Consumers' behavior and the Bertrand paradox: an ACE approach

We analyze the classical Bertrand model when consumers exhibit some strategic behavior in deciding from which seller they will buy. We use two related but different tools. Both consider a probabilistic learning (or evolutionary) mechanism, and in the two of them consumers' behavior in uences the competition between the sellers. The results obtained show that, in general, developing some sort of loyalty is a good strategy for the buyers as it works in their best interest. First, we consider a learning procedure described by a deterministic dynamic system and, using strong simplifying assumptions, we can produce a description of the process behavior. Second, we use nite automata to represent the strategies played by the agents and an adaptive process based on genetic algorithms to simulate the stochastic process of learning. By doing so we can relax some of the strong assumptions used in the rst approach and still obtain the same basic results. It is suggested that the limitations of the rst approach (analytical) provide a good motivation for the second approach (Agent-Based). Indeed, although both approaches address the same problem, the use of Agent-Based computational techniques allows us to relax hypothesis and overcome the limitations of the analytical approach.

Are two-part tariffs efficient when consumers plan ahead?: An empirical study

During the last two decades there has been an increase in using dynamic tariffs for billing household electricity consumption. This has questioned the suitability of traditional pricing schemes, such as two-part tariffs, since they contribute to create marked peak and offpeak demands. The aim of this paper is to assess if two-part tariffs are an efficient pricing scheme using Spanish household electricity microdata. An ordered probit model with instrumental variables on the determinants of power level choice and non-paramentric spline regressions on the electricity price distribution will allow us to distinguish between the tariff structure choice and the simultaneous demand decisions. We conclude that electricity consumption and dwellings’ and individuals’ characteristics are key determinants of the fixed charge paid by Spanish households Finally, the results point to the inefficiency of the two-part tariff as those consumers who consume more electricity pay a lower price than the others.

Consumers’ sensory acceptability of pork from immunocastrated male pigs

Boar taint is the off-odour or off flavour of cooked pork. Currently, the most common method of controlling boar taint is surgical castration. However, immunocastration has been used in some parts of the world as an alternative to surgical castration. The aim of this study was to evaluate the sensory acceptability of meat from immunocastrated pigs (IM) compared with meat from females (FE), surgically castrated (CM) and entire males (EM). Twenty animals of each type were evaluated by 201 consumers in 20 sessions. Longissimus thoracis muscle of the different animals was cooked in an oven at 180 °C for 10 min. Consumers scored the odour and the flavour of the meat in a 9-point category scale without an intermediate level. There were no significant differences in consumer’s evaluation of meat from IM, CM, and FE. In contrast, EM meat presented a higher percentage of dissatisfied scores and was significantly (P & 0.05) less accepted than meat from CM, IM and FE. Consumers’ acceptability of EM meat was always lower, independently of its androstenone levels. However meat with low levels of androstenone was more accepted that meat with medium or high levels of this substance. It can be concluded that immunocastration produced pork that was accepted by the consumers, and was indistinguishable from pork from CM or FE.

Seeking theta's desperately: Estimating the distribution of consumers under increasing block rates

This paper shows that the distribution of observed consumption is not a good proxy for the distribution of heterogeneous consumers when the current tariff is an increasing block tariff. We use a two step method to recover the "true" distribution of consumers. First, we estimate the demand function induced by the current tariff. Second, using the demand system, we specify the distribution of consumers as a function of observed consumption to recover the true distribution. Finally, we design a new two-part tariff which allows us to evaluate the equity of the existence of an increasing block tariff.

Selling to consumers with endogenous types

For many goods (such as experience goods or addictive goods), consumers preferences may change over time. In this paper, we examine a monopolist s optimal pricing schedule when current consumption can affect a consumer s valuation in the future and valuations are unobservable. We assume that consumers are anonymous, i.e. the monopolist can t observe a consumer s past consumption history. For myopic consumers, the optimal consumption schedule is distorted upwards, involving substantial discounts for low valuation types. This pushes low types into higher valuations, from which rents can be extracted.For forward looking consumers, there may be a further upward distortion of consumption due to a reversal of the adverse selection effect; low valuation consumers now have a strong interest in consumption in order to increase their valuations. Firms will find it profitable to educate consumers and encourage forward looking behavior.

