Search Results for « Price Sensitivity »

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings One of the age-old business mantras to enter into common parlance is that the ‘customer is always right’, and at some stage or other we have probably invoked this or similar sentiments when arguing with somebody who has tried to sell us something that falls short of its claims. Whether it is the standard of a hotel room, an erroneous charge on a credit card bill or a faulty bread maker, when we as consumers are sure of our own rights and the sellers’ shortcomings, we will not be afraid to say so and demand some form of recompense. After all, if we want a better room, money paid back or a replacement bread maker, we should get it. Because the customer is always right. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Purpose: The purpose of the study is to find out the relation between the stock price and investment and to explore the consequence of information asymmetry on the stock price sensitivity to investment and investment sensitivity to the stock prices for the manufacturing firms that are working in Pakistan and listed at KSE.Methodology: Study was conducted by 99 firms listed at KSE and 1386 observations for the period of 2001-2014. Empirical studies were conducted based on two hypotheses by using price non-synchronous, price delay, firms' size and age as a proxy of asymmetric information and change in asset as a measure of investment.Findings: Overall results show that there is an insignificant negative correlation between the sensitivity of investment to stock prices and there is an insignificant positive correlation between the sensitivity of stock prices to the investment. The critical findings of the study are that the management must learn from the market during the decision making.Practical Implications: The research has significant impact on investors, firm management, Government and as well as for the young potential in the field of research.Originality/Value: The paper fills the research gap. It studies the impact of asymmetric information on the investment sensitivity to stock price, and the stock price sensitivity of investment in Karachi stock Exchange (Pakistan) for the first time.

ABSTRACT This study explores whether managers learn from stock prices when deciding on advertising expenditures. Analysing U.S. firms from 1994 to 2021, we find that higher stock price informativeness increases firms' advertising expenditure‐to‐price sensitivity. The results are validated using DiD estimation based on Regulation SHO and IV analyses. No correlation is found between stock price informativeness and advertising sensitivity to non‐price investment opportunities. Better price informativeness also strengthens the impact of advertising on sales. Finally, the positive effect of price informativeness on advertising expenditure‐to‐price sensitivity weakens in larger, older firms and strengthens in firms with higher product similarity and industry concentration.

Abstract Firms frequently develop products that offer meaningful customer value yet fail to generate corresponding pricing power. This paper conceptualizes that disconnect as the Value Translation Gap and introduces Pricing Topology, a theoretical framework explaining how prevailing category conventions influence which prices are perceived as legitimate. Rather than proposing a new estimation procedure, the framework extends the Van Westendorp PSM through three sequential stages: Value, Legitimacy, and Execution operationalized with four diagnostic indicators. Empirical illustrations demonstrate how identical PSM outputs yield fundamentally different pricing outcomes across category conventions, providing managers a framework for diagnosing pricing power rather than estimating acceptable prices.

Purpose This paper presents a model relating Nagle and Holden's factors of price sensitivity to expected price and willingness to pay. This work presents various perspectives on price elasticity/sensitivity, empirically tests aspects of the influence of perception of the offer (product/service) on expected price, and illustrates how the pricing methods developed within provide quantitative precision to the practice of price setting by capturing perceptions important to consumers. Design/methodology/approach The authors used a within‐subjects design to study four brands in two product categories, automobiles and computers. Model evaluation employs ordinary least squares regression. Findings Ten qualitative factors were studied. Overall, the results show four factors predict expected price for the target market, product and brand. The factors are perceived substitutes, quality, fairness, and unique value. Originality/value This research makes the following contributions. First, the authors are able to quantify ten factors of price sensitivity relevant to the evaluation of product pricing. Second, they are able to identify the relevant factors of price sensitivity for two product categories specific to a given target market. Third, they provide a data‐driven model that enables translation of pricing variables into quantitative values to arrive at the price of a product. The major theoretical contribution of this paper is to show that Nagle and Holden's ten factors of price sensitivity may act in the following way: the change in product/service perception may influence expected price, and then the change in expected price influences willingness to pay. The empirical focus of the current research is on the first of these two changes.