Market dynamics and technological developments constitute a major challenge to the proper measurement of the price evolution of durable goods. In this study, hedonic methods are used to estimate quality-corrected price indices of new passenger cars in the Netherlands, 1990-1999. Use is made of a huge set of price, quantity and quality information about 11,000 car models, obtained from different sources. During the observation period the nominal price level of all available car models increased about 20% on average, while the shares of car models with airbags, tinted glass and power steering increased from almost nothing to about 90%. Matched model price indices and the official CPI for new passenger cars, which partially account for quality-adjustments, estimate the price increase to be equal to 10.6-14.2% respectively 11.2% for the 1990-1999 period. By contrast, the hedonic Fisher-like price indices based on the preferred annually estimated brand-weighted semi-log hedonic model, lead to price changes varying from + 2.3% to - 3.4% (depending on the choice of weight variable, and the use of fixed or varying reference periods in the index construction) and thereby fall 8.9 to 14.6 percentage points below the official figures, over the period 1990-1999. The pooled adjacent-years model holds an intermediate position with a predicted quality-corrected price decrease of 1.8% over the observation period, which is 13.0 points below the CPI.
This study deals with the measurement of the effects of retail marketing instruments on annual sales in retail stores. We assume that the sales level in retail stores is determined by an interplay of supply capacity and demand factors. In some stores sales are supply-determined, whereas in other stores sales are demand-determined. If it is not known a priori what economic regime applies, the more traditional approaches lead to biased estimation results. Therefore, a switching regression model is proposed to estimate the marketing mix effects.Our ideas are tested using data from four different types of stores in the Dutch retail trade and a comparison is made with a more traditional approach. North-Holland mix effects. A switching regression model seems to be a promising instrument for analyzing these effects. The method has a wider applicability than the retail trade. 0167-8116/88/$3.50 0 1988, Elsevier Science Publishers B.V. (North-Holland)
Literature suggests that in battles between competing standards, ultimately one standard will emerge as the dominant one to the detriment of the others. Various factors and forces have been identified to explain this phenomenon. The factor of marketing communications is one of these. This paper addresses its influence on standards dominance by analyzing 46 different standards from the high tech industry developed by consortia. We found five determinants of marketing communications, each with a direct positive impact on standards dominance . This study is new in applying insights from marketing (communications) literature to standards battles and in empirically showing the impact of marketing communications on standards dominance. Our findings have managerial implications both for standardization consortia and for participants in these consortia. 1 echnology standards such as the DVD became dominant to the detriment of competing standards such as SVCD or Video CD. Past research (Flipsen, 2007) has shown how standards such as the DVD specifications, but also standards that were less successful such as the SVCD or Video CD can be informative about the success factors for future dominance of standards that are currently still in battle. Many of these standards are developed in consortia, where several stakeholders (e.g. companies or knowledge institutions, and other actors) join forces and add value to the realization and successfulness of a standard. We will focus on battles between compatibility standards: standards that define the interface between two or more mating elements that are compatible rather than similar, e.g., a plug and a socket, a transmitter and a receiver (Krechmer, 1996). Such interface specifications are sometimes also referred to as (dominant) designs (Suarez, 2004;Schilling, 2002) though that term can be used broader. 'The dominant standard is not automatically the technologically superior one, nor will it meet the needs of a particular class to the same extent as a customized standard would' (e.g. Anderson &Tushman, 1990 andUtterback, 1994). Van de Kaa et al. (2011) made an inventory of factors that contribute to standards dominance and studied their impact. In a historical multi-case study, Flipsen (2007) investigated 46 cases of standards that had competed for dominance, 23 with success and 23 with failure. His statistical analysis revealed two factors to be the most important ones: marketing communications and backwards compatibility. For our research project we have therefore decided to focus on one of these factors, marketing communications, and in a parallel project we have investigated backwards compatibility. So in this paper we ignore other less important but nevertheless also relevant factors such as intellectual property. In this paper, we identify the causes that determine marketing communications as an important factor influencing the dominance of a standard. A standard will be considered as the dominant one, when more than 50% of new installations in a product category use the st...
ABSTRACT. In this paper a quantitative model is developed to explain differences in average store price levels. We assume that stores may operate under different economic regimes, that is, under excess capacity or excess demand. Prices are expected to be higher than average in case of an excess demand regime and lower in an excess capacity situation. Actual information regarding the regime that applies to each individual store is not available. Therefore, we propose to use a so-called 'switching model' with endogenous regime choice to analyse the store price differences. The model developed m the paper is estimated using four largely differing types of stores from the Durch retail trade. These samples consist mainly of small stores.
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