Supermarket key attributes and location decisions: A comparative study between British and Spanish consumers

The Maximum Capture problem (MAXCAP) is a decision model that addresses the issue of location in a competitive environment. This paper presents a new approach to determine which store s attributes (other than distance) should be included in the newMarket Capture Models and how they ought to be reflected using the Multiplicative Competitive Interaction model. The methodology involves the design and development of a survey; and the application of factor analysis and ordinary least squares. Themethodology has been applied to the supermarket sector in two different scenarios: Milton Keynes (Great Britain) and Barcelona (Spain).

Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment

The aim of this paper is twofold: firstly, to carry out a theoreticalreview of the most recent stated preference techniques used foreliciting consumers preferences and, secondly, to compare the empiricalresults of two dierent stated preference discrete choice approaches.They dier in the measurement scale for the dependent variable and,therefore, in the estimation method, despite both using a multinomiallogit. One of the approaches uses a complete ranking of full-profiles(contingent ranking), that is, individuals must rank a set ofalternatives from the most to the least preferred, and the other usesa first-choice rule in which individuals must select the most preferredoption from a choice set (choice experiment). From the results werealize how important the measurement scale for the dependent variablebecomes and, to what extent, procedure invariance is satisfied.

Transmedia Storytelling: Implicit Consumers, Narrative Worlds, and Branding in Contemporary Media Production

Many concepts have been developed to describe the convergence of media, languages, and formats in contemporary media systems. This article is a theoretical reflection on “transmedia storytelling” from a perspective that integrates semiotics and narratology in the context of media studies. After dealing with the conceptual chaos around transmedia storytelling, the article analyzes how these new multimodal narrative structures create different implicit consumers and construct a narrative world. The analysis includes a description of the multimedia textual structure created around the Fox television series 24. Finally, the article analyzes transmedia storytelling from the perspective of a semiotics of branding.

Transforming Downtown St. Catharines into a Creative Cluster

The City of St. Catharines, located on the southern shore of Lake Ontario, is Niagara Region's only major urban node. Like many small/medium-sized cities in Canada and abroad, the city experienced a rapid decline of large-scale manufacturing in the 1990s. In a renewed attempt to recover from this economic depression, and spurred by Provincial policy, the City implemented the Downtown Creative Cluster Master Plan (DCCMP) in 2008. In this thesis I conduct a discourse analysis of the DCCMP. My analysis indicates that DCCMP is shaped by neoliberal economic development paradigms. As such it is designed to restructure the downtown into a creative cluster by attracting developers/investors and appealing to the interests, tastes, and desires of middle-class consumers and creatives. I illustrate that this competitive city approach to urban planning has a questionable track record, and has been shown to result in retail and residential gentrification and displacement.

Carbon/Nitrogen ratio of plant tissues and biomass of belowground consumers after 11 years of experimental treatment, Toolik lake

Theory and observation indicate that changes in the rate of primary production can alter the balance between the bottom-up influences of plants and resources and the top-down regulation of herbivores and predators on ecosystem structure and function. The Exploitation Ecosystem Hypothesis (EEH) posited that as aboveground net primary productivity (ANPP) increases, the additional biomass should support higher trophic levels. We developed an extension of EEH to include the impacts of increases in ANPP on belowground consumers in a similar manner as aboveground, but indirectly through changes in the allocation of photosynthate to roots. We tested our predictions for plants aboveground and for phytophagous nematodes and their predators belowground in two common arctic tundra plant communities subjected to 11 years of increased soil nutrient availability and/or exclusion of mammalian herbivores. The less productive dry heath (DH) community met the predictions of EEH aboveground, with the greatest ANPP and plant biomass in the fertilized plots protected from herbivory. A palatable grass increased in fertilized plots while dwarf evergreen shrubs and lichens declined. Belowground, phytophagous nematodes also responded as predicted, achieving greater biomass in the higher ANPP plots, whereas predator biomass tended to be lower in those same plots (although not significantly). In the higher productivity moist acidic tussock (MAT) community, aboveground responses were quite different. Herbivores stimulated ANPP and biomass in both ambient and enriched soil nutrient plots; maximum ANPP occurred in fertilized plots exposed to herbivory. Fertilized plots became dominated by dwarf birch (a deciduous shrub) and cloudberry (a perennial forb); under ambient conditions these two species coexist with sedges, evergreen dwarf shrubs, and Sphagnum mosses. Phytophagous nematodes did not respond significantly to changes in ANPP, although predator biomass was greatest in control plots. The contrasting results of these two arctic tundra plant communities suggest that the predictions of EEH may hold for very low ANPP communities, but that other factors, including competition and shifts in vegetation composition toward less palatable species, may confound predicted responses to changes in productivity in higher ANPP communities such as the MAT studied here.

