A behavioral model of the demand for consumer durables

Pickering, J. F.

doi:10.1016/0167-4870(81)90005-2

Cited by 34 publications

(10 citation statements)

References 8 publications

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“…Most work has focused on consumer purchase decisions for durables or financial services (e.g., Pickering, 1981;Soutar and Cornish-Ward, 1997). This neglect of tourism expenditure in relation to other expenditure is interesting; particularly when one considers that in developed countries a larger proportion of funds available for spending would be considered discretionary.…”

Section: The Economics Of Discretionary Expenditurementioning

confidence: 99%

Discretionary Expenditure and Tourism Consumption: Insights from a Choice Experiment

Crouch

Oppewal

Huybers

et al. 2007

Journal of Travel Research

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Consumers' decisions to spend money on tourism occur in the context of the other potential uses of their resources and corresponding values or utilities. While many studies have examined the demand for travel and tourism there is no known study that reveals how individuals and households make tradeoffs when allocating their spending between various potential categories of discretionary expenditure. This study assesses these tradeoffs empirically through the conduct of a choice experiment on a random sample of Australian consumers. The results provide insight into how each category of discretionary expenditure is valued and how spending in each category competes for a share of the discretionary expenditure 'pie' . We discuss the results with an emphasis on the implications for tourism.

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Section: The Economics Of Discretionary Expenditurementioning

confidence: 99%

Discretionary Expenditure and Tourism Consumption: Insights from a Choice Experiment

Crouch

Oppewal

Huybers

et al. 2007

Journal of Travel Research

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“…Pickering (1981) argues that models of the demand for consumer durables should include the nature of the decision-making process within the household, as well as consumers' expectations of general and personal economic conditions. Winer (1984) argues that such models should be refined by jointly modelling expectations of personal financial conditions and those for the general economic outlook.…”

Section: Financial Expectationsmentioning

confidence: 99%

Debt and Financial Expectations: An Individual- and Household-Level Analysis

et al. 2005

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In this paper we show that optimistic financial expectations impact positively on both the quantity of debt and the growth in debt, at the individual and household levels. Our theoretical model shows that this association is predicted under a variety of plausible scenarios. In the empirical analysis we explore the determinants of debt and of growth in debt using British data. We find convincing support for our theoretical priors and show that it is optimistic financial expectations per se that are important in influencing debt, rather than the accuracy of individuals' predictions regarding their future financial situation.

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“…Forecasting durable demand has been shown to be difficult (Pickering, 1978, 1981; Morrison, 1979; Winer, 1985; Bayus, 1991; Bayus and Gupta, 1992). Bayus (1991) argued that consumer spending on durables tends to vary and fluctuate more than spending on non‐durables, whereas Morwitz et al.…”

Section: Introductionmentioning

confidence: 99%

Need vs. opportunity recognition in household car replacements

Marell

Gärling

Laitila

2009

Int J Consumer Studies

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It is hypothesized that an intention to replace the owned car initiated by need recognition (a decrease in perceived current quality level of the old car) or opportunity recognition (an increase in aspired quality level of the new car) will result in purchases of different new cars. A sample of 1083 car owners were interviewed over telephone every fourth month during 2.5 years. The results showed that replacement intentions were not affected by how the intention was formed but that the choice of model year of the new car was. A younger car was chosen if the aspired quality level increased faster across interview waves than the current quality level decreased, and an older car was chosen if the current quality level decreased faster than the aspired quality level increased. As a consequence, if replacement intentions are the result of opportunity recognition, rejuvenation of the car fleet will be faster than if replacement intentions are the result of need recognition.

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A behavioral model of the demand for consumer durables

Cited by 34 publications

References 8 publications

Discretionary Expenditure and Tourism Consumption: Insights from a Choice Experiment

Discretionary Expenditure and Tourism Consumption: Insights from a Choice Experiment

Debt and Financial Expectations: An Individual- and Household-Level Analysis

Need vs. opportunity recognition in household car replacements

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