in fact, the relation between price and the other
technical characteristics change or disappear as reported in
section 3.2. Therefore, to avoid any bias introduced by the
loading capacity, we decided to carry out the analysis dividing
the ļ¬nal sample into two different capacity classes.
545
9. The relationship between customer value and pricing strategies
Journal of Product & Brand Management
Anna Codini, Nicola Saccani and Alessandro Sicco
Volume 21 Ā· Number 7 Ā· 2012 Ā· 538 ā546
Table AI Mean of the analyzed features for distinct loading capacity classes
< 5 kg
Number of models
Mean
Price
Energy consumption (KwH/cycle)
Water consumption (l/cycle)
Spin dryer speed (turns/minute)
36
439.13
0.80
47.33
893.06
5 kg
Loading capacity
5.5-6 kg
6.5-7 kg
126
359.58
0.88
49.13
878.17
8 kg
> 8 kg
Overall sample
130
88
52
18
450
506.69
1.02
52.41
1,056.15
521.24
1.19
57.66
1,152.27
632.47
1.39
63.12
1,228.85
859.06
1.52
75.17
1,244.44
491.57
1.06
54.26
1,039.56
Table AII Mean of the analyzed features for distinct loading capacity classes (initial sample)
Simple linear regressions
Loading capacity
Energy consumption
b1
p
b1
p
Price
74,114
,0.0001
324.37
Multiple linear regression
Loading capacity
Energy consumption
b1
p
b1
p
134,41
,0.0001
About the authors
, 0.0001
2 393.25
0.0003
(www.scsm.it). He is also part of the ASAP Service
Management Forum (www.asapsmf.org). His research and
publications concern mainly service operations management,
buyer-supplier relationships and demand and inventory
planning for spare parts.
Alessandro Sicco is Post-doc Fellow at the University of
Brescia where he is a member of the Supply Chain and
Service Management Research Centre (www.scsm.it). He is
also part of the ASAP Service Management Forum
(www.asapsmf.org). His main research ļ¬eld concerns
information systems and their implementation (evaluation,
impact on performances) on SMEs.
Anna Codini is Researcher and Aggregate Professor at the
University of Brescia where she teaches Innovation and
Operations Management. She is a member of the scientiļ¬c
committee of the Supply Chain and Service Management
Research Centre (www.scsm.it). Her research activity and
publications concern mainly purchasing and innovation
management. Anna Codini is the corresponding author and
can be contacted at: codini@eco.unibs.it
Nicola Saccani is Researcher and Aggregate Professor at the
University of Brescia where he is a member of the Supply
Chain and Service Management Research Centre
To purchase reprints of this article please e-mail: reprints@emeraldinsight.com
Or visit our web site for further details: www.emeraldinsight.com/reprints
546