Consumers mediate the effects of experimental ocean acidification and warming on primary producers

It is well known that ocean acidification can have profound impacts on marine organisms. However, we know little about the direct and indirect effects of ocean acidification and also how these effects interact with other features of environmental change such as warming and declining consumer pressure. In this study, we tested whether the presence of consumers (invertebrate mesograzers) influenced the interactive effects of ocean acidification and warming on benthic microalgae in a seagrass community mesocosm experiment. Net effects of acidification and warming on benthic microalgal biomass and production, as assessed by analysis of variance, were relatively weak regardless of grazer presence. However, partitioning these net effects into direct and indirect effects using structural equation modeling revealed several strong relationships. In the absence of grazers, benthic microalgae were negatively and indirectly affected by sediment-associated microalgal grazers and macroalgal shading, but directly and positively affected by acidification and warming. Combining indirect and direct effects yielded no or weak net effects. In the presence of grazers, almost all direct and indirect climate effects were nonsignificant. Our analyses highlight that (i) indirect effects of climate change may be at least as strong as direct effects, (ii) grazers are crucial in mediating these effects, and (iii) effects of ocean acidification may be apparent only through indirect effects and in combination with other variables (e.g., warming). These findings highlight the importance of experimental designs and statistical analyses that allow us to separate and quantify the direct and indirect effects of multiple climate variables on natural communities.

What makes an ad enjoyable? Analysing advertising appeals as viewed by Portuguese consumers

Nowadays, consumers are faced with a variety of media that convey myriad advertising messages, which struggle amidst a highly competitive environment, with a view to drawing the viewers’ attention, raising awareness, creating interest and inspiring desire and, ultimately, leading to the purchase of the product/service at stake. For this, advertising professionals deliberately intertwine their selling arguments with emotionally-charged creative concepts. It is the aim of this study to analyse the impact of the main creative appeals and to identify groups of consumers based on their attitudes towards them. We have undertaken a quantitative study, by means of a survey administered to a convenience sample with a list of creative appeals, which had to be classified by the respondents according to their attitudes. Globally speaking, the preferred appeals were humour, music and animation. Nonetheless, it was possible to divide the respondents into three groups. ‘Advertising fans’, the ‘rationally-minded’ and the ‘emotionally-minded’. This study presents some limitations, especially as to the sample used. Apart from the reduced number of respondents and lack of more widespread geographic reach, some academic qualifications were underrepresented. The results of this study offer some avenues to be explored by marketing and advertising professionals when it comes to deciding on the best creative approach to select for their advertising campaigns. Besides, this study paves the way to the development of future research on the issue of advertising appeals and its relationship with the psychographic characteristics of consumers.

Fashion opinion leadership, innovativeness and attitude toward advertising among Portuguese consumers

In the context of the fashion market, this study aims to analyze opinion leadership and, specifically, to verify the correlation that may exist between opinion leadership, fashion innovativeness and attitude towards fashion advertising. It is also intended to identify two different consumer groups: opinion leaders and fashion followers based on “opinion leadership” construct. Data collection was done through a self-administered questionnaire with a convenience sample of 203 graduate and postgraduate students of two universities of Porto, the second major city of Portugal. Results show a positive correlation between fashion innovativeness, fashion opinion leadership, and attitude towards fashion advertising. It was possible to identify two groups of consumers: fashion influencers, who exhibit a moderate sense of innovativeness and a positive attitude towards fashion advertising; and fashion followers who don’t consider themselves neither innovators nor opinion leaders, but have a moderate positive attitude towards fashion advertising.